Your Great Adventure Exploring Your Options Copyright © 2011 Nelson Education Ltd.1-1 chapter 11 Prepared by Ron Knowles Algonquin College & Jennifer Rouse

Your Great AdventureExploring Your OptionsExploring Your Options

Copyright © 2011 Nelson Education Ltd. 1-1

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Prepared byRon Knowles

Algonquin College& Jennifer Rouse Barbeau

Canadore College

Your Adventure begins. . .

Chances are you will:Own your own business, orWork for a smaller firm.


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All smallAll smallbusinessesbusinessesneed a planneed a plan

Chapter OverviewChapter 1 will:

Define entrepreneurshipIntroduce the basic building blocks of a

business planHelp you discover your entrepreneurial

bentHelp you explore your career options


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Learning OpportunitiesIdentify the role, skills, and characteristics

of successful Canadian entrepreneurs.Discover why you might want to become

an entrepreneur.Identify your entrepreneurial quotient.Understand what it takes to be an

entrepreneur and intrapreneur.Understand the meaning of the terms

micro and small business.


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Learning OpportunitiesUse mind maps to help you decide on the

life you want.Discover what success means to you.Understand the rationale for a business

plan and list the main components.Improve your research & info-gathering

skills.


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CANADA = Entrepreneurial Hot Bed!

• Canada has twice the percentage of self-employed people as the U.S.!

• Most of our self-employed (60%) have a post-secondary education

• About 1/3 are serial entrepreneurs: they own or have owned more than one

business


CANADA = Entrepreneurial Hot Bed!

• 40% of Canadians think being your own boss is the most rewarding career decision

• 80% of all entrepreneurs say that starting a business was their best career decision


Small Business: The Numbers • 2.6 million Canadians are self-

employed• 35% female vs. 65% male

• 98% of employer businesses have fewer than 100 employees

• 57% of employer businesses are micro businesses:

• 1 to 4 employees


Small Business: The Numbers • About 75% of small business

employees work in the service sector

• Almost 1/2 of our labour force work for small enterprises

• Small business accounts for about 25% of our Gross Domestic Product (a key measure of economic production)


Small Business Entrepreneurs Are...

• Fuel for private enterpriseVisionary self-startersPassionate, Opportunistic &

Persistent

• Agents of change:Doers who see a market need

& satisfy that need by translating it into a successful business


The Down Side• 55% of small business owners work 50+ hrs

per week• Only half took 1 week vacation in 3 years• 90% say running a business is stressful


But. . . But. . . Those who own their Those who own their own businesses reportown businesses reporthighest life satisfaction.highest life satisfaction.

Successful Entrepreneurs Are…


PassionateOpportunisticPersistentVisionariesGoal-orientedIndependent thinkersIdea generatorsPeople-orientedSharingDoersModerate risk-takers

. . . Are you?. . . Are you?

Entrepreneurial Thinking Table¹


...Which kind of thinker are you?...Which kind of thinker are you?

Typical Employee Thinking Master Entrepreneur® Thinking

I need to. . . I want to. . .

Thank God it’s Friday! It’s Friday already?

Why? Why not?

I stay in my comfort zone. . . I expand my comfort zone

I need money to make money I create money with no money

¹ Source: www.MasterEntrepreneur.com, Copyright © 2006, 2009 Chris Castillo.

Rev Up


Action Step 1:Organize your personal & business ideas in a 24/7 Adventure Notebook

Action Step 2:Find out why you want to be an entrepreneur

Action Step 3:Assess your interests & abilities

• Start a business that does social good• Agents of social change

doers with innovative solutions to society’s most pressing social challenges


The Social Entrepreneur

Enter the Intrapreneur• Down the road…

You may find yourself working for a large company or (better still) owning your own large company

• Both require that you foster entrepreneurship


Enter the IntrapreneurMaking change in a large company iscalled intrapreneurship.

Intrapreneurs stimulate, empower,and reward employees to beentrepreneurial, and:

– Find opportunities– Take risks– Brainstorm for new ideas– Set goals– Take ownership


Inc. Yourself


What does success means to you? What does success means to you?

