1.1 Entrepreneurs: Present
1.2 Is Entrepreneurship
Right for You?
1.3 Identify Business
Opportunities and Set
Preview Ask students to read the chapter title out loud and discuss
what might be covered in the chapter. Then have a student read each
lesson title out loud and describe what might be covered in the lesson.
Entrepreneurs: Present and Past
This lesson describes entrepreneurs and the types of entrepreneurial
businesses, the importance of entrepreneurship in our economy, and
brief sketches of entrepreneurs in our history.
Is Entrepreneurship Right for You?
This lesson lists and describes characteristics of successful
entrepreneurs along with analyzing suitability for entrepreneurship and
advantages and disadvantages of entrepreneurship.
Identify Business Opportunities and Set Goals
This lesson describes ways to investigate opportunities and how to set
ﬁnancial and nonﬁnancial goals.
BUILD A BUSINESS Instructor’s Resource CD
• Lesson Plans, Ch. 1
• PowerPoint Slides, Ch. 1
• Video Discussion Guide, Ch. 1
Delia’s Dilemma Videocassette
• Video segment, Ch. 1
“I ’m so tired of someone telling
me what to do all the time,”
Delia said to her friend Gloria.
when we work, what we do,
how we do it, and make lots
of money! I can’t wait. When
• Internet Activities, Ch. 1
• Crossword Puzzle, Ch. 1
ExamView® CD, Ch. 1
do we start?” Workbook, Ch. 1
“I know what you mean,” Activity Masters, Ch. 1
Gloria answered. “I get the Gloria thought for a second Chapter 1 Tests A and B
same thing.” before answering, “Well, Delia,
it’s not really that easy. When BUILD A BUSINESS
“It seems like there should • As students begin their study
be somewhere we could be in we talked about this in class, of entrepreneurship, some
charge,” Delia said. “There’s Mr. Rivera said that there are a will know what the term
lot of things to consider before entrepreneur means. Yet
got to be a better way.” others will have no idea. As
“I’ve got an idea,” Gloria starting a business. First, we you open the chapter, ask
said, “let’s be entrepreneurs.” need to decide what we like students to deﬁne the word
to do and what we are good entrepreneur. Ask students
“Entrepre . . . what?” ques- what they think about when
tioned Delia. at. Then we have to do a lot they think of someone who
“Entrepreneurs,” Gloria of research and planning if we owns his or her own
want to be successful.” business. Do they think it is
answered. “Mr. Rivera talked easy? Do they think it is
about them in my business Thinking about what Mr. hard?
class last week. They are peo- Rivera told her in class, Delia • Students are introduced to
sighed, “This entrepreneur • The concept of
ple who start and run their entrepreneurship
own businesses. We could do thing sounds like a lot of • The importance of
that!” work. What do you think we assessing skills and
should do?” abilities in determining
“What would we have to what business to start
do? Would we make a lot of Gloria could understand • Resources for information
money? Would it be fun? Delia’s dilemma. There are on starting a business
many advantages of owning • At the end of Chapter 1,
Would we get to do whatever students will be asked to
we wanted?” Delia’s mind was your own business, but there reexamine the questions for
overﬂowing with questions. are also many responsibilities this case in What Do You
and challenges that a business Know Now.
Gloria was getting very
excited as she replied, “We owner has to face. Gloria What Do You Know?
knew that she and Delia had Answers
could be our own boss! If we 1. Answers will vary. Some
were the owners, we would their work cut out for them, are Bill Gates, Ray Kroc,
be in charge! We’d get to but she knew they could do it Mary Kay Ash, Debbie
if they put their minds to it. Fields, and Ted Turner.
make all the decisions!” Be sure to differentiate
“This is starting to sound “Delia, I think we need to get between the person who
pretty good,” Delia replied as to the library as soon as possi- starts a business and
ble. We’ve got a lot of work to someone who manages
she began to share Gloria’s a business.
excitement. “We could decide do!” 2. What they like to do, what
they are good at, skills they
have, if they can work
independently, where they
are going to get start-up
3. Books and magazines on
about famous entrepre-
1. Who are some famous entrepreneurs in our country? Name some in neurs, information on trends
in the market.
your local community. 4. They could get more
information from their
2. What kinds of things do you think Delia and Gloria should consider parents, teachers, busi-
before they decide to start a business? nesses in the community,
local Chamber of Com-
3. What resources do you think Delia and Gloria will ﬁnd in the library? merce, Small Business
4. Where else could they go to get help in making their decision about
starting their own business?
GOALS Lesson 1.1
PRESENT AND PAST
impact of entre-
preneurs and small
he United States economy includes thousands of small busi-
SCHEDULE nesses. Many of these small businesses are owned and oper-
Block 45 minutes
Regular 1 class period ated by men and women who created their own companies.
TEACHING RESOURCES But what makes someone an entrepreneur? What impact have
• Workbook Lesson 1.1 entrepreneurs had in history, and today?
Introduce Point out the
goals. Ask students what
they think they will learn or
WHAT IS AN ENTREPRENEUR?
why they think the goals are
important. Ask a student to People who own, operate, and take the risk of a business venture
read the opening paragraph are called entrepreneurs. They are engaged in entrepreneurship,
Motivate Ask students if they the process of running a business of one’s own. Entrepreneurs come
know anyone who operates
his or her own business. Ask from all types of backgrounds and create all kinds of businesses. All
them to describe what they ages of people choose to become entrepreneurs. Some own tiny craft
know of the business. As an
alternative, ask students to shops, while others own huge construc-
name a business near the tion companies. Entrepreneurs try to
school that is probably
owned and operated by one identify the needs of the marketplace
person. and to meet those needs by supplying a
TEACH service or product. When they succeed,
• Emphasize the deﬁnition
of entrepreneur. their businesses ﬂourish and the proﬁts
• Explain the difference go to them. When they fail, their com-
between an employee
and an entrepreneur. panies decline and they may have to go
decisions, take risks, and out of business.
are directly affected by the
may also make decisions EMPLOYEES VS. ENTREPRENEURS Entrepreneurs assume risk. This
but risk little and are not makes them different from employees, who are people who work
directly affected by the
consequences. for someone else. Both may make decisions, but only the entrepre-
• Discuss why people neur is directly affected by the consequences of those decisions.
to leave the corporate Sam Jones manages a record store owned by Felipe Santiago. Sam
environment, work at decides to keep the store open until midnight during the week. If
home, pursue a personal
dream, and many other the additional hours bring in customers and increase proﬁts, Sam
may be praised by Felipe. He may even get a raise. However, Sam
won’t directly receive any of the proﬁts because he is an employee.
The earnings will ﬂow to Felipe, the owner.
