Good Day! DRAW A LINE SEPARATING TODAY & YESTERDAY 1) Write: Date: 03/19/10 , Topic: Entrepreneurship 2) On the next line, write “ Opener #29 ” and then: 1) Plot your mood, reflect in 1 sent . 2) Respond to the opener by writing at least 2 sentences about : Your opinions/thoughts OR/AND Questions sparked by the clip OR/AND Summary of the clip OR/AND Other things going on in the news. Announcements: Still missing some bankers? Intro Music: Mr. Chiang’s class song list
Agenda 1) Intro to Starting Biz (non-restaurant) End Goal, you will be able to… 1) Understand why entrepreneurs matter. Reminder 1) Work on your 2+ Docs+Slides for 3/25 (each section should be no more than a page)
Heads Up In class we discuss general principals of business. At home THIS week: 1) Work on your 2+ Docs+Slides for 3/25 At home NEXT week: 1) Drafting your sections for Biz Plan 2 due block: 4/06 Goal: To understand biz mindset for econ
Adsense 1,000 page views per day . At a 1.0% click-through rate and $0.15 pay-off per click to you, in a 30-day month you can expect to make: Monthly income: 1,000 x 30 x 0.01(1%) x $0.15 =$45 1,000,000 page views per day . At a 1.0% click-through rate and $0.15 pay-off per click to you, in a 30-day month you can expect to make: Monthly income: 1,000,000 x 30 x 0.01(1%) x $0.15 =$45,000
Work #28a , Title “ Opener Shareout ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors With a partner: 1s, 1w, 1o, 1t) SWOT: Raptr.com
Entrepreneur : Person who starts a business, fulfills a need, makes money.
Only 1/5 th of Americans are self employed , but they account for more than 2/3rds of all American millionaires .
+ 650,000 new businesses each year - 30% left after five years Over the lifetime of a business, 40% are profitable, 30% break even, and 30% lose money
Small businesses produce 43% of GDP (Gross Domestic Product, all things produced in the USA) Small businesses provide 44.4% of the total U.S. private jobs
Entrepreneurs have been responsible for 67% of the inventions and 95% of the radical innovations made since WW II
Women currently own approximately 9.1 million small businesses in the U.S. and are starting them at twice the rate of their male counterparts.
Notes #28a , Title: “ Entrepreneur Notes ” 1) Entrepreneur: Starts a business 2) Venture: New business a) Capital: Money ( Venture Capital ) 3) Equity: Ownership (things you own) 4) Business Model : How you make money a) Profit Margin: Price - Cost (often in %) Example: Cost: $100, Price: $150=PM: 33% 5) Market Target: Your Likely Customer a) Market Size: # of Likely Cust. b) Market Growth: Increase in Likely Cust.
Notes #28a , Title: “ Entrepreneurship ” 6) Winning Business Idea THIS IS NOT ABOUT INVENTING. It’s about doing something better than others. Improve (or invent), what ever will increase customer utility . Provide a product or service so superior, that customers will switch to you! You don’t need to be the first in a market, just the best. BUT DO NOT TRICK THE CUSTOMER!
Notes #28a , Title: “ Entrepreneurship ” Provide a product or service so superior, that customers will switch to you! You don’t need to be the first in a market, just the best. BUT DO NOT TRICK THE CUSTOMER! 7) Trademark : Brand ID (long as in biz) 8) Copyright : Unique words, imgs, sounds (120 years) 9) Patent : Unique process (17 years) 10) Trade Secrets : Biz secret way of doing things (gives you right to sue if stolen)
Mature Market Successful and stable companies already exist. Start ups have the additional challenge of taking on pre-existing competitors, but for winners, the profits are proven. (Jetblue, Virgin America) Growing Market None or not many companies providing it, so the start up goal is to establish themselves. Easiest environment for start ups, but profits unproven. (Online Video on Demand: Veoh, Lulu)
Work #28a , Title “ Market Targets ” With a partner ( include their name ): 1) Name a mature market that is open to fresh competition. 2) Name a new market that is not yet dominated by any significant companies, so it’s anyone’s game.
Review 1) Business Model : How you make money NBC TV: Ad Revenue + Selling Shows (Syndic, DVD) Comcast Cable: Ad Revenue + Fee Based Google: Ad Revenue Facebook: Ad Revenue PayPal: Transaction Fee Chase: Interest on Loans, Buying Bonds, Cust. Fees Virgin Am Airlines: Airfare + Extra Add-on Services Ford: Car Sales Best Buy: Product Sales + Ext Warranties Costco: Product Sales + Membership Fee Pandora: Ad Revenue + Fee Based Sarah Lee: Selling Branding Rights to Food Makers KwickCart (Free Bike Taxi): Sale of Ads on Pedicarts NBA Team: Tickets + Licensing Brand
Notes #29a , Title: “ Entrepreneurship ” 1) Elevator Pitch In under 90sec, covers: 1- what’s the problem and solution 2- how do you make money 3- who is the market and how much is the market worth 4- what is your advantage 5- how much will you (and they) make (% of market captured) 6- what are you asking ($ needed)
Work #29a , Title “ Business Model ” As a team, solve this: 99% of electronic music is China is pirated. Develop a business model that will make selling music in China profitable ( Prize: $100 ). 1) Write down the business model Assign person to give the elevator pitch.
Work #29b , Title “ Threadless ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors As a Team: 1s, 1w, 1o, 1t) SWOT Theadless 2) Come up with a business pitch ( killer idea ) for startup to “Tiger Shark Shirts” kill Threadless, kill kill kill kill kill kill! STEAL AND MAKE BETTER!
Work #29c , Title “ Etsy ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors As a Team: 1s, 1w, 1o, 1t) SWOT Theadless 2) Come up with a business pitch ( killer idea ) for startup to “Tiger Shirts” kill Threadless.
Work #29c , Title “ Do It Better ” As a Team: 1) With your team, identify 1 business that isn’t doing as good as it could. Explain how the business could be done better. Example: Jack in Box could offer whole wheat buns or other healthy options. It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.
Work #29d , Title “ Do It Better 2 ” As a Team: 1) List of possible businesses to finalize on Monday (BE INNOVATIVE! ANY BIZ BUT YOU WILL BE WORKING ON IT FOR WEEKS SO CHOOSE WISELY!). It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.
Work #29f , Title “ Video: Entrepreneurs ” 1) Copy Source Title: CNBC 2…) Discuss questions on the board with a partner. Summarize your discussion ( include their name at the end ). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work Sections Time Bookmark: 00:00
Business Plan (Due Block 3/25-26) 1) Work on your sections 2) Make sure you talk with your group to have every section be in sync 3) Save the links to resources that you will put in the appendix to back your claims. Example: 5a: Webpage print out Competitor 1 5b: Webpage print out Competitor 2 Grading __/60 Your Google Docs Sections of the Written Business Plan __/10 Your Google Docs Presentation Slides For Your Sections __/10 Your Contribution to the Appendix (Labeled: 1a, 1b…8a) __/10 Your Oral Presentation (dress up for presentation, suit or uniform) __/10 Team Work (use of in class time and out of class time to help each other, leader eval, lose points if do each other’s work) __/100 Points Total