****** 1 1-1 ** BEING AN ENTREPRENEUR: STARTING A NEW BUSINESS * **

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**BEING AN

ENTREPRENEUR: STARTING A NEW

BUSINESS

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Where Did They Start?

Source: World Features Syndicate

Hallmark YMCA room

Williams-Sonoma Abandoned Hardware Store

Estee Lauder Vacant Former Restaurant

Walt Disney Created Mickey in a Garage

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Early Sales of Well-Known Companies

Johnson & Johnson $3,000 Worth of Band-Aids 1st Year

Cyrus McCormick Sold No Reapers 1st 10 Years

Subway 312 Sandwiches 1st Day

Burton’s Snowboards

Sold One 1st Year

Bose Sold 40 Speakers 1st Year (today #1 in market)

Source: World Features Syndicate

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4

Be an Entrepreneur

DefinitionWhy take the entrepreneurial

challenge?Opportunity Profit IndependenceChallenge

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5

Who Starts New Businesses?

18 - 24 8%25 - 34 71%35 - 44 13%45 - 54 6%55+ 2%

AGE AT START-AGE AT START-UPUP

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Entrepreneurial Attributes

• Self-Directed & Self-Disciplined

• Self-Nurturing• Action-Oriented• Highly Energetic• Tolerant of Uncertainty

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7

Entrepreneurship

Entrepreneurial Teams

Micropreneurs and Home-Based Businesses

Web-Based Businesses

Intrapreneurs

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8

Reasons for Growth of Home-Based Businesses

Technology

Downsizing

Attitudes

Tax Advantages

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Home-Based Business

Challenges

New Customers

Time Management

Work vs. Family

City Ordinances

Risk

Focus

Find Opportunity Results vs. Routine Profit vs. Paycheck New Ideas Long Term vs. Short

Term

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Most Common Types ofHome-Based Businesses

Personal Svcs.14%

Bus. Services

27%

Bldg. Trades31%

Financial & Real Estate

5%Sales &

Distribution10%

Arts/ Design Creative

13%

Source: Independent Insurance Agents of America

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Government & Entrepreneurship

• Immigration Act of 1990- Investor Visa

• Enterprise Zones

• Incubators

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1. Utah

2. Nevada

3. Washington

4. Florida

5. Colorado

6. Washington D.C.

7. Maryland

8. Georgia

9. Tennessee

10. Alaska

Source: Investor Business Daily, June 24, 2004

Top Ten States Where Businesses Have Started

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Top Ten States Where Businesses Have Closed

1. Utah

2. Washington

3. New Mexico

4. Nevada

5. Idaho

6. Missouri

7. Arizona

8. Vermont

9. Georgia

10. California

Source: Investor Business Daily, June 24, 2004

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What is Small Business?

• Independently Owned

• Not Dominant in Its Field

• Meet Certain Standards of Size (Employees, Annual Receipts)

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U.S. Small Businesses

• 20 Million Full/Part-time Businesses

• Account for More Than 50% of Gross Domestic Product (GDP)

• Jobs• 80% of Americans 1st job is in small business

• 75% of new jobs are created by small businesses

• Minority-owned Businesses Growing Rapidly

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Business Ownershipby Gender

Source: USA Today

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Female Owners’ Top Industries

0% 10% 20% 30% 40% 50%

Others

Retail

Services

SOURCE: USA Today

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18

Small Business – Major Causes of Failure

Plunging in without first testing

Under/over pricing Too little capital Little/no experience Borrowing money without

planning Trying to do too much with

too little Buying too much on credit

Expanding credit too freely and rapidly

Incomplete and/or inaccurate records

Not understanding business cycles

Forgetting about taxes, insurances, etc.

Owner working or not, according to whim

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Small Business – Situations for Success

Personal attention Products not easily

made by mass production

Sales are not large enough for a large firm

Unattractive neighborhood

Franchising Paying attention to new

competitors The business is in a

growth industry

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Learning about Small Business Operations

• Learn from Others

• Get Experience

• Take Over a Successful Firm

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Managing a Small Business

• Business Plan• Adequate Funding

• Lenders/Investors• “Angels”• Venture Capitalists

• Professional Advice/Help• SBA and SBIC Program• Lawyers, Loan Officers, Insurance Agents• SCORE• Local College/universities

• Know Your Customer• Manage Human Resources• Keep Good Records

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Small Business Collaborators

• Small Business Administration (SBA)• Microloan program• SBICs• SBDCs• Service Corps of Retired Executives

(SCORE)

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ONE LAST THING!

MAKE IT COUNT!NEVER GIVE UP!

ACHIEVE YOUR DREAM!23