WHY DO PEOPLE BECOME ENTREPRENEURS? People go into business for
themselves for many reasons. Some want to leave the fast-paced
corporate environment. Others want to be at home but still earn an
4 Chapter 1 • Should You Become an Entrepreneur?
income. Others want to pursue a personal dream. The reason you
might become an entrepreneur may be completely different from
assume risk and are their
How are entrepreneurs different from own bosses.
TYPES OF ENTREPRENEURIAL BUSINESSES In Clas
There are many opportunities for entrepreneurs in each s Activity
Gather in smal
type of business. Manufacturing businesses actually List reasons yo l groups.
u would like
produce the products they sell. Using resources and be an employe
e. List reasons
supplies, they create everything from automobiles would like to you
be an entrepre
Compare and neur.
to paper. Wholesaling businesses sell products to discuss the re
people other than the ﬁnal customer. For example,
a wholesaler supplies your local greeting card
store with items such as cards and wrapping
paper. Retailing businesses sell products
directly to the people who use or consume
them. Service businesses sell services rather than
products. They include hotels, hairdressers, and repair shops. TEACH
• Describe the four types of
Manufacturing Wholesaling Retailing Service wholesaling, retailing, and
Apparel and Apparel Auto and home Appliance repair • Refer students to the chart
other textile supply stores and discuss examples in
Electrical goods Automotive the community of several
Groceries and Building repair of the businesses listed.
Chemicals and materials and • Ask students to think of
related products Babysitting other examples in the
related products supply stores
Hardware, Bookkeeping community and correctly
Electronics and Clothing stores categorize them.
other electrical Consulting COOPERATIVE LEARNING
equipment Dance Assign the In Class Activity
Furniture stores to introduce students to
Fabricated instruction working in groups and see
metal products Gift, novelty, each others’ differing
and souvenir viewpoints on reasons for
Food products materials services being an entrepreneur.
Industrial Machinery, Exterminators TEACHING STRATEGIES
Grocery stores Kinesthetic Learners
machinery equipment, Flower
and equipment supplies Hardware stores Give students a copy of
decorating the business pages of the
Printing and Motor vehicles, Jewelry stores telephone directory. Ask
House cleaning them to thumb through
publishing automotive Retail bakeries
Lawn care the pages to ﬁnd additional
Rubber and equipment kinds of businesses.
miscellaneous Paper, paper Painting
plastic products products Sporting goods
Stone, clay, and Petroleum, stores Translating
glass products petroleum
products Travel agency
Source: Small Business Administration
Entrepreneurs: Present and Past • Lesson 1.1 5
OTHER BUSINESS AREAS Two other categories of businesses are (1)
businesses produce products agricultural and (2) mining and extracting businesses. Agricultural
to sell; wholesaling businesses generate fresh produce and other farm products, such as
businesses sell products to
people other than the ﬁnal wheat. Mining and extracting businesses take resources like coal out
customer; retailing of the ground so they can be consumed.
businesses sell products
directly to people who use
them; service businesses sell
particular services; Describe different kinds of
generate fresh produce; entrepreneurial businesses.
and mining and extracting
businesses take resources
out of the ground to be
• Explain that entrepreneur- ENTREPRENEURS IN UNITED STATES HISTORY
ship beneﬁts a country by
strengthening the During the colonial years, entrepreneurship ﬂourished. Entre-
economy, changing how
things are done by ﬁlling preneurs raised crops such as rice and tobacco. They also worked
unmet needs, and as bankers, merchants, silversmiths, and candlemakers, to name a
• Point out that in many few career choices. After the American Revolution, the United States
cases the historical began to industrialize. Entrepreneurs invented machines that
started businesses that are increased productivity and helped the economy grow.
large corporations today.
ENTREPRENEURIAL ENTREPRENEURS WHO CHANGED AMERICA
Direct students to examine Entrepreneurs change American business decade after decade.
the highlighted period in the They establish huge companies or ﬁll unmet needs. They constantly
timeline as they read about
Madam C. J. Walker’s change how things are done and contribute to the overall good
business success. Ask of the nation. In each chapter, you will learn something about
students what kinds of
obstacles Walker would have
had to overcome to succeed
in that era.
1880 1900 1920 1940
The First Woman Millionaire
Many entrepreneurs start by offering where she and her daughter trained
something they themselves need. That’s other women to use and sell the product
exactly what made Madam C. J. Walker a line, which now included items such as
millionaire. Walker began making her complexion soap and dental cream. At
own hair treatments in 1904. The treat- least 20 women completed the program
ments worked well, so Walker began every six weeks. Besides becoming a mil-
offering them to other African-American lionaire from the sales of her products,
women. She sold her products door-to- Walker made a huge contribution to the
door and bought ad space in newspa- African-American community by empow-
pers. Walker then opened Lelia College, ering women to take pride in their work.
6 Chapter 1 • Should You Become an Entrepreneur?
entrepreneurs in history, because they are an important part of what
the United States and the world have become today.
NINETEENTH CENTURY ENTREPRENEURS A machine that put a major
boost in the United States economy was the reaper. In 1831, Cyrus
McCormick took the reaper, which had already been invented, and
used it to mechanize the job of harvesting crops. McCormick had
$60 when he went to Chicago to set up a factory to manufacture
reapers. In time, the company that marketed his reapers evolved
into International Harvester, which produced farm equipment for
many years. Today this company is called Navistar International
Transportation Company and manufactures International brand
Lydia Moss Bradley, an entrepreneur from Peoria, Illinois, made
millions of dollars in investments and real estate. She transformed
seemingly unusable marshland into productive farm land. She also
founded Bradley University in 1896.
John D. Rockefeller began working at the age of 16 as a clerk in
a small produce company. At 23, he had saved enough money to
enter the oil reﬁnery business. By 1872, his company, Standard Oil,
owned all of the main oil reﬁneries in Cleveland, New York,
Pittsburgh, and Philadelphia. Before long, Rockefeller controlled
almost all oil distribution in the United States. Eventually, he
became the richest man in the world.
EARLY 20TH CENTURY ENTREPRENEURS Entrepreneurs
remained very important in the twentieth century. For
example, Henry Ford developed and mass-produced the
Model-T automobile, which he sold at a price many
Americans could afford. A machinist from Detroit, Ford
created one of the largest companies in the world. Also
during the early part of the century, Olive Ann Beech co-
founded the Beech Aircraft Company with her husband.
She had always handled the ﬁnancial aspects of the com-
pany and took part in major company decisions. She ran
the business when her husband became ill in 1940. With
Beech at the helm, the company continued to be a leader
in the aviation industry until merging with the Raytheon
Company in 1980. Henry Ford
Clarence Birdseye pioneered the development of packaged frozen
foods in the 1920s. His developments had a major impact on eating
habits throughout the world. Rose Knox became another leader in the
food industry when she took over the Knox Gelatine Company in 1908.
Besides being an innovative business owner, she was the ﬁrst to pro-
vide employees paid sick and vacation leave and a ﬁve-day work week.