Think of yourself as a product you want to create.

Create your own mind map—one that depicts the life you want.

Discover what success means to you.

Complete Action Step 5Complete Action Step 5

Idea Generator: Mind MappingMind Mapping


Mind map: Mind map: an idea-generating sketch

circled words connected by lines to form units

doodling to generate ideas.

Idea Generator: Mind MappingMind Mapping


Create your mind map:Create your mind map:1. Write your goals in the centre of a page.

2. Circle key words.

3. Use lines to connect themes.

4. Create a spider web of opportunity!

What is Small Business?


An independently owned & operated firm, not dominant in its field

Any venture with spiritAny business you want to startAny idea you want to bring to the

marketplaceEmployer of 1 to 20 employees • Like 85% of businesses in Canada

Your Chances of SuccessSome small businesses failSlightly more than 80% of small businesses

survive their first year On average, a company will be in business

about 6 years Only about 30% make it for 10 yearsA business plan & research helps you beat

the odds


What is What is a Business Plan?a Business Plan?


A written summary of:• Business goals• Resources needed• Plan to organize resources to meet personal

& business objectives.A blueprint or road-map for operating

your business start-up & measuring progress.

A Business Plan:A Business Plan:Why Bother?


A business plan is important because it:• Lays out goals • Provides an organizing tool • Acts as a financial guide • Helps obtain advice • Helps secure investment.

Broad Components of the Business Planthe Business PlanCover Sheet

Table of Contents

Executive Summary or Statement of Purpose

Description of the Business: The product or service The market and the target customer The competition Marketing strategy Location Management and form of ownership Personnel

Financial Section: Projected cash flow (monthly, first year) Projected income statement Projected balance sheet


Conducting Research


Market ResearchCollection and analysis of data pertinent to anexisting or potential market

Three Main Research Approaches

1.1. Primary ResearchPrimary Research

2.2. New-Eyes ResearchNew-Eyes Research

3.3. Secondary ResearchSecondary Research


1.1. Primary ResearchPrimary ResearchInvolves interacting with the world through interviews, observation, etc. (Action Step 6)

2. “New-Eyes” Research2. “New-Eyes” ResearchInvolves the use of intuition and observation to learn things about the marketplace (Action Step 7)

3.3. Secondary ResearchSecondary ResearchInvolves referring to someone else’s primaryresearch (Action Step 8)

3 Research Approaches

Business Plan Business Plan Building BlockChapter 1 helps you inspire confidence in money lenders by identifying:

Where you are nowWhere you are now• Strengths & weaknesses• Entrepreneurial aptitudes & skills

Where you are goingWhere you are going• Goals, passion & commitment


Checklist for Your Business PlanYour Business Plan


Are you organized? Do you have a central deposit for all your ideas?

Do you have what it takes to be an entrepreneur?

Have you assessed your interests, abilities, and weaknesses as they relate to owning a business?

Have you assessed your past accomplishments and shortcomings?

Do you have a list and a plan of new skills you will have to work on?

Checklist for Your Business PlanYour Business Plan


Is your family or those you live with “on board”?

Are you prepared to take the time to do the research to write a business plan?

Have you interviewed entrepreneurs to see what it is really like to be in business for yourself?

Do you have any business ideas which you are passionate about?

Garrison Guitars, Part I Chris Griffiths has POP: he’s passionate,opportunity-seeking and persistent.

Answer the Chapter 1 case study questions to learn: That mind mapping can help you get new ideas

The entrepreneurial skills & personality traits that helped Chris Garrison launch his successful invention

How Chris overcame major roadblocks

How Chris used primary and “new eyes” research

How a business plan helped Chris launch his successful business.


CaseStudy

Documents

Your Great Adventure Exploring Your Options Copyright © 2011 Nelson Education Ltd.1-1 chapter 11 Prepared by Ron Knowles Algonquin College & Jennifer Rouse