PowerPoint Presentation

Section 3.1
 Pages 35-42
3.1
Understanding Entrepreneurial
Trends
What you’ll learn
 Current
trends that provide
opportunity for
entrepreneurs
 Where to look for business
ideas
 How to recognize
opportunity
3.1
Understanding Entrepreneurial
Trends
Why it’s important
 Business
owners must
constantly look for new
products to satisfy their
customers.
3.1
Understanding Entrepreneurial
Trends
Why it’s important
 Business
owners must find
new ways to stay ahead of the
competition.
3.1
Understanding Entrepreneurial
Trends
Why it’s important
 Recognizing
new
opportunities and thinking
creatively is essential for
success in today’s market.
3.1
Understanding Entrepreneurial
Trends
Key Terms
outsource
strategic alliances
innovation
demographics
trade magazines
specialty magazines
trade shows
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Understanding Entrepreneurial
Trends
Springboard
List some products and
services that have
changed over time to stay
ahead of the competition.
3.1
Understanding Entrepreneurial
Trends
I. LOOKING AT TRENDS
A. The entrepreneurial process
involves planning,
gathering, and making
decisions about
opportunities.
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Understanding Entrepreneurial
Trends
B. First, identify a business
opportunity.
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Understanding Entrepreneurial
Trends
II. SOME CURRENT
ENTREPRENEURIAL
TRENDS
A. The growth of home-based
businesses
B. A focus on information
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Understanding Entrepreneurial
Trends
C. Increased emphasis on
outsourcing
D. New kinds of strategic
alliances
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Understanding Entrepreneurial
Trends
III. MORE HOME-BASED
BUSINESSES
A. There are currently over
41 million home-based
businesses. This number
is expected to double in 10
years.
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Understanding Entrepreneurial
Trends
B. Examples of home-based
businesses include:
1. Corporate tax consultant
2. Business-plan writer
3. Desktop video producer
4. Employee trainer
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Understanding Entrepreneurial
Trends
C. 20 percent of all
entrepreneurs operating from
home have earnings of
between $100,000 and
$500,000.
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Understanding Entrepreneurial
Trends
D. The average annual income
of an entrepreneur in a homebased business is $50,000 to
$60,000.
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Trends
IV. FOCUS ON
TECHNOLOGY
A.Technology provides a
strong competitive
advantage for the
business owner.
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Understanding Entrepreneurial
Trends
B. Many small companies use
the Internet to compete with
much larger companies.
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Understanding Entrepreneurial
Trends
V. BUSINESS
OPPORTUNITIES FROM
POPULAR TRENDS
A. There are new industries
that didn’t exist five years
ago.
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Trends
B. The secret to finding a new
business opportunity is the
ability to see them before
everyone else does.
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Trends
C. Business opportunities can be
found in popular trends.
1. Fitness and health
2. Indulgence goods
3. Ethnic products
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Understanding Entrepreneurial
Trends
VI. OUTSOURCING
A. Many entrepreneurs
outsource, or contract with
other companies for
service.
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Understanding Entrepreneurial
Trends
B. Outsourcing provides
opportunities for
entrepreneurs to supply
services to other companies.
3.1
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Trends
Reinforcement
List products and
services that a school
might outsource. What
are the advantages and
disadvantages?
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Understanding Entrepreneurial
Trends
VII. STRATEGIC
ALLIANCES
A. A partnership between
more than one company is
called a strategic alliance.
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Trends
B. A small company may form an
alliance with a larger company
to supply them with a product
or service.
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Trends
VIII. LEARNING TO
RECOGNIZE
OPPORTUNITY
A. Creative ideas turn into
opportunities.
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Trends
B. Creativity is the activity that
results in innovation, which is
finding new ways of doing
things.
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Trends
IX. THINKING CREATIVELY
ABOUT OPPORTUNITY
There are many ways to
activate creativity.
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Trends
1. Think outside the square.
2. Go from here to there.
3. Work on unrelated items.
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Understanding Entrepreneurial
Trends
Discussion Starter
List the places where you
were when you had a
good idea.
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Trends
X. CREATIVE SOURCES OF
IDEAS
Ideas can come from
anywhere at anytime.
A. Start people watching.
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Trends
B. Watch for demographic
changes. Demographics are
the characteristics of human
populations and population
segments, especially when
used to identify consumer
markets.
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Trends
C. Become an insatiable reader.
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Trends
Critical Thinking
Name some products for
which age, race, or
religion might be
important demographic
information to have.
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Trends
XI. CONSIDER YOUR OWN
EXPERIENCES
Options from within your own
experience are the easiest to
identify and are excellent
sources of opportunity.
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Trends
XII. HOBBIES
A. Hobbies can be turned
into successful ventures.
B. Evaluate pastimes in
terms of business
potential.
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Trends
XIII. WORK
Experiences in the workplace
can be a source of ideas for
business opportunities.
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Trends
Discussion Starter
Describe the changes
you’ve seen in
technology in your
lifetime. How will these
changes affect the
future?
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Understanding Entrepreneurial
Trends
Math Problem
Your business had $400,000
in sales. 35% was in the
hobbies product line. What
were your hobby line sales?
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Understanding Entrepreneurial
Trends
XIV. CONSULT OUTSIDE
SOURCES
Look at people, places, and
things in the business
community for business
ideas, but don’t lose sight of
your goals.
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Understanding Entrepreneurial
Trends
A. Trade magazines
B. Specialty magazines
C. Newspapers
D. Trade shows
E. Internet
F. Government agencies
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Understanding Entrepreneurial
Trends
End of Section 3.1