Entrepreneurship and Starting a Small Business

• * * *
• R E

Entrepreneurship T P A and Starting H C a Small Business

  6 Nickels McHugh Nickels McHugh McHugh McHugh

_1-1
• * * *

Students able to: Students able to:

Explain why people are willing to take Explain why people are willing to take the risks of entrepreneurship the risks of entrepreneurship

Summarize ways to learn about how Summarize ways to learn about how small operate small operate

  Analyze what it takes to start and run a Analyze what it takes to start and run a small business small business

• * * *

  

Lecturing on teaching material

Lecturing on teaching material

Discuss about, Discuss about, “ “ entrepreneurs entrepreneurs magnet for productive magnet for productive - - age age people people ” ”

Opportunity Game

• Opportunity Game

  Paper on Paper on enterpreneurship enterpreneurship

• * * *

  

Entrepreneurship

Entrepreneurship •

• Accepting the risk of starting and running

  

Accepting the risk of starting and running

a business a business

• Why take the entrepreneurial

Why take the entrepreneurial

• challenge?

  challenge? Opportunity Opportunity •

• Profit
• Profit •
• Independence

  Independence • Challenge •

  Challenge •

• * * *
• * * *

  3 co - - exist dimensions of entrepreneur exist dimensions of entrepreneur

• 3 co

Must have become the best entrepreneur that can ever be entrepreneur that can ever be

• Must have become the best

Brought the enterprise to the highest Brought the enterprise to the highest level it could ever reach level it could ever reach

  

Developed people working in the

enterprise to perform to the limit of enterprise to perform to the limit of their ability their ability

Developed people working in the

• * * * Venturing into entrepreneurship (beyond simply making money outside of employment) Passion (not because of you have to Getting into but because you love to) a business lead to Sustainable Income
• * * *

• Being an investor in a business
• Being a silent partner
• Getting into business because there is nothing better to do
• Coming up with a cheap substitute

NOT ENTREPRENEURING

  Understanding the game and changing the rules of the game is

  ENTREPREUNEURING

• * * *

  35

  54

  45 - -

  45

  44 13% 13%

  44

  35 - -

  34 71% 71%

  18

  34

  25 - -

  25

  24 8% 8%

  24

  18 - -

  54 6% 6% 55+ 55+ 2% 2%

• * * *

Self Self - - Directed & Self Directed & Self - - Disciplined Disciplined

Self - - Nurturing Nurturing

• Self

Action Action - - Oriented Oriented

Highly Energetic Highly Energetic

  Tolerant of Tolerant of Uncertainty Uncertainty

• * * *

  

Entrepreneurship

Entrepreneurship

Entrepreneurial Teams Entrepreneurial Teams A group of experienced people from different areas A group of experienced people from different areas of business who join together to form a managerial of business who join together to form a managerial team with the skills needed to develop, make, and team with the skills needed to develop, make, and market a new product market a new product

Micropreneurs

  

and Home

and Home

• - - Based Based Businesses Businesses Entrepreneurs willing to accept the risk of starting Entrepreneurs willing to accept the risk of starting and managing the type of business that remains and managing the type of business that remains small, let them do the kind of work they want to do, small, let them do the kind of work they want to do, and offers them a balanced lifestyle and offers them a balanced lifestyle
• Micropreneurs
• * * *

  

Entrepreneurship

Entrepreneurship

Web - - based Business based Business New channel (internet) based business New channel (internet) based business development development

• Web

  Intrapreneurs Intrapreneurs Creative people who work as entrepreneurs Creative people who work as entrepreneurs within corporations within corporations

• * * *

  ! " ! "

  # #

  

$

$

Technology Technology

Downsizing Downsizing

Attitudes Attitudes

  Tax Advantages Tax Advantages

• * * *

  # #

  $ $

  ! " ! "

Challenges Challenges

Find Opportunity Find Opportunity

New Customers

• New Customers

Results vs. Routine Results vs. Routine

Time Management

• Time Management

Profit vs. Paycheck Profit vs. Paycheck

Work vs. Family Work vs. Family

New Ideas New Ideas

City Ordinances City Ordinances

  Long Term vs. Short Term Term

• Long Term vs. Short

Risk Risk

• * % "" &

  % "" &

• * ! " # $

  ! " # $

• * !

