An Entrepreneur

Someone who perceives an opportunity and creates an organization to pursue it.

Components of Successful Entrepreneurial Venture

6. The Business Plan The business plan describes your business

concept and outlines the structure needed to be in place to successfully implement the concept.

The plan can be used to assist in obtaining the additional resources that may be necessary to actually launch the business and guide the implementation of the strategy.

It assumes you have a feasible business concept and have now included the operational components needed to execute the strategy.

It describes in some detail the company you are going to create.

Advantages to becoming an Entrepreneur

Control Excitement/Enthusiasm Flexibility Freedom Decision making

Disadvantages to being an Entrepreneur

Administrative challenges Staying ahead of your competition Loneliness No regular salary Work Schedule

Target Market

A group of customers towards which a business had decided to aim its marketing efforts and ultimately its merchandise.

A well-defined Target Market is the first element to a market strategy.

You have to make some educated guesses about the age group your product or service will appeal to.

Stage 1

What Is Entrepreneurship?

Have You…1. Invented something

or knows someone who has – what?

2. Set a goal and achieved it – what?

3. Been involved in fundraising for a charitable cause – what?

4. Been inspired by someone – who and why?

5. A relative who runs his/her own business – who?

6. Had a lemonade stand – where?

7. Had a part-time or summer job – what?

8. Been involved in organizing a school or community event – what?

9. Put together a budget and stuck to it – when?

10. Experience in sales – what?

Principal Reasons Why Canadians Start Businesses

of Their Own1. To seize an

opportunity

2. To achieve a sense of personal accomplishment

3. Dreamed of running their own business

4. A chance to use their experience/skills

5. To be their own boss

6. Economic necessity; to make a living

7. Had previous experience they wished to use

8. To supplement their income from other employment

9. To create a job for themselves

10. Frustrated in their previous job

11. To make lots of money

Entrepreneurs Can Play a Number of Roles in the

Economy1. Create new product and/or service businesses.

2. Bring creative and innovative methods to developing or producing new products or services.

3. Provide employment opportunities and create new jobs as a result of growing their businesses consistently and rapidly.

4. Help contribute to regional and national economic growth.

5. Encourage greater industrial efficiency/productivity to enhance our international competitiveness.

Components of Successful Entrepreneurial Venture

1. The Entrepreneur It all begins with the entrepreneur, the driving force behind

the business and the coordinator of all the activities, resources and people that are needed to get it off the ground.

This individual will have conducted an assessment of his or her own resources and capabilities and made a conscious decision to launch the business.

2. Opportunity The entrepreneur must then find a concept or idea with the

potential to develop into a successful enterprise.

The concept is carefully evaluated to determine if it represents a viable opportunity.

The object is to determine the magnitude of the returns expected with a successful implementation.

Components of SuccessfulEntrepreneurial Venture

3. Organization To capitalize on any business opportunity, an organizational

structure must be established, with a manger or management team and a form of ownership.

4. Resources Some essential financial and other resources must be obtained.

The key usually is money. It is the “enabler” that makes everything else happen. Other key resources typically include physical plant and equipment, technical capability, and human resources.

5. Strategy Once a start-up appears likely, a specific strategy must be

developed and a feasibility study conducted. The feasibility study is a way to test your business concept to see

whether it actually does have market potential. Throughout this process you probably will modify your concept and

business strategy several times until you feel that you have it right.

The Components of Successful Entrepreneurial Ventures

Outline of the

Entrepreneurial Process

Decide to go into business for yourself

Assess your potential

Find an appropriate product or service idea

Buy a business Start a new business Acquire a franchise

Conduct a feasibility study

Technical feasibility Market acceptability Financial viability

Organize your business structure and legal requirements

Protect your idea

Arrange the necessary financing

Develop a comprehensive business plan

12 Myths About Entrepreneurship

Myth 1Entrepreneurs are born, not made While

entrepreneurs may be born with a certain native intelligence.

Possessing these characteristics does not necessary make you a successful entrepreneur.

Myth 2Anyone can start a business. It’s just a matter of luck and guts. Entrepreneurs need to recognize the

difference between an idea and a real opportunity to significantly improve their chances of success.

Myth 3Entrepreneurs are gamblers Successful entrepreneurs

only take what they perceive to be calculated risks.

They do not deliberately seek to take unnecessary risks, but they will not shy away from taking the risks that may be necessary to succeed.

Myth 4Entrepreneurs want to run the whole show themselves

It is difficult to grow a business when you work alone.

