1. Principles of Business Monday, December 2, 2013
Journal: What idea do you have that you could use to start a business? Is it a new idea, or an improvement of a current product/service?
Agenda:
Chapter 6.1 Notes

2. Entrepreneurship & Small Business Management
Chapter 6
Entrepreneurship & Small Business Management

3. Becoming an Entrepreneur
Chapter 6.1
Becoming an
Entrepreneur

4. Chapter 6.1
Goals
Identify characteristics of successful entrepreneurs.
Recognize the importance of entrepreneurship in the economy.
Describe opportunities and risks of entrepreneurship.

5. What is an Entrepreneur??
Someone who takes a risk in starting a business to earn a profit.
Entrepreneurship
The process of starting, organizing, managing, and assuming the responsibility for a business

6. Characteristics of Entrepreneurs
Desire to be your own boss
Develop a good business plan
Special skills and abilities
Coming up with innovative ideas

7. Entrepreneurs in Action
Number off from 1-4
Read about your entrepreneur. Be prepared to tell the class about them.

8. Joshua Moore
Joshua Moore was a high school student and brother to 4-year old Sophie when he developed an idea for a baby stroller breaking system. To fund work on his invention, Josh started Personal Affections, selling key chains, picture frames, mirrors, and personalized stickers at his Walhalla, SC high school. He received an Entrepreneur of the Year award for an operational business from the National Foundation for Teaching Entrepreneurship. At age 15, he was on his way to becoming an inventor and business owner.

9. Ben Cathers
Ben Cathers was not a typical student. At age 12, he started a web marketing and advertising business. His business grew to 10 employees and a network of more than 300 million advertisements per month. By age 17, Ben started a syndicated radio show called Teen America. Not content with just his own entrepreneurship, at age 19 Ben wrote Conversations with Teen Entrepreneurs. By 19, he co-founded Search Rate Technologies and Klick-TV. By the age of 25, Ben had turned his talent to working with the next generation of young entrepreneurs.

10. Rich Stachowski
Rich Stachowski or Moraga, CA, is an avid scuba diver. While enjoying his hobby, he recognized that he was unable to talk to others who were snorkeling with him. He put his imagination to work and invented Water TalkiesTM at the age of 11. These walkie-talkies can be used under water. Rich worked with a family friend who developed the manufacturing process. He then opened a business to make and sell his product before he was even a teenager. Rich moved on to invent and patent seven more products including underwater binoculars and an underwater periscope.

11. Abbey Fleck
Sometimes ideas for new products come from problems in daily life. Abbey Fleck was watching her father use a microwave oven to cook bacon one morning in their White Bear Lake, MN, home. The bacon came out soaked in grease. Abbey had an idea to develop a pan that would cook the bacon while letting the grease drain out below. She and her father tested several designs that resulted in the Makin Bacon microwave bacon tray. They were able to convince the producers of Armour brand bacon to sell the tray with an advertisement and order form printed on each package of bacon. The product was an instant hit. Abbey’s company currently sells Makin Bacon trays at Kmart, Wal-Mart, Target, & Le Gourmet Chef.

12. What Does it Take??
Not all business owners and managers are entrepreneurs.
Entrepreneurs have unique skills and personal characteristics.

13. Entrepreneurs are More…
Persistent
Inquisitive
Energetic
Goal-oriented
Independent
Self-confident
Creative
Reliable
Competitive

14. Entrepreneurs Have: Problem-solving skills Tolerance for ambiguity
Strong integrity
Personal initiative
Ability to secure resources
Capability to learn from failure
Willingness to work hard

15. Checkpoint 
What personal characteristic are common to most successful entrepreneurs?
Any characteristics listed in Figure 6-1 are acceptable, such as persistence, inquisitiveness, self-confidence, creativity, and so forth.

16. Entrepreneurship & the Economy
Entrepreneurship is a key part of the economy.
Employment
Financing
Productivity

17. Entrepreneurship & the Economy
Employment
Small businesses are responsible for most new employment

18. Entrepreneurship & the Economy
Financing
Most new businesses start on $10,000 or less
Personal savings, bank loans, credit cards
Friends/Family
Venture Capital – Money provided by large investors

19. Entrepreneurship & the Economy
Productivity
Small businesses produce a large volume of goods
$770 billion in annual sales

20. Checkpoint 
What are the sources of financing that entrepreneurs use for their new businesses?
Personal savings
Friends and family
Venture capital
Bank loans

21. Opportunities & Risks
Before deciding to start a business, you need to think about the opportunities and risks.

22. New Business Opportunities
Innovation
An invention or creation that is brand new.
Improvement
A designed change that increases the usefulness of a product, service, or process

23. Recognizing Risks Lack of adequate capital Low sales
Higher than expected expenses
Competitive pressure
An owner unprepared to manage a growing business
Operations requiring more time than the owner is willing to commit

24. Checkpoint  Where do entrepreneurship opportunities begin?
Opportunities begin with innovations (ideas about new products and services) or improvements (ideas for changes to existing products, services, or processes).

25. Chapter 6.1
Goals
Identify characteristics of successful entrepreneurs.
Recognize the importance of entrepreneurship in the economy.
Describe opportunities and risks of entrepreneurship.

