Entrepreneurship
Merit Badge
John Gilbert
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Requirement 3
Interview an Entrepreneur
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Requirement 1
Entrepreneurship
• Entrepreneurship is Applied Scouting
• Know Yourself
• Opportunity Identification, Evaluation, and
Execution: Ready – Fire – Aim
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Requirement 1
Roles and Contributions
• Elephant, Mice, and Gazelles
• Economic Development
– SME represent 99% of all employers and
provide 75% of all new jobs.
• Providing for People’s Needs
• Providing most innovations
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Requirement 2
Characteristics
• Passionate
• Faith
– In self
– Others
– Ideas
•
•
•
•
Opportunity Focused
Want CONTROL
Innovative
Always Learning
– Reader
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Skills
•
•
•
•
•
•
•
•
•
Selling
Planning
Communication
Marketing
Interpersonal
Management
Personally Effective
Team Builder
Leadership
Requirement 2
Characteristics
Skills
• Entrepreneurship is not as RISKY as some
would have you believe.
– Myth – 90% of businesses fail in 5 years
• You can systematically improve the probability
of your succeeding as an entrepreneur
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Requirement 4
Opportunity Identification
• N-E-W-S
WOW
• Every Problem is an Opportunity
– Find the angle
– Pain, Pleasure
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Requirement 4
Finding The Opportunities
& Reducing Pain
Getting
It’s not just
Through
&
Around
thinking
Barriers
outside
the
Entrepreneurship
New Ideas and
is building a Angles
new
Competitive
box
box
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© 2002 COPYRIGHT
Gary K. Rhoads,
Steven Mack Covey Professor of Marketing
Requirement 4
Nine methods for new product success
Method
Example
Result
1. Take something out
of your product
Royal Crown removed
caffeine
First decaffeinated cola
2. Put something in
your product
Adding fruit juice to
soda
Slice
3. Answer to consumer
gripes
“Locked my keys in
my car”
Warning bell, OnStar, Keyless
Entry
4. Visible difference
“Same old cereal”
Flavoring the O’s in Cheerios
5. Make the task
easier
Time-consuming
oven cooking
Microwaves, Jet Stream Oven,
Pre-cooked meals
6. Use products in a
new way
Phone & MP3 player
iPhone, Android
7. Product
substitutability
Cereal substitute for
cereal-avoiding teens
Total Breakfast Bars, Drink
Powders
8. Don’t be literal,
be creative
A healthy Popsicle
Fruit Juice Bars / Longboard
9. Look overseas
Healthy Breakfast
Yoplait Yogurt
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© 2002 COPYRIGHT
Gary K. Rhoads,
Steven Mack Covey Professor of Marketing
With regard to time, here's the latest poop
How to Crap On Your Friends for $39.95
(Plus Shipping and Handling)
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© 2002 COPYRIGHT
Gary K. Rhoads,
Steven Mack Covey Professor of Marketing
Requirement 5
Feasibility Studies
• Business
– Technical (Good or Service)
– Market
– Financial
– Human Resources (Personnel)
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Requirement 5
Technical Feasibility
• Good or Service
– Simple
– Observable
– Understandable
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Requirement 5
Target Customer
• Who is the Perfect Client?
– Demographic
– Psychographic
– Geographic
• How Many Clients Are There?
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Requirement 5
Product/Service Vision
There are three levels of a product
1. Product or Service – What it is.
Benefits
2. Features – What it has.
3. The Benefits – What does it do for my
customer.
Features
Product
What are we selling?
Don’t Be A Feature Creature
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Financial Feasibility
• Questions
– Am I going make money?
– When will I make money?
• Budget
– Start-Up Costs & Operating Costs
– Fixed Costs & Variable Costs
• Financial Model
– Profit & Loss Statement
– Cash Flows
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Requirement 5
Competitive Analysis
• Who are your competitors?
– Direct and Indirect
• Unique Selling Point (USP)
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Requirement 5
Break Even Analysis (Units)
Profit Area
Expenses (thousands of dollars)
Sales
600
Total Costs
500
400
Breakeven Point
300
Loss Area
200
Fixed Expenses
100
10
20
30
Unit Sales
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50
60
Requirement 5
Financial Feasibility
• Finding the Money
– Personal Savings
– Love Money
– D &D
– Angels
• Bootstrapping
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Requirement 5
Human Resource Feasibility
• The Entrepreneur’s “SWOT”
S – Strengths
W – Weaknesses
O – Opportunities
T - Threats
• Mentoring
• Outsource
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“Start” a Business
Requirement 6
• Do a Good Turn Daily
– Any service can be turned into a business opportunity
• During the next two weeks do the following
– Pick an idea & ask others about it
• Write about what you are going to do
– Do Feasibility Study on idea
– Promote your Business
• Make promotional materials
– “Start” your Business
– Bring back Evidence
• Written Business Plan
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Promotional Materials
• Item #1 – Promotional Methods
• Item #2
– Internet
– Social Media
• Item #3 - Design a Promotional Poster or Flier
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Requirement 5
Homework
• Do Requirement #4
• Do Requirement #5 – all five sections
• Do Requirement #6 – “Start” a business
• You can download files from
www.AddOptions.org/merit-badge
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Remember
If your mind can conceive it,
and your heart can believe it,
then you can achieve it!
&
An Opportunity is
Hard Work and Preparation
Mixed with
a Vision and Passion
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