BCEN 1400INTRO TO BUSINESS

Chapter 6

Entrepreneurship

WHY START YOUR OWN BUSINESS? Control

Reap the Profit

Challenge of Something New

Opportunity Is There

…OR JUST TO MAKE A DIFFERENCE! Manish Gupta, owner of Handmade Expressions Launched company in 2005 Realized upon traveling through India that these were a number of

traditional artisans that couldn’t even earn a dollar a day. The craft would die out!

Has six employees and five Indian people who meet with local artisans and cooperatives

Find communicating is hard with folks in India! No email, cell phones often

Makes $900,000 to $1 million/year in sales, selling to 700 U.S. stores, including Papyrus and Pottery Barn

WHAT IS ENTREPRENEURSHIP?

Opportunity

+ Resources

New Value

So this can apply to a for profit or nonprofit entity!

SUCCESSFUL ENTREPRENEURS ARE…1. Self-motivated.

2. Self-assured and confident.

3. Doers, not dreamers.

4. Full of energy.

5. Alright with taking educated risks.

THE INTERNET – A MAJOR AID FOR NEW SMALL BUSINESSES 20 million businesses are run out of

homes in the U.S.Many are helped through Web services

(shipping or selling!)

Online sales account for 8% of all retail sales in the U.S.24 hour businessEase and low expense of mailing customersEase of reaching small target markets over

large geographic areas

ENTREPRENEURS EVERYWHERE In corporations

Intrapreneurs or corporate entrepreneursHave to have right cultureMuch of the reward – not much of the risk

In incubatorsArte’ Center for the Advancement of Resear

ch, Technology, and Entrepreneurship

DEREK AND JUSTIN THOMAS OSTENSEN FOUNDERS OF AMBIANCE VISUALS

Now 27 and 31 Founded company in 2002 Marketed as “Art for Your Television” Make ready-made DVDs for still photo or

film that runs constantly on plasma TVs Project sales in 2008 of over $1 million Use feature-packed digital cameras that

are really inexpensive!

THE IMPORTANCE OF SMALL BUSINESS Generate 75 percent of new jobs in U.S.

each year

Generate over 50% of GDP in U.S.

Generate 11 TIMES the innovations of large businesses.

Definitions of what constitutes a small business sometimes vary by industry

THE DOWNSIDE TO SMALL BUSINESS You can lose your shirt!

60% of small businesses go out of business in the first six years

Owning a business is likely to be extremely stressful.

Loving a field does not mean you’ll be successful as a business owner in that field!

THINKING ABOUT START-UP? The SBA (Small Business Administration)

helps by backing loans made by private banks AND by providing workshops and consulting

SCORE helps by consulting and providing resources and data.

Credit, capacity, character, and collateral are all critical to getting the funding you need, should you require outside funding.

KEYS TO A GREAT SMALL BUSINESS Knowing your customers well

Understand who your market is A set of people who are willing and able to purchase

your products

Good human resource management Hiring, training, firing, motivating, examining,

repositioning

Knowing accounting (or knowing someone who does)

Not being afraid to ask for help