Ch 3 Recognizing Opportunity Understanding Entrepreneurial Trends Current

Ch. 3: Recognizing Opportunity

Understanding Entrepreneurial Trends Current Trends Internet – Most Businesses have an Online Component Service – Most Small Businesses Service = Intangible things that businesses do for us that enhance our lives Home Based – Approximately 53% of Small Businesses Typically online

Understanding Entrepreneurial Trends Current Green Trends – Promote Sustainability = Achieve Goals without compromising the ability of future generations to meet their own needs Social Entrepreneurship – Improve Society Identify social needs and recognize them as opportunities May be Non-Profit

Understanding Entrepreneurial Trends Current Trends Focus on Technology – Critical component of Business: As a Product or used to Increase Productivity Outsourcing – Anything and Everything Contracting with other companies for services Allows 5 Focus on what You do BEST Main Benefits

Understanding Entrepreneurial Trends Current Trends Outsourcing 5 – Anything and Everything Main Benefits Greater Efficiency, Saving Money & Time Decreases Lowers Start More Overhead Investment or Debt Regulatory Compliance Burdens New Projects Quickly Attractive to Investors – Money is Directed Towards Money-Making Activities

Understanding Entrepreneurial Trends Current Trends Strategic Alliances – Partnerships Alliance with Another Company to Supply You with a Product or Service Corporate Ventures – Spin-Off Resources Provided to get the New Venture Started Often Becomes Independent Company

Understanding Entrepreneurial Trends Recognizing Creativity Opportunity and Innovation Connection, Discovery, Invention, Application Idea vs Opportunity Opportunities are Ideas that Have Commercial Profit Potential Finding Unfulfilled Niches Niche = Small Specialized Market

Understanding Entrepreneurial Trends Strategies Practice Look for Thinking Creatively Brainstorming – Thinking Freely at Ordinary Items in New Ways Find Creative Solutions to Common Problems Connect Unrelated Items Being Creative Can Be Challenging! Time, Unsupportive People, Lack of Confidence, & Rigid Thinking

Understanding Entrepreneurial Trends Creative Sources of Ideas Observe Watch the World Around You for Demographic Changes Demographics = Personal Characteristics that Describe a Population Be an Avid Reader Consider Your Own Experiences Interests, Consult Hobbies, Work Outside Sources Magazines, Trade Shows, Internet, & Government

Starting Vs. Buying a Business Personal Values and Goals Influenced by Family, Religion, Teachers, Friends, Society, and Personal Experiences What Family are Your Core Values? Business Approximately 1/3 Survive to the 2 nd Generation – Why? Advantages = Trust and Togetherness Disadvantages = Can’t get Away and Parents Not Viewing their Children as Effective Business People

Starting Vs. Buying a Business Family Business Question to Ask: Do I Have the Ability to Work for a Member of My Family Do I Get a Long with the Family Members Involved Do we Share the Same Goals – Business and Personal Life

Starting Vs. Buying a Business Family Business Question to Ask: Can we be clear and Specific About Expectations of Each other Can I Leave Business Problems at Work We Maintain a Positive Family Relationship

Starting Vs. Buying a Business Buying an Existing Business Typically Employs Less Risky Hired and Trained Equipment in Place Customers Goodwill Established Inventory – Customer Loyalty Procedures

Starting Vs. Buying a Business Buying an Existing Business Franchise Legal Agreement to Begin a New Business in the Name of a Recognized Company Mc. Donalds Franchisee Does Pay Not have to Acquire All Risk Fees and Annual Royalties Franchisor Can restrict how You Run the Business

Starting Vs. Buying a Business Starting Your Own Business Questions Do to Ask I have Motivation Does the Business Align with My Personality, Ability, Values, and Goals Do I have Sufficient Knowledge of Basic Operations to Undertake the Business

Starting Vs. Buying a Business Starting Your Own Business Questions to Ask Do I have the Managerial Ability Do I have the Right Partners to Help Me Do I have Enough Financial Resources Am I willing to Accept the Risk

Starting Vs. Buying a Business Starting What Your Own Business You Must Do Test the Feasibility: Are there Enough Customers in the Market to Make the Effort Worthwhile Traditional Business or Online, or Both Business Plan: Seek Capital, Partners, Employees Secure Professional Advisors: Accountants, Lawyers

Starting Vs. Buying a Business Starting What Your Own Business You Must Do Hire Employees and Build Relationships with Suppliers Purchase Equipment and Determine Distribution Channels Create Awareness