BDV4C1
Entrepreneur:
Web-Based Venture
Unit 1 – Chapters 1-3
Business Basics: The Entrepreneur

Who is an Entrepreneur, What are they like? What drives
them?

What does an Entrepreneur do that is ‘different’ than
regular business people?

When does the Entrepreneur know when to bring a
product or service to market?

Where does the Entrepreneur launch his/her product or
service?
Is e-commerce a viable option to get a
product to market?

Why are Entrepreneurs important to the economy?
1
Marketing 101

Marketing is the fundamental business activity that seeks
to identify what people want or need and develop a
response to that need in the form of a product or service
that is either new or better.

In return for providing a solution to a consumer’s need or
want, the business is rewarded with the consumer’s
money.

If costs are carefully controlled and the product meets
the needs of the ‘target market’, sales will follow and
profit will be made.
1
Marketing 101: The 4 Ps

Product: Develop a new product to meet a need or
want OR respond to consumer dissatisfaction with
current products by improving some aspect of the
product (‘New Improved!!).

Price: Seek to lower manufacturing/operating costs by
finding cheaper labour or by taking advantage of
‘economies of scale’. If costs are all accounted for
and the product is sold for a reasonable amount, the
profits will follow.
1
Marketing 101: The 4 Ps

Place: Where is the product available? How does it get
there through the distribution channels? Is the internet
used?

Promotion: How does the target market informed about
this product? What advertising is used, and by whom
(manufacturer, retailer or both)? How are the product’s
features and benefits communicated
1
Marketing 101: The 2 C’s

Customers: What people have you identified as
potential buyers of your product or service – converting
them from ‘consumers’ to ‘customers’. What are their
demographics, Geographics and Psychographics?

Competition: who is it now…and more importantly who
can quickly bring a similar product to market that may
have an advantage of a more familiar name and a
bigger budget?
1
Marketing’s Role in
Entrepreneurship

All entrepreneurs share 4 key characteristics:
 They
understand that Marketing is the key business skill
 They
accept that risk is unavoidable but also
controllable
 They
one
 They
prefer to start a business rather than maintain
are visionary; part of their task is to get others to
see what they see
1
Components of a
Successful Venture:
1

Self – What are the entrepreneur’s personal strengths?

Ideas – Entrepreneurs are creative thinkers who make connections

Opportunities – Entrepreneurs recognize opportunities & trends

Marketing & Operations – Entrepreneurs understand Marketing

Resources – Entrepreneurs know how to seek and use resources

Finance – Entrepreneurs are also good with numbers

Management – Entrepreneurs are good at working with people

Intrapreneurship – Being an enterprising person, a risk taker
The Meaning of
Entrepreneurship

1
Root in French word ‘prendre’ or ‘take’ – appropriate on several
levels:


Entrepreneurs take risks.
Entrepreneurs take hold of opportunities many others don’t notice or are
not in a position to take advantage of.
 Assess
real or psychological needs to identify consumer
opportunities
 Identify wants – desires – which are less tangible but no less
important to fill
“The essence of entrepreneurship
is the creation and building of a venture to fill a market niche.”
Characteristics of
Entrepreneurial Ventures

For Profit ventures goal is to generate income for investors

Not-for-Profit ventures goal is to raise funds for a cause, not
to get rich

Scale: Size of venture reflects size of needs and wants, local,
regional vs national or international

Service Production – work done for a fee or advice provided
for a fee

Goods Production – tangible materials made to be sold at a
profit
1
Characteristics of
Entrepreneurial Ventures

Physical Business – ‘bricks and mortar’ stores or offices
people go to

Virtual Business – conducted electronically on internet: ecommerce

Size of Market can range from local to global in reach
and benefit from better communication systems.

Growth can be Organic (growing from small to larger) or
Strategic through acquisition (buy other companies to
grow)
1
The Effect of Technology
on Ventures
1

In a period of rapid technological development for both personal
and business applications

E-Commerce allows smaller players to compete more effectively

Greater flexibility to respond to shifts in consumer demographics,
needs and wants

Better access to information on consumers and better consumer
access to information on companies

Cost of start-up is decreasing as it becomes more popular

Impact of downsizing/’rightsizing’ on workforce
1
Supply and Demand
Supply
Equilibrium
Point
Price
$
Demand
Quantity #
Impact on the Community

Four major impacts entrepreneurs on communities:

Job Creation – the ‘multiplier effect’ means for every one person
employed by an entrepreneur, many others benefit from supplying
goods to them and because employees are consumers too.

