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032411 econ entrep intro 50m

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032411 econ entrep intro 50m

  1. 1. DRAW A LINE SEPARATING TODAY & YESTERDAY 1) Write: Date: 05/02/11 , Topic: Last Biz Plan Day 2) Next line, write “ Opener #52 ” and then: 1) Write 1 high + 1 low in last 24 hours 2) Rate your understanding of yesterday: lost < 1-5 > too easy (3 is perfect) 3) Respond to the Opening Clip by writing at least 1 sentences about : Your opinions/thoughts OR/AND Questions sparked by the clip OR/AND Summary of the clip OR/AND Announcements: None
  2. 2. Agenda 1) Intro to Starting Biz (non-restaurant) End Goal, you will be able to… 1) Understand why entrepreneurs matter. Reminder 1) Biz Plan 2 due Tu 5/10
  3. 3. 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
  4. 4. Journ #39a , Title “ SWOT 1 ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors With a partner: 1s, 1w, 1o, 1t) SWOT: whateverlife.com Include their name!
  5. 6. Work #39b , Title “ SWOT 2 ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors With a partner: 1s, 1w, 1o, 1t) SWOT: Raptr.com
  6. 7. Entrepreneur : Person who starts a business, fulfills a need, makes money.
  7. 8. Only 1/5 th of Americans are self employed , but they account for more than 2/3rds of all American millionaires .
  8. 9. + 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
  9. 10. 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
  10. 11. Entrepreneurs have been responsible for 67% of the inventions and 95% of the radical innovations made since WW II
  11. 12. 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.
  12. 13. Notes #39a , 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.
  13. 14. Notes #39a , 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!
  14. 25. Journ #40a , Title “ SWOT 3 ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors As a Team: 1s, 1w, 1o, 1t) SWOT Dropbox.com 2) Come up with a better business concept ( killer idea ) for startup “Tiger Storage” to kill Dropbox, kill kill kill kill kill kill! STEAL AND MAKE BETTER!
  15. 26. Journ #40a , Title “ SWOT 3 ” Strength: Current Strengths Weakness: Current Weaknesses Opportunity: Areas to Expand Threats: Competitors As a Team: 1s, 1w, 1o, 1t) SWOT Etsy.com 2) Come up with a better business concept ( killer idea ) for startup “Tiger Crafts” to kill Etsy, kill kill kill kill kill kill! STEAL AND MAKE BETTER!
  16. 27. Journ #40c , 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.
  17. 28. Notes #40a , 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! 1) Intellectual Property: a) Trademark : Brand ID (long as in biz) b) Copyright : Unique words, imgs, sounds (120 years) c) Patent : Unique process is protected+public (17 years) d) Trade Secrets : Biz secret way of doing things (gives you right to sue if stolen)
  18. 29. 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)
  19. 30. Review Business Model : How you make money NBC TV: Comcast Cable: Google: Facebook: PayPal: Chase: Virgin Am Airlines: Ford: Best Buy: Costco: Pandora: Sarah Lee: KwickCart (Free Bike Taxi): NBA Team:
  20. 31. Review 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
  21. 32. Journ #40b , 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.
  22. 33. Notes #39b , Title: “ Entrepreneurship ” 2) Who Will Give You Money? a) Private : You, family, friends (InNOut) b) Loan : Bank loan ( Small Business Administration backs your loan ) c) Partnerships : Person gives you money, in return you contractually give them partial ownership ( general part. vs limited liability part.-LLP ) i) Angel Investors : Rich ppl ii) Venture Capital Firms : Biz who invest $ in biz c) Stocks-Initial Public Offering-IPO : Sell ownership of your biz for $ (Google) i) Private Shares : Biz can sell shares in a limited 500 ppl (Facebok)
  23. 34. Notes #39b , Title: “ Entrepreneurship ” ii) Stock Ownership : Who/group that has most controls (stocks can split, 1 shares can become 100 shares, you can lost control if your own shares don’t split)
  24. 35. Notes #43a , 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)
  25. 36. Notes #44a , Title: “ Entrepreneurship ” Th: Start Written Biz Plan (Mr. Chiang will check for progress) Fri: Continue Written Biz Plan (Mr. Chiang will check for progress) Home: Finish Written Biz Plan, Due 4/12
  26. 37. Notes #44a , Title: “ Entrepreneurship ” Th: Start Written Biz Plan (Mr. Chiang will check for progress) Fri: Continue Written Biz Plan (Mr. Chiang will check for progress) Home: Finish Written Biz Plan, Due 4/12
  27. 38. Notes #44a , Title: “ Entrepreneurship ” Tu 4/12: Start Powerpoints & Booth/Table Th 4/14: Finish PowerPoints & Booth/Table Fri 4/15: Mr. Chiang's Grading @ 5th, Food Booths @ Lunch Everything done by Friday 4/15
  28. 39. Notes #44a , Title: “ Entrepreneurship ” Tu 4/12: Start Powerpoints & Booth/Table Th 4/14: Finish PowerPoints & Booth/Table Fri 4/15: Mr. Chiang's Grading @ 5th, Food Booths @ Lunch Everything done by Friday 4/15
  29. 40. Notes #44a , Title: “ Entrepreneurship ” Booth Requirement: 1) Logo + Misc on Display 2) Powerpoint on Laptop 3) 2 Paper Copies of Business Plan 4) Signature Dish + Cost Breakdown 5) Everyone knows the 90s pitch (see notes)