Checkpoint Answers will
Name one historical entrepreneur and vary.
describe what he or she did.
Entrepreneurs: Present and Past • Lesson 1.1 7
businesses employ the most
workers and contribute
billions of dollars to the U.S. More than 5.8 million small businesses contribute billions of dollars
economy. every year to the United States economy. These small companies
RETEACH employ more workers than all of the country’s large corporations com-
Review answers to the
Checkpoints in the lesson. bined. Small businesses are found in virtually every sector of the econ-
ENRICH omy. Companies such as Microsoft, Intel, and Apple all started as small
Critical Thinking Assign the businesses. These companies have changed the workplace by making
Think Critically questions.
Connections Assign the computers accessible to the world. Other entrepreneurial companies
Make Connections activities. include Southwest Airlines, Mrs. Fields Cookies, and Estée Lauder
TECHNOLOGY Cosmetics. These companies make life more pleasant for consumers
• Encourage students to use
a calculator for the Math and provide employment to hundreds of thousands of workers.
Connection and to explore Small companies can be more creative and take more risks than
the function of the % key.
• Encourage students to use large companies. Their experimentation and innovation leads to
word processing software technological change and increased productivity. This makes small
to write the scenario in the
Communication business a signiﬁcant part of the American economy. For this rea-
Connection. son, many experts believe that small companies will play an
• Encourage students to do
an Internet search for increasingly important role in the future.
information on Clarence
Birdseye and daily eating
habits in the 19th century.
CLOSE Why are small businesses so
Review the topics stated in
the Goals at the beginning of important to our economy?
1. What are your reasons for wanting to become an entre-
preneur? Do you think they are common to all entrepre-
neurs, or are some of your reasons unique? Answers
may include independence, ﬂexibility, and enjoying work.
2. What other entrepreneurs in the 19th or 20th century
have changed the American economy? How? Answers will vary.
3. MATH Suppose there are exactly 5,812,000 small busi-
nesses in the economy today. Approximately 27 percent
of those businesses are service businesses. What is the
number of service businesses in the economy?
5,812,000 0.27 1,569,240
4. COMMUNICATION Clarence Birdseye developed the
ﬁrst packaged frozen foods. He greatly inﬂuenced eating
habits in the United States and throughout the world.
What do you think a typical family’s daily eating habits
were like at the end of the nineteenth century? Write a
short scenario describing them. Student answers will vary,
but should mention that the diet consisted of meat and starch (such as
potatoes and bread) due to the lack of fresh vegetables.
8 Chapter 1 • Should You Become an Entrepreneur?
Lesson 1.2 GOALS
IS ENTREPRENEURSHIP successful
RIGHT FOR YOU? ASSESS whether
you have what it
takes to succeed in
your own business.
any people dream of running their own businesses. They
would like to become entrepreneurs. Entrepreneurship SCHEDULE
Block 45 minutes
can be exciting. But running your own business is difﬁ- Regular 1 class period
cult. In fact, many companies started by entrepreneurs go out of TEACHING RESOURCES
business. This is often caused by poor planning, lack of business • Workbook Lesson 1.2
• Activity Master 1
knowledge or entrepreneurial characteristics, or choosing the wrong
business. Introduce Point out the
goals at the top of the page.
Ask students what they think
CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS they will learn or why they
think the goals are important.
Ask a student to read the
Researchers have identiﬁed several characteristics that distinguish opening paragraph out loud.
successful entrepreneurs from those that fail. Motivate Ask students to
name a business in the
1. Successful entrepreneurs are independent. They want to community and another
similar business that has
make their own decisions and do something they enjoy. gone out of business.
Discuss what the differences
2. Successful entrepreneurs are self-conﬁdent. Entrepreneurs between the two businesses
make all the decisions. They must have the conﬁdence to make might be.
choices alone and bounce back from a poorly made decision. TEACH
• Discuss each characteristic
3. Successful entrepreneurs have determination and perse- of successful
verance. Entrepreneurs persist through hard times until goals • Ask students to think of an
are met. example to illustrate each
4. Successful entrepreneurs are goal-oriented. They know what • Ask students why each
characteristic is important
they want, and they are able to focus to entrepreneurship.
on achieving it. • Discuss why people
5. Successful entrepreneurs have a preneurs: to leave
need to achieve and to set high environment, work at
standards for themselves. They home, pursue a
personal dream, and
are constantly setting challenging many other reasons.
6. Successful entrepreneurs are
creative. They think of new ways to
market their businesses, and are always
looking for new solutions to problems.
7. Successful entrepreneurs are able
to act quickly. They are not afraid
to make quick decisions when nec-
essary, which helps them beat their
Is Entrepreneurship Right for You? • Lesson 1.2 9
The vast majority of Small Businesses Dominate the U.S. Economy
businesses in the United 100
States are small busi-
Percentage of all U.S. businesses
nesses that employ
fewer than 20 people. 80
There are 8.5 20
million women- 10
owned businesses 1%
in the United States. 20 or fewer 21–500 More than 501
These businesses Number of employees
account for more
than one-third of all Ryan Nelson has many entrepreneurial characteristics. Since he
businesses and was 14, Ryan played for his high school basketball team. Other
generate $3.1 boys his height—just 5’8”—would not have enjoyed competing with
trillion in revenue. much taller boys. Ryan accepted that he would have to work harder
to win. He needed to be creative in handling the ball. Most of all,
he had to believe in himself. He did, and became one of the top
DID YOU KNOW? players on his team. If Ryan opened his own business, the charac-
Direct students to read the
Did You Know? feature. Ask teristics he displayed as a ball player might help him succeed.
students if they know any
businesses owned by
ONGOING ASSESSMENT Name three important characteristics
Checkpoint Answers will of entrepreneurs.
vary, but may include
• Demonstrate how to read
the graph at the top of
ASSESS YOUR SUITABILITY FOR ENTREPRENEURSHIP
• Emphasize that the graph Entrepreneurship is not for everyone. Some people lack the qual-
demonstrates that most ities needed to become successful entrepreneurs. Others lack the
businesses in the U.S.
are entrepreneurships. aptitude needed to run a business. For others, the beneﬁts of entre-
• Ask students to point out preneurship do not outweigh the disadvantages.
which characteristics of
entrepreneurship apply To determine if entrepreneurship is right for you, you ﬁrst need
to Ryan Nelson described to perform a self-assessment, an evaluation of your strengths and
in the paragraph under
the graph. weaknesses. You can do this in a number of ways. You can list
• Point out that not everyone your strengths and weaknesses on a sheet of paper. You can ask
is suitable for
entrepreneurship. others what they believe your strengths are and where your weak-
• Explain how self-
assessment can evaluate nesses lie. There are also tests you can take to assess your abilities.
personal strengths and
entrepreneurship. ASSESS YOUR INTERESTS
Success as an entrepreneur requires a strong commitment to a
business and a lot of energy. To be able to commit yourself fully to a
business, you should choose a ﬁeld that interests you and that will
provide you with an experience you will enjoy.