New Ideas – Entrepreneurs often bring new products or services to a
market – it can also broaden the range of things available.

Economic Benefits – Competition is a major factor in lowering prices
and improving the standard of living. The health of peripheral,
supporting industries is also enhanced.

Political Benefits – When the spirit of entrepreneurship is strong, it is
often due to an environment providing legal and financial support
1
Entrepreneurship and
Demographics

Demographics: ‘Demos’ from Greek word for people + ‘Graphis’
from the Greek word for measure.

Studies the characteristics of a population:

Age

Gender

Family Life Cycle (i.e.: single, married, married with children,
separated/divorced, blended family, widowed.

Ethnicity, culture

Education

Employment situation (unemployed, part time, temp full time, full time

Home ownership/household income
1
Intrapreneurship

Intrapreneurship: When the spirit of an entrepreneur is at
work within an organization

Progressive corporations promote and encourage the
dynamic thinking that entrepreneurs bring to a company.

Today’s successful corporations rely on intrapreneurship to
give them a competitive advantage.

The penalty of not being competitive is losing market share
– the percent of total sales in a particular market that your
company has.
1
Approaches to
Entrepreneurship

New Venture: Entrepreneurs bring a new product or
service to market – the result of an idea or research into
needs/wants that are unfulfilled.

Existing Venture: Entrepreneurs may buy in to an existing
business model by way of owning a franchise.

Modified Venture: Entrepreneurs can take the core idea
of one business model and modify it – giving it a slightly
different approach that makes it an
improvement/alternative in the eyes of the consumers.
1
Entrepreneurs:
Made or Born?

Entrepreneurs more likely to have been raised in an
entrepreneurial family – where enterprise and risk-taking
is encouraged and rewarded.

Entrepreneurship can also be a reaction to a work
environment – where the drive to ‘be your own boss’
comes from years of working to make someone else rich.

Both share a sense of vision and willingness to take risks.
1
Characteristics of Successful
Entrepreneurs (what they are)
2

Self-Confident – Believe in themselves and in ability to succeed.

Perceptive – Able to identify both problems and opportunities.

Hard-Working – Good stamina to devote time and effort to business.

Motivated – Driven by internal need for accomplishment.

Resourceful – Adept at using a network of resources to achieve
goals.

Able to Manage Risk – Risks are assessed and taken to achieve
rewards.

Creative – Take charge of situations, make change – don’t wait.
Characteristics of Successful
Entrepreneurs (what they are)

Goal Oriented – Continually set goals and targets to achieve.

Optimistic – A positive mental attitude and enthusiasm to
prevail.

Flexible – Able to adjust to shifting marketplace conditions.

Independent – Enjoy the freedom to make their own
decisions.

Visionary – Can ‘see the future’ and their role in it.

Able to Get Along with Others – Team dynamics is a valuable
tool that entrepreneurs are skilled at using to gain consensus.
2
2
Entrepreneurial Skills
(What they do)

Communicate

Solve Problems

Generate Ideas

Negotiate

Plan

Network

Organize

Market their ideas

Make Decisions

Keep records

Lead others
Entrepreneurial Roles
(Hats they wear)

Inventor – Develop new ideas for products, processes &
services

Innovator – Improve existing products, processes or
services

Manager – Set goals and develop a plan to achieve
them

Administrator – Implement the plan to achieve goals

Leader – Create a vision and communicate it to others
2
Entrepreneurs:
What’s Most Important to Them

To achieve a sense of personal accomplishment

To be their own boss

To have an element of variety and adventure

To make better use of their training and skills

To have freedom to adopt own approach to work

To be challenged by problems and opportunities
of starting a new business
2
Entrepreneurs:
What’s Least Important to Them

To continue a family tradition

To do the only thing they feel they can do

To contribute to the welfare of their ethnic group

To leave an insecure work environment

To follow the example of a person they admire
2
Enterprising Employees

Entrepreneurship is an attitude

Enterprising employees are increasingly valued by
companies:
 They
bring a dynamic, risk tolerant mindset
 They
are well organized – a valuable skill for projects
 They
can understand the concept of a corporate vision
2
Enterprising Employees

What enterprising employees look for in a company job:
 Meaningful
 Leisure
work
time to balance family time with work time
 Opportunity
 Money
to learn new skills
– top performers are well compensated
 Security
– larger corporations offer greater stability
2
What Motivates
Entrepreneurial Employees?

