BYU/UVSC Merit Badge PowWow Entrepreneurship Merit Badge John Gilbert Pete Robinson

BYU/UVSC Merit Badge PowWow Entrepreneurship Entrepreneurship is Applied Scouting Know Yourself Opportunity Identification, Evaluation, and Execution: Ready – Fire – Aim Requirement 1

BYU/UVSC Merit Badge PowWow Characteristics Skills Passionate Faith –In self –Others –Ideas Opportunity Focused Want CONTROL Innovative Always Learning –Reader Selling Planning Communication Marketing Interpersonal Management Personally Effective Team Builder Leadership Requirement 1

BYU/UVSC Merit Badge PowWow Characteristics Skills Entrepreneurship is not as RISKY as some would have you believe. –Myth – 90% of businesses fail in 5 years You can systematically improve the probability of your succeeding as an entrepreneur Requirement 1

BYU/UVSC Merit Badge PowWow Roles and Contributions Elephant, Mice, and Gazelles Economic Development –SME represent 99% of all employers and provide 75% of all new jobs. Providing for People’s Needs Providing most innovations Requirement 1

BYU/UVSC Merit Badge PowWow Interview an Entrepreneur John Gilbert Owner of Add-OptionsAdd-Options Requirement 2

BYU/UVSC Merit Badge PowWow Opportunity Identification N-E-W-S Every Problem is an Opportunity –Find the angle –Pain, Pleasure WOW Requirement 3

BYU/UVSC Merit Badge PowWow Finding The Opportunities & Reducing Pain Getting Through & Around Barriers New Ideas and Competitive Angles © 2002 COPYRIGHT Gary K. Rhoads, Steven Mack Covey Professor of Marketing Entrepreneurship is building a new box It’s not thinking outside the box Requirement 3

BYU/UVSC Merit Badge PowWow Nine methods for new product success Method 1.Take something out of your product 2.Put something in your product 3.Answer to consumer gripes 4.Visible difference 5.Make the task easier 6.Use products in a new way 7.Product substitutability 8.Don’t be literal, be creative 9.Look overseas Example Royal Crown removed caffeine Adding fruit juice to soda “Locked my keys in my car” “Same old cereal” Time-consuming oven cooking Phone & MP3 player Cereal substitute for cereal-avoiding teens A healthy Popsicle Healthy Breakfast Result First decaffeinated cola Slice Warning bell, OnStar, Keyless Entry Flavoring the O’s in Cheerios Jet Stream Oven, Pre-cooked meals iPhone Total Breakfast Bars Fruit Juice Bars / Longboard Yoplait Yogurt © 2002 COPYRIGHT Gary K. Rhoads, Steven Mack Covey Professor of Marketing Requirement 3

BYU/UVSC Merit Badge PowWow How to Crap On Your Friends for $39.95 How to Crap On Your Friends for $39.95 (Plus Shipping and Handling) With regard to time, here's the latest poop © 2002 COPYRIGHT Gary K. Rhoads, Steven Mack Covey Professor of Marketing

BYU/UVSC Merit Badge PowWow Feasibility Studies Personal –Three “M’s” Me Market Money Make Goals that are: S pecific M easurable A ttainable R ealistic T imely Requirement 4

BYU/UVSC Merit Badge PowWow Feasibility Studies Business –Technical (Good or Service) –Market –Financial –Human Resources (Personnel) Requirement 4

BYU/UVSC Merit Badge PowWow Technical Feasibility Good or Service –Simple –Observable –Understandable Patents –Not for protection –Safely share ideas with others Requirement 4

BYU/UVSC Merit Badge PowWow Target Customer Who is the Customer –Demographic –Psychographic –Geographic How Many Customers Are There

BYU/UVSC Merit Badge PowWow There are three levels of a product 1. 1.Product or Service – What it is. 2. Features – What it has. 3. The Benefits – What does it do for my customer. Product Features Benefits Product/Service Vision What are we selling? Requirement 4

BYU/UVSC Merit Badge PowWow Financial Feasibility Questions –Am I going make money? –When will I make money? Budget –Start-Up Costs & Operating Costs –Fixed Costs & Variable Costs Proforma –Profit & Loss Statement –Cash Flows Requirement 4

BYU/UVSC Merit Badge PowWow Fixed Expenses Profit Area Breakeven Point Sales Total Costs Loss Area Unit Sales Expenses (thousands of dollars) Break Even Analysis (Units)

BYU/UVSC Merit Badge PowWow Financial Feasibility Finding the Money –Personal Savings –Love Money –D &D –Angels Bootstrapping Requirement 4

BYU/UVSC Merit Badge PowWow Human Resource Feasibility The Entrepreneur’s “SWOT” S – Strengths W – Weaknesses O – Opportunities T - Threats Mentoring Outsource Requirement 4

BYU/UVSC Merit Badge PowWow Start a Business Do a Good Turn Daily –Any service can be turned into a business opportunity During the next two weeks do the following –Pick an idea & ask others about it Write about what you are going to do –Do Feasibility Study on idea –Promote your Business Make promotional materials Advertise your business –Start your Business –Bring back Evidence Requirement 6

BYU/UVSC Merit Badge PowWow Show Me The Money Option #1 –Sketch Prototype –Write Detailed Description Option #2 –Create a Prototype –Write about Creation –Materials list Option #3 –Design a Promotional Poster or Flier Option #4 –Proforma Income Statement –Describe Assumptions Choose 2 Requirement 5

BYU/UVSC Merit Badge PowWow Homework Finish Requirement #3 d & e Do Requirement #4 – all four sections Do Requirement #5 – Do 2 Do Requirement #6 – Start a business You can download files from

BYU/UVSC Merit Badge PowWowRemember If your mind can conceive it, and your heart can believe it, then you can achieve it! & An Opportunity is Hard Work and Preparation Mixed with a Vision and Passion