10 Chapter 1 • Should You Become an Entrepreneur?
HOBBIES AND INTERESTS Many entrepreneurs
center a business on an interest or hobby. Tricia
Johnson loved reading mysteries and was interested
in book collecting. Tricia created Royal Books, a com-
pany that buys and sells new, used, and rare books, ASSESSMENT
especially mystery books. Making a list of hobbies and Checkpoint Interest and
interests can help you decide what business is right for
you. • Explain how hobbies,
interests, and past
PAST EXPERIENCES Analyzing past ex- suggest the
periences and jobs can help you decide type of
on a business you would enjoy owning. enter.
Samantha Rodriguez worked as a cus- • Point out
tomer service representative for a large and
company. Recognizing that she wanted enjoyment
a job where she could spend time out- factors for
doors, Sam formed her own bicycle success.
messenger service. She now earns less • Deﬁne
money than she did as a customer ser- the ability to
vice representative, but she enjoys the learn a
work that she is doing. kind of job.
Explain that different jobs and
businesses require different
kinds of aptitudes.
Name key factors that aid an entre- • Point out the difference be-
preneur’s commitment to a business. tween interest and aptitude.
Assign the In Class Activity
to encourage group
interaction. Ask students to
ASSESS YOUR APTITUDE write the suggested possible
jobs that match their own
Different jobs require different job aptitudes. Aptitude is the abil- personal interests in their
ity to learn a particular kind of job. Auto mechanics must possess notes.
an aptitude for solving mechanical problems. They also must be
good with their hands. People who sell insurance must have good
interpersonal skills. Answering questions like those in the Job
Attributes Checklist can help you identify the kinds of entrepreneur-
ial opportunities that might match your aptitudes and interests.
In Class Activit
JOB ATTRIBUTES CHECKLIST As a class,
1. I enjoy working with numbers. for each item
on the job attr
Choose two p ist.
2. I enjoy working outdoors. eople to write
down all the
3. I enjoy working with my hands. suggestions on
or on paper.
4. I enjoy selling.
5. I like working with people.
6. I prefer to work alone.
7. I like supervising other people.
8. I like knowing exactly what it is I am supposed to do.
Is Entrepreneurship Right for You? • Lesson 1.2 11
Checkpoint The ability to
learn a particular kind of job. What does it mean to have an
aptitude for something?
Point your browser to
ASSESS THE ADVANTAGES OF ENTREPRENEURSHIP
Many people see signiﬁcant advantages in owning their own
Complete the activity 1. Entrepreneurs are their own bosses. Nobody tells an entre-
for Chapter 1. preneur what to do. Entrepreneurs control their own destinies.
2. Entrepreneurs can choose a business that interests them.
TEACH Entrepreneurs work in ﬁelds that interest them. Many combine
• Describe each of the hobbies and interests with business.
entrepreneurship. 3. Entrepreneurs can be creative. Entrepreneurs are always
• Ask students if being their
own boss appeals to them. implementing creative ideas they come up with themselves.
• Ask students if working in
a ﬁeld that interests them 4. Entrepreneurs can make lots of money. Entrepreneurship
is better than working in involves risk. This means that entrepreneurs can make a lot of
a ﬁeld that does not.
• Ask students to think of money if their business succeeds.
an occasion in which they
did something creative and
to describe the feeling of ASSESS THE DISADVANTAGES OF ENTREPRENEURSHIP
satisfaction that came
from it. There are also disadvantages to being an entrepreneur. They
• Point out that although include the following:
there are risks of entre-
preneurship, the other 1. Entrepreneurship is risky. All small businesses face the possi-
side is the possibility of
earning a lot of money. bility of going out of business or of losing money.
• Emphasize the disadvan- 2. Entrepreneurs face uncertain and irregular incomes.
tages of entrepreneurship.
Students will tend to Entrepreneurs may make money one month and lose money
glamorize the advantages
and underestimate the the next.
• Point out that small busi-
nesses often fail and
owners lose their
• Explain how income from
small businesses can be
uncertain or irregular.
12 Chapter 1 • Should You Become an Entrepreneur?
3. Entrepreneurs work long hours. Entrepreneurs never really TEACH
• Explain the time commitment
are ﬁnished with their jobs. They can work long, irregular hours. required in entrepreneurship.
They receive no paid days off, and they may have to work Students often think that
being their own boss means
evenings and weekends. not having to work very
4. Entrepreneurs must make all decisions by themselves. • Draw the connection
Unless they have partners, entrepreneurs must make all the between the quotation in
You Can Say That Again!
decisions alone. and the fourth disadvantage
What are advantages and dis- Entrepreneurs are their own
advantages of entrepreneurship? bosses, can choose a
business that interests them,
can be creative, and can
make lots of money.
take risks, face uncertain
incomes, work long hours,
You can say that again! and make all decisions
“The thing you have to remember RETEACH
Review the answers to the
is that you can’t blame anyone Checkpoints in the lesson.
else for your mistakes.” ENRICH
Critical Thinking Assign the
—Vinita Gupta, creator of Digital Link Think Critically questions.
Connections Assign the
Make Connections activities.
• Encourage students to use
a calculator for the Math
• Encourage students to use
word processing software
to complete the
1. Entrepreneurs can fail even if they are committed and Communication
have the characteristics needed to be successful. Why do Connection. Students may
use the cut and paste or
you think this can happen? Answers may include: because there move functions to put the
was not a market for the product or service or ineffective management. advantages in order.
2. Why is it important for entrepreneurs to choose a ﬁeld CLOSE
that they will enjoy? If they do not enjoy the business, they will lose Review the topics stated in
interest and the business will fail. the Goals at the beginning of
3. Do you think the advantages of entrepreneurship out- the lesson.
weigh the disadvantages? Why or why not? Some students
will say yes, others will say no. Personal opinion will determine how
4. MATH One in four small companies begun this year will
be out of business within the next two years. What per-
centage is this? Six years from now, nearly two-thirds of
all businesses started this year will no longer be open.
What percentage is this?
One in four = 1 4 25%; two-thirds = 2 3 67% (rounded).
5. COMMUNICATION Rank the advantages of entrepre-
neurship in order of importance to you. The item ranked
“1” is most important to you and the item ranked “4” is
the least important. Write a paragraph explaining your
rankings. Answers will vary.
Is Entrepreneurship Right for You? • Lesson 1.2 13
GOALS Lesson 1.3
businesses you could
IDENTIFY your own
Block 45 minutes
Regular 1 class period
TEACHING RESOURCES illions of entrepreneurs in the United States start their own
• Workbook Lesson 1.3 businesses. How did they decide what businesses to oper-
• Activity Master 2
ate? How can you learn about the business opportunities
Introduce Point out the available to you? What kinds of goals should you set for yourself?
goals at the top of the page.
