Module 3 -_entrepreneurship (1)
- 1. Entrepreneurship BU 20: EXPLORING BUSINESS, MARKETING & ENTREPRENEURSHIP MODULE 3: UNDERSTAND THE CONCEPT OF ENTREPRENEURSHIP 1
- 2. 3.01 Characteristics of Successful Entrepreneurs Recall personal characteristics and skills needed for a successful entrepreneur. 2
- 3. What is an Entrepreneur? An individual who undertakes the risk associated with creating, organizing, and owning a business. 3
- 4. Personal Characteristics of Successful Entrepreneurs •Persistent •Creative •Responsible •Inquisitive •Goal-oriented •Independent •Self-confident •Risk taker 4
- 5. Skills Needed by Successful Entrepreneurs •Communication skills •Human relations skills •Math skills •Problem-solving & Decision-making skills •Technical skills •Basic Business skills 5
- 6. 3.02 Entrepreneurship and the Entrepreneurial Process Understand entrepreneurship and the entrepreneurial process. 6
- 7. Entrepreneurship vs. Entrepreneurs ENTREPRENEURSHIP The process of starting and running one’s own business This involves a considerable amount of risk. ENTREPRENEUR An entrepreneur is an individual who undertakes the risk associated with creating, organizing, and owning a business. 7
- 8. 5 Steps of the Entrepreneurial Process 1. Discovery 2. Concept Development 3. Resourcing 4. Actualization 5. Harvesting 8
- 9. Step 1: Discovery The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market. Entrepreneurs consider the following: Hobbies or Skills Consumer Needs and Wants Conduct Surveys and Questionnaires Study Demographics 9
- 10. Step 2: Concept Development Entrepreneurs prepare the following in this step: Develop a Business Plan ◦ A detailed proposal describing the business idea Choose Location for the Business ◦ Is the business online or does it have a physical location for customers to visit to purchase products, services or combinations. Decide if the idea will need a Patent or Trademark ◦ Patent – ◦ Trademark - 10
- 11. Step 3: Resourcing The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc. Entrepreneurs contemplate the following: Identify Potential Investors Apply for loans, grants and financial assistance Hire employees 11
- 12. Step 4: Actualization The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals / objectives Entrepreneurs prepare for the following: Grand Opening of the Business Day to Day Operations of the Business 12
- 13. Step 5: Harvesting The stage in which the entrepreneur decides on venture’s future growth, development, or demise. Entrepreneurs consider the following: Future Plans for the Business: ◦ Expansion to additional locations ◦ Company to change structure 13
- 14. 3.03 Starting a Business Understand the procedures and requirements for starting a business. 14
- 15. Starting a Business 1. Develop a Business Plan 2. Acquire Finances 3. Meet Legal Requirements 15
- 16. Develop a Business Plan A Business Plan is a detailed proposal that describes a new business. Business Plans are: ◦ Presented to potential investors and lenders ◦ Most business plans are 30+ pages 16
- 17. Purposes of a Business Plan Business Plans are used to: ◦ Obtain Financing ◦ Banks and Potential Lenders require a business plan ◦ Helps organize and analyze data critical to new business. ◦ Provides a start-up proposal ◦ Provides and outline to follow when starting the business. 17
- 18. (1-3) Components of a Business Plan Executive Summary: ◦ Brief one to two page description of the key points of each section of the business plan Product/Service Plan: ◦ Presents Product or Service being offered ◦ Unique features of the Product or Service Management Team Plan: ◦ Qualifications of the Entrepreneur ◦ Qualifications of any Partners who may be involved in the business venture 18
- 19. (4-6) Components of a Business Plan Industry/Market Analysis: ◦ Analyzes the: Customers / Competition / Industry / Demographic / Geographic and Economic data Operational Plan: ◦ Includes all processes involved in producing and/or delivering the product or service to the customer Organizational Plan: ◦ Management philosophy of the business ◦ Key management personnel ◦ Key employment policies 19
- 20. (7-9) Components of a Business Plan Marketing Plan: ◦ Describes how the business will make its customers aware of its products/ services. ◦ The Market being served / Marketing Strategies / Promotional Plan / Marketing Budget Growth Plan: ◦ Presents plan for future expansion of the business Financial Plan: ◦ Includes financial statements that will help forecast the future financial health of the business. 20
- 21. Finance the Business Identify Potential Investors Examples: ◦ Family and Friends ◦ Other Businesses ◦ Employees Contact Financial Agencies for loans, grants and financial assistance: ◦ Small Business Administration ◦ Banks / Credit Unions ◦ Insurance Companies 21
- 22. The Legal Environment Additional Legal Requirements for some businesses: Permits, Certifications or Licenses: ◦ an official document giving someone authorization to run their business under the extension of the direction of the Local, State and Federal Laws. Contracts: ◦ a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law. Zoning Laws: ◦ specify the areas in which residential, industrial, recreational or commercial activities may take place. Taxes: ◦ a enforced contribution of funds to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions. 22
- 23. Protecting Your Business More Legal Documents to Protect Your Business: Trademarks: ◦ Protects a business’ name / logo. Patents: ◦ Protects the invention of products or processes from theft. Copyrights: ◦ Protects Creative Works: Literary, Musical, Dramatic, Artistic works For More Information visit: https://www.uspto.gov/trademarks/basics/trade_defin.jsp 23