3 Recognizing Opportunity Chapter 3 Section 3 1

3 Recognizing Opportunity Chapter 3 Section 3. 1 Section 3. 2 Recognizing Starting Versus Buying a Business Opportunity Understanding Entrepreneurial Trends Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends The Main Idea The ability to recognize new opportunities and to think creatively is essential for success in today’s global market. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Current Entrepreneurial Trends One way to identify business opportunities is to study current trends that provide opportunities for entrepreneurs. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

Current Entrepreneurial Trends Internet businesses social entrepreneurship service businesses focus on technology home-based businesses outsourcing and strategic alliances green businesses corporate ventures 4

SECTION 3. 1 Understanding Entrepreneurial Trends Internet Businesses • The Internet has transformed the way business is conducted. • An online business can reach customers around the world. online business a company that conducts business by means of the Internet Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Service Businesses • Service businesses dominate the American economy. • Business services account for the largest part of U. S. economic growth. services intangible things that businesses do for consumers that enhance their lives Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Outsourcing is hiring people and other companies to handle tasks that a business cannot do or chooses not to do itself. outsourcing contracting with other companies for services Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

more efficient saves time saves money Benefits of Outsourcing lowers regulatory burden speeds up projects attracts investors 8

SECTION 3. 1 Understanding Entrepreneurial Trends Strategic Alliances A strategic alliance is a partnership among companies. strategic alliance a partnership formed with another company for the purpose of supplying a product or service Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Corporate Ventures A corporate venture is formed within a company. corporate venture a new venture started inside a larger company Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Creativity and Innovation Creativity is the activity that results in innovation a new way of doing things Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Idea vs. Opportunity • You generate ideas by thinking creatively. • Opportunities are ideas that have niche commerciala small potential. specialized market • You can find a good business opportunity by recognizing an unfilled market niche. Chapter 3 Recognizing Opportunity Section 3. 1 Understanding Entrepreneurial Trends Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Thinking Creatively About Opportunity During brainstorming, ideas are not judged as good or bad. brainstorming to think freely in order to generate ideas Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Watch for Demographic Changes It is important for entrepreneurs to understand demographics and demographic trends. demographics personal characteristics that describe a population by age, gender, income, ethnic background, education, and occupation, among others Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

Sources of Information trade specialty magazines government Sources agencies of Information The Internet trade shows exhibitions newspapers 15

SECTION 3. 1 Understanding Entrepreneurial Trends Consult Outside Sources specialty magazine • A trade magazine offers current, industry-specific news. trademagazine • A specialty offers a periodical published for a information about specific topics. specific type of business or industry • You can use specialty magazines to identify the interests and needs of potential consumers. a periodical published for people with special interests, such as sports, camping, or fashion Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 1 Understanding Entrepreneurial Trends Consult Outside Sources • At a trade show, you can learn about new goods and services in a field. trade show a gathering or exhibition where vendors and manufacturers introduce new items and promote established products and services Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business The Main Idea Whether you start a business or buy an existing one, make sure it is compatible with your personal values and goals. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business Personal Values and Goals Personal values and goals should be used as a guide when choosing entrepreneurial pursuits. values the beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify your priorities Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business Entering the Family Business • The greatest advantage of a family business is the trust and togetherness that family members often share. • Families that work well together have great potential for success in a family business. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business Buying an Existing Business • In many ways, buying an existing business is less risky than starting one from scratch. • When you buy an existing business, you often gain the goodwill of loyal customers. goodwill Chapter 3 Recognizing Opportunity the favor and loyalty a business acquires by its good reputation Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business Buying a Franchise • When you buy a franchise, you buy the right to set up a new business patterned on an existing model. franchisor franchise • The franchisee thewho buyer of a the seller of ais franchise is giving buyer planning and a legalthe agreement to begin a new franchise. management expertise business in the name of a recognized company franchisee • The franchisor is the seller of a the buyer of a franchise who is the right to the franchisor’s franchise. given product, process, or service Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

SECTION 3. 2 Starting Versus Buying a Business Evaluating a Business Opportunity To evaluate a business opportunity: Investigate the company. Investigate the industry. Talk to customers, employees, and suppliers. Hire an accountant to advise you. Hire an attorney to advise you. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business

Where to Find a Business newspapers business publications Finding Business Opportunities business brokers networking 24

SECTION 3. 2 Starting Versus Buying a Business Starting Your Own Business • When you start your own business from scratch, you can do things your own way. • You can build the company with fresh ideas and enthusiasm. Chapter 3 Recognizing Opportunity Glencoe Entrepreneurship: Building a Business