18 january small businesses and entrepreneurships
Post on 21-Dec-2015
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News Story: Mirror, mirror on the wall, is this dress for me? Mirror designed by IconNicholson: Social Retailing Enables shopping with their friends -- remotely mirrors intended for outside store fitting rooms
mirror sends live video feed allowing text message responses
touch screens on the three-paneled mirror choose matching shoes or accessories select a different outfit without physically putting the
garment on Reuters, Jan 17 (article)
Primary Components of a New Business
Opportunity Market demand Market size and structure Margin analysis (can you make money?)
ResourcesTeam
An “A” team with a “B” idea is better than a “B” team with an “A” idea
Market size and structure
Emerging markets room for new businesses
Fragmented markets large number of players, none with significant market share No strong competition
Proprietary barriers to entry keep large players from entering the market patents, trademarks, etc.
Potential for high level of sales Worth the investment
Margin analysis
Differentiate opportunity from idea An idea may not be practical An opportunity is
Initial goal: reasonable break-even Longer term
Low cost provider Lower capital requirement than competition Premium price
What makes a company succeed?
A unique business idea “Outside the box” thinking Customer focus Continued innovation and
diversification Good management Smart partnerships
Consider Starbuck’s
Started 33 years ago as a single store Changed the way the world thinks about
coffee How did they do it? What was their unique idea?
Myths about Entrepreneurs Entrepreneurs are born, not made
may be born with a flair for innovation, energy work experience, know-how, contacts, business skills can be acquired
Anyone can start a business; it's luck and guts difference between idea and opportunity entrepreneur, not bureaucrat
Entrepreneurs are gamblers calculated risks
Entrepreneurs want to run the whole show doing everything yourself limits growth
Entrepreneurs are their own bosses and completely independent partners, investors, customers, employers, suppliers, community
Entrepreneurs work longer and harder than corporate managers some do some don't
Myths about Entrepreneurs Entrepreneurs have greater stress, pressure, and pay a higher personal
price no evidence that it is more stressful sense of accomplishment, fun, flexibility
Starting a Business is risky and often ends in failure true in many cases; 80% fail in first 5 years success is higher with right people and finances
Money is the most important part of success if the other important parts are there, money tends to follow
New Business startup is for young and energetic age brings experience; financial stability or obligations
Entrepreneurs are motivated for quest for money most motivated by a market opportunity and the chance to make a difference in a
particular industry. some motivated by the opportunity to make a contribution to society.
Entrepreneurs seek power, control over others to feel in charge responsibility, achievement, results rather than power thrive on accomplishment, outperforming competition control comes from results they achieve
Advantages & Disadvantages
Advantages Sense of autonomy Own decisions to some
extent Challenge of being involved
in a start-up Positive feelings from
knowing this is your creation Financial control Ability to mold the business
to meet your goals
Disadvantages Burden of responsibility Never being able to leave
the job at work Little margin for error Your future is at stake
Financial insecurity e.g., pensions
Personal sacrifices Time away from your family
and other activities that you enjoy
Women Entrepreneurs
8 million women in US with own business 1/3 of all business
from 1991-1994 women led firms have created more jobs than the top 100 companies in Canada
women have been creating jobs 4 x as fast as average of all firms
women led business have higher survival rate Why?
Glass ceiling Alternative life style Other?
Social Entrepreneurs
Social entrepreneurs: change agents for society Power of a new idea equally as applicable to
business or social concept Business entrepreneur: new industries Social entrepreneur: new solutions to social problems
Both visionary and realist -- practical implementation of the vision
Ideas must be user-friendly, understandable, and ethical
Solve problem by changing the system Local change makers
Historical Examples
Susan B. Anthony (U.S., 1820-1906) women's rights
Florence Nightingale (U.K., 1820-1910) modern nursing
John Muir (U.S., 1838-1914) conservationist
Margaret Sanger (U.S., 1879-1966) family planning
Jean Monnet (France, 1888-1979) European unity Vinoba Bhave (India, 1895-1982) land gift (Bhoodhan)
movement (redistribution of more than 7,000,000 acres of land)
Maria Montessori (Italy, 1892-1952) early childhood education