Teaching entrepreneurship

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Teaching entrepreneurship

  1. 1. Teaching Entrepreneurship “Building a Successful Business Plan” N.A.F. Institute for Staff Development Orlando, FL., July 10 th , 2008 Presenter: Stephen J. Rocco Smithfield High School, Smithfield, RI
  2. 2. Handouts <ul><li>Session Evaluation Forms </li></ul><ul><li>Course Syllabus </li></ul><ul><li>Presentation Handouts </li></ul><ul><li>Career Cluster Survey </li></ul><ul><li>Ethics Activity </li></ul>
  3. 3. Agenda <ul><li>Handouts </li></ul><ul><li>Introductions – About Me </li></ul><ul><li>About Our Academy </li></ul><ul><li>Course Structure </li></ul><ul><ul><li>Activity </li></ul></ul><ul><ul><li>Quarter 1 </li></ul></ul><ul><ul><li>Quarter 2 </li></ul></ul><ul><li>Closing/Questions </li></ul><ul><li>Evaluation Forms </li></ul>10:00 10:02 10:05 10:10 10:15 10:25 10:55 11:00
  4. 4. About Me <ul><li>Academy Director and Teacher. B.S.S. Degree in Economics and Business from Cornell College in Iowa. Teaching Certificate in Business Education from Johnson & Wales University in Providence, RI. Self-Employed for 28 years, teaching for six. Father of three children, 17-23 years old. E-portfolio development is a hobby that I just turned into a business ezeport.com . </li></ul>
  5. 5. Agenda <ul><li>Handouts </li></ul><ul><li>Introductions – About Me </li></ul><ul><li>About Our Academy </li></ul><ul><li>Course Structure </li></ul><ul><ul><li>Activity </li></ul></ul><ul><ul><li>Quarter 1 </li></ul></ul><ul><ul><li>Quarter 2 </li></ul></ul><ul><li>Closing/Questions </li></ul><ul><li>Evaluation Forms </li></ul>10:00 10:02 10:05 10:10 10:15 10:25 10:55 11:00
  6. 6. About Our Academy – http:// www.shsaof.org <ul><li>Smithfield High School is a comprehensive high school of about 850 enrollment. Located 10 miles NW of Providence, RI. Home of Bryant University, and a regional Fidelity Investments Branch. We have 70-75 students in our program. * Goal of 80-85. </li></ul><ul><li>Four Business Ed. Faculty Members. </li></ul><ul><li>Annual Budget </li></ul><ul><ul><li>$2K Director’s Stipend - district </li></ul></ul><ul><ul><li>$1K NAF License Fee – district </li></ul></ul><ul><ul><li>$3K in P.D. Expense Funds - district </li></ul></ul><ul><ul><li>$3K Citigroup Grant each February. </li></ul></ul><ul><ul><li>Annual Golf Tournament in late June raises approx. $2,500-$4,500. </li></ul></ul>
  7. 7. About Our Academy <ul><li>Support of School Committee, District and Building Administrators back our program. Why? Publicity! Articulation Agreements. 100% Post-Secondary Enrollment. Networking. </li></ul><ul><li>Active Advisory Board – Local politicians, business and community leaders, student member, and alumni. We also involve R.I. General Treasurer and State Auditor General. </li></ul><ul><li>We Promote student leadership, community involvement, student accountability, responsibility, family, and life-long relationships. </li></ul>
  8. 8. About Our Academy <ul><li>Success Comes from Extra Effort </li></ul><ul><ul><li>Keep Class Enrollments High </li></ul></ul><ul><ul><li>Work Longer Hours after School </li></ul></ul><ul><ul><li>Faculty Work as a Team </li></ul></ul><ul><ul><li>“ Promote-Promote-Promote” </li></ul></ul><ul><ul><li>VITA, Junior Achievement, School Store </li></ul></ul><ul><ul><li>Attend Bryant or Fidelity Functions </li></ul></ul><ul><ul><li>Attend Community Functions </li></ul></ul><ul><ul><li>Connect with Senior Citizens </li></ul></ul><ul><ul><li>Attend School Committee Meetings </li></ul></ul>Entrepreneurial Actions Create Job Security . . . … “ Through the Back Door!”