Ask students what they think
they will learn or why they
think the goals are important. INVESTIGATE OPPORTUNITIES
Ask a student to read the
opening paragraph out loud. The library has resources that
Motivate Ask students to
think of a kind of business can help you examine different
that is not located in their opportunities. These include books
community and that now
requires a great deal of travel on entrepreneurship, magazines
to get to the nearest one. Ask
if there is enough demand in for entrepreneurs, trade magazines
the community to open that for certain businesses, and govern-
kind of business nearby.
ment publications. County Business
• Point out that deciding Patterns is an annual series of publi-
what kind of business to cations providing economic proﬁles
operate is a business
decision that requires of counties, states, and the United
identifying what the States as a whole. Data include
• Describe sources of employment, payroll, and number of establishments by industry.
investigating opportunities: The library is not the only place to investigate opportunities. The
books and magazines,
business trade magazines, Small Business Administration (SBA) is an organization that exists
and government to help small businesses and their owners. It publishes information
• Emphasize that the Small that may be helpful. Talking to entrepreneurs and attending trade
exists to help small shows, which are special meetings where companies display their
businesses and their products, can also be beneﬁcial.
owners, and it publishes
a lot of information. Luanda Williams wanted to use her love of sports and dancing to
• Emphasize that talking create her own company. She found books and magazine articles at
to entrepreneurs and
attending trade shows are the library that gave her information on various kinds of businesses.
other ways of investigating She also talked to owners of gymnastic centers, health clubs, and
dance studios. Her research helped her come up with the idea of
Checkpoint From the library, opening a gymnastics and ﬁtness center for children.
the SBA, attending trade
shows, and talking to other
How can you ﬁnd out about various
14 Chapter 1 • Should You Become an Entrepreneur?
COMPARE DIFFERENT OPPORTUNITIES In Class Activit
Once you ﬁnd some appealing businesses, you need In small group y
to identify which have the best chance for success. Now a list of resour
ces for ﬁnding
is the time to assess each business idea by asking that sells auto
out a compan
yourself the following questions: mobile access
1. Is there a market in my community for this kind of
business? Will people buy my product or service?
2. How much money would it take to start this
business? Will I be able to borrow that much
3. How many hours a week is it likely to take to run
this business? Am I willing to commit that much time?
4. What are the particular risks associated with this business? What COOPERATIVE LEARNING
Assign the In Class Activity
is the rate of business failure? to encourage group
5. Does my background prepare me to run this kind of business? interaction. Point out that
group brainstorming usually
Do most people who own this kind of business have more produces more ideas than a
experience than I do? single individual could
6. How much money could I make running this business?
Checkpoint Answers may
include: Is there a market for
this business? How many
What are some questions you need to hours will I have to work?
ask to help determine if the business How much money could I
opportunities you listed are realistic?
• Explain that it is not
enough to identify and
businesses, but they must
also be evaluated to
SETTING GOALS identify which have the
best chance for success.
• Select a small business
For everything you do in life, you set goals. As an entrepreneur, that would interest your
students and discuss the
you will need to set ﬁnancial and nonﬁnancial goals. six questions for this
• Explain that entrepreneurs
FINANCIAL GOALS Financial goals can include how much money you must set two kinds of
will earn and how quickly you will pay off debts. Make sure your goals: ﬁnancial and
goals are realistic. They should be easily attainable. If one of your • Explain why ﬁnancial goals
ﬁrst goals is to make lots of money early on, you almost certainly must be realistic to avoid
will be disappointed. It usually takes time for businesses to be • Point out that most
ﬁnancially viable. Most businesses begin operations by borrowing operations by borrowing
money. These debts usually are paid within one to ﬁve years. This money that may take a
number of years to repay.
means that at ﬁrst, an entrepreneur may earn less than he or she
would have earned working as an employee.
Setting speciﬁc ﬁnancial goals before starting a business can
ensure a business is able to earn the proﬁts you want. Mo Yang
wants to start a mail-order business for model trains, planes, and
cars. He estimates that after expenses he would earn $9
for each item he sold. At this rate of proﬁt, he would
have to sell 3,000 models to meet an income goal of
$27,000 a year. This showed Mo that he would have to
lower his income goal or ﬁnd another business idea,
because he would probably not be able to sell that many models.
Identify Business Opportunities and Set Goals • Lesson 1.3 15
• Explain nonﬁnancial goals.
NONFINANCIAL GOALS Most
• Ask students what kinds of people who own their own
nonﬁnancial goals would be businesses do so for more
important to them.
WHAT WENT WRONG?
than just monetary gain.
The What Went Wrong? They are looking for per-
feature is a case that shows
a business failure. Students sonal satisfaction. They may
analyze the case to see the serve a community need,
kinds of mistakes business
owners may make so do something they like, or
that they can avoid those enjoy the personal inde-
mistakes in their own
entrepreneurial careers. pendence of being an
Think Critically Answers entrepreneur. You will
1. Ability to act quickly, creati- want to specify what nonﬁ-
vity, determination, goal
orientation, self-conﬁdence nancial goals you want to
2. The loss of the former get out of being an entre-
owner as a mentor and
losing the chief printer preneur.
hindered her ability to Mark and Cindy Baird
keep the business going
smoothly. own Outdoor Exploration,
a company specializing in
Is Entrepreneurship Right for You?
Be Sharp or Fall Flat
Business: Print Here!, San Francisco, CA * Open for business 5 months
Louise was an opera singer, but it wasn’t The former owner left town earlier than
a ﬁnancially viable career. She earned addi- planned. Then Louise’s chief printer quit.
tional money working at a copy shop in With the schedules of her part-time
San Francisco. The elderly couple who employees, Louise was frantically trying to
owned the shop gave ﬂexible hours to get large orders out on time. With no for-
employees with aspiring music careers. mal business training and no management
Sadly, the husband died and the wife experience, Louise couldn’t begin to deal
decided to sell the business and go to with all these problems, problems even a
Cincinnati. Louise grabbed the opportunity. veteran would ﬁnd difﬁcult. She ended up
The former owner helped Louise gather selling the business at a $50,000 loss.
financial information and put together a
business plan. Louise’s uncle co-signed on
a bank loan, and she was in business. She
modernized the décor of the shop. Louise 1. What characteristics did Louise possess
contacted all the existing customers to that led her to become an entrepre-
assure equal or better service. Sales neur?
increased the first two months. But 2. What circumstances out of Louise’s con-
then. . . trol led to the failure of this business?
16 Chapter 1 • Should You Become an Entrepreneur?
backpacking, white-water rafting, and mountaineering trips. The ONGOING ASSESSMENT
Checkpoint Financial goals
Bairds had a dream to help disabled children experience the out- are set to make sure the
doors. Last year, they began offering inexpensive outdoor programs business will earn a proﬁt.