  30. 41. Laptop or not, make sure your section is “ in sync ” you must make GROUP DECISIONS for each section . Project Leader: make sure Google Doc and Google Presentation are all uniform , keep group on deadline. EC: Who is making food + 30sec Ad for Fri 4/15? 100 Point Project
  31. 44. Your Prompt (10 Points): A 2+EC for those who “volunteer” to read theirs at the end (I’ll pick a few at random as well).
  32. 45. 1) 2 copies of the plan (leader provides) 2) PowerPoint on Laptop (bring laptop) 4) Signature Dish + Cost Breakdown 6) Booth décor: self standing logo, dress (extra: table cloth, etc) 5) Everyone knows the 90sec pitch (everyone needs to know key parts of everyone’s sections!) Fri Class + Lunch Final Checklist
  33. 46. Journ #40c , Title “ Video: How I Made My Millions ” 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
  34. 47. Journ #45c , Title “ Americas Next Greatest Restaurant ” 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
  35. 48. Journ #49a , Title “ Virgin America ” 1) Copy Source Title: Varied 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
  36. 54. Journ #49b , Title “ Do It Better ” As a Team: 1) With your team, list busineses that aren’t doing as good as it could. Explain how the business could be done better. It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.
  37. 55. Journ #49c , Title “ Do It Better 2 ” As a Team: 1) 10-min FINAL IDEA, no changing after that! (BE INNOVATIVE! Something you can do OR hire others to do with in a 1 year time frame ) It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.
  38. 56. Journ #49d , Title “ Globalization=Global Competition ” 1) Copy Source Title: Win in China 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
  39. 58. Notes #39a , 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.
  40. 59. Notes #39a , 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!
  41. 60. Notes #50a , Title: “ Social Venture Notes ” 1) Social Good: Good for those outside the transaction (ideally to help the weak) 2) Social Venture: Biz that makes a profit (or atleast is self-sustaining), and does social good 3) Social Benefit: Est. finanical value of the social good 4) Global Social Venture Competition: College given $ to do their soc ven idea (www.gsvc.org)
  42. 63. 5) $1.50 bottle $0.90 advertising, bottle/packaging, transportation $0.10 water $0.50 in profit (Profit Margin: 25-30%)
  43. 71. Journ #50a , Title “ Bottle Social Venture Contest ” Roles: Leader, Presenter, Ad Designer, Accountant 1) Draft an print ad that conveys: a) Brand b) Logo c) Bottle d) Social Good (help outside transact) e) On the bottom, accountant writes how you plan to pay for your social good and still stay profitable/sustain Tips: social good could be profit sharing, in the design, or something else!
  44. 72. Journ #50b , Title “ Do It Better 2 ” As a Team: 1) 10-min alternative FINAL IDEA, that has a social benefit ! (BE INNOVATIVE! Something you can do OR hire others to do with in a 1 year time frame ) It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.
  45. 73. Notes #51a , Title: “ Biz Plan 2 Notes ” 1) Vision Stmt: How your biz will look/feel 2) Mission Stmt: What you provide to your customer 3) Objectives: What you want to achieve your first year 4) Strategy: What are your keys to success 5) Plans: Action details on your first year TIMELINE, things that are SMART: S pecific, M easurable, A ttainable, R elevant, T imebound
  46. 74. Notes #51a , Title: “ Biz Plan 2 Notes ” 6) Biz Plan 2 all due 5/10 (bonus for social ventures) 1) Written Plan 2) PowerPoint 3) Ad (video or Prezi) 4) Product/Service Demo (can merge into ad) Only in class time is today + Monday 1) Appoint project leader, this project everyone must help with 3+4. Leader set up Google Docs 2) Assign sections each person
  47. 86. Notes #52a , Title: “ Excel Notes ” Spreadsheet: Math doc, biz used more than Word 1) Boxes : Columns=Letters, Rows=Numbers (A1) 2) Autofill : (right drag corner) 3) Total : Type: =sum ( highlight boxes you want ) 4) Add : Type: = (click 1 st box) + (click 2nd box) 5) Subt : Type: = (click 1 st box) - (click 2nd box) 6) Multiply :Type: = (click 1 st box) * (click 2nd box) 7) Divide : Type: = (click 1 st box) / (click 2nd box) 8) Multistep : Type: =sum, use () like in math form 9) Special Formulas : Type: = formula , () to pick Example: = AVERAGE (H3:H11) 10) Merge : Type: = (click 1 st box) & (click 2nd box) To merge with space = (box 1) & “ “ & (box 2) 11) Charts : Highlight desired, click make “chart” 12) Auto Filter : Highlight desired, click “filter”
  48. 87. Journ # , Title “ A ” 1) Copy Source Title: A 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
  49. 88. Journ # , Title “ Do It Better # ” As a Team: 1) If your biz plan is a seed, name the 3 things needed most to grow (exp: water) Things that are done: lenders willing to lend money to you, lower taxes, provide tax credits (gov gives you money to start, by taxing others), hard working workers, cheap workers, smart workers, creative workers, better infrastructure, low crime, strong courts to protect contracts, wealthy shoppers
  50. 89. Homework: 1) Work on your business plan Workbook Check: If your name is called, drop off your workbook with Mr. Chiang ( if requested, points lost if your workbook is not turned in )

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