Myth 5Entrepreneurs are their own bosses and completely independent

Entrepreneurs can serve a number of masters including:

Myth 6Entrepreneurs work longer and harder than corporate managers There is not evidence at all that

entrepreneurs work harder than corporate managers.

Both jobs require long hours and hard work.

Owners are tied to the business and responsible in ways that are different from employees’ roles.

Myth 7Entrepreneurs face greater stress and more pressures, and thus pay a higher personal price in their jobs than do other managers There is no evidence being an

Entrepreneur is more stressful than other demanding professional roles.

Most entrepreneurs enjoy what they do and have a high sense of accomplishment.

They thrive on the flexibility and innovative aspects of their job and are less likely to retire than those who work for someone else.

Myth 8Starting a business is risky and oftenends in failure Success tends to be more common than

failure for higher-potential ventures because they tend to be directed by talented and experienced people able to attract the right personnel and the necessary money and resources.

Owning your own business is a competitive game, and entrepreneurs have to be prepared to run out of time occasionally.

Many well-known entrepreneurs experience failure, sometimes several times, before achieving success.

Myth 9Money is the most important ingredient for success Money is one of the important ingredients

of success but entrepreneurs are not assured of success if they have money.

If the other important elements and the people are there, the money tends to follow.

Myth 10New business start-ups are for the young & energetic Age is absolutely no barrier to starting

a business of you own.

Over time you gain experience, competence, and self-confidence. These factors increase your capacity and readiness to start a business.

Most high-potential new businesses are being started by entrepreneurs between the ages of 25-40.

Myth 11Entrepreneurs are motivated solely by their quest for the almighty dollar Having a sense of personal

accomplishment and achievement, feeling in control of their own destiny, and realizing their vision and dreams are also powerful motivators.

Money is viewed principally as a tool and a way of “keeping score.”

Myth 12Entrepreneurs seek power and control over other people so that they can feel “in charge” Successful entrepreneurs are driven

by the quest of responsibility, achievement, and results.

They thrive on a sense of accomplishment and of outperforming the competition.

They gain control by the results they achieve.

13 Reasons Why Small Businesses Fail

1. Poor cash flow management

2. Lack of understanding of how to hire, retain, and motivate the right people

3. Absence of performance monitoring

4. Poor debt management

5. Over borrowing

6. Excessive reliance on a few key customers

7. Poor market research = incorrect understanding of the market’s wants and needs

8. Lack of financial and insufficient planning

9. Failure to innovate

10. Poor inventory management

11. Poor communications throughout the business

12. Failure to recognize strengths and weaknesses

13. Trying to go it alone

Entrepreneur’s Dozen Examine needs, wants, and

problems for which he/she feels something can be done

Narrows possible opportunities down to one specific opportunity

Thinks of an innovative idea

Researches the opportunity and idea thoroughly

Enlists the best sources of advice and assistance that can be found

Plans the venture and looks for possible problems that might arise

Ranks the risks and possible rewards

Evaluates the risk and possible rewards and makes a decision

Never hangs on to an idea, as much as it is loved, if research shows it won’t work

Employs the resources necessary for the venture if the decision is made to go ahead

Understands that any entrepreneurial venture will take a great deal of long, hard work

Realizes a sense of accomplishment from successful ventures and learns from failed ones

Entrepreneurs in Greater Moncton

List 5 entrepreneurs in the Greater Moncton area and the nature of their business. In a well-developed

paragraph, list at least five contributions that these entrepreneurs make to our society.

Sources of Information Phone one of them.

Entrepreneurs love talking about their business.

Ask your parents

Phone book

Internet

Library

Envirobond – Video Questions

A crash course on how not to run your own business. Mike Reid, an inexperienced small-businessman, started a company to produce a material made from small stones and organic glue to use in pathways and driveways.

Mike reached out to his family and local bank for financing to help keep his dream alive, but the business did not get off to an easy start due to supplier problems and other issues.

After a full season of activity and an investment of over $30,000, Envirobond is in the same situation in which it started – with no sales prospects and no cash flow. Reid now only hopes that he can survive until next year and begin again.

Envirobond – Video Questions

1.What initial challenged did Reid face on starting Envirobond?

2.Would having a partner have helped Reid?

3.How important is outside help from family and friends when deciding to venture into a business on your own?

Responses to Video Questions

1. Lack of financing and lack of experience or knowledge related to doing business.

2. A partner could bring the necessary business experience and provide access to additional financing.

3. Can be essential. Reid only survived his first year in business due to the generosity of his family in providing him with the necessary financing.