Nonﬁnancial goals include
to children with Down’s syndrome and cerebral palsy. Mark and serving the community and
Cindy experienced an enormous sense of satisfaction in seeing
these children enjoy themselves outdoors. RETEACH
Review the answers to the
Checkpoints in the lesson.
Critical Thinking Assign
Why are ﬁnancial goals important? the Think Critically questions.
Connections Assign the
Name some nonﬁnancial goals an Make Connections activities.
entrepreneur may have. TECHNOLOGY
• Encourage students to
use a calculator for the
• Encourage students to
use word processing
software to complete
Review the topics stated in
1. Choose a business idea that appeals to you. For this busi- the Goals at the beginning
of the lesson.
ness, answer the six assessment questions listed in this
lesson on a sheet of paper. Is this a realistic choice for Think Critically
you? Why or why not? 1. Answers will vary.
2. Financial goals may be
2. In terms of annual income, what ﬁnancial goals have you owning property or more
than one business.
set for yourself for ﬁve years after you graduate? What Nonﬁnancial goals may be
nonﬁnancial goals have you set that becoming an entre- independence and
preneur can help you achieve? Are ﬁnancial or nonﬁnan- Make Connections
3. $15,000 $10 1,500
cial goals more important to you? Why? lessons. The goal is
realistic if the lessons are
kept to one hour. You can
give 6 lessons a day for 5
days a week (regular work
week). Assuming you
work 50 weeks a year (2
3. MATH You live near the beach and have a passion for weeks vacation), you
would give 30 lessons a
snorkeling. Your dream is to give snorkeling lessons. You week for 50 weeks (1,500
estimate that after expenses, you can earn $10 per lesson. lessons in a year).
4. Answers will vary, but
Your income goal is $15,000 per year. How many lessons should include all of the
do you need to give to achieve this goal? Is this goal topics listed in the activity.
5. Answers will vary.
4. COMMUNICATION Write a letter to the Small Business
Administration. In your letter, indicate your interest in
starting a small business. Be speciﬁc about the type of
business you wish to start. Ask what speciﬁc services the
SBA provides to people who wish to start this type of
business. Give your letter to your teacher.
5. COMMUNICATION Make a list of personal nonﬁnancial
goals you would like to achieve through entrepreneur-
ship. Choose one of these goals. Write an outline for a
detailed plan you can follow to achieve this goal.
Identify Business Opportunities and Set Goals • Lesson 1.3 17
1. An entrepreneur is a person who owns, operates, and takes the
risks of a business venture. Entrepreneurs try to identify and
meet a need for a product or service.
2. Entrepreneurs come from all types of backgrounds, and they
own all kinds of businesses including manufacturing, retailing,
ENTREPRENEURS: and service businesses.
PRESENT 3. Throughout U.S. history, there have been many entrepreneurs
AND PAST who have contributed to the economy.
4. Today, more than 5.8 million small companies still contribute
REVIEW greatly to the U.S. economy.
Review each point in the 5. Small businesses generally are more creative and willing to take
risks than large corporations.
6. There are a number of characteristics successful entrepreneurs
possess, such as independence and determination.
IS 7. To determine whether entrepreneurship is for you, you will need
ENTREPRENEURSHIP to assess your strengths, weaknesses, interests, and aptitudes.
RIGHT FOR YOU? 8. Advantages of owning your own business include being your
own boss and working in a ﬁeld that interests you.
Disadvantages include uncertainty, risk, and the need to work
very long hours.
9. There are many resources at your public library that can help
you develop a list of business ideas. Trade shows can also give
you valuable information.
10. Once you have identiﬁed several opportunities, ask yourself key
IDENTIFY questions to analyze each option and identify the kind of busi-
BUSINESS ness that makes the most sense for you.
OPPORTUNITIES 11. Financial goals should include how much money you want to
AND SET GOALS earn from your business. Setting speciﬁc ﬁnancial goals will
help you determine if your business idea will make the proﬁts
12. Nonﬁnancial goals can include serving a community need,
working at something you enjoy, or maintaining the indepen-
dence that comes with entrepreneurship.
Assign What Do You Know
Now? to provide practice in
applying new knowledge Read Build a Business again. Then answer the questions a second time.
from the chapter.
How have your responses changed?
18 Chapter 1 Should You Become an Entrepreneur?
Chapter 1 •• Should You Become an Entrepreneur?
Assign Vocabulary Builder and
Review Your Knowledge to
VOCABULARY BUILDER assess student understanding.
Choose the term that best ﬁts the deﬁnition. Review Your Knowledge
7. Entrepreneurs are different
Write your answers on a separate sheet from employees because
of paper. they assume risk.
8. To leave the fast-paced
1. People who work for someone corporate environment;
else bb a. aptitude to be at home but still
earn an income; to
2. Evaluation of your strengths and b. employees pursue a personal dream.
c. entrepreneurs 9. Manufacturing: produce
weaknesses e the products they sell
3. Special meetings at which com- d. entrepreneurship using resources and
panies display their products f e. self-assessment sell products to people
4. People who own, operate, and f. trade show other than the ﬁnal
customer; Retailing: sell
take the risk of a business ven- products directly to the
people who use or
ture c consume them; Service:
sell services rather than
5. The ability to learn a particular kind of job a products; Agricultural:
6. The process of running a business of one’s own d generate fresh produce
and other farm products;
Mining and extracting:
take resources out of the
ground so they can be
REVIEW YOUR KNOWLEDGE 10. Answers will vary (exam-
ples in text: Cyrus
7. How are entrepreneurs different from employees? McCormick, Madam C. J.
Walker, Lydia Moss
Bradley, John D.
8. Why do some people go into business for themselves? Rockefeller, Henry Ford,
Olive Ann Beech,
9. Name all the different kinds of entrepreneurial businesses and Clarence Birdseye, Rose
describe what each produces. 11. Entrepreneurial com-
panies employ more
10. Name two early American entrepreneurs and what they did. workers than all of the
country’s large corpora-
11. Why are entrepreneurial companies important to our economy? tions combined.
12. 1. Independence, 2. Self-
conﬁdence, 3. Determi-
12. What are the seven characteristics of successful entrepreneurs? nation and perseverance,
4. Goal orientation, 5. A
13. Why is it important for a beginning entrepreneur to perform a need to achieve and set
high standards for
personal assessment? themselves, 6. Creativity,
7. Ability to act quickly.
14. Why should entrepreneurs take past experiences into account when 13. You must know your
strengths and weak-
deciding to start their own business? nesses and make sure
that you are choosing a
15. Why is it important to have an aptitude for the business you decide ﬁeld that interests you
and that will provide you
to own? with an experience you
16. List the four advantages and four disadvantages of 14. They can help you
evaluate what you liked
entrepreneurship. or didn’t like about a
17. What resources can you use to research business opportunities? 15. To be successful, you
need to be proﬁcient at
18. Why should you set both ﬁnancial and nonﬁnancial goals for yourself whatever skill is neces-
sary to run your
as an entrepreneur? business.
