EntrepreneurshipWhat is it and why should you be interested?
Overview Deﬁnitions Basic deﬁnitions Business Examples Solving problems for proﬁt Psychology and Types of Entrepreneurs entrepreneurship Why you should considerWhat’s wrong with being an employee? converting Examining criticisms of Misconceptions entrepreneurship Beneﬁts of Entrepreneurial Lifestyle More on what’s to be gained
Deﬁnitions An entrepreneur is a person who has possession of a new enterprise, Wikipedia venture or idea and is accountable for the inherent risks and the outcome of a product. In economics it is one of the four factors of production. The other three Economics being land, labor, and capital. It is deﬁned as “The human resource that organizes labor, land, and capital.” I believe it’s easiest to think of an entrepreneur as a business owner who removes some type of inefﬁciency (solves a problem) in exchange for aMy Deﬁnition proﬁt. The more inefﬁciency the entrepreneur can eliminate the more proﬁt he or she will accumulate.
Business Examples Problem/Inefﬁciency: It isn’t feasible for most people to grow their own food anymore. Pain point: Many of us either don’t have time to cook or simply don’t want to. Relief: They save you time and money. Proﬁt: They do this so well that as of August 2011 they make over 4 billion a year in proﬁt. Problem/Inefﬁciency: To be safe and avoid a DUI people need a sober ride home. Pain point: Coming back the next day all hungover to pick up your car. Relief: Save you time and money. Proﬁt: Was my ﬁrst business venture and it ultimately failed. *I will tell you what mistakes I made in a different presentation/video.
Types of Entrepreneurs • Places passion before proﬁt Lifestyle • Combines personal interests and talent with the ability to earn a living.Entrepreneur • Turn their passion into their career - they want to make a living doing something they love. • Examples: Freelance web developer, artist, restaurant owner • Motivated by desire to improve and transform social, environmental, and economic conditions. • Characterized as highly ambitious with a lack of acceptance of the status quo. Social • Driven by emotional desire to address large social and economic conditions such as povertyEntrepreneur and educational deprivation rather than desire for proﬁt. • Example: Salman Khan - Khan Academy (free education) • Continuously comes up with new ideas and starts new businesses. • Characterized as possessing a higher propensity for risk, innovation, and achievement. Serial • More likely to take risks and recover from business failure.Entrepreneur • More interested in ﬂipping business for proﬁt and moving on to the next one. • Example: Sean Parker - Plaxo, Napster, Facebook, Causes, Founders Fund
What’s Wrong With Being An Employee? • Social security might disappearDiminishing • Increased inﬂation leaves you less value on dollars earned.retirement • Increased life expectancy means your money will be spread thinner • You may have to deal with less than desirable personalities on a daily basis. If you run the business you choose who you work with. Lack of • Your employer is your master. He or she tells you what time to show up, what actions you Freedom take while you are there, and what time you are allowed to leave. • You have a limited number of vacation or free days that you are allowed to use.Difﬁculty obtaining • You will be directly trading time for money -- No one gets rich just trading their time for money. That philosophy puts an absolute limit on your wealth and turnssigniﬁcant wealth you into a slave for earnings. Also known as a “wage-slave”. Unable to reach • You are giving yourself very little control over your own destiny. potential • You probably aren’t making the type of impact in the world that you could be.
Misconceptions Starting your own business is risky Many (including myself) believe being an employee is actually riskier than being an entrepreneur. Employees are at the mercy of their boss and could be laid off or ﬁred any time. Businesses will do what they have to in order to increase proﬁts, if that means laying off a dedicated employee who has been with the company for a long time, they will do it. You have to be naturally business savvy to start your own companyYou are going to want to develop some business savvy but it doesn’t come natural to anyone. If you have the motivation and work ethic, business savvy will come. For more on “natural” talent and how people get really good at something check out the book Talent Is Overrated. You needs lots of cash to be successful While lack of capital is a leading cause of start-up failure, you don’t have to be rich or have rich friends to start a business. Itdeﬁnitely helps to have access to those kinds of resources but many millionaires have been made from what seems like dirt. Withtechnology increasing it’s getting easier to bootstrap your way up to a certain point. It’s difﬁcult to bootstrap your way to a massivesuccess but the goal is to bootstrap to a point where you have something solid then you can seek investors or get that loan. There are many businesses that have been bootstrapped to signiﬁcant size and it can be done, especially if you’re just shooting to be self employed and run a lifestyle business.
Beneﬁts of Entrepreneurial Lifestyle Potential to change the worldIf your vision becomes successful enough you may have the opportunity to change lives. Whether you be for against Facebook, it has changed lives and brought people together. The personal computer changed the world in ways I don’t need to start listing. Medical technology has saved countless lives. Even the smallest business that is deeply appreciated by a small community feels extremely rewarding. People are happier when they know that their hard work is helping people. Increased Freedom• You are in direct control of your time and therefore have exponentially more freedom than you would as an employee.• You will make money while you sleep.• You can plan vacations to your preference and take as many as you would like without risking the well-being of your business.• When you’re working towards your own creation for your own beneﬁt and not your bosses, you are a lot less likely to think of your work as work.
Beneﬁts of Entrepreneurial Lifestyle Much higher potential earnings The harder you work on your business the more it will pay off later. You might be putting in a lot more hours than a typical full time worker would but you’re going to receive exponentially greater rewards. One day you might be able to automate yourbusiness to where you are receiving high proﬁts without running it or you may eventually be able to sell your business and cash in on it and start another or just retire.
Beneﬁts of Entrepreneurial Lifestyle InspirationEvery failure is a learning experience and that’s the way you have to look it. Thomas Edison saidhe failed his way to success. The best entrepreneurs aren’t in it for the money they just havedrive. I think everyone can ﬁnd that drive within themselves if they get to experience what it’s liketo be passionate about building something of their own and being truly free and independent.There has been no better time than now. As technology advances more power shifts to theindividual. You have more resources at your disposal and bootstrapping gets easier.
“A man who only does only what is required of him, is a slave, the minute he decides to do morethan is required of him, he becomes a free man.”
This is the rst of a three part series. The next presentation will discuss what steps one can take tostart out on their journey as an entrepreneur.
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