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THE FACE OF AN ENTREPRENEUR!
ENTREPRENEURSHIP 30 (C)
https://www.youtube.com/watch?v=pem0ZSsMQVA
https://www.youtube.com/watch?v=BF91vCbzXTw
OBJECTIVES:Two Types of Business
Characteristics of Entrepreneurial Ventures
Form of Ownership
Choices in Starting a Business
Definitions
Indian Act – Treaties – Business and Agriculture
How to protect your ideas? Regulations/Law/Intellectual Property
Young Entrepreneurs
Resources
CHARACTERISTICS OF ENTREPRENEURIAL VENTURES1. Profit or Not-For-Profit
2. Service - Goods
3. Large Scale/Small Scale
4. Physical/Virtual
5. Local – National - International
6. Note: GNP (gross national product) and Trade Agreements (NAFTA, GATT)
Handout
PROFIT/NON-PROFIT Profit Ventures – MAKE MONEYA commercial venture is created b/c of a desire to provide a product or service to the public in exchange for a monetary benefit (profit).
Profit – is the value that remains after all of the expenses (cost of purchasing goods, salaries, rent, utilities, supplies) of running the business have been paid.
Revenue – expense = net profit or lossMost entrepreneurs make their living off of their venture.Have to pay ee’s, however, owner’s take home pay depends on the success of the venture that month.
Non-Profit – OFFER SOMETHING TO SOCIETY In the business to raising money for other people or causes.Any surplus in funds after expenses will be used for the benefit of others, and not to increase the asset value of the owners, there are no owners in the sense of profit takers
Typically run by community groups, religious organizations, governments, and other civic-minded people.
Supported by volunteers (cuts down on costs) – food bankEx: international non-profit – International Red Cross
FOR-PROFITAmerican Eagle
Sport Chek
Canadian Tire
Black’s Cameras
Dell Computers
Radio Shack
General Motors
Donegan’s Haulage
Pizza Hut
Drains Are Us Plumbing
NOT-FOR-PROFITSalvation Army
Big Sisters
United Way
Boy Scouts of Canada
Rotary Club
Arthritis Society
Girl Guides
Cancer Society
Canadian Red Cross
Canadian Diabetes Association
SERVICE/GOOD PROVISION Service Provision (intangible, can’t see the result)No good or things just a service, typically for a feeSpecialized areas – service then feeInclude: Transportation (STC), house cleaning, dry cleaning, real estate, custom combining, autobody work, interior design, lawyers, and accountants are just a few.
EXAMPLES:
Mobile pet grooming
Diaper delivery
Mobile locksmith
Golf club cleaning
Adventure tours
Self defence instructor
Pet sitting
Personal chef
Resume and cover letter service
Tax consultant
Mystery shopping
Professional organizer
Tutoring
Packing and unpacking service
Bookkeeping
Language translator
Limousine service
Catering
Welcoming service
Good Provision (tangible – can touch)
Ventures that operate in the retail/wholesale sector are in the business of supplying goods to the public, or to other retailers.
Retailers sell directly to the public.Ex: gas stations, corner store, department stores, specialty stores
Wholesalers sell to retailersTake out contracts with producers to purchase their produce, wholesalers then sell the produce to the retailers for a profit.
“middleman”In many situations the company owns the wholesaler and the retail enterprise.
Manufacturing:
The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications. Manufacturing commonly employs a man-machine setup with division of labor in a large scale production.
Services GoodsBob’s Auto Service Toyota Corp.
Hair Expression Boh’s Cycle and Sports
Dr. Braun Local Clothing Stores
Intrex Microsoft Corp.
Tax Team General Electric Ltd.
Elite Hair School Sport Check
Aspen Dental Prairie Plains Agro
SizeUsually start small and grow larger
Physical/VirtualBricks and Mortar – actually have a store for people to visitE-Commerce – The business is conducted onlineMany do both
LOCAL /PROVINCIAL /NATIONAL/INTERNATIONAL
Operate on three geographic scales – becomes more complex as the area expands
Local = 1 communityExist in your school, local community, larger urban centres nearby – gives the town or city it’s personality and strength
Most basic venture, restricted to a well-defined market area (rural grocery store, family farms – total income for family), urban centre has an increased population base, more possibilities to expand, start operating a chain of video outlets or pizza stores in the city
Provincial = within 1 provinceProvincial business, franchise, culture, etc.Early example – Tim Horton’s (province?)
