1. Entrepreneurship

2. What is Entrepreneurship?
Section One

3. Someone who organizes and runs a business.
Entrepreneur
Someone who organizes and runs a business.

4. Advantages You are in charge Great Job Satisfaction
you decide when and how hard to work and how your business will operate.
Great Job Satisfaction
Guarantees that you are doing what you truly love.
Can lead to good income
If successful, there is a lot of money to be made.

5. Disadvantages Financial Risks Long Hours Stiff Competition
You can lose your investment (and sometimes more).
Long Hours
You are ultimately responsible to make sure the job gets done.
Stiff Competition
Small business owners are sometimes priced higher than large franchises.
No Guarantee of Success
Almost two out of three new businesses fail within the first four years.

6. Traits of the Entrepreneur
Motivation
Sight and Foresight
Decision Making

7. Motivation The typical entrepreneur is self-motivated.
Sets short-term and long-term goals
Makes a plan and follows it.
Believes in his/her abilities.

8. Sight and Foresight Entrepreneurs recognize opportunity.
Determine problems
Develop solutions
Build on success

9. Decision Making
Entrepreneurs are quick to make decisions.

10. Becoming an Entrepreneur
Vision
Research
Planning
Go For It!

11. Vision of an Entrepreneur
Keep up with business trends
Make a list of ideas

12. Research your ideas Talk to others
Determine what type of equipment you will need
What problems will you face?
What will your competition be?
How will you price your product?

13. Planning Your Business
Make a list of pros and cons.
How you will obtain financing?
What are your location options?

14. Go For It! Apply for a loan if necessary.
Purchase or lease available space.
Set up for business

15. Ways of Becoming a Business Owner
Section 2

16. Four ways to owning your own business
Starting a New Business
Buying an Existing Business
Buying a Franchise
Taking Over a Family Business

17. Starting a New Business
Challenges:
Requires much time and effort.
High start-up costs
Financial risks
Rewards:
No previous problems to deal with.
Build your way up
Personal satisfaction

18. Buying an Existing Business
Advantages:
Fast start
Existing lease
Lower start-up costs
Established reputation/clientele
Advice of previous owner
Drawbacks:
Existing Problems
location
competition
costly equipment repairs or replacement
poor reputation

19. Buying a Franchise Drawbacks: Advantages: Less Gain Less Risk
A portion of your profits go to the parent company.
Advantages:
Less Risk
Recognized Product
Established Management System
Established Reputation
Training and Support Services
Advertising
Financing

20. Buying the Family Business
Advantages:
Financial Support
Loyalty, Trust, & Teamwork
Learning from family
Customer Goodwill
Drawbacks:
Relationships can be strained
Hard to get away from work

21. Getting Started
Section 3

22. Forms of Legal Ownership
Sole Proprietorship
owned and run by one person
Partnership
owned and run by two or more partners.
Corporation
a group of people authorized to act as a single entity 

23. Location, Location, Location
Things to Consider:
Types of other businesses in the area
Condition of streets and buildings
cost of property
Location of Competition
Location of Your Customers

24. Working At Home Disadvantages: Advantages: Residential Restrictions
Lack of Social Interaction
Requires more motivation
Advantages:
Less Expensive
More Convenient
Flexible and Relaxing

25. Financing Financial Plan Business Plan Spells out start-up costs
Lists operating expenses
Business Plan
describes your product
states location
specifies number of employees and salaries
describes competition
describes marketing plan and timetable

26. Operating Your Business
Skills required:
Reading
Writing
Math
Listening
Speaking

27. Essential Business Records
Income Statement
Balance Sheet
Cash Flow Statement

28. Chapter Review: Define terms on page 84, #1
Complete Chapter Review, pp (#2-12 except #10)