BCEN 1400 Intro to Business

1. BCEN 1400Intro to Business Chapter 6 Entrepreneurship

2. Why Start Your Own Business? • Control • Reap the Profit • Challenge of Something New • Opportunity Is There

3. …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

4. What Is Entrepreneurship? + Opportunity Resources New Value So this can apply to a for profit or nonprofit entity!

5. Successful entrepreneurs are… • Self-motivated. • Self-assured and confident. • Doers, not dreamers. • Full of energy. • Alright with taking educated risks.

6. 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 business • Ease and low expense of mailing customers • Ease of reaching small target markets over large geographic areas

7. Entrepreneurs Everywhere • In corporations • Intrapreneurs or corporate entrepreneurs • Have to have right culture • Much of the reward – not much of the risk • In incubators • Arte’ Center for the Advancement of Research, Technology, and Entrepreneurship

8. derek and justinthomasostensen 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!

9. 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

10. 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!

11. 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.

12. 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