1. Recognizing Opportunity
Unit 1, Chapter 3
Page 46-63

2. Recognizing Opportunity
After completing this chapter, you’ll be able to:
Discuss current trends that provide opportunities for Entrepreneurs
Explain how to think creatively about opportunity
Identify the importance of personal values and goals in choosing an entrepreneurial pursuit
Compare advantages and disadvantages of starting your own business

3. Recognizing Opportunity
Definition 1-
A (n) _________ is a business that conducts business by means of the Internet
Online Business
They have the potential to attract huge numbers of customers
Why?

4. Recognizing Opportunity
Definition 2
_____________are intangible things that business do for us to enhance our lives
Services
Even if company’s produce products, they still provide services
The US Census reported in 2010 that service business are the fastest growing in the economy
Examples?

5. Recognizing Opportunity
Newer types of businesses:
Home-Based
Examples include: consultants sales reps, tradespeople, writers, artists, etc.
Socially responsible/Non-Profits
Examples include: feeding the hungry, theatre groups, education, etc.

6. Recognizing Opportunity
Technology has helped make these changes possible
Definition 3
_______________ is contracting with other companies for services
Outsourcing
What are the advantages and disadvantages of outsourcing?

7. Recognizing Opportunity
Outsourcing allows small businesses to focus on what they do best while tapping into outside sources of expertise
Video game example
Allows for greater efficiencies, decreases overhead, lowers regulatory compliance, more attractive to investors

8. Recognizing Opportunity
Work with a partner to answer the following:
What are some functions/jobs that school districts could outsource to save money?
Be prepared to present your findings

9. Recognizing Opportunity
Definition 4
Forming a partnership with another company is a _____________
Strategic Alliance
Example 3M

10. Recognizing Opportunity
Entrepreneurial thinking is about generating ideas and recognizing opportunities
How do people come up with ideas?
Creativity!!

11. Recognizing Opportunity
Definition 4
___________ is finding new ways of doing things, usually with creativity
Innovation
It usually involves connection, discovery, invention, and application
Ex DaVinci and trees

12. Recognizing Opportunity
Ideas are not the same things as opportunities
Anyone can be creative and have ideas, but it is another thing to make them commercially viable
Definition 5
A _________ is a specialized market
Niche Market
The result can be new business resulting from the entrepreneurs alertness to unmet needs

13. Recognizing Opportunity
Opportunities can develop from trends
What are some examples?
Fitness and Health, Ethnic Products, Indulgence Goods and Luxury Items, etc.

14. Recognizing Opportunity
Consider your own experiences
Look at your hobbies
Look at things you do at work or in school
What can be done to make life easier?

15. Recognizing Opportunity
Section Review
Identify two new trends that can be a source for new business.
How do demographics affect business?
How can brainstorming, creative thinking, and observations be used to develop new businesses?

16. Recognizing Opportunity
Section 2 Value Inventory
Definition 6
_________ define who you are, shape your attitudes, and help you identify your priorities
Values

17. Recognizing Opportunity
Adventure
Balance
Commitment
Community
Compassion
Competition
Courage
Creativity
Environmentalism
Fairness
Financial Security
Fun
Generosity
Hard Work
Health
Honesty
Independence
Integrity
Kindness
Knowledge
Learning
Loyalty
Physical Appearance
Power
Recognition
Relationships
Responsibility
Security
Social Responsibility
Solitude
Spirituality
Tolerance

18. Recognizing Opportunity
Choose the 10 values that matter to you the most
Who or what has been the greatest influence on your values?
Why?
Be prepared to share!!

19. Recognizing Opportunity
Family Businesses
Buying an existing business
Definition 7
_____________ is loyalty displayed by customers for the business you take over
Goodwill
What are other benefits?
Employees in place, trained, established product, credit, reputation, etc.

20. Recognizing Opportunity
Before you start your own business, ask the following questions:
Do I have the motivation to start from nothing?
Does the business align with my personality, abilities, values, and goals?
Do I have sufficient knowledge of basic operation to undertake the business?

21. Recognizing Opportunity
Do I have the necessary managerial ability?
Do I have the right partners to help me with the business?
Do I have enough financial resources to start from scratch?
Am I willing to accept the risk?

22. Recognizing Opportunity
1. What role do your values play in the decision to buy or start a business? 2. Why would you start your own business instead of buying an existing one? Or would you? 3. Discuss the importance of personality when deciding what type of business to open.