Lesson 1: What is an Entrepreneur? PDF

Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Lesson 1: What is an Entrepreneur? Meet Adele Hi, we’re starting a free entrepreneur workshop series at the Community Center. We’re just about to start the first session. Open the door and join us inside. Entrepreneurship Welcome to Entr...

Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Lesson 1: What is an Entrepreneur? Meet Adele Hi, we’re starting a free entrepreneur workshop series at the Community Center. We’re just about to start the first session. Open the door and join us inside. Entrepreneurship Welcome to Entrepreneurship: Opportunities to Change Your Life. I’m Adele and I’ll be leading the workshop and helping out along the way. Our workshop is open to the community and we’ll have local entrepreneurs stopping by to share their experiences. A few lucky participants of our workshop will compete for funding an investment by our professional entrepreneurs in our own version of a business investment TV show. This is a chance for someone’s dream of being their own boss to come true. But we have a lot to do before we’re ready for that. Let’s start with some basic information. Definition Do you know what an entrepreneur is? An entrepreneur is many things: a risk taker, a visionary. But the best way to think of it is that an entrepreneur is a person who is willing to take a risk, usually a financial one, in the hunt for new business opportunities. Successful entrepreneurs find new ways of doing business or a new kind of business. They may take bigger risks by doing things they haven’t done before, but they have opportunities for greater rewards if they succeed. Famous Entrepreneurs There are lots of people who fit the definition of an entrepreneur. Oprah Winfrey, Carlos slim Helú, Donald Trump, Henry Ford, Bill Gates, Tyra Banks, Mark Zuckerberg, Sean “Diddy” Combs, J.K. Rowling, Walt Disney and Steve Jobs are just a few. Click on the spinning markers to see more information about each of these famous entrepreneurs. Characteristics of an Entrepreneur These people, and all other successful entrepreneurs, have characteristics in common that help them succeed. Take a look at this list of just a few characteristics they share. What characteristics do you share with entrepreneurs? Drag the characteristics you share with entrepreneurs from the list on the left to the column on the right. Meet Shandra This is Shandra Jones, one of our local entrepreneurs. She will be here to give advice while you start developing your businesses. Copyright © 2017 Applied Educational Systems Page 1 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur About Shandra Hi. I became an entrepreneur ten years ago after I had my first child. I was working at a doggy daycare when the owner had health problems and was going to close the business. My husband and I decided to buy the business. It may not seem like much, but it gave me a way to set my own schedule so I could spend time with my son. Since then, I worked hard, listened to my customers and expanded my business. I now have my own pet salon, two mobile grooming trucks, and a dozen dog walkers working for me. I’m about to have my third baby and Waggy Tales is a bigger success than I ever dreamed. Characteristics of an Entrepreneur Entrepreneurship is a great choice for all kinds of people. Diverse background and skills can help entrepreneurs create businesses that no one has thought of before. And, there are many motivations for becoming an entrepreneur. Setting your own schedule and being your own boss are just two of these. So, how about you? Why would you want to own your own business? Here’s an exercise that may help you evaluate your motivations. Take a look at the list on the screen and click on the motivations that might be meaningful to you. When you finish making your selections, click the “Next” button. Boss vs. Employee But owning your own business isn’t easy. It takes a lot of work. When you own a business, you’re the boss. Sure, you get to make all the decisions, but you have all the responsibility, too. You have to do all the paperwork, like tax forms for the business and employees, manage the business finances, and manage the employees. When I was starting at my business, there were times I was worried we’d have to shut down, but I buckled down and worked harder. And, Waggy Tales has grown and grown. Adele Returns Adele: Thanks, Shandra. Shandra: You’re welcome, Adele. It was my pleasure. I know what it’s like to start your own business as an entrepreneur. I’m always happy to help. Adele: Now before you go, let’s review what we’ve talked about today. Check Your Understanding We’ve been talking a lot about being an entrepreneur, but do you remember what an entrepreneur is? Click the definition you think best describes being an entrepreneur.  A person willing to take a risk, usually financial, in the hunt for new business opportunities. Excellent choice. Entrepreneurs are willing to accept risk in return for opportunities for business success.  A person content to be an employee of a small company. Good try. An entrepreneur wants to be their own boss and run a business.  