National = includes several provincesTypically the national retail chains, or nationally based professional firms. (The Bay, Zellers, Safeway, Superstore, Deliotte Touché, Price Waterhouse – accounting firms)
They all usually start with one store, or ideaEx: Timothy Eaton
Multinational/International = includes worldGlobalization – has enabled businesses compete internationally Mostly due to the ease of doing business over the internet
Very powerful, represent money, capital, and even political power.Large and have the ability to influence Becoming more of an option than before with globalization and technologyEx: Exxon Corporation: oil and gasEx: manufacturing pulp and paper, tobacco, etc.
CANADIAN LOCAL, NATIONAL, INTERNATIONAL, BUSINESSES
LOCAL – (list some local business)
NATIONAL BUSINESSESCanadian Tire -Radio ShackRoot’s -Hudson BayCanada Trust -Intrawest
INTERNATIONAL BUSINESSESNHL -CIBCMcCain’s Foods -Bombardier Corp.Tim Horton’s -Nortel
LIST THREE ADVANTAGES AND THREE DISADVANTAGES TO SELLING A PRODUCT IN EACH TYPE OF MARKET.
Market Advantages Disadvantages
Local
Provincial
National
International
Market Advantages Disadvantages
Local - fast orders & sales- low shipping costs-personal knowledge of customers -You can control what happens with your company-You can be more flexible, for example, restaurant- you put more of a personal touch on the item
- limited markets- may limit profits - is a lot of room for expansion (costly)- reach fewer people
Market Advantages Disadvantages
Provincial - larger than local market- shipping costs are still reasonable - no tariffs, duties-Can own more than one branch
- higher costs for promotion and shipping than for local - more risk taking than local-
Market Advantages Disadvantages
National - lots of customers (all of Canada)- potential for higher profits- more advertisements
- higher production costs to meet demand- high shipping and distribution costs - more legal problems (more chance of getting sued)-Need more rules (less flexible) to keep uniformity-More government regulations to follow
Market Advantages Disadvantages
International - very large market- potential for very high profits - well known stores or products (Coke, Walmart)
- may have to deal with tariffs- packaging and advertising vary from one country to another- high shipping costs-possible security problems -Have to deal with language translations
STARTING A BUSINESSAPPROACHES TO ENTREPRENEURSHIP
WHAT KIND OF BUSINESS SHOULD IT BE ???
https://www.youtube.com/watch?v=Bv1MSHM-kzM#t=23
TYPES OF BUSINESS OWNERSHIP/FORMS OF BUSINESS OWNERSHIP
Sole Proprietorship
Partnership
Corporation (private, public, crown)
Cooperative
Franchise
HANDOUT - ASSIGNMENT
Forms of Ownership
Establishing a Business
Create a note on each of the main forms of business ownership listed on the chart provided. Pick 3-4 major characteristics of each form of business Describe and explain these advantages and disadvantages
A Template is provided to you on the wiki site. We will take this up at the beginning of class tomorrow.
CHOICES IN STARTING A BUSINESS
1. Start the business from nothing (good/service/invention/innovation)
2. Buy an existing business
3. Modify an existing business
4. Buy a Franchise
CREATE THE FOLLOWING TABLE. LIST AS MANY ADV/DISADV AS POSSIBLE.
Choice Advantages Disadvantages
Start a business from scratch
Buy an existing business
Modify an existing business
Buy a franchise
Choice Advantages Disadvantages
Start a business from scratch
-you have a lot of development options- able to personalize your company- hire -first to market-less competition-more potential for earnings
-no tested model (trial and error)- lack of experience- trouble getting money- high cost of borrowing -high risk-can be copied
Choice Advantages Disadvantages
Buy an existing business
-don’t have to create it (existing model)- lower risk (you have a sense you will succeed)- established name (your are buying the reputation)-Already have clients
-Less control (manager rather than entrepreneur) – Cost (higher price)- Ideas – already there- Might need to keep the same employees- Harder to change the co.
