Unit 2: Becoming an Entrepreneur

Barbara Wall had a great recipe for sweet bell pepper sauce. Her friend Leonard Wilson convinced her that the y should go into business together and sell the sauce. They now ship WW's Red Sauce in 35 states. Wall and Wilson are examples of

entrepreneurs

People who own, operate, and take the risk of a business

entrepreneurs

Successful entrepreneurs are ______-oriented.

goal

To assess your suitability for entrepreneurship, you should consider your strengths, weaknesses, ____, interests, past experiences, and aptitude.

hobbies

Entrepreneurs try to identify the _____ of the marketplace.

needs

Analyzing ____ experiences and jobs can help you come up with ideas for a business you would enjoy owning.

past

In comparing different business opportunities, you should look at the particular ___ associated with the business.

risks

Evaluation of your strengths and weaknesses

self-assessment

During which phase of the entrepreneural process will entrepreneurs launch and begins to operate their new business.

Actualization

Method to identify new product opportunities by having the group write down every idea that they can think of without quantifying any of them.

Brainstorming

AirBnB, Uber, or Spotify are examples of

Business Model Innovation

What is NOT a characteristic of a successful entrepreneur?

Dependence

During which phase of the entrepreneural process will entrepreneurs begin developing their businesses by planning their business goals and determining the amount of capital needed to launch the enterprise.

Development

During which phase of the entrepreneural process will Entrepreneurs identify potential business opportunities and evaluate those ideas for competitive advantages, and if it responds to a need

Discovery

*Start businesses that support their passions/interests *Are creative risk-takers with vision *Work hard to grow their businesses *Often grow into large organizations

Entrepreneurs

a person who guides the brainstorming sessionby keeping the group focused on task, without interfering with the idea-generation process. They often take notes are objective and do not judge the ideas as they are being presented.

Facilitator

Everyone who owns or manages a business is an entrepreneur.

False

The final step is determining a harvesting strategy which includes deciding when and how the entrepreneur will exit the business

Harvesting

*Plan, organize, and manage other organizations *Often help entrepreneurs be successful *Aren't necessarily entrepreneurs or small-business owners.

Managers

An unmet consumer need or a group of potential customers who are not yet purchasing a good or service

Market Gap

*Take an online assessment. *Talk to those who know you well. *Shadow an entrepreneur.

Methods of Self-Assessing your Entepreneurial Potential

creative-thinking methods generates ideas by writing a phrase on paper and making associations with the phrase

Mind Mapping

The mental and physical drive to succeed, to accomplish chosen tasks on your own terms.

Motivation

*Assesses how well products meet customers' unknown needs. *Can be completed by conducting personal interviews and observing customer use of products, a business can identify highly specific customer needs.

Needs Analysis

*Unfamiliar market *Pressure to rush to market while opportunity exists *Creation of products with little to no market value

Pitfalls of Prodcut Opportunities

Changing the material so that the product is lighter, reducing shipping costs is an example of

Process Innovation

The creation of new products and services

Product Innovation

When a current product does not meet all important customer needs.

Product Limitation

*Help businesses succeed. *Are the lifeblood of business. *Can be improvements to existing products and/or new products

Product Opportunities

During which phase of the entrepreneural process will entrepreneurs begin to seek out investors, employees, capital resources, and any items that will be used to produce their businesses' goods and services.

Resourcing

*Financial loss (from lack of profits or failure) *Solely responsible for all work (must perform all -work and make all business decisions) *Huge personal commitment requires working long hours

Risks of Business Ownership

*Focus on secure businesses *Seek to generate income *Often keep operations small

Small Business Owners

The readiness to sacrifice your own security, in order to accomplish your goals.

Willingness to take risk

Person who takes the risk of a business venture is:

an entrepreneur

The ability to learn a particular kind of job

aptitude

Problem-solving technique that generates many fresh ideas

brainstorming