  9. 9. Agenda <ul><li>Handouts </li></ul><ul><li>Introductions – About Me </li></ul><ul><li>About Our Academy </li></ul><ul><li>Course Structure </li></ul><ul><ul><li>Activity </li></ul></ul><ul><ul><li>Quarter 1 </li></ul></ul><ul><ul><li>Quarter 2 </li></ul></ul><ul><li>Closing/Questions </li></ul><ul><li>Evaluation Forms </li></ul>10:00 10:02 10:05 10:10 10:15 10:25 10:55 11:00
  10. 10. Before We Begin We Recognize Diversity <ul><li>We recognize: </li></ul><ul><li>Differences in students. </li></ul><ul><ul><li>Applied, Mixed, College Bound </li></ul></ul><ul><li>Differences in learning styles </li></ul><ul><li>Differences in socio-economic standing </li></ul><ul><li>Differences in available technology </li></ul><ul><li>Differences in monetary resources </li></ul><ul><li>Various district and school constraints </li></ul>
  11. 11. Before We Begin Proficiencies Achieved <ul><li>Reading </li></ul><ul><li>Writing </li></ul><ul><li>Math Computation </li></ul><ul><li>Math Problem Solving </li></ul><ul><li>Oral Presentation </li></ul><ul><li>Independent and Cooperative Learning </li></ul><ul><li>Technology </li></ul><ul><ul><li>MS Word, Excel, PowerPoint </li></ul></ul><ul><ul><li>Internet Research </li></ul></ul><ul><li>Global Awareness </li></ul>
  12. 12. Class Format Home - Syllabus <ul><li>Quarter 1 – nine weeks </li></ul><ul><li>Startup-Pre-Assess, etc. </li></ul><ul><li>Introduce the End – The Business Plan </li></ul><ul><li>Chapter/Unit 1 What is Entrepreneurship? </li></ul><ul><li>Chapter/Unit 2 Your Potential as an </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Chapter/Unit 3 Recognizing Opportunity </li></ul><ul><li>Chapter/Unit 4 Global Opportunities </li></ul><ul><li>Chapter/Unit 5 Feasibility and Business </li></ul><ul><li>Planning </li></ul><ul><li>---------- More on Building the </li></ul><ul><li>Business Plan </li></ul><ul><li>Chapter/Unit 6 Market Analysis </li></ul><ul><li>Chapter/Unit 7 Types of Ownership </li></ul><ul><li>Chapter/Unit 8 Legal Environment </li></ul><ul><li>Quarter 2 – nine weeks </li></ul><ul><li>Build the Plan </li></ul><ul><ul><li>Resume Writing </li></ul></ul><ul><ul><li>Understanding Taxes </li></ul></ul><ul><ul><li>Bank Accounts & Cash Control </li></ul></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><li>Financial Statements </li></ul></ul><ul><li>Create PowerPoint Presentation </li></ul><ul><li>Present to Class </li></ul>
  13. 13. Startup / Introduction <ul><li>Standards </li></ul><ul><li>Course Syllabus </li></ul><ul><li>Rubrics </li></ul><ul><li>Research and the Internet PPT </li></ul><ul><li>Career Education Primer </li></ul><ul><li>Introduce Teaching Entrepreneurship Bibles – </li></ul><ul><ul><ul><li>Entrepreneurship Online Resources </li></ul></ul></ul><ul><ul><ul><li>www.entrepreneur.com </li></ul></ul></ul><ul><ul><ul><li>Small Business Administration (SBA) </li></ul></ul></ul><ul><ul><ul><li>Service Corp of Retired Executives (SCORE) </li></ul></ul></ul>
  14. 14. Pre-Assess Schema Building Activities <ul><li>Business Ethics Activities </li></ul><ul><li>Business Math Activities </li></ul><ul><li>Career Cluster Interest Survey </li></ul><ul><li>Skills Assessment </li></ul><ul><li>Entrepreneur Scavenger Hunt </li></ul><ul><li>Differentiated Instruction: </li></ul><ul><ul><li>Create Stagger, or Flap Books for Notes, Vocabulary, etc. </li></ul></ul><ul><ul><li>Develop some Pre-Knowledge Quizzes </li></ul></ul>
  15. 15. Introduce the End <ul><li>Introduce the Business Plan – A Blueprint for your business . </li></ul><ul><ul><li>A document that describes a new business. Initially created for </li></ul></ul><ul><ul><li>lenders and Investors to explain why the new business deserves the </li></ul></ul><ul><ul><li>financial support. Chance for success is greater with a plan. </li></ul></ul><ul><li>Business Plan - Examples </li></ul><ul><li>Business Plan Parts - Read Instructions </li></ul><ul><li>Title Page </li></ul><ul><li>I. Table of Contents </li></ul><ul><li>II. Executive Summary </li></ul><ul><li>III. General Company Description </li></ul><ul><li>IV. Products and Services </li></ul><ul><li>V. Marketing Plan </li></ul><ul><li>VI. Operational Plan </li></ul><ul><li>VII. Management and Organization </li></ul><ul><li>VIII. Personal Financial Statement </li></ul><ul><li>IX. Startup Expenses and Capitalization </li></ul><ul><li>X. Financial Plan </li></ul><ul><li>XI. Appendices </li></ul><ul><li>XII. Refining the Plan </li></ul>
  16. 16. Chapter/Unit 1 What is Entrepreneurship? <ul><li>What is Entrepreneurship? – The act of organizing, managing, and assuming the risks of a business or enterprise . </li></ul><ul><ul><li>Source - http://m-w.com </li></ul></ul>
  17. 17. <ul><li>Entrepreneurship and the Economy. EconEdLink </li></ul><ul><ul><li>Economics - Making Choices, Needs and Wants </li></ul></ul><ul><ul><li>Free Enterprise System </li></ul></ul><ul><ul><li>Profit Motive </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Goods and Services </li></ul></ul><ul><ul><li>Factors of Production </li></ul></ul><ul><ul><li>Scarcity </li></ul></ul><ul><ul><li>Supply and Demand – EconEdLink Lesson –Babysitter Shortage in D.C. </li></ul></ul><ul><ul><li>Factors of Production – Land, Labor, Entrepreneurship, Capital </li></ul></ul><ul><li>Contributions of Entrepreneurs? </li></ul><ul><ul><li>Video Biographies </li></ul></ul><ul><ul><li>Articles Famous Entrepreneurs </li></ul></ul>Chapter/Unit 1 What is Entrepreneurship?
