Definition of an Entrepreneur

Day 1 Review Product Innovation In groups, use your assigned materials to create a totally new product. Please prepare to present your idea to the class considering the following: 1. The name of your product 2. The features of the product 3. The benefits your product offers to customers 4. Who would be interested in this product (age, male or female, needs, interests, etc.) Product Innovation Activity What skills does it take to perform this activity? Characteristics of a Successful Entrepreneur  Adaptability Competitiveness Confidence Drive  Discipline Perseverance Risk-Taking        Organization Persuasiveness   Understanding Vision Honesty  Definition of an Entrepreneur NFTE’s Definition: A person who organizes and manages a business assuming the risk for the sake of the potential return. Definition of an Entrepreneur Babson College’s definition: A way of thinking and acting that is opportunity obsessed, holistic in approach and leadership balanced. Role of the Entrepreneur  Value Creator – Ex: Owner of the local deli    Problem Solver – Ex: Bill Gates, Technology Ex: Henry Ford, the assembly line Ex: Andrew Carnegie, 95% of wealth to worthy causes Innovator – Philanthropist –  Job Creator – Sam Walton, Wal-mart Differences Between an Employee and an Entrepreneur An Entrepreneur    An Employee    Owns a business Does not have a boss Is responsible for the success or failure of the business Doesn’t own a business Works for someone else Is responsible for doing his or her job Succeeds by doing his or her job   Succeeds by satisfying a consumer need Differences Between an Employee and an Entrepreneur An Entrepreneur    An Employee    Owns a business Does not have a boss Is responsible for the success or failure of the business Doesn’t own a business Works for someone else Is responsible for doing his or her job Succeeds by doing his or her job   Succeeds by satisfying a consumer need Advantages & Disadvantages of being an Entrepreneur Advantages    Disadvantages  Control Over Time Satisfaction Business Failure Obstacles Loneliness Financial Insecurity     Wealth Creation Control Over Compensation Control Over Working Conditions  Long Hours/Hard Work  Characteristics of a Successful Entrepreneur  Adaptability Competitiveness Confidence Drive • Discipline • Perseverance • Risk-Taking      Organization Persuasiveness • Understanding • Vision • Honesty The Aim of Business  To add value to the lives of consumers, the community and the environment at a profit To create mutually beneficial exchange Money is an important tool, not the goal!   What types of people become entrepreneurs?  Many successful entrepreneurs started with little money or education  It is estimated that more than half of successful entrepreneurs had parents who were entrepreneurs  35% of individuals who start businesses are under the age of 30 What types of people become entrepreneurs?  Most entrepreneurs start businesses in areas in which they already have experience  Most entrepreneurs finance their business through personal savings  Most entrepreneurs get start-up money from friends and family The Trading Game Opportunity Recognition Brain Teaser Could you connect the 9 dots with 4 connecting lines ? Don’t lift your writing instrument off the paper! Brain Teaser People often assume that you must stay within the “box” created by the dots. Think outside the box…literally. Brain Teaser #2 Finally: Is it possible to do with 1 straight line without cutting the page? Brain Teaser #2 Had you made any assumptions about what the definition of a “line” is? Every part of the problem/question can present a possible solution. Nothing is impossible. Consider every solution before deciding on the best solution. Opportunity Recognition  The identification of unfulfilled desires in the market place The creation of ideas for services or products that satisfy those market needs  Opportunity Recognition Market:  a group of people potentially interested in buying a product or service. Opportunity Recognition Product vs. Service  Product: something tangible that exists or is made, usually to be sold Service: Intangible work providing time, skills or expertise in exchange for money  Opportunity Recognition  The Internal Entrepreneur – Turns hobbies, skills, interests into business opportunities  Ex: Ben Cohen & Jerry Greenfield, Ben & Jerry’s Homemade, Inc. Ex: Jasmine Jordan, Tools for Living Magazine  External Opportunity Recognition Problem Change Inventions Competition Technological Advances Unique Knowledge BMX Bike Racing/Culture Bus. Idea: Bulldog Bikes 9/11 Bus. Idea: Airport Security Training Services External Opportunity Recognition Problem Change Inventions Competition Technological Advances Unique Knowledge The Good Business Idea Vs. The Good Business Opportunity Opportunity Screen 1. 2. Is it attractive to customers? Will it work in your business environment? Is there a window of opportunity? Do you have the resources and skills to create the business or do you know someone who does? Can you supply the product or service at a price that will be attractive to customers yet will be high enough to earn you a profit? 3. 4. 5. If you answer no to even one question, refine the business idea! Idea vs. Opportunity “Choose a business idea you can start tomorrow with the skills and resources you have today.” Katerina Zacharia Youth Entrepreneurship Educator and Advocate NFTE Certified Entrepreneurship Teacher During Concept Development Perform a S.W.O.T. Analysis During Concept Development Perform a S.W.O.T. Analysis – Determine the Strengths and Weaknesses of your resources, knowledge, team. Determine the Opportunities for your business idea, and the Threats to its potential success. – S.W.O.T. Analysis Strengths Weaknesses Opportunities Threats 1. 2. 1. 2. The Entrepreneur, Team The Marketplace Building S.W.O.T. into the business plan  Strengths Qualifications & Competitive Adv.  Opportunities Opportunity for your bus. in market Strategy for minimizing risk & risk management  Weaknesses & Threats Why Develop a Business Plan? Forces the entrepreneur to think, critically and unemotionally, about every aspect of a business idea. Serves as a guide for the owner as he or she manages the business towards its success. Shows potential investors that the business is thoughtfully planned. Expresses specifically how the business and its investors can potentially make a profit. 1. 2. 3. 4. Business Plan Work Groups     Brainstorm business ideas, choose 1 Evaluate the opportunity – SWOT Analysis – Opportunity Screen Develop business idea in 3 clear sentences Complete PowerPoint Slides 1, 2 in PowerPoint Business Plan Template, plus “Qualifications” slide