Chapter Review • Chapter 1 19
1. Being your own boss,
APPLY WHAT YOU LEARNED
2. Choosing a business 19. The six categories of privately owned businesses include manufac-
that interests you,
3. Being creative, turing, agricultural, mining and extracting, retailing, wholesaling, and
4. Making lots of money.
Disadvantages: 1. Risky, service. In small groups, brainstorm speciﬁc industries and compa-
2. Uncertain and nies that belong to each category of business. Make a list of indus-
irregular income, 3. Long
hours, tries and companies for each type. Share your results with the class.
4. Making decisions
alone. 20. In groups, brainstorm a list of jobs that relate to each aptitude given
17. Books on entrepreneur-
ship, magazines for in Lesson 1.2. For each job listed, have members vote on which
magazines for certain ones they would like to do. Are there any jobs that received more
businesses, government votes than the others? What are the aptitudes involved in these
Business Patterns, The jobs? Share your results with the class.
18. Setting ﬁnancial goals
before starting a busi-
ness can ensure that it
will be able to earn the
proﬁts you need. Setting
nonﬁnancial goals is
important because the 21. How is entrepreneurship today different from entrepre-
goals will help you neurship during colonial times?
understand why you
want to be an
entrepreneur (what you 22. What is the relationship between interest in and apti-
want to get out of the tude for a particular ﬁeld? Can interests and aptitudes
Apply What You Learned
be the same? Why or why not?
19. Answers will vary, but
will be similar to the 23. Other than going to the library and attending trade
chart in Lesson 1.1. shows, can you think of other ways to investigate busi-
20. Answers will vary.
Think Critically ness opportunities?
21. Entrepreneurs today
have many more 24. Why is setting realistic ﬁnancial goals important to cre-
choices. Prior to ating a successful company?
were few ways to strike
out on one’s own.
Technology has made
possible for many more
people. These people are
creating products and 25. MATH Ellen Greenberg loves to make and ﬂy kites.
offering services that
were not needed Ellen is planning to open a shop selling custom-made
22. A particular ﬁeld may be kites. She asks for your advice to help her set ﬁnancial
of interest to you, but you goals. Ellen estimates that after expenses, she can make
may not have the
aptitude or skills a $15 proﬁt on each kite she sells. If her annual income
necessary to compete in
that ﬁeld. Interests and goal is $15,450, how many kites will she have to sell? Is
aptitudes are often this goal realistic?
similar. Most people are
interested in things that
they have an aptitude for. 26. RESEARCH Find information on the life and career of
23. Answers will vary, but a famous historical entrepreneur. Find out information
students may list
newspaper such as birthplace, the type of business started, and
magazines, etc. what effect the person had on the economy and history.
24. If the ﬁnancial goals Is the business still operating? Write a short report
are not realistic, the
entrepreneur will be about your ﬁndings.
discouraged and may
not continue the venture. 27. COMMUNICATION For the above Research question,
ﬁnd a creative way to present your ﬁndings to the class.
Use visual aids, skits, costumes, games, etc.
20 Chapter 1 • Should You Become an Entrepreneur?
25. She will have to sell
THIS IS YOUR
1,030 kites ($15,450
$15 = 1,030).
This goal is realistic
if Ellen can make
4 or 5 kites a day
works ﬁve days a
week for 50 weeks
out of the year).
26. Answers will vary,
but should include
This activity will help you identify a business opportunity that all of the topics
listed in the
may be right for you. You will use this business idea for the exercise.
“This Is Your Business Project” throughout the book. 27. Answers will vary.
1. Divide a sheet of paper into two columns. In the ﬁrst column APPLY
• Assign Apply What
list all your interests. In the second column, list business You Learned.
ideas that relate to each interest. • Critical Thinking:
Assign the Think
2. Make a list of your strengths and weaknesses. Compare Critically questions.
this list with your list of business opportunities. For which • Connections: Assign
the Make Connections
business ideas would your strengths most apply? For which activities.
business ideas would your weaknesses hurt the most? RETEACH
Based on your strengths and weaknesses, cross out those Review sections of the
chapter to reinforce the
business ideas that no longer seem suitable for you. chapter content.
3. Assess your aptitude, using the checklist in Lesson 1.2. Put ENRICH
a checkmark next to the business opportunities that relate Assign This Is Your
to your aptitudes. Students will use
4. For the business opportunities remaining on your list, techniques described
in the chapter to select
assess the advantages and disadvantages of each. Cross a business opportunity
out any whose disadvantages outweigh its advantages. suited to their own
interests and aptitudes.
5. Using the library or Internet, ﬁnd sources of information that Once identiﬁed, this
relate to the business opportunities that remain on your list. business idea will be
expanded at the end
Make a list of these sources. Locate at least one of these of every chapter.
sources for each business opportunity. For each source, FORMAL
write a sentence stating the type of information that you can ASSESSMENT
• Assign ExamView®
obtain from it. On your list, cross out business opportunities Chapter 1.
for which you could not ﬁnd any information. • Assign Chapter 1 Test
A or B.
6. Choose one of the business opportunities remaining on CLOSE
your list. Answer the six Compare Different Opportunities Ask one or more
questions based on this business opportunity. students to describe
some of the choices
7. Set personal ﬁnancial goals for a ﬁve-year period based on made in completing This
the business opportunity you chose. Be realistic. Assume Is Your Business
you will need to borrow money to get started. Estimate both COOPERATIVE
your income and expenses to determine the amount of LEARNING
proﬁt you can expect to make. Next, set nonﬁnancial goals • The two Apply What
You Learned activities
you hope to achieve with this business. Be sure to include are speciﬁcally
speciﬁc activities for each goal. designed as group
ing is a common tool
for solving business
• The Make
THIS IS YOUR BUSINESS PROJECT Communication
1. Answers will vary. 2. Answers will vary. 3. Answers will vary; the aptitude test in the chapter Activity may also be
should be used. 4. Answers will vary. 5. Answers will vary. 6. Answers will vary, but the six assigned as a group
Compare Different Opportunities questions in Lesson 1.3 should be used. 7. Financial goals
may include making money and paying off debts in two years. Nonﬁnancial goals may include
helping the community or having personal independence.