A person who invents products for a company. Nice try. An entrepreneur may invent something but they want to do it for their own business. Copyright © 2017 Applied Educational Systems Page 2 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Many entrepreneurs have personality characteristics in common. Which one of these characteristics listed is NOT a characteristic of a successful entrepreneur?  Decision Maker. Good try. Entrepreneurs need to be good decision makers to help their businesses succeed.  Afraid to take risks. Correct. Entrepreneurs must take risks to succeed. Someone who is afraid to take risks will have trouble being an entrepreneur.  Responsible. Nice try. An entrepreneur needs to be responsible enough to take care of and grow a business. Summary Great work! Do you think you have what it takes to open your own business? Take a few minutes today to think about what kind of business you’d like to start. As we move forward, we’ll talk about the things you need to know to start a business and make it successful. That’s all the time for this workshop. Next time, we’ll talk about the path to entrepreneurship, including the risks and benefits of starting your own business, buying an existing business or purchasing a franchise. There’s a lot to talk about! I’ll see you next time. Lesson 2: The Path to Entrepreneurship Introduction Welcome back. Our three entrepreneurs are waiting inside. Select the door and come join us. Meet Three Entrepreneurs Welcome back. I’m Adele. We met at the last meeting. Today we’re going to talk about the experiences of three local entrepreneurs. Shandra is the owner of Waggy Tales Pet Services. You met her in our last workshop. Ty is a local technology entrepreneur and Ray owns twelve restaurant franchises, one of which is right here in the neighborhood. Click on each entrepreneur to learn more about how they’ve succeeded in business. Shandra Shandra started walking dogs at Waggy Tales when she was pregnant with her first child. A couple of months into her job, the owner of the business needed to sell. So, Shandra and her husband bought the business. It was close to their home and would give Shandra a flexible work schedule. When her son was born, she hired her first two employees and turned her love of animals into a whole service pet care business. Five years ago, she added a dog groomer. And, she now has two mobile dog grooming vans that travel the city and twelve full-time employees. But Shandra says buying Waggy Tales was a big risk. She and her husband took out loans and used up all of their savings. They could’ve lost everything if it had failed. But today, they have a growing business and a growing family. Copyright © 2017 Applied Educational Systems Page 3 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Ty Ty didn’t set out to become an entrepreneur. When he was in college, he wrote a program that helped other programs talk to each other. It made his homework easier, and before he knew it, people wanted to use it for all kinds of things. Suddenly he was a college student running a business with three other programmers. A few years later, they sold the business to a software development company for millions. Ty was too young to retire, so he started a mobile app company. A couple of his apps were big hits, and last year he sold that business to a bigger app developer for a huge profit. Right now, Ty’s looking for his next technology investment. Ty didn’t face a lot of risks in the beginning. But, he learned a lot in those early years. Today, he looks at all the details and weighs all the risks before he invests in a business. Ray Ramón, or Ray as I know him, took a different path to entrepreneurship. He started working in a fast food restaurant in high school. He worked his way up to manager, and then the owner decided to retire and sell the restaurant. He loved working there. So, he asked his family for help and took out a loan to buy the franchise rights. Ray says it was the perfect choice for him. He increased business and used the profits to buy another restaurant franchise that he opened down the street two years later. Today, Ray owns twelve restaurants and he’s thinking about expanding into a sit-down family dining restaurant franchise. As with any business, there is a risk in buying a franchise. But franchises have strong corporations and recognized brands behind them that can help you predict where you’ll have issues and how to succeed. Talk to the Entrepreneurs So, you’ve learned a little bit about how our entrepreneurs started their businesses. Shandra bought an existing business, Ty started his business from scratch, and Ray bought a franchise. These are very different approaches to starting a business. But each can offer great opportunities. Select the path to entrepreneurship you want to learn more about. Buy an Existing Business Shandra’s experience was different than Ty’s and Ray’s. She bought an existing business, so there was a little less risk. Waggy Tales already had clients, a mailing list and a marketing plan. But it was barely making money and there was a big tax bill due. She risked a lot to buy the business and took on new risks each time she expanded. But it’s paid off for her. Shandra talked to an expert before making the final decision to buy the business. The expert suggested that Shandra make a spreadsheet with the risks and benefits to get an idea of what to expect. This is a copy of her list. She