Ch. 5 Entrepreneurship Intro To Business. Learning Targets Section 5.1 – Rewards and Challenges of Entrepreneurship Define entrepreneur and entrepreneurship.
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Slide 1
Ch. 5 Entrepreneurship Intro To Business
Slide 2
Learning Targets Section 5.1 Rewards and Challenges of
Entrepreneurship Define entrepreneur and entrepreneurship List at
least five rewards of being an entrepreneur Identify at least five
challenges of being an entrepreneur Discuss why entrepreneurs are
important to the American economy
Slide 3
Rewards and Challenges of Entrepreneurship What is
Entrepreneurship? The process of recognizing an opportunity,
testing the market and gathering the resources necessary to go into
business. Entrepreneur A person who recognizes a business
opportunity and organizes, manages and assumes the risks of
starting and operating a business Creating and running a business
venture requires a variety of skills
Rewards and Challenges of Entrepreneurship Small Business
Independently owned business that usually has its owner as its
manager Serves a limited geographic area and employs less than 500
people Internet Business Also known as a virtual business or
dot-com company Operates on the internet Shows how an entrepreneur
can make a significant improvement to what already exists (shopping
online) Have the potential to attract a huge number of
customers
Slide 6
Rewards and Challenges of Entrepreneurship Rewards of
Entrepreneurship Being the Boss Do not have to consult with others
before making a decision Doing What You Enjoy An idea usually
starts with an activity that you enjoy Having the Opportunity to be
Creative You make the procedures Can be daring and creative
Building an Enterprise Must choose between buying an existing
company or starting a new one
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Rewards and Challenges of Entrepreneurship Other Reasons
Developing your own schedule Can work from home (home based
business) Make economic contributions to the community through
investments and the creation of jobs Rewarded for assuming a
risk.
Slide 8
Rewards and Challenges of Entrepreneurship Challenges of
Entrepreneurship Getting Funds to Start the Business Many must
borrow money to start business Loans Hard to get because of
uncertainty of success Private investors must have good idea and
business plan Being Fully Responsible for the Business Must make
sure everything gets done Cleaning, paying bills, hiring employees
and repairs Other Challenges for Entrepreneurs Insecurity about
making the right decisions Work long hours Face uncertain income
levels Risk losing investment 4 out of 5 small businesses fail
within the first 5 years due to inadequate financial planning.
Slide 9
Learning Targets Section 5.2 The Business Plan Discuss initial
steps insetting up a business plan Identify parts of a business
plan Learn how to present a business plan to potential
investors
Slide 10
The Business Plan Business Plan A written description of a new
business venture that describes all aspects of the business. It is
used by potential investors and financing agencies that new
entrepreneurs go to for start up money Checklist for Starting a
Venture What will I produce? Who are my competitors? Why is my
product or service needed? How much will my product or service cost
to produce? How many people will I need to run the business? What
physical facilities will I need? What licenses, permits, or other
legal documents do I need? How much money will I need to get
started? 5-2
Slide 11
The Business Plan Parts of a Business Plan: 1. Executive
Summary- is a brief account of the key points contained in a
business plan. Less than 2 pages. Introduction Current Situation
Management Qualifications Seeking Investors Closing Statement
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The Business Plan 2. Management Team Plan - discusses any
partners and your teams capabilities. Key Executives Key Advisors
Service Providers 3. Company Description- an outline of the
business that helps investors understand the size, scope, ad type
of business you plan to start. Motivations Entrepreneurial
Opportunity Business History Business Concept
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The Business Plan 4. Product and Service Plan- describes the
products or services you want to offer. Also, spin-offs or growth
potential can be mentioned. Products and Services Unique Selling
Proposition Competitive Products or Services Product Development
Milestones
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The Business Plan 5. Vision and Mission Statements- states the
guiding principles by which the business functions. * Vision
Statement- establishes the scope and purpose of a company and
reflects its values and beliefs. Focus on tomorrow. * Mission
Statement- expresses the specific aspirations of a company, the
major goals it will try to reach. Focus on today.