Should You Become an Entrepreneur???????

What is an Entrepreneur?? Entrepreneur- a person who owns, operates, and takes the risk of a business venture Entrepreneurship- the process of running ones own business Why do people become entrepreneurs? Want to leave the corporate world Be their own boss Personal dream

Types of Entrepreneurial Businesses Manufacturing Businesses Actually produce the products they sell Wholesaling Businesses Sell products to people other than the final customer. Usually sell to other businesses Retailing Businesses Sell products directly to the customer Service Businesses Sell services rather than products

EXAMPLES OF MANUFACTURING BUSINESSES Apparel and other textile products Chemicals and related products Electronics and other electrical equipment Fabricated metal products Food products Industrial machinery and equipment Printing and publishing Rubber and miscellaneous plastic products Stone, clay, and glass products

EXAMPLES OF WHOLESALING BUSINESSES Apparel Electrical goods Groceries and related products Hardware, plumbing, heating equipment Lumber, construction materials Machinery, equipment, supplies Motor vehicles, automotive equipment Paper, paper products Petroleum, petroleum products

EXAMPLES OF RETAILING BUSINESSES Auto and home supply stores Building materials and supply stores Clothing stores Florists Furniture stores Gift, novelty, and souvenir stores Grocery stores Hardware stores Jewelry stores Retail bakeries Shoe stores Sporting goods and bicycle stores

EXAMPLES OF SERVICE BUSINESSES Appliance repair Automotive repair Babysitting Bookkeeping Consulting Dance instruction Electrical services Exterminators Flower decorating House cleaning Lawn care Painting Plumbing Translating Travel agency Tutoring

Impact of Entrepreneurs on the Economy The spirit of Entrepreneurialism has always been a highlight of the American Economy Some of today’s largest company started out as one person responding to a need Hewlett-Packard, 3M, US Steel, Avon, Estee Lauder, Microsoft

Impact of Entrepreneurs on the Economy 19 th Century Entrepreneurs Cyrus McCormick took the reaper and used it to mechanize the job of harvesting crops Set up a factory with only $60 Company evolved into International Harvester Today the company is called Navistar International Transportation Company James J Hill – Transportation Baron (railroad) Quote about what it takes to be successful  “ Work, hard work, intelligent work, and then more work”  Personal fortune of approx. $63 million

Impact of Entrepreneurs on the Economy Early 20 th Century Entrepreneurs Olive Ann Beech co-founded the Beech Aircraft Co. with her husband. Handled all financial aspects of the company Took over the business when her husband became ill in 1940 until 1980 Clarence Birdseye developed packaged frozen foods in the 1920’s. Major impact on eating habits Rose Knox- took over Knox Gelatine Company in First to provide employees paid sick and vacation leave. And a five-day work week

Impact of Entrepreneurs on the Economy Entrepreneurs Today More than 6.5 million small businesses contribute billions of dollars every year to the U.S. Economy Employ more workers than all of the country’s large corporations combined Found in every sector of the economy Small companies can be more creative and take more risks This experimentation and innovation leads to change

Is Entrepreneurship Right For You Characteristics of Successful Entrepreneurs Independence Self-confident Determination and perseverance Goal-oriented Creative Act quickly…..but not too quickly

Assess Your Suitability Assess your aptitude Aptitude is the ability to learn a particular kind of job Different types of “smarts” Assess your interest Hobbies Past experiences Current experiences Assess advantages/disadvantages of entrepreneurship

Identify Opportunities Where could you find information Library Demographics/Businesses City/County offices Trade Magazines

Questions To Ask Is there a market for this kind of business? Will people buy my product or service How much money would it take? Where will I get the money How many hours will it take? Can I commit that much time What are the risks? What is the rate business failure Does my background prepare me to run this type of business? Do most businesses have more or less experience than I How much money can I make at this business?

Setting Goals Financial Goals Reinvestment Profit Revenue Expansion Non Financial Goals Customer Service Special Programs Expansion