found more benefits than risks, but there were months that Shandra didn’t pay herself so she could pay everyone else. It was stressful for her family. But, they worked through it, planned carefully and turned it into a big success. How about you? Do you think you’d be willing to take on the risk of buying an existing business? Select the answer that best matches what you’re thinking. Copyright © 2017 Applied Educational Systems Page 4 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Start a New Business Ty didn’t have a business plan or a budget. He started small, selling his program to other students for a few dollars at a time. There wasn’t a lot of risk because the program was written and they were selling copies of it. But when some companies heard about the software, they wanted it tailored to their needs. That sounded great, but Ty and his friends weren’t ready for that kind of growth. They were full-time students and didn’t have time to both write code and go to class. So, they hired other friends, who were programmers, to help. As their company grew, they needed lawyers and accountants too, because they suddenly had to worry about payroll and taxes. Ty and his friends lived on coffee and Chinese take-out for weeks. But they day they got their first corporate payoff; they knew it was all worth it. These are some of Ty’s notes. When he was trying to decide if he should open his second business, he listed the risks and benefits to help him figure out if he was ready and if it made business sense to start again. Select the sticky notes to find out more about what he was thinking. Turn the page when you’re ready to continue. How comfortable are you with risking everything to start a new business? Select the answer that best matches your feelings. Buy a Franchise Ray took a very different path to entrepreneurship, than Shandra and Ty did, because he bought into a national franchise. That means, that he bought the right to use the national chain’s business model, menu, marketing materials, and more. Think of it this way. Creating a new business from scratch is like having an empty box. There are all kinds of things you can do with it but there’s nothing in there to start with. Buying a franchise is like getting a kit to start your business. It comes with most of the pieces you need to be successful. They give you advice on finding the best locations; and source for food, employee uniforms, equipment and decorations. They think of everything, even the to-go bags and napkins. The company gives you what you need to hire and train your staff to set you up for success. You also have the power of a well-known name on the door. People know what to expect and it’s easier to attract customers. But there are disadvantages as well. Every franchise opportunity is different. But most of the time, you’re locked into things. You have to buy everything from them and follow strict policies on marketing, prices, and even hours of operation. Just like every new business, a franchise comes with benefits and risks. Here’s a list for people who are thinking about opening their own franchise. There are franchises other than restaurants. We can talk about those later. But many of the benefits and risks are the same. Scroll through to see the full list on each side. Click “Next” when you’re ready to continue. I’m curious. Would you be interested in opening a franchise business? Choose the answer that best matches how you feel. Copyright © 2017 Applied Educational Systems Page 5 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur What is Right for You? I’m glad to see everyone’s had a chance to talk to our experts and hear about the different ways they became entrepreneurs, but what about you? You’ve heard about starting your own business, buying an existing business, and opening a franchise. Which opportunity has the right amount of risk and potential benefits for you? The Path to Entrepreneurship You don’t have to decide what to do today. Starting your own business is a big step and you should make sure you’re ready to take it. Let’s take a few minutes to go over what we’ve talked about. New, Existing or Franchise? Select the type of business being described. Starting from scratch with an idea and a plan to create a thriving business, there is a lot of risk because there are no existing products, customers, locations, or employees. There is also a lot of potential for growth and success for businesses based on new ideas and markets. Select the type of business being described. Entrepreneurs purchase the rights to use a large company’s resources to help start a business. While there is still risk, this business opportunity comes with customer recognition, established marketing plans, and support that can make a new business more likely to succeed. Select the type of business being described. This business opportunity, allows the entrepreneur to purchase a business that already has a location, products and customers. There is a lower risk of failure. But the new owner often accepts the benefits and risks of the business they purchased. Summary Great work! You’ve really got a handle on the different paths to entrepreneurship. Our time’s up for today’s workshop, but don’t worry. Our entrepreneurs will be back to mentor you and answer questions next time. Lesson 