Entrepreneurship Unit 2: Evaluating the Market PDF

Entrepreneurship Transcripts Unit 2: Evaluating the Market Lesson 1: Markets Introduction Welcome to the first official round of Swim With The Sharks. Click the doors to see who’s going to come one step closer to the dream of owning a business. Welcome Welcome to Swim With The Sharks, where we’l...

Entrepreneurship Transcripts Unit 2: Evaluating the Market Lesson 1: Markets Introduction Welcome to the first official round of Swim With The Sharks. Click the doors to see who’s going to come one step closer to the dream of owning a business. Welcome Welcome to Swim With The Sharks, where we’ll be making one entrepreneur’s dream come true with $2,500 to invest in a business. I’m Ty and the Sharks swimming with me are my fellow entrepreneurs: Shandra, Adele, Ray and a special member of our workshop. They’ll be two tough rounds of competition. We’ll be learning about our entrepreneurs by asking questions, looking at presentations, and more. The Finalists We had a great turnout for our first entrepreneurship contest. Our committee narrowed down the entries to the three finalists we have here today. In the first round, we’ll look at the wants of specific customers, talk with our entrepreneurs about their markets, and ask them how they contribute to the community. Let’s get started. Now, let’s learn more about each of our three finalists. We’ll be using this information, as well as interview questions, to make decisions. For a look at our first finalist, just click on one of the logos. Kayleigh’s Organic Candy You may remember Kayleigh’s Organic Candies from an earlier round of the competition. Kayleigh has polished her business plan for the final round of the competition. When you’re ready, click “Next” to continue. Becca’s Baskets Here’s some of the information submitted by Becca’s Baskets. Rebecca is a single mom who started making gift baskets in her job at a florist shop. Her boss is willing to invest in the gift basket business but she needs more investors. Click on the buttons to review all the information. Click “Next” when you’re done. Jump To It Here’s some information from Ric of Jump To It. Ric wants to buy a franchise that rents space for bounce houses, obstacle courses, and ball pits for parties for children and adults. Click on the buttons to review all the information. Click “Next” when you’re done. Copyright © 2017 Applied Educational Systems Page 1 of 6 Entrepreneurship Transcripts Unit 2: Evaluating the Market Know Your Customer The first thing the Sharks are looking for from our entrepreneurs is an understanding of what their customers want. To identify the customers’ desires of each finalist, drag the business description from the list on the left, to the podium of the correct finalist. If you need a hint, click on each contestant to review information. Know Your Market Becca, the business Sharks really like your idea of having a stable foundation of corporate clients while you build a personal gift basket side of the business. It shows you know your clients, both present and future. Great job. I’ll be honest, Ric. Our Sharks are a little concerned. You say children are your customers, and we agree that kids love fun alternatives to traditional parties, but are you selling the party idea to the kids or to their parents? Kayleigh, you seem very focused on the allergen-free side of your business. But it seems to the Sharks, that that is only one part of the business. Being the only organic candy store in 100 miles could really be a powerful niche. Don’t forget those customers. Next, let’s talk to our entrepreneurs about markets. We want to know how they see their market segment. Take a look at look at a specific product and its target market, and hear about their projected market share. Now, for anyone in our audience who isn’t a business shark yet, we’ll be talking both about market segments and market share. Click on the spinning markers for details about each. When you’re ready, click “Next” to continue. Let’s review each of the contestants’ market information sheet to see how well they know their markets. The Finalists You’ve heard what the business Sharks think, but we want to hear what you think. Based on the business and market information you’ve seen, select the entrepreneur you think is ready to “Swim With The Sharks.” Know Your Community Now the Sharks want to know each of the finalists’ involvement in the community. Entrepreneurs help to create jobs and grow the local economy. More importantly, they can give back to the community by helping others. Community involvement is important to the Sharks. We want to hear how you plan to stay involved in your community. Click on each entrepreneur to find out. Copyright © 2017 Applied Educational Systems Page 2 of 6 Entrepreneurship Transcripts Unit 2: Evaluating the Market Marketing Your Product Finally, let’s talk to our finalists about how they plan to market their products. But what is marketing? For anyone in our audience who isn’t a business Shark yet, this information might be especially helpful. Having a strong marketing plan is essential to business success. We want to hear how you plan to promote your business and products for continued growth. Select each entrepreneur to see their response. Facilities Different types of businesses need different types of facilities. Your business plan should include specifications for production and operation space. Depending on the specific requirements of a business, the cost of the space - per square foot, per year – may vary widely. The location of the space in the community also impacts the cost. Let’s look at the space needs of each of our finalists. Select each of the real estate listings to see the facilities each business would like to lease when their investment round is complete. 202 Main Street Becca’s Baskets is interested in the listing from 202 Main Street. Click to see a larger photo of the building exterior or a floor plan. Click “Next” when you’re ready to continue. 8273A Elm Street Kayleigh’s Organic Candies is interested in a space formerly used by a take-out restaurant. It has a small retail area in front with a commercial kitchen in back. Click to see a larger photo of the building exterior or a floor plan. Click “Next” when you’re ready to continue. 