Bell Ringer 1
CAREER OPPORTUNITIES
IN…CONSULTING
Use the internet to learn more about careers in consulting. Choose one of the job titles listed and answer the following questions.
1.
Identify the minimum educational requirements for the job. Explain other training or education that might be needed for advancement.
2.
Does this career interest you?
 Business analyst
 Management consultant
 Performance consultant
 Quality control consultant
 Security consultant
 Training consultant
 Use the Occupational Outlook
Handbook at www.bls.gov

Chapter 6

6-1

TODAY’S GOALS
 Identify characteristics of successful entrepreneurs
 Recognize the importance of entrepreneurship in the economy
 Describe opportunities and risks of entrepreneurship

ENTREPRENEUR
Someone who takes a risk in starting a business to earn a profit
 Characteristics:
 Desire to be own boss
 Develop good initial plan
 Special skills and abilities
 Innovative ideas

ENTREPRENEURSHIP the process of starting, organizing, managing, and assuming the responsibility for a business

A:KNOWLEDGE AND EXPERTISE
D: MIGHT NOT BE ENJOYABLE IF IT
BECOMES YOUR JOB

SUCCESSFUL ENTREPRENEURS
ARE…
Entrepreneurs Are They Have
• Persistent
• Inquisitive
• Energetic
• Goal oriented
• Independent
• Self-confident
• Creative
• Reliable
• Competitive
• Problem-solving skills
• Tolerance for ambiguity
• Strong integrity
• Personal initiative
• Ability to secure resources
• Capability to learn from failure
• Willingness to work hard
• Ability to partner
• Ability to spot opportunity

CHARACTERISTICS OF SUCCESSFUL
ENTREPRENEURS
 Which characteristics of successful entrepreneurs do you possess?
 Which ones would you like to develop?

Using Microsoft Publisher, create an advertisement or brochure that showcases four characteristics of effective entrepreneurs. Also, include ways that people can develop those characteristics if they don't currently possess them. Use the internet to research ways to develop characteristics.
*Print and turn in with rubric when finished!*

ENTREPRENEURSHIP & THE
ECONOMY
 1 in 10 of all Americans 18-64 years old is involved in entrepreneurship
 Over 625,000 new businesses are created every year
 The same number of small businesses
close as begin each year

EMPLOYMENT
36,3
Employment Growth by Business Size 1990-2005
24,9
20,1
1-19 Employees
20-99 Employees
100-499 Employees
500 or more employees
18,7

ENTREPRENEURSHIP & THE
ECONOMY
 Over 60% of new jobs were created by businesses with fewer than 500 employees
 Financing
 friends, family, work colleagues, loans, credit
 Venture capital-money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
 Productivity
 Small businesses account for > half of the U.S. GDP

OPPORTUNITIES OF
ENTREPRENEURSHIP
Innovation – invention or
creation that is brand new
 may sell to another company
 Ex:
 Apple computer – Steve
Jobs & Stephen Wozniak
 Post-It Notes – Arthur Fry &
Spencer Silver

OPPORTUNITIES OF
ENTREPRENEURSHIP
Improvement – design change that increases the usefulness of a product, service, or process
 Can be…
 Improved design
 More effective procedures
 Greater attention to quality

RISKS OF ENTREPRENEURSHIP
New Businesses
33% 34%
33%
Profitable
Do Not Make A Profit But Continue To Operate
Lose Money

RISKS OF ENTREPRENEURSHIP
Reasons Businesses Started By Entrepreneurs
Close
• Lack of adequate capital
• Low sales
• Higher than expected expenses
• Competitive pressure
• An owner unprepared to manage a growing business
• Operations requiring more time than the owner is willing to commit
• Over a 10-year- period, more than 50 percent of all new businesses are discontinued

GOAL 3
 Where do entrepreneurship opportunities begin?
Innovations (ideas about new products and services)
Improvements (ideas for changes to existing products, services, or processes)

Page 131 #5

BELL RINGER 2

6-2

TODAY’S GOALS
 Identify important characteristics of small businesses
 Recognize the competitive advantages of small businesses
 Identify problems faced by many small businesses

SMALL BUSINESSES
An independent business with fewer than 500 employees
 Details…
 Owner = manager
 One or fewer locations
 Serves a small market
 Not dominant in its field
 99.9% of the 26 million
U.S. businesses are small businesses

SMALL BUSINESS EMPLOYMENT
 Create 60-80% of all new jobs
 Largest number in services and retailing
 Pg133 Fig. 6-3