  18. 18. <ul><li>The Entrepreneurial Process. </li></ul><ul><ul><li>The Entrepreneur – Driving force </li></ul></ul><ul><ul><li>The Environment - Variables </li></ul></ul><ul><ul><li>The Opportunity – Idea + Market = Opportunity </li></ul></ul><ul><ul><li>Start-Up Resources – Capital, Labor, Management Expertise, Legal and Financial Advice, Facility, Equipment, and Customers </li></ul></ul><ul><ul><li>The New Venture Organization – All of the above come together to execute the new business. </li></ul></ul><ul><li>Success, Failure, Discontinuance </li></ul>Chapter/Unit 1 What is Entrepreneurship?
  19. 19. <ul><li>Why be an Entrepreneur? </li></ul><ul><ul><ul><li>Case for Entrepreneurship - </li></ul></ul></ul><ul><ul><ul><li>In-Class Discussion Family Owned Businesses – Benefits, Drawbacks </li></ul></ul></ul><ul><li>Costs and Risks - EconEdLink </li></ul><ul><li>Characteristics of Entrepreneurs </li></ul><ul><ul><li>Entrepreneur’s Dozen - </li></ul></ul><ul><ul><li>Career Cluster Interest Survey - </li></ul></ul><ul><ul><li>Skills Assessment </li></ul></ul><ul><li>Strengthening Characteristics – </li></ul><ul><li>Developing Skills - </li></ul><ul><li>SMART Goal Setting Checklist </li></ul><ul><li>Group Project - “How to Start Your Own Business? ” </li></ul>Chapter/Unit 2 Your Potential as an Entrepreneur
  20. 20. <ul><li>Beginning the Entrepreneurial Process means… </li></ul><ul><li>…“ taking the steps to recognize an opportunity and create a business for profit”. </li></ul><ul><li>Recognizing Opportunities </li></ul><ul><ul><li>Understanding Trends – Entrepreneur.com </li></ul></ul><ul><ul><ul><li>Home-based businesses </li></ul></ul></ul><ul><ul><ul><li>Technology focus </li></ul></ul></ul><ul><ul><ul><li>Fitness and Health </li></ul></ul></ul><ul><ul><ul><li>Ethnic Products </li></ul></ul></ul><ul><ul><ul><li>Indulgence (Specialty Goods) </li></ul></ul></ul><ul><ul><li>Outsourcing – Private Label Packaging </li></ul></ul><ul><ul><li>Strategic Alliances – Tape Producer/Tape Dispenser Manuf. </li></ul></ul>Chapter/Unit 3 Recognizing Opportunity
  21. 21. <ul><li>Learning to Recognize Opportunity </li></ul><ul><ul><li>Creativity is the activity that results in innovation </li></ul></ul><ul><ul><li>Creativity requires you to be aware of your surroundings </li></ul></ul><ul><ul><li>Look at the ordinary in a new way </li></ul></ul><ul><ul><li>Find solutions for problems </li></ul></ul><ul><li>Creative Sources of Ideas </li></ul><ul><ul><li>Watching People </li></ul></ul><ul><ul><li>Watch for Demographic Changes – U.S. Census Bureau </li></ul></ul><ul><ul><li>Read – Newspapers, Trade & Specialty magazines </li></ul></ul><ul><ul><li>Consider your own experiences with work or hobbies </li></ul></ul><ul><ul><li>Attend Trade Shows </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Government Agencies </li></ul></ul>Chapter/Unit 3 Recognizing Opportunity
  22. 22. <ul><li>Starting vs. Buying a Business </li></ul><ul><li>Buying a Business </li></ul><ul><ul><li>Family Business – Ups and Downs </li></ul></ul><ul><ul><li>Franchises </li></ul></ul><ul><ul><li>Others </li></ul></ul><ul><li>Where to Find a Business </li></ul><ul><ul><li>Networking </li></ul></ul><ul><ul><li>Classifieds </li></ul></ul><ul><ul><li>National Publications </li></ul></ul><ul><li>Questions to ask: </li></ul><ul><ul><li>Is the business interesting to me or others? </li></ul></ul><ul><ul><li>Why is he selling? </li></ul></ul><ul><ul><li>Is there potential for growth? </li></ul></ul><ul><ul><li>Competition? </li></ul></ul>Chapter/Unit 3 Recognizing Opportunity
  23. 23. <ul><li>Starting vs. Buying a Business </li></ul><ul><li>Starting a Business - Downside </li></ul><ul><ul><li>More Time and Effort to startup </li></ul></ul><ul><ul><li>Prepare a Business Plan </li></ul></ul><ul><ul><li>Initiate relationships with suppliers </li></ul></ul><ul><ul><li>Set up distribution </li></ul></ul><ul><ul><li>Establish name recognition </li></ul></ul><ul><li>Starting a Business - Upside </li></ul><ul><ul><li>Doing things your own way </li></ul></ul><ul><ul><li>Avoid someone else’s mistakes </li></ul></ul><ul><ul><li>Use your own fresh ideas and enthusiasm </li></ul></ul>Chapter/Unit 3 Recognizing Opportunity
  24. 24. <ul><li>Starting vs. Buying a Business </li></ul><ul><li>Questions to Ask Yourself </li></ul><ul><ul><li>Do I have the motivation to start from nothing? </li></ul></ul><ul><ul><li>Do I have sufficient knowledge of operations? </li></ul></ul><ul><ul><li>Do I have enough financial resources to start from scratch? </li></ul></ul><ul><li>* Entrepreneurs must constantly be on the </li></ul><ul><li>lookout for opportunity - EconEdLink Lesson </li></ul>Chapter/Unit 3 Recognizing Opportunity
  25. 25. <ul><li>Global Entrepreneurship </li></ul><ul><ul><li>Recognizing our Global Economy </li></ul></ul><ul><ul><li>Where are the Global Opportunities ? </li></ul></ul><ul><ul><ul><li>Mini-Project on Imports and Exports - </li></ul></ul></ul><ul><ul><li>Respect for International Customs </li></ul></ul><ul><ul><ul><li>www.executiveplanet.com </li></ul></ul></ul><ul><ul><li>Finding the Foreign Markets </li></ul></ul><ul><ul><ul><li>EconEdLink Lesson </li></ul></ul></ul><ul><ul><ul><li>International Trade Data Network </li></ul></ul></ul><ul><ul><li>Importing and Exporting </li></ul></ul>Chapter/Unit 4 Global Opportunities
