Selling products and services: Every business in the world sells one of two things, products or services. Some sell both at the same time.
Products: anything you can sell that you can touch … Cars Clocks Candy Clothes
Services: something you provide, but can’t touch…. Taxicab rides Lawn mowing Plumbing Accounting
Four types of businesses: (1) Manufacturers– make products (2) Wholesalers – buy products in large quantities and sell them to many buyers
Four types of businesses: (3) Retailers – buy products in small quantities & sell them to individual consumers (4) Service providers – sell a service
Can you guess which is which? A company in Florida buys 10 air conditioners to sell in their store.
A company in New York produces air conditioners.
A company delivers, installs, and repairs the air conditioners.
A company distributes those air conditioners to many stores on the East Coast.
Regardless of what they sell and how much money they earn, most entrepreneurs share certain characteristics. If we could x-ray an entrepreneur, what would we see?
Entrepreneurs are better defined by what they do. The identify opportunities.
Opportunities exist when people want a good or service that is not easily available and are willing to pay for it. Opportunities are all around us.
You don’t wait for opportunities to come to you; you have to go and find them. Look for them. Hunt for them.
Opportunities are all around you, but you have to use your senses- keep your eyes & ears open. You have to be on the alert for them if you want to recognize them.
One commandment of the entrepreneur is: “ Every problem is an opportunity ”. If you keep that in mind and believe it, it can change your life!
There is another thing you can do to find the opportunities – Learn to “think outside the box” more often. What does this mean?
<ul><li>Think differently. </li></ul><ul><li>Realize that there is more than one way to do something. </li></ul><ul><li>Look for alternatives. </li></ul><ul><li>Look for new and better solutions. </li></ul><ul><li>Don’t assume that today’s solution is the “right” or only solution. </li></ul>
To be an entrepreneur, you have to be willing to take a calculated risk, risking time, hard work, money and sometimes your reputation.
You must accept known risks in anticipation of the potential personal and financial rewards of creating a successful business.
E – examines wants for which he/she can do something to make sure the way wants are met N – narrows the possible opportunities down to one specific opportunity T – thinks of an innovative idea R – researches the opportunity & idea thoroughly
E – enlists the best sources of advice & assistance that can be found P – plans the venture & looks for possible problems that might arise R – ranks the risk & possible rewards E – evaluates the risk & possible rewards & makes a decision N – never hangs on to an idea, as much as it’s loved , if research shows it won’t work
E – employs the best team of people possible & brings together the other resources necessary for the venture U – understands that any entrepreneurial venture will take a great deal of long, hard work R – realizes a sense of accomplishment from successful ventures & learns from failed ones
For more information, contact : Isaac B. Chappell, Jr. Regional Extension Agent Consumer Science & Personal Financial Management Alabama Cooperative Extension System 1702 Noble Street, Suite 108 Anniston, AL 36201 (256) 237-1621 FAX (256) 238-8630 [email_address] www.aces.edu/calhoun