Chapter 6 I Age of the Entrepreneur A Entrepreneurship is accepting the risk of starting and running a business II The job creating power of entrepreneurs in the US A Have a good idea borrow money start a business a Steve Jobs Zuckerberg facebook III Why people take the entrepreneurial challenge A Why are people willing to take the risk a Opportunity to share the American dream more opportunities than working for others b Profit hugely profitable business c d Challenge take risks and seek achievement more than power Independence freedom to pursue something that you are passionate about IV What does it take to be an entrepreneur A Self directed comfortable with your own self as a boss B Self nurturing believe in your own idea and be able to replenish your own enthusiasm C Action oriented be able to realize actualize and build your dreams into reality D Highly energetic E Tolerant of uncertainty be able to take some risk V Turning your passions and problems into opportunities A Many people can start business either out of passion or problem B Fill customer needs C You have to the skills and resources D You can sell the product or service at a price that customers are willing to pay and you will make a profit E Get it out there before the window of opportunity closes F You can keep the business going VI Entrepreneurial teams A A group of experienced people from different areas of business who join to forma managerial team with the s kills to develop make and market a new product a Apple s smart team of entrepreneurs VII Micropreneurs and home based businesses A People interested in maintaining a balanced lifestyle while doing the kind of work they want a Do not need to be on the list of top ranked businesses b Home based business owners c Consultants video producers architects and bookkeepers B Why do this a Smaller initial investment b Larger companies outsource to smaller companies c Social attitudes have changed d New tax laws have loosened restrictions on deducting expenses for home offices C Challenges a Getting new customers b Managing time c Keeping work and family tasks separate d Abiding my city ordinance e Managing risk VIII Web based businesses A Easy way to get a web based business is through affiliate marketing which is an internet based marketing strategy in which a business rewards individuals or other business affiliates for each visitor or customer the affiliate sends to its website IX Entrepreneurship within firms A Intrapreneurs are creative people who work as entrepreneurs within corporations X Encouraging entrepreneurship what the government can do A Immigration Act that allowed immigrants into the US if they were willing to invest 1million in an enterprise that creates or preserves 10 jobs B Enterprise zones are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support C Incubators offer new business in the critical stage of early development low cost offices with basic services such as accounting legal advice and secretarial help Getting Started in Small Business I Small vs big business A SBA defines a small business as one that independently owned and operated is not dominant in its field or operation and meets certain standards of size in terms of employees or annual receipts a 26 8 million in the US b Account for 50 of GDP II Importance of small businesses A More customer service ability to respond quickly B Fill a hole with boulders vs sand III Small business success and failure A 56 of new businesses don t last 4 years B Failure Learning about small business creations I Learn from others A Bring back entrepreneurs from diverse backgrounds B Investigate community colleges for business classes II Get some experience A Become and apprentice B Have 3 years of experience III Take over a successful firm IV Begin with planning A A business plan is a detailed written statement that describes the nature of the business the target market the advantages the business will have in relation to competition and the resources and qualifications of the owners V Writing a business plan A Executive summary convinces readers not to throw it away B Cover letter executive summary company background management team financial plan capital requires marketing plan location analysis manufacturing plan appendix
View Full Document
Unlocking...