  26. 26. <ul><li>Feasibility and Business Planning </li></ul><ul><li>Got an Idea? </li></ul><ul><li>Feasibility Analysis: Testing an Opportunity </li></ul><ul><ul><li>3 Step Process - </li></ul></ul><ul><ul><ul><li>Idea > Business Concept (Statement) > Feasibility Analysis </li></ul></ul></ul><ul><li>Developing a Business Concept </li></ul><ul><ul><li>Turn your Idea into a Business Concept , then test it by asking four questions. </li></ul></ul><ul><ul><ul><li>What is the product of service being offered? </li></ul></ul></ul><ul><ul><ul><li>Who is the customer? </li></ul></ul></ul><ul><ul><ul><li>What is the benefit you would be providing? </li></ul></ul></ul><ul><ul><ul><li>How will you get the product or service to the customer? </li></ul></ul></ul><ul><ul><li>Using your answers write a Concept Statement . </li></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  27. 27. <ul><li>Testing the Concept in the Market </li></ul><ul><ul><li>Feasibility Analysis : The process used to test a business concept. Is the business a practical idea? </li></ul></ul><ul><ul><li>Feasibility Analysis answers two questions. </li></ul></ul><ul><ul><ul><li>Are there customers who want what you have to offer? </li></ul></ul></ul><ul><ul><ul><li>What conditions must be present for you to go forward with the business? </li></ul></ul></ul><ul><ul><li>The analysis will show if there is enough demand for your product or service. </li></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  28. 28. <ul><li>Feasibility Analysis </li></ul><ul><ul><li>Testing Product or Service Requirements </li></ul></ul><ul><ul><ul><li>Uniqueness, Industry Trends, Barriers to Entry, Profit Margins </li></ul></ul></ul><ul><ul><li>Talking to Customers </li></ul></ul><ul><ul><ul><li>Determine your Target Market. Learn their needs. </li></ul></ul></ul><ul><ul><li>Study the Competition </li></ul></ul><ul><ul><ul><li>Create a Competitive Grid - . Organizes important information about the competition. Read about them. Talk to their customers. Talk to them or their employees. Visit their place of business. </li></ul></ul></ul><ul><ul><li>Look at Startup Resources – Calculate how much capital it will take to do the following: </li></ul></ul><ul><ul><ul><li>Purchase or Lease Equipment and a Facility </li></ul></ul></ul><ul><ul><ul><li>Pay any employees you hire </li></ul></ul></ul><ul><ul><ul><li>Finish product development </li></ul></ul></ul><ul><ul><ul><li>Carry the company’s expenses until you have enough sales for the business to be self- supporting and profitable. </li></ul></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  29. 29. <ul><li>Feasibility Analysis </li></ul><ul><ul><li>Evaluating Results </li></ul></ul><ul><ul><ul><li>Information gathered from the feasibility study may not turn out to be favorable. If you determine that your idea cannot work, stop and pursue another idea. </li></ul></ul></ul><ul><ul><ul><li>The MAIN advantage of conducting a feasibility study is that it allows you to test your idea with little risk. </li></ul></ul></ul><ul><ul><ul><li>Simplified Analysis – SWOT Analysis </li></ul></ul></ul><ul><ul><ul><li>Will it work?... If so, </li></ul></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  30. 30. <ul><li>Let’s talk about The Business Plan! </li></ul><ul><li>A document that describes a new business. Initially created for lenders and Investors to explain why the new business deserves financial support. </li></ul><ul><li>Why create a Business Plan? - Instructions </li></ul><ul><li>To obtain financing </li></ul><ul><li>To serve as a living guide to the business </li></ul><ul><li>To provide a startup blueprint </li></ul><ul><li>* 3 - C’s of Credit (Character, Capacity, Collateral) </li></ul>Chapter/Unit 5 Feasibility and Business Planning
  31. 31. <ul><li>The Business Plan conveys vision for the company </li></ul><ul><li>It forms The Main Concept you have for your business. What it is, what it will become, and how you should run it. </li></ul><ul><li>Remember: </li></ul><ul><ul><li>Keep the vision broad enough to last through changing times. </li></ul></ul><ul><ul><li>If your vision changes when something happens, then it’s not really a vision. </li></ul></ul><ul><ul><li>Don’t confuse your vision with a mission. A mission is an allotted or self- imposed duty or task. </li></ul></ul><ul><li>Suggestions: </li></ul><ul><ul><li>Formulating a Business Plan involves a great deal of research. Information from so many sources can be overwhelming. </li></ul></ul><ul><ul><li>There is no correct format. The plan can be long or short. </li></ul></ul><ul><ul><li>Anticipate your audience and accommodate them. </li></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  32. 32. <ul><li>Building the Business Plan </li></ul>Chapter/Unit 5 Feasibility and Business Planning <ul><ul><li>Gather information / data </li></ul></ul><ul><ul><li>Organize the data </li></ul></ul><ul><ul><li>Set up a notebook with a “chapter” for </li></ul></ul><ul><ul><li>each feature </li></ul></ul><ul><ul><li>Write a draft </li></ul></ul><ul><ul><li>Revise, edit, correct </li></ul></ul><ul><ul><li>Get feedback from others </li></ul></ul><ul><ul><li>Revise, edit, correct </li></ul></ul><ul><ul><li>Print the final draft </li></ul></ul>