26. Principles of Business Tuesday, December 3, 2013
Journal: What idea do you have that you could use to start a business? Is it a new idea, or an improvement of a current product/service?
Agenda:
Chapter 6.1 Notes

27. Principles of Business Wednesday, December 4, 2013
Journal: Do you know anyone who owns a small business? What problems can do you think they deal with?
Agenda:
Chapter 6.2 Notes

28. Chapter 6.2
Small Business
Basics

29. Chapter 6.2
Goals
Identify important characteristics of small businesses.
Recognize the competitive advantages of small businesses.
Identify problems faced by many small businesses.

30. Small Business Ownership
Description of a small business
Owner is usually the manager
Operates in one or very few locations
Typically serves a small market
Not dominant in its field

31. Small Business Ownership
Small business employment
Responsible for 60-80% of all new jobs created.
Many are service industries

32. Small Business Ownership
Ownership diversity
Women own > 25% of all small business
Minorities > 17%
Majority are over 35 years old
50% are home based

33. Small Business Ownership
Common types of small businesses as % of all small businesses

34. Checkpoint 
Beyond the formal definition of a small business, what four points can be used to describe a small business?
Owner is usually the manager
Business operates in one or very few locations
Business typically serves a small market
Business is not dominant in its field

35. Small Business Advantages
Meeting customer needs
Fewer customers, but more contact
Compete using superior service rather than lower prices

36. Small Business Advantages
Providing unique services
More customized for individuals
Spend more time determining your needs and discussing alternatives.
Customer satisfaction is extremely important
Example: Photographers

37. Checkpoint 
How can small businesses compete successfully with larger businesses?
Smaller businesses are able to provide more personalized products and services to their customers.
They are able to provide products and services where smaller orders and projects are required and tend to fill unique customer needs, which larger companies do not provide.

38. Common Reasons for Failure
Not keeping adequate records
Not having enough start-up money
Lack of management experience
Lack of experience with the type of business

39. Common Reasons for Failure
Not controlling operating expenses
Poor location for the business
Failure to manage credit offered to customers

40. Small Business Assistance
University and college faculty members
Local groups of business people
Small Business Administration (SBA)
Gov’t agency – provides help
Business plans
Obtaining financing

41. Checkpoint  List common reasons for small business failure.
Not keeping adequate records
Insufficient start-up money
Lack of management experience
Lack of experience with the type of business
Not controlling operating expenses
Poor location
Failure to manage credit

42. Chapter 6.2
Goals
Identify important characteristics of small businesses.
Recognize the competitive advantages of small businesses.
Identify problems faced by many small businesses.

43. Principles of Business Wednesday, December 4, 2013
Journal: Do you know anyone who owns a small business? What problems can do you think they deal with?
Agenda:
Chapter 6.2 Notes

44. Principles of Business Thursday, December 5, 2013
Journal: x
Agenda:
Entrepreneur Research Project

45. Principles of Business Friday, December 6, 2012
Journal: x
Agenda:
Entrepreneur Research Project

46. Principles of Business Monday, December 9, 2013
Journal: x
Agenda:
Chapter 6.3 Notes

47. Starting a Small Business
Chapter 6.3
Starting a
Small Business

48. Chapter 6.3
Goals
Recognize important factors to be considered when starting a business.
Describe the elements of a business plan.
Identify types and sources of financing for a small business.

49. The Business Decision An idea plus experience Right place and time
Team approach
Preparation and research

50. Checkpoint 
Why is it important to use a team approach when starting a new business?
A team approach allows employees to feel valued and motivated to take personal responsibility for the benefit of the business.
Owners cannot expect to be able to do everything alone. Building a team will allow the business to increase productivity and, ultimately, profits.

51. What is a Business Plan?? A written description of the business idea
How it will be carried out, including all major business activities.

52. Elements of a Business Plan
Description of the Business
The business idea
Major products and services
Ownership structure
Strengths/weaknesses
Long- and short-term goals

53. Elements of a Business Plan
Description of Competition
Characteristics of the industry
Condition of the economy
Strengths and weaknesses of major competitors

54. Elements of a Business Plan
Customer Analysis
Description of customers
Location, number, and resources of customers
Sales forecasts

55. Elements of a Business Plan
Operations Plan
Organization of the company
Description of major operations
Analysis of resources needed
Human resource plans

56. Elements of a Business Plan
Marketing Plan
Description of major marketing activities
Description of resources needed
Schedule of marketing activities

57. Elements of a Business Plan
Financial Plans
Start-up costs
Short- and long-term financial needs
Sources of financing
Budgets and financial statements

58. Steps in Developing the Bus. Plan
Gather and review information
Develop the strategic alternatives
Write the plan
Ask an expert to review the plan

59. Checkpoint  What are the “strategic alternatives” in a business plan?
Strategic alternatives are alternative plans for production, staffing, financing, and so on.
Even the best business plan cannot predict every possible circumstance.
An alternate plan allows a business to be prepared for the unforeseeable.

60. Financing the Small Business
Types of financing
Start-up financing
Short-term financing
Long-term financing
Sources of financing
Owner-supplied funds
Borrowed funds

61. Checkpoint 
In addition to owner-supplied capital, what are several other sources of financing for a small business?
Borrowed money may come from banks, finance companies, or other individuals, such as friends and family.
Some suppliers may also be willing to extend credit.

62. Chapter 6.3
Goals
Recognize important factors to be considered when starting a business.
Describe the elements of a business plan.
Identify types and sources of financing for a small business.

63. Principles of Business Monday, December 9, 2013
Journal: x
Agenda:
Chapter 6.3 Notes