Employee recognition feeds their sense of self-esteem.

Self-esteem is an ‘Internal Motivator’.

Money may attract employees, but is not a long-term
motivator

Money is considered an ‘External Motivator’.
2
Companies Attract
Enterprising Employees

Create a ‘Workplace Culture’ where employees feel:
 Input
 Safe
is valued and acted upon
to make and learn from mistakes

Provide them with the tools they need to perform

Offer them meaningful work that adds value to society

Alternate work arrangements (flex time, work-fromhome) to balance work and family responsibilities

Support them with benefit packages aligned with their
needs at various life stages.
2
3
Assessing Your
Entrepreneurial
Potential
Challenges facing
Young Entrepreneurs

Lack of experience

No credit history makes initial funding difficult

No collateral (something of value to secure financing)

Abundance of regulatory paperwork (‘Red Tape’)
BUT

Media interest in start-ups is high

Government programs available to assist start-ups – most
are free
3
The Value of Experience

Part Time, Summer and Volunteer work provides experience:
 Learn about the infrastructure of business and
entrepreneurship
 Develop a positive reputation in the industry
 Build a network of contacts
 Earn money to save for the future
 Learn firsthand about the industry
EXPERIENCE CAN NEVER BE TAKEN AWAY
3
Setting Goals –
The Purpose of your work

Goals – Where you want to be.

Objectives – Make them SMART!
 Simple
– write them down in simple terms
 Measurable
– be sure you can tell when you have
achieved them
 Achievable
– make them challenging but not impossible
 Realistic
 Timely
- take your skills and resources into account
– track progress with target dates
3
Optics vs Metrics

Optics: How a situation or performance appears
 Something may look positive, but not add value
 Someone may look busy, but not be contributing their
share

Metrics: How a situation or performance measures out:
 Are the measurement criteria accurate?
 Can you track performance over time to see
improvement?
A BALANCED APPROACH IS THE BEST MANAGEMENT STRATEGY
3
SWOT Analysis:
Be Honest!

Strengths: - Inventory what you are good at.

Weaknesses: Assess areas you need to improve.

Opportunities: How can you take advantage of
opportunities to develop your skills?

Threats: What might get in the way of your success?
3
3
Your Skills

Interpersonal
 communicating
 presenting

ideas
Critical Thinking
 Evaluate

and negotiating
Creative Thinking
 generate

with others – talking AND listening
solutions
Practical Skills
 Use
special tools for specific tasks – i.e. software.
Strategies for
Entrepreneurial Success

Think First!
 plan
your work and work your plan
 Consider

the challenge rom different perspectives
Believe in yourself!
 Be
confident – don’t let others’ opinions keep you
from achieving your goals
3
Strategies for
Entrepreneurial Success

Know Yourself!
 Consider
what skills you bring to the venture
 Use
SWOT to address skill gaps and seek opportunities
to improve

Enjoy the Challenge!
 Make
sure the venture challenges your abilities and
suits your personality
3
3
Enterprising Thinkers

Edison

Einstein

Incremental Problem
Solving

Out-of the Box Thinking
 Systematic
approach
 Improve
upon ideas
 Breakthrough
to be tested
 Source
ideas
NEED A MIX OF BOTH TYPES
ideas
of new
Unit 1 Recap Chapter 1

The meaning of Entrepreneurship

Marketing and the 4Ps + 2 Cs

Technology and change

Concept of Supply and demand

Impact on the community – job creation and
economic/political benefits

Entrepreneurship and Demographics

Intrapreurship – the enterprising employee in a corporation

Approaches to Entrepreneurship

Entrepreneurs: made or born?
1
Unit 1 Recap – Chapter 2

Characteristics of Successful Entrepreneurs

Entrepreneurial Skills

Entrepreneurs’ roles

What’s most important to them and least important to them

What is an enterprising employee?

What motivates enterprising employees?

How can companies attract enterprising people?
2
Unit 1 Recap – Chapter 3

Challenges facing young entrepreneurs.

The value of experience and where to get it.

Setting goals

Optics vs Metrics

SWOT analysis

Your skills

Four strategies for entrepreneurial success

Enterprising thinkers
3