3: Recognizing Opportunities Introduction Hi! Thanks for coming. You’ve been doing such a great job in the entrepreneur workshop that our experts have asked that you stop by to give them a hand. Click the door and come in. Meet the Team You remember our entrepreneurs: Shandra, Ty and Ray. They’re reviewing proposals gathered by the local chamber of commerce for the upcoming entrepreneurs contest, Swim With The Sharks. But, don’t worry. Your submissions aren’t included. So, you won’t have to worry about showing favoritism. Copyright © 2017 Applied Educational Systems Page 6 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur Evaluation Criteria As you can see, there are a lot of proposals. We’re going to help the entrepreneurs evaluate them and narrow the list to those that meet our criteria. Here’s what we’re looking for. To find out what we’re looking for in the first round of the contest, click on the laptop screen. Evaluate the Entries Here are the three proposals that were submitted. Select the folder to read what’s inside. Be sure to review each of them. If you want to read the selection criteria again, just click on the spinning marker in the top left corner of the page. Kayleigh’s Organic Candy Kayleigh’s Organic Candies is looking to expand its small online presence into a storefront property that would make it the first organic candy store in 100 miles. Kayleigh’s also makes allergy-free candies for those with a wide variety of food allergies. Their proposal includes graphs and details on their customer base, including customer age and average distances from the proposed location. When you have finished reviewing this information, click “Next” to return to the previous page. Recycled Cycles Two years ago when Charlie Lawrence retired, he started collecting and repairing bicycles and selling them to his neighbors out of his garage. He would like to turn this effort into a small business. Charlie has included information he collected from current client and perspective clients in his business plan. When you have finished reviewing this information, click “Next” to return to the previous page. Jiggles & Juggles Jiggles & Juggles is a fitness item that claims to tone your arms as you learn to juggle. This entrepreneur expects to sell his product for $150 per 4-ball set. This is the only information his proposal included. When you have finished reviewing this information, click “Next” to return to the previous page. Choose the Best Entry Which entrepreneur has done the most research on the wants and needs of their customers? Select the proposal you think does the best job of determining the wants and needs of their customers. Winner Which Great job! Kayleigh’s Organic Candies researched her clients’ wants and needs. She found out which candies they prefer and provided a graph with that information. She also discovered that 73% of her customers have food allergies, which led her to decide to specialize in allergen-free candies. Where to Get More Information You’ve done such a good job; we’d like you to be part of our selection committee for the rest of the contest. There are just a few other things you’re going to need to know before the next round. Every Copyright © 2017 Applied Educational Systems Page 7 of 8 Entrepreneurship Transcripts Unit 1: Being an Entrepreneur entrepreneur, especially when just starting out, has questions. The good news is there are lots of places to find answers. Let’s talk about a few. Click on my computer screen to learn more. As an entrepreneur, where would you go to get answers to your business questions? Every community has resources to help entrepreneurs start and grow businesses. Here are a few of the places you can go for help. Click on the markers to learn more about the places and people you can call on for answers, or more information. Home & Internet Based Businesses Great point. Thanks, Ty. Now I want to talk about another type of business so you’ll be ready to help the selection committee. Home-based and Internet-based businesses are a growing business segment. Click on my computer monitor to continue. Click on the headings to see more information on each type of business. Home- Based Businesses A home-based business is exactly what it sounds like – a business that operates out of an entrepreneur’s home. Some have office space in the home where the business owner can meet with clients. Internet-Based Businesses Internet-based businesses are pretty straight forward, too. They’re businesses that operate over the Internet and do not necessarily have a physical location. An entrepreneur can run their Internetbased business out of their home, but it could also be run from anywhere that has Internet access. Remember Kayleigh’s Organic Candies? Kayleigh started making candy in her own kitchen and selling it over the Internet – an example of a home-based and Internet-based business. Check Your Understanding We’re almost done for today. But before we go, let’s review a few of the things we talked about. Summary Thanks! You’ve put in a lot of hard work today. We couldn’t have gotten through everything without you. We’re all going to head home now and meet back here soon for the next round of the entrepreneurs contest, Swim With The Sharks. See you then. Copyright © 2017 Applied Educational Systems Page 8 of 8