Understanding Entrepreneurial Trends Section 1 - Allow companies to start new projects more quickly

- Direct capital into money making activities.

CHAPTER 3 RECOGNIZING OPPORTUNITY
- Most common is business processing such as accounting, human resources,
Current Entrepreneurial Trends and payroll.

Internet Businesses Corporate Ventures

Online Business: A business that conducts business by means of the internet. - Corporate Venture: A new venture started inside a large corporation.
- Starting a small company as a spinoff to act more like entrepreneurs.
Service Businesses - Parent company supplies the resources to get the corporate venture off the
- Dominate the American economy ground.
- Services: Tangible things that businesses do for us that enhance our lives - The corporate venture can be more flexible.
- Insurance, Sports and Entertainment, Tourism, Accounting, Banking - Eventually can become its own company.
- Current Entrepreneurial Trends
Home Based Businesses Learning to Recognize Opportunity
- Over 40 Million businesses being conducted from home Creativity and Innovation
- Tradespeople, Graphic Artists, Sales Reps, Web Designers
- Innovation: Finding new ways to do things.
Socially Responsible Nonprofit Businesses - You can LEARN how to be creative
- Started to better society Often nonprofits 1. Connection: Bringing two things together that are not usually connected.
- Community theater, feeding the hungry, educational
2. Discovery
Focus on Technology
3. Invention
- Can create a strong competitive advantage
- Increases productivity 4. Application: Going beyond the original invention to other uses.
- Can be a company's product
Strategic Alliances
Idea Vs. Opportunity
- Strategic Alliance: Forming a partnership with another company.
You generate ideas by thinking creatively.
- 3M and Tape dispenser companies.
Opportunities are ideas that have commercial potential.
Outsourcing Entrepreneurs are alert to unmet consumer needs, and unique unfilled market
niches.
- Contracting with other companies for services.
- Allows a business to focus on what it does best. Niche: A small specialized market.
- Decreases overhead
 Finding Opportunities by Understanding Industries Creative Sources of Ideas
Industry: A grouping of businesses with a common purpose. Observe the World around you
- Changes in industries create profitable niches for new businesses to fill. - Observe people at the mall or in office buildings, or out to lunch
- New products or services create complementary types of businesses. - Be An Avid Reader
- Watch for Demographic Changes
Thinking Creatively About Opportunity
- Demographics: Personal characteristics that describe a population.
1. Practice Brainstorming - Diversity

- .Brainstorming: Thinking freely to create new ideas. Creative Sources of Ideas - Consider Your Own Experiences

2. Look at ordinary items in new ways Interests

3. Find creative solutions to new problems - Top 5 interest

- One product or service you use with your interests
4. Connect unrelated items - One problem associated with each product or service
Hobbies
Improve Your Creativity - Work
1. Believe in Yourself - Any gaps in your company's network of suppliers?
- Are they in need of any services that aren't being provided?
2. Use nonlogical thinking - Has technology created new opportunities?
3. Free your mind
4. View problems as challenges Creative Sources of Ideas - Consult Outside Sources
5. Entertain all ideas Trade Magazines: A periodical published for specific types of businesses or
6. Relax industries.

7. Have a playful attitude - Contains articles on new products, services or business concepts

8. Look at failure as a learning experience Specialty Magazines: A Periodical that targets people with special interests in sports,
camping, fashion, and a variety of other areas. •
9. Model creative behavior
Trade Show and Exhibitions
10. Develop listening skills
- Trade Show: Vendors and manufacturers introduce new items and
promote established products and services.
- Good source of spinoff ideas.
 Creative Sources of Ideas - Consult Outside Sources Compassion Fairness Hard Work
Newspapers Courage Creativity
- Business sections that report on trends and innovations. Fun Health
The Internet Honesty
- Small Business Administration Entering the Family Business
- WWW.EIGERLAB.ORG
Rewards and Challenges of a Family Business
- Only 1/3 of them survive the second generation
Government Agencies - Trust and togetherness
- Need to establish clears lines of communication
- U.S. Patent Office
- Official Gazette: Lists each patent granted and lists all patents available for Questions to Ask Yourself
license or sale.
- Do I have the ability to work for a member of my family?
- Do we share the same goals for the business?
- Do we share the same general personal goals?
Starting Vs. Buying a Business Section 2
- Can we maintain a positive family relationship?
Generate 3-5 possible opportunities. - Can I leave the business problems at work when I go home each night?

- Include rationale including trends and topics from 3-1.

- Be aware that you will be using ONE of these throughout the semester by
Buying an Existing Business
developing a business plan.
- Less risky than starting a new business
Personal Values and Goals
- Customer Base
Values: Define who you are, shape your attitudes and your choices, and help you - Goodwill: The favor and loyalty a business acquires by its good reputation.
identify your priorities. - Established procedures
- Substantial Inventory
Choose Ten Values that - Trade Credit
•Adventure - Former owner may offer expertise

Balance Buying A Franchise

Commitment - Franchise: A legal agreement to begin a new business in the name of a

recognized company.
•Competition
•Generosity
 - Franchisee: The buyer of a franchise who is given the right to its product, Starting Your Own Business Questions to Ask
process, or service. The buyer receives the way of operating a business and a
1. Do I have the motivation to start from nothing?
product with name recognition.
- Franchisor: The seller of a franchise who is giving the buyer its planning and 2. Does the business align with my personality, abilities, values, and goals?
management expertise.
3. Do I have sufficient knowledge of basic operations to undertake the business?
Buying a Franchise
4. Do I have the necessary managerial ability?
- Benefit of national advertising
- You may be trained in methods of operation 5. Do I have the right partners to help me with the business?
- Franchisor can limit how you run the business. 6.Do I have enough financial resources to start from scratch?
- Investigate Market Saturation
- Best locations may have already been sold 7. Am I willing to accept the risk?

Evaluating a Business Opportunity Starting Your Own Business What You Must Do

1. Investigate the company and industry carefully 1. Determine that your venture is

2. Hire an accountant to verify the value of the business's inventory, accounts feasible by testing your concept in the market.
receivable, and assets. 2. Decide whether you want a traditional business with a physical location or an online
3. Hire an attorney to advise you and to investigate the business for any legal liabilities. business or a combination of both.

Where to Find a Business 3. Prepare a business plan.

- Newspaper 4. Secure professional advisors

- Network 5. Purchase equipment
- Business Broker: Someone whose job is to bring buyers and sellers together.
6. Hire employees
7. Initiate relationships with suppliers
Questions to Ask Before You Buy a Business
8. Set up distribution channels
1. Is the business interesting to me and others?
9. Create awareness for the business
2. Why is the owner selling?
3. What is the business's potential for growth?
‘’ DON’T BE INTO TRENDS. DON’T MAKE FASHION OWN YOU, BUT YOU DECIDE WHAT
YOU ARE’’ – GIANNI VERSACE