1-1 Review ●What types of decisions are there? Examples. ●What is classical decision making? ●What is rational decision making? Does it produce good decisions? ●What is ‘bounded rationality’? ●What is ‘satisficing’? ●What other factors are involved in decision making ●What are group decision making techniques? ●What are manager concerns in group decision making?

1-2 Managing New Ventures ●Entrepreneurship – assuming the risk of a new business venture. –What is the reward for taking risk?

1-3 Importance of Entrepreneurship Theory ●Source of jobs ●Fills market needs Practice ●Source of innovation –Typically found in small firm –How to get innovation in large firm?  Intrapreneurs

1-4 Entrepreneurial Strategies Practice ●Emphasize distinctive competencies –Established markets vs. niche –New markets ●First mover advantage ●Create a business plan –A must for new businesses!

1-5 Starting a New Business ●Start from scratch –High risk (means what?) –Who are potential customers? –Why will they buy from you? –What is price, how much will you sell, etc.? –What is my competitive advantage?  Differentiation? ●Buy an existing business ●Buy a franchise –Franchisee/franchisor –What are popular franchises?

Forms of Ownership ●Sole Proprietor ●Partnership ●Limited Liability Company, LLC ●Corporation, Inc. 1-6

1-7 Financing a New Business Practice ●Personal resources ●Alliances ●Lenders ●Venture capitalists ●Small-Business Investment Companies (SBICs) ●Be creative!

1-8 Management Advice Practice ●Partners ●Advisory boards ●Consultants ●Small Business Administration ●Small Business Development Corp –Here at RVCC! ●Networking –Elks, Moose, Masons, Kiwanis, Lions, etc.

1-9 Reasons for Failure Practice ●Lack of sales / revenue / profits –Duh –Some do not understand the financials ●Lack of expertise / skills ●Unwilling to contribute what it takes –Underestimate the work, cost ●Weak control systems –Accounting is important –Keep on top of the business

1-10 Reasons for Success ●Committed, hard work ●Deep understanding of market and business ●Managerial competence –Must be able to work with others ●Persistence ●Luck

1-11 Exercise ●Name 5 things that frustrate you ●In groups of 3, pick one frustration and come up with a business idea ●Outline how you would start the business ●Share with the class.

1-12 Videos ●DVD – McDonalds – Birth ●DVD – Google Ch. 1, Culture ●DVD – Trump – Skill Set