Chapter 1: Should You Become an Entrepreneur?

steps in self-assessment

Assessing your aptitude is not the first step in performing a self-assessment. First, you should look at your interests. Then, determine your aptitude.

differences between an employee and an entrepreneur

Entrepreneurs make their own hours, take risks of a business venture, and have the possibility to be successful. Employees do not take risks. Salaries of entrepreneurs are not necessarily stable (may change from week to week). An employee does not watch their business flourish.

food industry entrepreneurs

Rose Knox (gelatin); and Clarence Birdseye (frozen foods), who had a major impact on eating habits throughout the world

entrepreneur

a person who owns, operates, and takes the risks of a business venture

Rockefeller

an entrepreneur who was known for the Standard Oil Company

traits of entrepreneurs

creativity, confidence, and quick decision making

setting specific financial goals before starting a business

ensures that the business will earn the profits you want.

self-assessment

helpful in deciding what business is right for you. A self-assessment is an evaluation of your strengths and weaknesses.

financial goal example

how quickly you will pay off your debts.

characteristic of a successful entrepreneur

independence

retail business example

jewelry store

advantage of entrepreneurship

no one tells the entrepreneur what to do.

S.B.A (Small Business Administration)

provides entrepreneurs with resources to investigate business opportunities.

non-financial goals

relate to goals other than money (example: personal satisfaction).

wholesale businesses

sell in bulk to people other than the final customer

retail businesses

sell products (goods) to the final consumer

service businesses

sell services rather than goods. Sometimes, at places such as a restaurant, there is a combination of different types of entrepreneurial business (retail and service).

majority of businesses in the USA

small businesses that employ fewer than 20 people.

many companies started by entrepreneurs

small companies that have a tendency to fail

trade shows

special meetings where companies display products. They do not set financial goals at these trade shows.

aptitude

the ability to learn a particular kind of job

entrepreneurs should not expect

to earn large profits immediately after starting the business.

look at risks

to see if the business venture is realistic

look at your background and experience

to see if you're prepared to run a specific business

entrepreneurs must review and improve their goals

what entrepreneurs do if something is unsuccessful.