entrep.docx

**SYB Step 1: Assess Yourself as an Entrepreneur** What is an Entrepreneur? \- An individual who undertakes the risk associated with creating, organizing, and owning a business. Personal Characteristics of Successful Entrepreneurs 1. Persistent 2. Creative 3. Responsible 4. Inquisitive 5...

**SYB Step 1: Assess Yourself as an Entrepreneur** What is an Entrepreneur? \- An individual who undertakes the risk associated with creating, organizing, and owning a business. Personal Characteristics of Successful Entrepreneurs 1. Persistent 2. Creative 3. Responsible 4. Inquisitive 5. Goal-oriented 6. Independent 7. Self-confident 8. Risk taker Skills Needed by Successful Entrepreneurs 1. Communication skills 2. Human relations skills 3. Math skills 4. Problem-solving & Decision-making skills 5. Technical skills 6. Basic Business skills Entrepreneurship and the Entrepreneurial Process 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. 5 Steps of the Entrepreneurial Process 1. Discovery 2. Concept Development 3. Resourcing 4. Actualization 5. Harvesting Step 1: Discovery The stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market. Entrepreneurs consider the following: - Hobbies or Skills - Consumer Needs and Wants - Conduct Surveys and Questionnaires - Study Demographics 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 Step 3: Resourcing The stage in which the entrepreneur identifies and acquires the financial, human, and capital resources needed for the venture startup, etc. Entrepreneurs contemplate the following: - Identify Potential Investors - Apply for loans, grants and financial assistance - Hire employees Step 4: Actualization The stage in which the entrepreneur operates the business and utilizes resources to achieve its goals /objectives Entrepreneurs prepare for the following: - Grand Opening of the Business - Day to Day Operations of the Business Step 5: Harvesting The stage in which the entrepreneur decides on venture's future growth, development, or demise. Entrepreneurs consider the following: - Future Plans for the Business: - Expansion to additional locations - Company to change structure **SYB Step 2: Develop Your Business Ideas** Primary types of business structure 1. Proprietorship 2. Partnership 3. Corporation Types of Business Structures 1. Sole Proprietorship An unincorporated business entity owned and operated by a single individual. 2. General partnership (GP) The default model for a business owned by two or more people. 3. Limited partnership (LP) Involves at least one general partner with unlimited liability and one limited partner with liability. 4. Limited liability partnership (LLP) It is where all partners have limited liability in the business. 5. C Corporation A legal entity that's completely separate from its owners, offering the strongest personal liability protection. 6. S Corporation A business model where income, deductions, and credits pass through to shareholders for federal tax purposes. 7. Benefit Corporation A business model with added emphasis on making a positive impact on local communities and the environment. 8. Limited Liability Company (LLC) A business model that combines the pass through taxation of a partnership with the limited liability of a corporation. 9. Non-Profit A business that has been granted tax-exempt status by IRS on the basis that it advances a social cause benefiting the public. 10. Joint Venture A partnership between one or more separate business entities. Starting a Business - Develop a Business Plan - Acquire Finances - Meet Legal Requirements Develop a Business Plan A Business Plan is a detailed proposal that describes a new business. Business Plans are: - Presented to potential investors and lenders - Most business plans are 30+ pages Purposes of a Business Plan Business Plans are used to: - Obtain Financing - Banks and Potential Lenders require a business plan - Helps organize and analyze data critical to new business. - Provides a start-up proposal - Provides and outline to follow when starting the business. 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 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 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 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. Protecting your Idea Confidentiality agreements A confidentiality agreement is a legal agreement that binds one or more parties to non-disclosure of confidential or proprietary information. A confidentiality agreement is often used in situations wherein sensitive corporate information or proprietary knowledge is not to be made available to the public or to competitors. Ex. Employee non-disclosure agreements Employee acknowledges and agrees that all Confidential Information is the exclusive property of the Company, and Employee has no independent or individual claim Patents A patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem. Ex. Patent Name: "Electromagnetic inductive suspension and stabilization system for a ground vehicle" Patent Name: "Electronic device" Patent Name: "Virtual reality generator for displaying abstract information" Trademarks A trademark is a word, a group of words, sign, symbol, logo or a combination thereof that identifies and differentiates the source of the goods or services of one entity from those of others. If you\'re a business, distinguishing your goods or services from others gives you a competitive edge. Copyrights A copyright is a collection of rights that automatically vest to someone who creates an original work of authorship like a literary work, song, movie or software. These rights include the right to reproduce the work, to prepare derivative works, to distribute copies, and to perform and display the work publicly. Components of Creativity IMG\_256 Environmental Stimulants to Creativity a. Freedom b. Good Project management c. Sufficient resources d. Encouragement e. Various Organizational characteristics f. Recognition g. Sufficient time h. Challenge i. Pressure Environmental Obstacles Creativity a. Various Organization Characteristics b. Constraint c. Organization disinterest d. Poor project management e. Evaluation f. Insufficient resources g. Time pressure h. Overemphasis on status quo i. Competition Impacts of Innovation - Effecting a new policy - Finding new opportunities - Designing a new structures - Devising a fresh method **SYB Step 3 -- Assess your Market and Develop a Marketing Plan** Data points to include in your target market Demographics Demographics describe who your target customers are in terms of categories like their age, gender, employment status, life stage, family structure, religion and income. Here are a few examples of demographic descriptions of your target market: - College students with a part-time job - Women ages 40--50 who are employed full time with a yearly income of at least \$60,000 - Retired men who are married without children Geographics Geographics describe the physical location of your target customers. Factors to consider include: - Whether they live in a rural, suburban or urban - environment - Which area of the country they live in - Their local language and time zone Psychographics Psychographics describe the intrinsic personal qualities of people in your target market. This includes things like their hobbies and leisure activities, entertainment interests and preferred sources of information. Some examples are: - What kind of activities do they do with friends? - How do they search for shows to watch on streaming? - Do they care about making green choices when buying a - product? Behavioral patterns Behavioral patterns are those that define your customers\' purchasing habits. When considering your target market\'s behavioral patterns, ask yourself what qualities your consumers are looking for in the item or service and why they want to purchase it. Think about when and how frequently they buy and use your product or service. - Do they prefer to search on Google or TikTok for places to visit on a trip? - Do they tend to buy a lot online and then return a large number of items? - Do they tend to increase their purchase to have free delivery? **SYB Step 4 -- Organize your business** **SYB Step 5 -- Costing & pricing your product or services** The Concept of Fair Pricing PRICE Is the value placed on goods and services offered to the public. Form of money or it could be paid w/ others good/or services. Value on a product or services. Factors affecting Price decision 1. Cost of making of the product. 2. Marketing and other administrative cost. 3. Prices of the Competitors. 4. Ability of the customer to pay. 5. Supply and demand Situation. 6. Image of the company. Basic Pricing Principles 1. All prices Must cover costs. 2. Effective way of lower sales price is lowering the cost. 3. Price must be regularly updated to reflect market developments. 4. Prices must be established to ensure sales. 5. Product utility, longevity, maintenance, end use must be 6. judged continually, and target prices should then be 7. adjusted accordingly. 8. Prices must be set to preserve order in the marketplace. 9. Prices must be fixed to support an over all corporate goal. Elements in Pricing 1\. Labor cost -- Employee's salaries, wages, benefits. \- Contractors/Subcontractors who performed, Supervised or managed the service business. 2\. Overhead expenses - Indirect expenses required to operate the business. \- Insurance premium, Equipment depreciation Business forms, rentals, office supplies, Dues, and membership payments. 3\. Profit -- Amount of incomes earned after all cost of producing and providing the services have been met.