Entrepreneurship

UNDERSTAND THE CONCEPT OF ENTREPRENEURSHIP

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3.01

Characteristics of Successful Entrepreneurs

Recall personal characteristics and skills needed for a successful entrepreneur.

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What is an Entrepreneur?

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An individual who undertakes the

risk associated with creating, organizing,

and owning a business.

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Personal Characteristics of Successful Entrepreneurs

• Persistent
• Creative
• Responsible
• Inquisitive

• Goal-oriented
• Independent
• Self-confident
• Risk taker

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Skills Needed by Successful Entrepreneurs

• Communication skills
• Human relations skills
• Math skills
• Problem-solving & Decision-making skills
• Technical skills
• Basic Business skills

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3.02

Entrepreneurship and the Entrepreneurial Process

Understand entrepreneurship

and the entrepreneurial process.

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�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.

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5 Steps of the �Entrepreneurial Process

• 1. Discovery
• 2. Concept Development
• 3. Resourcing
• 4. Actualization
• 5. Harvesting

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Step 1: Discovery

• The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market.

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• Entrepreneurs consider the following:
• Hobbies or Skills
• Consumer Needs and Wants
• Conduct Surveys and Questionnaires
• Study Demographics

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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 -

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Step 3: Resourcing

• The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc.

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• Entrepreneurs contemplate the following:
• Identify Potential Investors
• Apply for loans, grants and financial assistance
• Hire employees

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Step 4: Actualization

• The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals / objectives

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• Entrepreneurs prepare for the following:
• Grand Opening of the Business
• Day to Day Operations of the Business

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Step 5: Harvesting

• The stage in which the entrepreneur decides on venture’s future growth, development, or demise.

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• Entrepreneurs consider the following:
• Future Plans for the Business:
• Expansion to additional locations
• Company to change structure

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3.03

Starting a Business

Understand the procedures and requirements

for starting a business.

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Starting a Business

• 1. Develop a Business Plan
• 2. Acquire Finances
• 3. Meet Legal Requirements

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Develop a Business Plan

• A Business Plan is a detailed proposal that describes a new business.

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• Business Plans are:
• Presented to potential investors and lenders
• Most business plans are 30+ pages

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Purposes of a Business Plan

• Business Plans are used to:
• Obtain Financing
• Banks and Potential Lenders require a business plan

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• Helps organize and analyze data critical to new business.

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• Provides a start-up proposal
• Provides and outline to follow when starting the business.

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(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

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(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

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(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

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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.

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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

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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.

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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

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For More Information visit: https://www.uspto.gov/trademarks/basics/trade_defin.jsp

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