Entrepreneurship Exploring Business

Entrepreneurship What is Entrepreneurship? The process of getting into and operating your own business Putting your thoughts of self-employment into action allows you to become an entrepreneur. Entrepreneur’s are people who undertake the organization and ownership of a business with the intent of making a profit.

Famous American Entrepreneurs Entrepreneur(s)Invention/Business Development Sam WaltonWal-Mart Colonel Harland Sander’s Larry Page Ben Cohen & Jerry Greenfield Microsoft Adolf Dassler

Characteristics of an Entrepreneur Persistent Creative Inquisitive Goal-Oriented Independent Demanding Self-Confident Risk Taking Restless

Advantages of Entrepreneurship Get to be your own boss Doing something you enjoy Having the opportunity to be creative Job Security Opportunity to make more money Recognition

Disadvantages of Entrepreneurship Work Long Hours Uncertain Income Greater Responsibility Higher Risk

Opportunities for Business Ownership Taking over a family business Ford Motor Company Detroit Red Wings (Illitch Family) Buying a Business McDonalds Car Dealership’s Start your own business A locally owned operation Examples – Flower Shop, Landscaping, Restaurant, etc…

Types of Businesses Every business needs equipment, supplies, and inventory in order to function Equipment – Machinery & tools needed to carry out the main physical labor of a business Examples: Tools Computers Fixtures (Ceiling Lights, Display Cases, etc..) Furniture

Types of Business Supplies: Items used up in the operation of a business Examples: Lubricant for machines Pens/Pencils/Paper Inventory: Goods a business has stored for eventual resale. Examples: Raw materials kept on hand Finished goods kept on hand for immediate resale

Four Basic Kinds of Business 1. Extraction 2. Manufacturing 3. Marketer a. Wholesaling b. Retailing 4. Service

Extraction A business that grows products or takes raw materials from nature Success of business depends on availability of resources Farmers, Fisherman, Silver Miners, & Fruit Growers, are all examples of extractors Sometimes products can be sold as is but most times there must be some processing

Manufacturers Takes the extractors product and turns them into something consumers can use May create an entire unit or make a part for another manufacturer

Marketers A marketer moves products from a producer to a consumer. Marketers use marketing techniques to improve a product Gap uses manikins to make t-shirts look better Shops use display windows Broken down into 2 types Wholesaler Retailer

Wholesaling Selling goods in large quantities to merchants, manufacturers, or consumers. People or businesses that move products between producer and final users Sometimes referred to as middleman or distributor

Retailing A business involved in with moving goods from producers to consumers Help identify, develop, and test new products Also package new products

Service Businesses Not all businesses sell you products A business that does things for you instead of making or marketing a product Some service businesses serve individuals, some serve businesses, and some serve both. Example would be hair cut, medical appointment, oil change