entrepreneurship weeks 5&6 ethan chazin

OLEU 2900

ENTREPRENEURSHIPENTREPRENEURSHIP

This Week’s KEY This Week’s KEY ResourcesResources

Chapter 5:

Small Business Entry

Paths to Part-Time Paths to Part-Time EntrepreneurshipEntrepreneurship

• Dip your toes in the shallow end• You can take on several opportunities at once• Obtain entrepreneurial skills (Sales, Marketing,

Networking) SLOWLY - NOT Sink or Swim• Build a rolodex of contacts, resources, leads,

and clients• Opportunity to build your savings

P/T Entrepreneurship: Benefits

• Stand Retail• Homes: Pampered Chef, Lia Sophia,

MLM, Network Marketing (Acai Juice)• Consignment: Give your product to

stores to sell for you• Mail Order: Place the ad and make sales

on your time• Online = eBay+? Large market,

24/7/365 “up” time

P/T Opportunities

• It starts as a passion/hobby COMBINED with your CORE COMPETENCIES

• Balance business and home life• Time management skills are CRITICALCRITICAL!• Have a To-Do list of To-Do lists• Delegate and outsource• “BOOTSTRAPPING”

– Barter Services in lieu of payment• Seek advisors (coaches, mentors)

P/T “Success” Factors

• Identify passions and interests• What are your hobbies• Register your business with the state:

– Tax Employer ID– D&B Number

• Talk to everyone in your social & professional networks about this new side business

• Pick their collective “GREYGREY” matter• Set pricing guidelines

How to Start

• Develop collateral:– Your bio (50, 100, 500 word)– Portrait photo– Flyer– Brochure– Business cards

How to Start

• Build Your Personal Brand:– Develop your success stories– Become a subject matter expert– Get published– Create a Linked In Profile– Join Linked In Groups, start discussions– Become active in the industries you will

target– Participate on panels– Give lectures anywhere & everywhere

How to Start

• Moonlighting• Conflicts of Interest• Cannibalizing• Maintain highest ethical standards• Aggrandizing – making yourself seem

bigger than you are

Avoid Traps & Pitfalls

Chapter 6:

Small Business Entry

Paths to Full-Time Paths to Full-Time EntrepreneurshipEntrepreneurship

Paths to Business Paths to Business OwnershipOwnership

• Start Your Own Business• Buy an Existing One• Franchise a Business• Inherit a Business• Get Hired to Manage a Business

The Five Paths

• “Clean Slate”• Uses the most up-to-date technology

– CRM Software (SalesForce.com)– Social Media– Web 2.0– Constant Contact Email Marketing– www.GoToMeeting.com – Inventory Management Systems– Performance Management Applications

Start-Up Advantages

• Offer new products or services• It can be kept small

Start-Up Advantages

• ZEROZERO brand name recognition• Significant time and effort requirements• Hard to finance• Difficult to obtain credit• Lacks experienced managers and workers• VERY hard to maintain motivation

Start Up Disadvantages

What Will What Will YOURYOUR New Business New Business BEBE??

• “Me Too” vs. TRULY Unique• Develop a Market Entry Game Plan

– Tasks– Project Owners & Contributors– Start/End Dates & Contingencies

• Define the industries you will serve:– Develop ideal client profile(s)– Identify ALL relevant stakeholders

Choosing a New Business

SIC Versus NAICS

• Find a business incubator• Can your current employer help you?• Have/get directly relevant industry

experience• Pursue partners (multiple founders)• Start with established clients• Enlist your mentors• Obtain any/all relevant certifications and

accreditations

Ensuring Start Up Success

• Develop a start-up budget

• Select a product/service where there is a proven demand

• Line up outside investment

• Obtain experience managing small firms

Ensuring Start Up Success

• Just start SOMETHINGSOMETHING

• Select a business that produces HIGH margins

• Build trust in your story

Ensuring Start Up Success

• Established customers mean immediate revenue

• Processes and operations are already in place

• Requires less cash than starting a business from scratch

Buying a business: Advantages

• Finding the right business• How do you determine what a business is

“worth?”• Management and employees may fight

you• The existing business reputation may be

hard to change/overcome• Business may be declining• Facilities and equipment may be obsolete

Buying a Business: Disadvantages

• A legal agreement that allows one business to be operated using the name & business procedures of another– Trade name franchising: only the right to use the

franchise trade name and trademark– Product distribution franchising: provides

franchisee with specific brand named products, resold by franchisee in a specific market (Ex. Coca-Cola, Goodyear Tires, John Deere)

Franchising a Business

– Conversion franchising: provides an organization through which independent businesses may combine resources (Ex. Century 21 Real Estate)

– Business format franchising: the right to use the company’s trade name, products, business/marketing plans, national advertising support (Ex. McDonald’s)

Franchising a Business

• Carefully review TWO documents from franchisor in particular:– Uniform franchise offering circular:

standard franchise document outlining a business’s operations, procedures, costs, requirements. Check out www.ftc.gov for guidelines on how to complete a UFOC.

– Franchise agreement

Franchising a Business

• A proven successful business model• Training & management support• Less risky than starting a business from

scratch or buying a business

Franchising Advantages

• Lose control of your marketing and operations

• The business can be taken away• Your success is tied to the success of the

entire organization

Franchising Disadvantages

• Master Franchise Wealth• International Franchise Assn.• IFA Annual Convention• www.inc.com Start Up• Business Nation

Franchising Resources

Franchising Resources

Franchising Resources

Franchising Resources

Franchising Resources

Franchising Resources

Inheriting a Inheriting a Business…Business…

• Whether inheritinginheriting or bequeathing bequeathing the same issues of passing ownership exist

• Have a succession plan• Hire professional management team• Gain loyalty of existing family,

employees, and managers• Have experience leading others• Know how to manage / lead

Inheriting a Business

Inheriting a Business Resources

Inheriting a Business Resources