1. Businesses and the People that Start Them What It Takes to Start A Business

2. People that Start Business Entrepreneur- someone who takes a risk in starting a business to earn a profit. So Entrepreneurship- process of starting, organizing, managing, and assuming responsibility for a business

3. Personal Characteristics of Successful Entrepreneurs Entrepreneurs AREEntrepreneurs HAVE Competitive Creative Energetic Goal oriented Independent Inquisitive Persistent Reliable Self-confident Ability to partner Ability to secure resources Ability to spot opportunity Capability to learn from failure Personal initiative Problem-solving skills Strong integrity Tolerance for ambiguity Willingness to work hard

4. Entrepreneurs and the Economy Employment Financing: 75% comes from savings, credit cards, or bank loan. 1 in 10 people have invested in a company for someone they know. Another avenue is VENTURE CAPITAL- Money provided by large investors to finance new products and new business that have a good chance to be profitable. Productivity: They produce many goods and services.

5. Once Financing is Found Once you find the funds and start your business, you are classified as a small business- independent business with fewer than 500 employees. Using this definition about 99.9% of business are small More specific definition: Owner is usually the manager Operates at one or few locations Typically serves a small market Not dominant in its field

6. Small Business Advantages Easier for small business to meet the specific needs of consumers and still make a profit. While large companies have the advantage with man power, resources, and lower operating costs, the needs and wants of consumers can often be very different from one location to the next making it harder for the large business to compete. Small businesses can provide specific, unique services to a community that may not be profitable for larger companies.

7. Reasons for Small Business Failure Not keeping adequate records Not having enough start-up capital Lack of management experience Lack of experience with the type of business Not controlling operating expenses Poor location for the business Failure to manage credit offered to customers

8. For Assistance Friends and Family College Professors Small Business Administration(SBA)- government agency that helps small business owners develop business plans and obtain financing and other support for their companies.

9. Discussion Activity In Groups Discuss and post comments to Todaysmeet.com/gossettpob: Identify two or three small business in your community that have been successful for many years. As a team, discuss what you think these business do that allow them to compete successfully with other small and large business.

10. Business Decisions Idea Plus Experience- Ideas for business usually come from hobbies, interests, and business experience Right Place and Time- Where and When you put your business are very important Team approach- most entrepreneurs want to do it on their own, but most business need at least a few employees Preparation and Research- most important step to making good business decisions

11. You have an Idea, Now what’s the Plan? Business Plan- a written description of the business idea and how it will be carried out, including all major business activities. Key features include: General description of business Credentials of the owner Description of product or service Analysis of the market (Demand and Supply) Financial Plan

12. Elements of Business Plan Description of business Business Idea Major products and service Ownership Structure Strength and weaknesses Long and short term goals Customer Analysis Description of customers Location, number, and resources of customers Sales forecasts

13. Elements of Business Plan Cont. Operations Plan Organization of Company Description of major operations Analysis of resources needed Human resource plans Marketing Plan Description of major marketing activities Description of resources needed Schedule of marketing activites Financial Plans Start-up Costs Short and long term financial needs Sources of financing Budgets and financial statements

14. Today Entrepreneur Game http://www.learn4good.com/games/t ycoonbusiness/entrepreneurgame.htm http://www.learn4good.com/games/t ycoonbusiness/entrepreneurgame.htm