  33. 33. <ul><li>Sources of Information / Data </li></ul><ul><ul><li>Small Business Administration (SBA) </li></ul></ul><ul><ul><li>Service Corp of Retired Executives (SCORE) </li></ul></ul><ul><ul><li>Small Business Development Center </li></ul></ul><ul><ul><li>U.S. Chamber of Commerce </li></ul></ul><ul><ul><li>United States Census Bureau </li></ul></ul><ul><ul><li>Our Entrepreneurship Site </li></ul></ul><ul><ul><li>www.sjrbiz.info </li></ul></ul><ul><ul><li>Personal Interview/Observations </li></ul></ul><ul><ul><li>Local Chamber of Commerce </li></ul></ul><ul><ul><li>Trade Associations (Industry Specific) </li></ul></ul><ul><ul><ul><ul><li>Example: NRA </li></ul></ul></ul></ul>Chapter/Unit 5 Feasibility and Business Planning
  34. 34. Business Plan?... …Not Yet! There are a few more things you need to know. Ch./Unit 6 Market Analysis Ch./Unit 7 Types of Business Ownership Ch./Unit 8 Legal Environment -------- Cash Control
  35. 35. <ul><li>Entrepreneurs must satisfy customers to be successful and make a profit. </li></ul><ul><ul><li>Performing a Market Analysis (Mind Map) </li></ul></ul><ul><ul><ul><li>identifies customers and determines their buying habits (find out what they want) </li></ul></ul></ul><ul><ul><ul><li>Analyzes your field of endeavor or industry to rate your prospects for success </li></ul></ul></ul><ul><ul><ul><li>Biz/ Ed.co.uk - Market Analysis Lesson </li></ul></ul></ul><ul><ul><ul><li>EconEdlink – What Does the Nation Consume </li></ul></ul></ul>Chapter/Unit 6 Market Analysis
  36. 36. <ul><li>Identifying Customers </li></ul><ul><ul><ul><li>Industry – collection of businesses with a common line of products or services Dow Jones </li></ul></ul></ul><ul><ul><ul><li>Market – a group of people or companies with a demand for a product or service and an ability to buy it. A Target Market. </li></ul></ul></ul><ul><ul><ul><li>Market Segmentation - break down customers into smaller groups by: </li></ul></ul></ul><ul><ul><ul><ul><li>Geographics (region, state, country, city) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Demographics (age, gender, family size, income, education, race, etc) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Psychographics (personality, opinions, lifestyle) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Buying Characteristics (knowledge of actual goods or services) EconEdlink Lesson </li></ul></ul></ul></ul>Chapter/Unit 6 Market Analysis
  37. 37. <ul><li>Identifying Customers </li></ul><ul><ul><li>Industrial Markets – Raw Materials Producers, Manufacturers, Wholesalers, etc. </li></ul></ul><ul><ul><li>Target Marketing - Specifies the market segment to which you will market your product or service </li></ul></ul><ul><ul><li>Create Customer Profiles – contain all the data about your potential customer </li></ul></ul><ul><ul><ul><li>Who are my customers? </li></ul></ul></ul><ul><ul><ul><li>What do they generally buy and how do they hear about it? </li></ul></ul></ul><ul><ul><ul><li>How often do they buy it? </li></ul></ul></ul><ul><ul><ul><li>How can my business meet their needs? </li></ul></ul></ul>Chapter/Unit 6 Market Analysis
  38. 38. <ul><li>Market Research – Once you know who your customers are (your market), investigate the market to see what kind of products they will accept. </li></ul><ul><ul><li>3 Types of Research </li></ul></ul><ul><ul><ul><li>Exploratory – Government and Industry Publications, Interview experts in the field, focus groups. </li></ul></ul></ul><ul><ul><ul><li>Descriptive – Status of an item – characteristics of the potential customers through interviews, questionnaire, or observation </li></ul></ul></ul><ul><ul><ul><li>Historical – Trade Associations or Publications. Owners in similar businesses </li></ul></ul></ul><ul><ul><li>Eventually you will have another source of data from your own business operations if you are able to startup. </li></ul></ul>Chapter/Unit 6 Market Analysis
  39. 39. <ul><li>Research Process – create a plan of attack in a five step process </li></ul><ul><ul><li>Look at Information Needs – Survey your target market. Gather information about competitors. Do you provide a need they cannot meet? </li></ul></ul><ul><ul><li>Start with Secondary Resources - Information that has already been collected, easily obtained and inexpensive, Government and community organizations, trade publications, commercial research agencies </li></ul></ul><ul><ul><li>Collect Primary Data - Information collected and used for the first time, includes surveys, observations, and interviews </li></ul></ul>Chapter/Unit 6 Market Analysis
