Understand The Background Of A Business Of Your Own Now. Marcellous Curtis
DO YOU KNOW ANY BUSINESS OWNERS? Examples: Barbers/Hair Dressers
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Restaurant Owners
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Printing Press Owners
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Florists
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ENTREPRENEUR ➤
A person who organizes and manages a business.
ENTREPRENEURSHIP ➤
The organization and management of a business.
IMPORTANCE OF SMALL BUSINESS ➤
Helps keep the economy strong by creating JOBS!
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Helped the US have a higher standard of living ➤
People working = more $ to spend!
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More $ to spend = more demand for goods & services of small businesses
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Small businesses hire more people to ll demand
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More people working + More $ to spend = increased standard of living
Create competition between each other and corporations to keep prices in line
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Can do what corporations can’t!
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OPPORTUNITIES FOR ENTREPRENEURS Being an entrepreneur involves:
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Planning its direction, and
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Taking the risks.
Organizing a business,
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ADVANTAGES People go into business for themselves because: ➤
Can be exciting/rewarding
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Gives a sense of accomplishment
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“Be Your Own Boss!”
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Freedom to make decisions
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In charge of setting own schedule
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Opportunity to try out new ideas ➤
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Pro t – the money left from business income after paying all expenses (Entrepreneurs get to keep!!!!)
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If new ideas are accepted – the entrepreneur gets credit! $$$$$$$$$$ Credit=Pro t
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DISADVANTAGES
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May require lots of work hours (about 60 hours per week)
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Emotional strain – decision making, pro tability
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Pressure of knowing business could fail
May have to do the jobs of secretary & janitor
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Must do the jobs of bookkeeper, manager, & salesperson
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Must be willing to do EVERYTHING connected with a new business
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Possibilities are almost endless
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Examples:
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Build a factory and manufacture items (tools, toys, furniture)
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Established business concept or new concept (dry cleaners, restaurants vs. computer software)
O er a service (house-cleaning, child care, car repair)
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Sell homemade products (clothing, artwork, food)
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TYPES OF BUSINESS VENTURES
FRANCHISES ➤
The right to marker another company’s product or service. Purchasing this right usually costs thousands or more!
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Examples: fast food restaurants, convenience stores, dry cleaners
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Advantages
Franchiser support (training, tips, location, etc.)
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Exclusivity – no one else could buy into the same franchise in the same area
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Proven track record of success
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FRANCHISES CONTINUED… ➤
Large initial investment $$$
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Pay ongoing fees to retain right to use name
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May not be free to run as you wish
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May be required to follow guidelines
Investigate carefully!
Talk with other franchisees (people who own same franchise) about franchisor (one who sells a franchise) and success
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Disadvantages
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BUYING AN EXISTING BUSINESS
Location is already chosen
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Business already known in community
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Already have loyal customers
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Investigate rst!!!! (Reputation? Equipment? New Laws? New Competition?
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Can eliminate much of the work and expense
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Owners sell because they want to: change careers, move, or retire
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Already established
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BUSINESS PLANNING ➤
Ever had a lemonade stand or paper route?
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Review Business Planning Checklist
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How to Succeed?
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Risk taker (money, self-esteem, respect)
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Goal setter
Decision-making Skills – must be able to decide on routine issues & major problems
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Innovative – ability to come up with new ideas
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Self Starter – one who had initiative to see what needs to be done and do it! Time, Energy, & Interest = Success
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Key quality – Optimism (believing in yourself and your business. Positive attitude!)
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USE RESOURCES WISELY Material Resources – include the supplies & other items needed to run a business
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Financial Resources – refer to the money needed to start the business and keep it going. Also includes pro ts.
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Human Resources – include both employees & customers
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One textbook chapter is NOT enough!
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Community College classes
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U.S. Small Business Administration (SBA) – agency providing assistance to small business owners in a number of ways.
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Can help develop business plan for lending institutes and applying process
O ers a start-up kit
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Provides nancial, technical, & management assistance to help start, run, and enlarge a business
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Est. in 1953
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PLANNING RESOURCES
CHOOSING A BUSINESS ➤
What is best for YOU?
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Answer this rst
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Your business should: ➤
Involve your interest and abilities
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Relate to your work experience or favorite hobby
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Fill needs and wants of consumers in your area
Investigate
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Conduct a survey to determine consumer interests
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AVOIDING FRAUD Victims are those who rush into a franchise or business opportunity by illegal or unethical marketers
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What ads or signs have you seen for business opportunities that seem “to good to be true?”
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Contact the BBB (Better Business Bureau) to determine if it is a scam and discover any complaints
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Fraud – the act of deceiving or tricking
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LOCATION, LOCATION, LOCATION ➤
Is where you are located important?
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Keep several factors in mind:
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Room Capacity
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Parking facilities
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Electical and Plumbing Capacity
Competition
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Neighboring businesses
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Close to suppliers
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Close to customers
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WORK FROM HOME ➤
Keeps costs down
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Do you know anyone who works from home?
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Can move later as they grow
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41+ million people own businesses from home (2004)
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7.6 million are telecommuters ➤
Close to 2 million people make over $100k a year working from home (2004)
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Telecommuter – a person working from home and maintaining contact via computer, fax, & phone.
WELL SUITED HOME-BASED BUSINESSES
Photographers
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Architects
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Graphic Designers
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Consultants
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Computer programmers/repairers/engineers/marketers/technical writers
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Artists
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Garment Makers
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Caterers
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SALARY VS. COMMISSION ➤
Salary – the same amount every pay period regardless of hours worked
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Commission – a percentage of sales paid to a salesperson
No sales = No pay!
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ADVANTAGES OF WORKING FROM HOME
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No parking expense or problems
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Can handle home responsibilities too
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Tax advantages
No travel time
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Not committed to pay rent or a lease
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Tra c concerns
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Clients may not take your business seriously
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Clients may feel your worksite is unprofessional
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Check with any zoning ordinances
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Loneliness from working alone
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Neighbors may object
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Family concerns may disrupt your business
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DISADVANTAGES OF WORKING FROM HOME
THANK YOU