Chapter Review • Chapter 1 21
SUCCESSFUL DOUGHNUT COMPANY
NOW MAKES WEDDING CAKES
Krispy Kreme’s modern-day win-
K rispy Kreme Doughnuts
was started by Vernon
Rudolph in 1933 when he
purchased a doughnut shop in
Krispy Kreme is famous for its
fresh, glazed, yeast-raised dough-
nuts called “Krispy Kreme Original
Krispy Kreme Doughnuts Paducah, Kentucky, receiving the
Glazed.” Other products baked by
was started by entrepre- company’s assets, goodwill, and
neurs who thought out- Krispy Kreme include more than a
side of the box and were the rights to a secret yeast-raised
dozen varieties of cake and yeast-
willing to take ﬁnancial doughnut recipe.
risks. The case empha- raised doughnuts, real fruit pies,
sizes sacriﬁces that Rudolph and his partner moved
cinnamon buns, and several vari-
entrepreneurs were will- the Krispy Kreme operations to
ing to make in order to eties of snack foods.
run a successful busi-
Nashville, Tennessee, where other
ness. The major points members of the Rudolph family
in this case include joined the business, opening shops
Doughnut Wedding Cakes?
entrepreneurial risk, Krispy Kreme doughnuts are
products offered, and in Atlanta, Georgia, and
product diversiﬁcation. emerging as a new ingredient for
Charleston, West Virginia.
Think Critically wedding cakes and as a souvenir
Krispy Kreme initially began as
Answers from the ceremony. Brides and
1. Rudolph possessed a delivery business that sold
all of the characteris-
grooms are choosing to give
doughnuts to local grocery stores.
tics of an entrepre- departing guests two- and four-
neur: independence, In 1937, Rudolph left Nashville to
doughnut gift packs, some carrying
self-conﬁdence, deter- open his own doughnut shop in
mination, goal orienta- designer stickers with the bride’s
tion, the need to Winston-Salem, North Carolina. In and groom’s names on them.
achieve and to set order to start the new business, InStyle Weddings may have
high standards, cre-
ativity, and the ability Rudolph relied on two partners, a jump-started the trend in its 2001
to act quickly. 1936 Pontiac, $200 in cash, magazine when it listed the fried
2. Krispy Kreme quickly
responded to customer doughnut-making equipment, the confections as a way to add a
demand for retail ser- secret recipe, and, most impor- touch of the unusual to nuptials.
vice. It expanded its
product line to include tant, the name Krispy Kreme Wedding cakes have evolved from
more varieties of Doughnuts. The three partners a simple tiered stack of doughnuts.
cakes, doughnuts, fruit
pies, cinnamon buns, used their last $25 to rent a build- Some customers opt to buy the
and snack foods to ing across from Salem College doughnuts and have a local cake
satisfy customer and Academy.
needs. It expanded decorator create something for
into new markets, such Delivering the doughnuts was them.
as weddings and ban- crucial for success. Rudolph took
quets. Neighborhood stores and the
3. By diversifying with out the back seat of the Pontiac corporate ofﬁces are ﬁelding as
the doughnut wedding and installed a delivery rack. The
cakes and souvenirs, many as 40 calls a week as the
Krispy Kreme has ﬁrst Krispy Kreme doughnuts were wedding trend grows. A dough-
been able to create made and sold on July 13, 1937, at
new demand for its nut wedding planner helps ease
products. the Winston-Salem shop. Soon the fears that go along with
4. Answers will vary. people began stopping by the building a wedding centerpiece
Ideas may include
doughnuts for meet- shop wanting to buy hot dough- from a snack.
ings, doughnut packs nuts. The consumer demand was Krispy Kreme doughnuts also
for school outings, or
doughnut-based so great that Rudolph opened the have become popular for birth-
desserts, such as shop for retail business by cutting days and bar mitzvahs as well as
or ice cream sundaes. a hole in the shop’s wall to sell the for banquets, fund-raisers, and
doughnuts—the beginning of weddings.
22 Chapter 1 • Should You Become an Entrepreneur?
Franchise Opportunities beneﬁts for area developers and ROLE PLAY
The Full Service
The grand opening of a Krispy the business is the top goal for Restaurant Management
Kreme store involves long lines of Krispy Kreme. Role Play has the stu-
dent owning a popular
people anticipating the delicious, restaurant that serves
addictive warm doughnuts. Strict breakfast, lunch, and din-
and consistent quality control ner throughout the day.
Regular customers are
contributes to the huge success of key to the success of the
Krispy Kreme. All Krispy Kreme restaurant. One of the
1. What entrepreneurial char- best waitresses has a
doughnut mixes are prepared in a acteristics did Vernon run-in with regular cus-
modern, state-of-the-art, 135,000- tomers who tried to use a
Rudolph possess? coupon that had expired
square-foot manufacturing plant by one week. The stu-
in Winston-Salem and are deliv- 2. List three factors that have dent must resolve the
contributed to the success conﬂict with the customer
ered directly by the company’s and assure the waitress
own ﬂeet of trucks to Krispy of Krispy Kreme. that she is still a key
Kreme stores. player at the restaurant.
3. How is product diversiﬁca- 1. Answers will vary, but
The Krispy Kreme market is tion a key element in the students should rec-
growing due to area developers ognize the importance
success of Krispy Kreme? of preserving the
who share the vision, standards, goodwill of regular
and objectives of the successful 4. Invent one additional prod- customers while main-
uct marketing idea for taining the loyalty of a
company. Building successful rela- valued employee.
tionships that have long-range Krispy Kreme doughnuts. 2. Answers will vary.
Students may suggest
contacting Mr. and
Mrs. Fold to offer an
FULL SERVICE RESTAURANT apology and a gift cer-
tiﬁcate for a ﬁxed
amount or for two free
3. Answers will vary, but
students should rec-
You own a popular restaurant 10-hour shift and got into a con- ognize the importance
of assuring Sally that
that serves breakfast, lunch, and frontation with Mr. and Mrs. Fold she behaved appropri-
dinner throughout the day. Your over the expired coupon. Now ately by checking the
restaurant has coupon specials in Mr. and Mrs. Fold are upset and expiration date. Sally
may need some
the Wednesday and Sunday news- have indicated that they will take coaching on how to
papers. Many of your regular cus- their loyal business to a competi- deal with this type of
situation in the future.
tomers take advantage of these tor. Sally is very upset about the 4. Answers will vary.
coupons. You have stressed to situation. Students may suggest
that coupons contain
your wait staff the importance of no expiration date or
1. How will you handle this situa-
accepting only nonexpired that coupons be pre-
tion? sented at the time the
coupons. Sally, your best waitress, order is placed so that
2. How will you maintain cus-
is careful to look for expiration the expiration date can
tomer loyalty from Mr. and be checked before the
dates on coupons.
Mrs. Fold? customer orders.
Bill and Penny Fold, regular
3. What will you do to make Sally
customers who eat at your restau-
feel better about the situa-
rant at least twice a week,
ordered lunch with a coupon.
4. What adjustments can you
They did not realize that the
make to your coupon
coupon had expired the week
promotions to avoid
before. Sally had worked a