  40. 40. <ul><li>Research Process – create a plan of attack in a </li></ul><ul><li>five step process </li></ul><ul><ul><li>Organize your data – After collection of primary and secondary data setup charts and record results in report form. Use the report for feasibility study and in your marketing plan </li></ul></ul><ul><ul><li>Analyze your data - Ask yourself some basic questions: </li></ul></ul><ul><ul><ul><ul><li>Is there a market for your product or service? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How big is that market? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will the industry support a business like yours? </li></ul></ul></ul></ul><ul><ul><li>The answers to these questions will help you judge your potential for a successful business. </li></ul></ul><ul><ul><li>Lesson and Exercise – Marketing Research </li></ul></ul>Chapter/Unit 6 Market Analysis
  41. 41. <ul><li>Industry Analysis </li></ul><ul><ul><li>Once you have identified your market analyze your field of endeavor or industry to rate your prospects for success (Mind Map) </li></ul></ul><ul><ul><li>Those prospects for success will depend largely on two factors: </li></ul></ul><ul><ul><ul><li>Sales potential of your product </li></ul></ul></ul><ul><ul><ul><li>Your competition </li></ul></ul></ul><ul><ul><ul><li>Biz/ Ed.co.uk - Market Analysis Lesson </li></ul></ul></ul><ul><ul><ul><li>EconEdlink – What Does the Nation Consume </li></ul></ul></ul>Chapter/Unit 6 Market Analysis
  42. 42. <ul><li>Your company and the industry </li></ul><ul><li>How will your product and service compare to others in the industry? The answer, the projected or estimated figure is called SALES POTENTIAL . </li></ul><ul><li>You can determine sales potential by considering three variables. </li></ul><ul><ul><ul><li>The nature of your product </li></ul></ul></ul><ul><ul><ul><li>Industry Trends </li></ul></ul></ul><ul><ul><ul><li>Sources of supply </li></ul></ul></ul>Chapter/Unit 6 Market Analysis
  43. 43. <ul><li>Your company and the industry </li></ul><ul><li>Barriers to entry. Keep new businesses from entering an industry or succeeding in that industry. </li></ul><ul><ul><li>Examples of Barriers to entry: </li></ul></ul><ul><ul><ul><ul><li>Economics of Scale </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brand Loyalty </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Access to Distribution Channels </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Proprietary Technology </li></ul></ul></ul></ul><ul><li>Study the competition – How can you capture your market share? Is there a “niche” for your product or service? What are their strengths and weaknesses? What do you have to offer that is unique? </li></ul>Chapter/Unit 6 Market Analysis
  44. 44. <ul><li>3 Basic Business Organizations </li></ul><ul><li>(Legal Forms of Ownership ) </li></ul><ul><ul><ul><li>Sole-Proprietorship </li></ul></ul></ul><ul><ul><ul><li>Partnership </li></ul></ul></ul><ul><ul><ul><li>Corporation </li></ul></ul></ul><ul><ul><ul><ul><li>C-Corporation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>S-Corporation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Non-Profit Corporation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Limited Liability Partnership </li></ul></ul></ul></ul>Chapter/Unit 7 Types of Business Ownership
  45. 45. <ul><li>Sole-Proprietorship </li></ul><ul><ul><ul><li>Easiest </li></ul></ul></ul><ul><ul><ul><li>Most popular </li></ul></ul></ul><ul><ul><ul><li>Owner is the only one responsible for the businesses activities </li></ul></ul></ul><ul><ul><ul><li>Nearly 76% of all businesses in the United States are sole proprietorships </li></ul></ul></ul><ul><ul><li>Advantages of Sole-Proprietorship </li></ul></ul><ul><ul><ul><li>Does not need to share profits </li></ul></ul></ul><ul><ul><ul><li>Easy and inexpensive to create </li></ul></ul></ul><ul><ul><ul><li>Owner has complete authority </li></ul></ul></ul><ul><ul><li>Disadvantages </li></ul></ul><ul><ul><ul><li>Unlimited liability for all debts and actions of the business </li></ul></ul></ul><ul><ul><ul><li>Debts must be paid from owners personal assets </li></ul></ul></ul><ul><ul><ul><li>Limited by its total reliance on the abilities and skills of the owner </li></ul></ul></ul><ul><ul><ul><li>Death of the owner automatically dissolves the business </li></ul></ul></ul>Chapter/Unit 7 Types of Business Ownership
  46. 46. <ul><li>Partnership </li></ul><ul><ul><li>Advantages </li></ul></ul><ul><ul><ul><li>Inexpensive to create </li></ul></ul></ul><ul><ul><ul><li>General partners have complete control </li></ul></ul></ul><ul><ul><ul><li>Partners care share ideas and secure investment capital more easily </li></ul></ul></ul><ul><ul><li>Disadvantages </li></ul></ul><ul><ul><ul><li>Fragile entity </li></ul></ul></ul><ul><ul><ul><li>Difficult to dissolve one partner’s interest in the business without dissolving the partnership </li></ul></ul></ul><ul><ul><ul><li>Partners are bound by the laws of agency meaning that they can be held liable for each others actions </li></ul></ul></ul><ul><ul><li>A partnership has the greatest chance of survival if you and your partner(s) do the following: </li></ul></ul><ul><ul><ul><li>Share business responsibilities </li></ul></ul></ul><ul><ul><ul><li>Put things in writing </li></ul></ul></ul><ul><ul><ul><li>Always be honest about how the business is doing </li></ul></ul></ul><ul><ul><ul><li>Put together a well contrasted WRITTEN partnership agreement </li></ul></ul></ul>Chapter/Unit 7 Types of Business Ownership