4207 Water Street Jump To It is interested in this large warehouse space at 4207 Water Street. Click to see a larger photo of the building exterior or a floor plan. Click “Next” when you’re ready to continue. Summary Great job! That’s the end of this round of Swim With The Sharks. You learned a little more about each of these businesses. You know what their business plans are, how they plan to market their businesses, and what their facilities requirements are. So, based on what you’ve learned, has your choice of front-runners changed? Very interesting. We’ve got another round of the competition before we chose a winner. I’ll see you soon for the finals of Swim With The Sharks. Copyright © 2017 Applied Educational Systems Page 3 of 6 Entrepreneurship Transcripts Unit 2: Evaluating the Market Lesson 2: Customers Introduction Welcome to the final round of Swim With The Sharks, where we’ll find out who will realize the dream of owning a business. Let’s walk through the doors. Meet the Sharks We’ll be making one entrepreneur’s dream come true with a $2,500 reward to invest in a business. I’m Ty and the Sharks swimming with me are my fellow entrepreneurs: Shandra, Adele, Ray and a special member of our workshop. The Entrepreneurs We already had one tough round of competition in which we learned more about our contestants’ markets and facilities. In this final round, we’ll be looking at our contestants’ interactions with their customers, how they’ll handle customer feedback, and their plan for encouraging ongoing dialogue with the people who are buying what they have to sell. And these are the people with their dreams on the line - Becca, with Becca’s Baskets; Ric, from Jump To It; and Kayleigh, from Kayleigh’s Organic Candies. Click on each entrepreneur if you’d like to refresh your memory about each business. When you’re ready, select “Next.” Customer Feedback Let’s start the final round by taking a look at customer feedback. For a business to succeed, it has to listen to what its customers have to say. We want to know how each of our contestants is getting feedback from their customers. Customer feedback is one of the key ways you can grow your business. Failing to respond to customer feedback, can lead to business failure. The easier it is for your customers to provide feedback, the more likely they are to give both positive and negative feedback. Customers will look for ways to tell you they’ve had bad experiences. But you also want to know when they’ve had good experiences. How might you collect customer feedback? How to Respond How a business responds to problems, says a lot about that business. It also has a big impact on its reputation in the community. So, we want to know how our contestants plan to respond to the feedback they get from their customers. Here’s the scenario. You’ve just received negative feedback saying that the quality of your product was bad and your customer service was worse. Not only have they given you the feedback, they’ve posted complaints on several websites. What do you do, contestants? Click on each contestant to see their response. Click “Next” when you’re done. Thanks for giving such honest answers. I’m wondering what the Sharks are thinking. Who do you think handled the negative feedback better? Select the person you think had the best response. Copyright © 2017 Applied Educational Systems Page 4 of 6 Entrepreneurship Transcripts Unit 2: Evaluating the Market Ric Unfortunately, Ric’s response is not going to win him any customers. Most people give negative feedback because they have a problem. As the business owner, you need to fix it the best way you can. Contacting an unhappy customer by email or phone, and offering discounts, free products or reimbursement, are all appropriate depending on the significance of the problem. Kayleigh Kayleigh’s on the right track. Offering a discount by email is a great idea. If that doesn’t satisfy the customer, she may need to offer a refund or replace the product that was purchased. Always offer to talk to the customer and see what they think would make things right. Becca You’re right, Becca had the best response. Becca could have also offered to meet with the customers and give them a discount on future purchases rather than jumping straight to giving away product or refunding purchases. That gives them a reason to use your business again. Competitors We’re halfway through the round. There’s a tough choice coming up but we’ve got a few more things to consider first. Every business has competitors. We want to take a look at what impact competition can have on a business’s market share. We talked before about market share. It’s the percentage of sales earned by a company over a specific period of time. The other businesses, also making sales in our competitive arena, are our competition. The goal of a business is to have a greater market share than its competition. The more competition you have, the more you have to share the market. All three of our finalists are unique in their markets. But we’re looking for strategies to keep ahead in the competition. Market Share We’ve talked before about market share. It’s the percentage of sales earned by a company over a specific period of time. The other businesses, also making sales in our competitive arena, are our competition. The goal of a business is to have a greater market share than its competition. Here’s a list of possible competitive strategies. Drag the strategic ideas that might help increase the market share to the box on the right Networking The last thing we want to talk about is networking. Networking can have different meanings. But in this case, we mean creating a supportive system of sharing information and resources among businesses with similar goals, interest, and clients. Let me give you an example. A wedding photographer might network with a baker, a jeweler, a dress shop owner, a caterer, and a DJ, to share the cost of advertising in bridal magazines, or to sponsor a wedding event to attract customers. Networking works well for businesses that work with weddings because brides and wedding planners often as for referrals to other trusted businesses and like it when their vendors work well together. Sometimes cash is paid for referrals, but often the payback is a reciprocal referral. Copyright © 2017 Applied Educational Systems Page 5 of 6 Entrepreneurship Transcripts Unit 2: Evaluating the Market So contestants, the Sharks want to know your strategies for networking to build market share. Click on the entrepreneurs to see how each would handle this. Click “Next” when you’re ready to continue. Competition Wrap Up Ladies and gentlemen, that is the end of our competition. Congratulations to our contestants. You’ve all done a great job. The Sharks have a tough decision ahead of them. Cast Your Vote Now it’s your chance to cast your vote for the business owner you think the Sharks should support to help launch a business. Select the business that gets your vote. And while we add up the votes, you might want to review what we talked about today. Summary Now is the time you’ve all been waiting for. It’s time to announce our winner. Ric, our Sharks see you have a great business model but are concerned that you seem confused about who your true customers are. And you don’t seem open to customer feedback. Kayleigh, you’ve started a great business but you seem a little nervous about taking the next step. Becca, you’ve got a great plan but are you ready for what’s next? The Winner Is So, without further ado, the winner of this year’s Swim With The Sharks is…Becca’s Baskets! Congratulations, Becca. Not only have you won $2,500 to help you start your business, we’ll also be here to help you along the way. We’ll be checking back in with you soon to see how things are going. Congratulations again and good luck! Copyright © 2017 Applied Educational Systems Page 6 of 6