Choice Advantages Disadvantages
Modify an existing business (tweaked – in order to fulfill needs and wants of a specific market)
-Less work than starting from scratch- Less risk-Sound business model-Knowledge of your market-Established product/idea
-Some of the customers might not like the modifications and leave (no guarantees)- High cost-Legal concerns-Change might not be “big” enough for customers to change
Choice Advantages Disadvantages
Buy a franchise -The name is established- They give you the tools and procedures to run the co.- Better chance for success- National advertising- Business plan is set
-You have to follow their rules- Less creativity allowed- Expensive
Choice Advantages Disadvantages
Start a business from scratch
-allow for development of your own idea-freedom to match market needs-freedom to set own goals
-high risk of failure-difficult to get financing and support-lack of experience to learn from
Choice Advantages Disadvantages
Buy an existing business
-potential for growth-financial records and past success make it easier to get financing-lower risk than starting from scratch-customers and suppliers are in place
-little opportunity for creativity-expensive-may lose some customers when the business changes hands
Choice Advantages Disadvantages
Modify an existing business
-opportunity for creativity and freedom combined with security of past success
-expensive-may lose customers-more risk of failure
Choice Advantages Disadvantages
Buy a franchise -Receive training, advice, support, everything from head office- Can take advantage of company advertising
- Expensive- Must follow the exact procedures outlined by head office- Must buy all supplies, product from head office
DEFINITIONS – YOU NEED TO KNOW
Globalization:
make, sell, trade around the globe
Gross National Product (GNP)
the total monetary value of all the goods and services produced in Canada in one year
Trade Agreements:
GATT General Agreement on
Tariffs & Trade
NAFTA North American Free
Trade Agreement
Downsizing
is the “conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness”
Rightsizing
to reduce (as a workforce) to an optimal size
Outsourcing
means taking some specific, but limited, function that your company was doing in-house – and having another company perform that exact same function for you and then reintegrating their work back into your overall operation.
Offshoringis when a company takes one of its factories that it is operating here and moves the whole factor offshore – to another country
EQUITY/OPPORTUNITIES
INDIAN POLICY – EARLY RESERVE PERIOD Does everyone have a right to run their own business?
Should they be restricted based on their ethic origin?
Dark Spot on Saskatchewan History:
- Indian Policy and Early Reserve Period
- Two articles- http://www.ammsa.com/publications/windspeaker/indian-act-permit-control-culture- http://esask.uregina.ca/entry/indian_policy_and_the_early_reserve_period.html
AGRICULTURE/ABORIGINAL AND NON ABORIGINAL FARMERS
https://www.youtube.com/watch?v=VH35Iz9veM0
HOW DO YOU PROTECT YOUR IDEAS? Once you’ve come up with an idea, or invention, or an innovation, there are a number of ways to protect it so potential competitors can’t take advantage of it.
In Canada there are several ways to protect your intellectual property.
DEFINITIONS Patents Is a grant made by the government that gives the creator of an invention the sole right to make, use and sell the invention for a set period of time.
CopyrightsProtects literacy works, musical works, artistic works, and software. Copyright to any original work they have created unless they were hired or employed to create it.
Copyright act – can’t use without the persons permission
Trademarks
Industrial Design Act
Integrated Circuit Topography Act
HANDOUT
YOUNG ENTREPRENEURS
CHALLENGES/OPPORTUNITIES FOR YOUNG ENTREPRENEURS http://www.inc.com/richard-branson/200-funded-virgin.html
YOUNG VS. ADULT
What types of challenges do young entrepreneurs face that are different from adult entrepreneurs?
Work with a partner and come up with a list of challenges that may face young entrepreneurs
YOUNG VS. ADULT
Little or no business experience
Little life experience
May have less education
Little or no capital
May face discrimination due to age
May lack maturity to operate a business
May lack business contacts
Self confidence
Peer pressure
THE IMPORTANCE OF SELF-CONFIDENCE
Self-confidence is essential to the development of self-control, or inner-control. Those who lack self-confidence often avoid exercising inner control, which means, while they avoid failure, they are also avoiding success
It is very difficult for other people to trust and have confidence in someone when that same person does not have confidence in themselves.
HOW DO YOU GAIN SELF-CONFIDENCE?
By having successesBy being good at somethingBy doing what you love to doRead books about successful peopleChallenge yourselfTackle your fears (on the other side of your fears is your greatest growth)Be positive Have initiativeEstablish goals
BENEFITS OF BEING YOUNG
What are some of the benefits of being a young entrepreneur?
More energy/Hard working
Will not take “no” for an answer
Resourceful
Creative/Full of ideas
Aware of popular culture and changing trends
WHAT DOES AN ENTREPRENEUR DO? Ideas and opportunities/aware/outside the box
Identify needs for products or services
Generate ideas on how to provide the needed products or services
Evaluate whether an of the ideas present a venture opportunity
Evaluate ideas and opportunities for development of a venture
Develop a plan
Implement the plan
RESOURCES/AGENCIES