  47. 47. <ul><li>Corporation – creates a separate entity, investors own stock certificates to indicate shares owned and voting rights </li></ul><ul><ul><li>Advantages </li></ul></ul><ul><ul><ul><li>Limited liability protects owners from lawsuit </li></ul></ul></ul><ul><ul><ul><li>Protects owners from responsibility for corporation’s debts (In small corporations banks will hold owners personally liable) </li></ul></ul></ul><ul><ul><ul><li>Can set up pensions and retirement accounts and profit sharing </li></ul></ul></ul><ul><ul><li>Disadvantages </li></ul></ul><ul><ul><ul><li>Expensive and complex to setup </li></ul></ul></ul><ul><ul><ul><li>Higher corporate tax rates </li></ul></ul></ul><ul><ul><ul><li>Double taxation – investors must also pay income tax on dividends when received </li></ul></ul></ul>Chapter/Unit 7 Types of Business Ownership
  48. 48. <ul><li>Patents, Trademarks & Copyrights </li></ul><ul><li>Permits and Licenses </li></ul><ul><li>Contracts </li></ul><ul><li>Building Laws and Zoning Codes </li></ul><ul><li>Leasing </li></ul><ul><li>FDA </li></ul><ul><li>OSHA </li></ul><ul><li>Consumer Product Safety Commission </li></ul><ul><li>State or Local Health Department </li></ul><ul><li>Discrimination and Fair Labor Laws </li></ul><ul><li>Uniform Commercial Code </li></ul><ul><li>Truth in Lending </li></ul><ul><li>Truth in Advertising </li></ul>Chapter/Unit 8 The Legal Environment
  49. 49. Agenda <ul><li>Handouts </li></ul><ul><li>Introductions – About Me </li></ul><ul><li>About Our Academy </li></ul><ul><li>Course Structure </li></ul><ul><ul><li>Activity </li></ul></ul><ul><ul><li>Quarter 1 </li></ul></ul><ul><ul><li>Quarter 2 </li></ul></ul><ul><li>Closing/Questions </li></ul><ul><li>Evaluation Forms </li></ul>10:00 10:02 10:05 10:10 10:15 10:25 10:55 11:00
  50. 50. Business Plan?... …Now You’re Ready! Let’s begin to create the Business Plan Move on to 2 nd Quarter
  51. 51. Class Format - Syllabus <ul><li>Quarter 2 – nine weeks </li></ul><ul><li>(Build the Plan) </li></ul><ul><li>Title Page </li></ul><ul><li>I. Table of Contents </li></ul><ul><li>II. Executive Summary </li></ul><ul><li>III. General Company Description </li></ul><ul><li>IV. Products and Services </li></ul><ul><li>V. Marketing Plan </li></ul><ul><li>VI. Operational Plan </li></ul><ul><li>VII. Management and Organization </li></ul><ul><li>Resume Writing </li></ul><ul><li>VIII. Personal Financial Statement </li></ul>
  52. 52. Class Format - Syllabus <ul><li>Quarter 2 – nine weeks </li></ul><ul><li>IX. Startup Expenses and Capitalization </li></ul><ul><li>X. Financial Plan </li></ul><ul><ul><li>Understanding Taxes </li></ul></ul><ul><ul><li>Bank Accounts & Cash Control </li></ul></ul><ul><ul><li>Accounting </li></ul></ul><ul><ul><li>Financial Statements </li></ul></ul><ul><li>XI. Appendices </li></ul><ul><li>XII. Refining the Plan </li></ul><ul><li>XIII. Create PowerPoint Presentation </li></ul><ul><li>XIV. Present to Class </li></ul>
  53. 53. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Title Page - The Business Plan should convey an attractive, professional image to include: </li></ul></ul><ul><ul><ul><li>Name of Company </li></ul></ul></ul><ul><ul><ul><li>The words “Business Plan” </li></ul></ul></ul><ul><ul><ul><li>The name of the contact person </li></ul></ul></ul><ul><ul><ul><li>Address and Phone number of the business </li></ul></ul></ul><ul><ul><li>Table of Contents - Created by MS Word when using Headings </li></ul></ul>Constructing The Business Plan
  54. 54. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Executive Summary – a brief recounting of key points. Investors and Lenders rely on the executive summary to help them decide if the concept interests them. It should be no more than 2 pages in length. *WRITE THIS LAST. </li></ul></ul><ul><ul><li>General Company Description – Mission Statement, Company Goals and Objectives, Company Philosophy, What is important to you. Describe your industry, your strengths and how you will be able to meet the challenges ahead. Discuss your legal form of organization. *This could be part of other sections. </li></ul></ul>Constructing The Business Plan
  55. 55. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Product / Service plan – Describe in depth your products or services. What factors will give you competitive advantages or disadvantages, like quality or proprietary features? Pricing structure? </li></ul></ul><ul><ul><li>Industry Market Analysis - (Mind Map) </li></ul></ul><ul><ul><li>Marketing plan – Most Comprehensive Piece. Discussion of Economy, Market Research, Product, Price, Place, Promotion (4P’s), Competitive Grid , Sales Forecasting </li></ul></ul>Constructing The Business Plan
