Starting a Business Objective: Discover the fundamental things you need to know to start a business.

Starting a BusinessStarting a Business

Objective: Discover the fundamental Objective: Discover the fundamental things you need to know to start a things you need to know to start a business.business.

Generate IdeasGenerate Ideas

EntrepreneursEntrepreneurs must generates ideas by must generates ideas by Recognizing business opportunitiesRecognizing business opportunities Considering their own skills and hobbiesConsidering their own skills and hobbies Thinking about people’s needs and wantsThinking about people’s needs and wants Researching potential ideasResearching potential ideas Learning about potential competition.Learning about potential competition.

Use the Generating Business Ideas activity as a starting

point (located on the 6th grade class website).

Choose a Business TypeChoose a Business Type

ProductProduct ServiceService Combination Product and ServiceCombination Product and Service

Product BusinessesProduct Businesses

Sell goods to consumers and other Sell goods to consumers and other businessesbusinesses

Retailers and distributors are product Retailers and distributors are product businessesbusinesses

ExamplesExamples Old NavyOld Navy Dollar GeneralDollar General Best BuyBest Buy Dick’s Sporting GoodsDick’s Sporting Goods

Service BusinessesService Businesses

Provide services rather than goodsProvide services rather than goods Some service businesses meet needs Some service businesses meet needs

(medical clinics, law firms)(medical clinics, law firms) Some service businesses provide wants Some service businesses provide wants

(taxi companies, ISPs)(taxi companies, ISPs) ExamplesExamples

Barber shopBarber shop Dry CleanersDry Cleaners Dentist OfficeDentist Office Car repair shopsCar repair shops

Combination Product and Combination Product and ServiceService

Some businesses are both product Some businesses are both product and service businesses—they sell a and service businesses—they sell a product and provide a service.product and provide a service.

ExamplesExamples Automobile dealershipsAutomobile dealerships Hair salonsHair salons Appliance storesAppliance stores Can you think of others?Can you think of others?

Finding the Right Finding the Right ConsumerConsumer

A consumer is the person that will A consumer is the person that will use the product. Consumers are the use the product. Consumers are the people that businesses sell to. people that businesses sell to.

When grouped together consumers When grouped together consumers are known as demographics.are known as demographics.

DemographicsDemographics: Data that describes a : Data that describes a group of people in terms of their age, group of people in terms of their age, marital status, family size, ethnic marital status, family size, ethnic background, gender, education, income background, gender, education, income and characteristics.and characteristics.

Finding the Right Finding the Right ConsumerConsumer

Use demographics to determine the Use demographics to determine the profile of an average consumer for profile of an average consumer for your business.your business.

This profile is called a target This profile is called a target audience/target market.audience/target market.

Ex. Target market for a surf shop in Myrtle Beach: Men and women under the age of 30 who enjoy swimming, water sports and seek adventure. They are both experienced and beginning surfers.

Make a DecisionMake a Decision

Make a final decision on what Make a final decision on what products or services you will products or services you will provide and you are selling to.provide and you are selling to.

How much will you charge? Be How much will you charge? Be specific!specific!

Spread the WordSpread the Word

Spread the word so that people will Spread the word so that people will know about your new business.know about your new business.

Remember to keep your target Remember to keep your target audience/target market in mind. audience/target market in mind.

Here is information about Here is information about advertising your business.advertising your business.

Information on Advertising - Link 1Information on Advertising - Link 1

Information of Advertising - Link 2Information of Advertising - Link 2

Information of Advertising - Link 3Information of Advertising - Link 3

Get StartedGet Started

Once you have review this Once you have review this PowerPoint and completed the PowerPoint and completed the Generating Business Ideas activity. activity. Get started on the Get started on the Start Your Own Business (Entrepreneur) Project.

ResourcesResources

Determine the resources needed to Determine the resources needed to start and run your business. start and run your business. Consider the following cost and Consider the following cost and needs:needs: Rent Cost for Building LocationRent Cost for Building Location # of Employees to be Hired & Their # of Employees to be Hired & Their

PayPay Equipment & Materials to be Equipment & Materials to be

PurchasedPurchased