COMMON TYPES OF SMALL BUSINESSES
AS A PERCENT OF ALL SMALL
BUSINESSES
Retail trade
Professional and technical services
Construction
Health care and social assistance
Accomodation and food services
Finance and Insurance
Wholesale trade
Waste management
Real estate and rental and leasing
Manufacturing
Transportation and warehousing
Information
Arts, entertainment, and recreation
Educational services
6,6%
8,2%
5,6%
5,0%
2,8%
1,9%
4,9%
4,3%
1,6%
1,1%
11,3%
10,6%
10,2%
14,6%

Services and retailing are 2 categories in which small businesses can get a start and provide customer service and value that large businesses may not be able to match.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
25%
17%
14%
95%
64%
50%

INITIAL CAPITAL
 Part-time or service businesses=$5000 or less
 Full-time with buildings, equipment, and employees=$100,000 or more

SMALL BUSINESS ADVANTAGES
 Meet unique needs of customers…
 Have more customer contact
 Located close to customers
 Get direct information from customers on likes and dislikes

SMALL BUSINESS ADVANTAGES
 Provide unique services…
 Take a special interest in the customer
 Spend time determining needs and alternatives

COMMON PROBLEMS
Most Common Reasons for Small Business Failure
1. Not keeping adequate records
2. Not having enough start-up money
3. Lack of management experience
4. Lack of experience with the type of business
5. Not controlling operating expenses
6. Poor location for the business
7. Failure to manage credit offered to customers

SMALL BUSINESS ASSISTANCE
 Universities & Colleges
 Chambers of Commerce
 Small Business
Administration (SBA)
 Service Corps of Retired
Executives (SCORE)

Page 136 # 4 eBay has become the home of many small businesses.
Thousands of small business owners earn an excellent income by selling their products using the online auction services provided by eBay. Visit the eBay website and identify three ways a small business can use the website to support its operations.
*Turn in when finished!*

BELL RINGER 3

6-3

TODAY’S GOALS
 Recognize important factors to be considered when starting a business

THE BUSINESS DECISION
 Hobbies
 Interests
 Business Experiences

LOCATION, LOCATION, LOCATION!!!
 High Customer Traffic
 Easily Accessible
 Customers
 Manufacturers
 Distributers

TIMING
 Start when demand is high

TEAM APPROACH
 Team work!!
 Employees
 Bankers
 Lawyers
 Accountants

THE MOST IMPORTANT STEP IS
PREPARATION!
Information
 Customers
 Competitors
 Operations
 Government
Regulations
Resources
 Libraries
 Colleges
 Universities
 Small Business
Assistance Centers

Pretend your best friend is thinking about starting a small business. Write a letter to him/her offering advice on the things they should consider carefully before making a final decision. Be sure to include the key elements from pages 138-139 of your book, along with the video we watched in class. The letter should be typed, double spaced and 12pt.
font.
*Turn in when finished!*

BELL RINGER 4

TODAY’S GOALS
 Describe the elements of a business plan
 Identify types and sources of financing for small business

MUST HAVE A PLAN!!
 Business plan – written description of the business idea and how it will be carried out, including all major business activities
 Elements:
 Company description
 Owner credentials
 Product or service description
 Market analysis (demand, customers, competition)
 Financial plan
 See pg. 140 Figure 6-4

BUSINESS PLAN
 Helps the owner for see…
 Important activities
 Problems
 Time they will take
 Cost
 Persuade lenders and investors

STEPS TO A BP
 1. Gather and review information
 Other BPs
 Activities and financial performance of competitors
 2. Develop strategic alternatives
 Production
 Marketing
 Staffing
 Financing
 3. Write it!
 Legal form
 Products or services
 Competition
 Customers
 Operations
 Marketing
 Finances

BP

SHOW ME THE MONEY!!!
 Financing is a key step in starting and running a new business!!!

TYPES OF FINANCING
 Start-up financing – money needed to open the business
 Includes costs of…
 Buildings
 Equipment
 Inventory (products or raw materials on hand)
 Supplies
 Licenses

TYPES OF FINANCING
 Short-term financing – money needed to pay for the current operating activities of a business
 Obtained for a period of less than a year and often for one or two months

TYPES OF FINANCING
 Long-term financing – money needed for the main resources of a business that will last for many years
 Land
 Buildings
 Equipment
 Large amounts of money paid over many years

SOURCES OF $$$
 Owner-Supplied Money
 Proprietorship
 One person
 Partnership
 Each partner contributes
 Corporation
 Shareholders
 Borrowed funds
 Bank loans
 Family or friends
 Credit

WHAT ARE 3 TYPES OF FINANCING?
 Start-Up
 Short-Term
 Long-Term

WHAT ARE 2 SOURCES OF
FINANCING?
 Owner-Supplied
Money
 Borrowed Money

 Location
 Picture
 Rent/Lease Amount
 Positives
 Negatives
 Final Choice
 Why