  56. 56. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Operational Plan – Explain the daily operation of the business, its location, equipment, people, processes, and surrounding environment. Location, Legal Environment, Credit Policies, Inventory, Suppliers, Personnel Requirements, Managing A/R and A/P Accounting Tutorial </li></ul></ul><ul><ul><li>Management & Organization plan - Who will manage the business on a day-to-day basis? Create an organizational chart for key employees. List Professional or Advisory Support. </li></ul></ul><ul><ul><li>Resume Writing PPT - Resume Template </li></ul></ul>Constructing The Business Plan
  57. 57. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Personal Financial Statement - Include one (Example) for each owner and major stockholder, showing assets and liabilities and personal net worth. Bankers and investors usually want this information as well. </li></ul></ul><ul><ul><li>Startup Expenses and Capitalization - It’s important to estimate these expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the more thorough your research efforts, the less chance that you will leave out important expenses or underestimate them. </li></ul></ul><ul><ul><li>*Expenses won’t stop even if you aren’t making a sale. </li></ul></ul>Constructing The Business Plan
  58. 58. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Financial plan & Growth Plan - The financial plan consists of a 12-month profit and loss projection, a four-year profit and loss projection (optional), a cash-flow projection, a projected balance sheet, and a break-even calculation. Together they constitute a reasonable estimate of your company's financial future. More important, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company. </li></ul></ul><ul><ul><li>Financial Statement Overview PPT - </li></ul></ul><ul><ul><li>Financial Statement Analysis PPT - </li></ul></ul><ul><ul><li>Financial Statement Tutorial & Exercises - </li></ul></ul><ul><ul><li>Cash Control Presentation - </li></ul></ul><ul><ul><li>Understanding Taxes – IRS </li></ul></ul>Constructing The Business Plan
  59. 59. <ul><li>Parts of a Business Plan (Common) </li></ul><ul><ul><li>Appendices /Supporting Documents - </li></ul></ul><ul><ul><ul><li>This is where brochures, diagrams, contracts, </li></ul></ul></ul><ul><ul><ul><li>graphs, blueprints, maps, etc. would be inserted. </li></ul></ul></ul><ul><ul><li>Variations, Extras & Options </li></ul></ul><ul><ul><ul><li>Refinements to Plan Specific to Individual Needs </li></ul></ul></ul>Constructing The Business Plan
  60. 60. Business Plan Finished? “ Go For It”! <ul><li>Did you correct all errors? </li></ul><ul><li>Did you let someone else review your work? </li></ul><ul><li>Did you revise and edit? </li></ul><ul><li>Do you know your business? </li></ul><ul><li>Are you prepared to make your pitch to the </li></ul><ul><li>loan committee? </li></ul><ul><li>Did you Create a PowerPoint presentation? </li></ul><ul><ul><ul><li>PowerPoint Tutorial </li></ul></ul></ul><ul><li>Do you know what you are wearing for the </li></ul><ul><li>presentation? </li></ul>
  61. 61. Important Extras Cash Control, Sales Taxes, Employment Taxes <ul><ul><li>Cash Control Presentation </li></ul></ul><ul><ul><li>Understanding Taxes – IRS </li></ul></ul><ul><ul><li>Personal Financial Statements </li></ul></ul><ul><ul><ul><li>Completed Example - </li></ul></ul></ul><ul><ul><ul><li>Simple Blank – </li></ul></ul></ul><ul><ul><ul><li>Comprehensive Blank – </li></ul></ul></ul><ul><ul><li>Financial Statement Overview PPT </li></ul></ul><ul><ul><li>Financial Statement Analysis PPT </li></ul></ul><ul><ul><li>Financial Statement Exercises </li></ul></ul>
  62. 62. Business Plan Variations <ul><li>Small Business WebQuest – Simplified Plan </li></ul><ul><li>Computer Literacy Business Startup Project – for PowerPoint Instruction </li></ul><ul><li>Student Work Examples </li></ul><ul><ul><ul><li>Compuforce PPT - Web Site </li></ul></ul></ul><ul><ul><ul><li>Diesel Energy Drink PPT - Web Site </li></ul></ul></ul>
  63. 63. Agenda <ul><li>Handouts </li></ul><ul><li>Introductions – About Me </li></ul><ul><li>About Our Academy </li></ul><ul><li>Course Structure </li></ul><ul><ul><li>Activity </li></ul></ul><ul><ul><li>Quarter 1 </li></ul></ul><ul><ul><li>Quarter 2 </li></ul></ul><ul><li>Closing/Questions </li></ul><ul><li>Evaluation Forms </li></ul>10:00 10:02 10:05 10:10 10:15 10:25 10:55 11:00
  64. 64. Remember… Without Consistent Practice – Anything We Learn Is Like This … <ul><li>“ The Five Minute University” http://lazowska.cs.washington.edu/scienceforum/tsld085.htm </li></ul>
  65. 65. Visit us at: www.shsaof.org <ul><li>Our Teaching Entrepreneurship Web Site www.ezeport.com/NAFInstitute/entrepreneurship.htm </li></ul><ul><li>E-Portfolio Company www.ezeport.com </li></ul><ul><li>Excellent Business Education Resources www.sjrbiz.info </li></ul>

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