  " " ! # $ " % "

  & " '$ ( "

  Source: Independent Insurance Agents of America

• * * *

  ' " ( ' " (

Enterprise Zones Specific geographic areas to Specific geographic areas to which governments try to which governments try to attract private business attract private business investment by offering lower investment by offering lower taxes and other government support taxes and other government support

• • Enterprise Zones

  Incubators Incubators Centre that offer new business Centre that offer new business low low - - cost offices with basic business services cost offices with basic business services

• * * *

  " "

Independently Owned Independently Owned

Not Dominant in Its Field Not Dominant in Its Field

  Meet Certain Standards of Meet Certain Standards of Size (Employees, Annual Size (Employees, Annual Receipts) Receipts)

• * * *

  )* * " )* * "

  20 Million Full/Part

  20 Million Full/Part

• -

  -

• Account for More Than 50% of Gross

  time Businesses time Businesses

  

Account for More Than 50% of Gross

Domestic Product (GDP) Domestic Product (GDP)

Jobs

• Jobs
• * * *

  80% of Americans 1 80% of Americans 1 st st job is in small business job is in small business

  75% of new jobs are created by small businesses 75% of new jobs are created by small businesses

  Minority Minority - - owned Businesses Growing owned Businesses Growing Rapidly Rapidly

  

& $

& $

  52% 30% 18% Majority Male-Owned Majority Female-Owned Owned Equally by Both

  Source: USA Today

• * + "

  ,

• "

  ,

• *

  $

  

$

• * "

  )"* & & & & & #& SOURCE: USA Today

• * * *

  " "

Major Causes of Failure Major Causes of Failure

Plunging in without first Plunging in without first testing testing

Expanding credit too Expanding credit too freely and rapidly freely and rapidly

Under/over pricing Under/over pricing

Incomplete and/or Incomplete and/or inaccurate records inaccurate records

Too little capital Too little capital

Not understanding Not understanding business cycles business cycles

Little/no experience Little/no experience

Borrowing money Borrowing money without planning without planning

Forgetting about taxes, Forgetting about taxes, insurances, etc. insurances, etc

Trying to do too much Trying to do too much with too little with too little

  Owner working or not, Owner working or not, according to whim according to whim

Buying too much on Buying too much on credit credit

• * * *

  " "

Situations for Success Situations for Success

Personal attention Personal attention

Unattractive Unattractive neighborhood neighborhood

Products not easily Products not easily made by mass made by mass production production

Franchising Franchising

Paying attention to Paying attention to new competitors new competitors

Sales are not large enough for a large enough for a large firm firm

• Sales are not large
• * * *

  The business is in a The business is in a growth industry growth industry

  . / " . / "

Learn from Others Learn from Others

Get Experience

• Get Experience

  Take Over a Successful Take Over a Successful Firm Firm

• * * *

  $ & $ &

  Source: World Features Syndicate Created Mickey in a Garage Created Mickey in a Garage Walt Disney Walt Disney Vacant Former Restaurant Vacant Former Restaurant Estee Lauder Estee Lauder Abandoned Hardware Store Abandoned Hardware Store Williams Williams - - Sonoma Sonoma YMCA room YMCA room Hallmark Hallmark

• * * *

  & &

  # #

  " "

  Sold 40 Speakers 1 Sold 40 Speakers 1 st st Year (today #1 Year (today #1 in market) in market) Bose Bose Sold One 1 Sold One 1 st st Year Year Burton Burton ’ ’ s s Snowboards Snowboards 312 Sandwiches 1 312 Sandwiches 1 st st Day Day Subway Subway Sold No Reapers 1 Sold No Reapers 1 st st

  10 Years

  Cyrus 10 Years Cyrus McCormick McCormick $3,000 Worth of Band $3,000 Worth of Band - - Aids 1 Aids 1 st st Year Year Johnson & Johnson & Johnson Johnson Source: World Features Syndicate

• * *

  % / / " % / / "

• * Business Plan
• Business Plan
• Adequate Funding •

  Adequate Funding •

• Lenders/Investors

  Lenders/Investors

• “ Angels ”

  “ Angels ” Venture Capitalists • Venture Capitalists

• Professional Advice/Help •

  Professional Advice/Help • SBA and SBIC Program

  SBA and SBIC Program Lawyers, Loan Officers, Insurance Agents

• Lawyers, Loan Officers, Insurance Agents

  Local College/universities Local College/universities

• Know Your Customer
• Know Your Customer

  Manage Human Resources Manage Human Resources

• Keep Good Records •

  Keep Good Records •

• * * *

  1 & 1 &

  2

  2

  3

  3

I don I don ’ ’ t know t know enough about enough about you or your you or your business. business

Your numbers don don ’ ’ t support the t support the loan request. loan request

• Your numbers

Your collateral is Your collateral is lacking. lacking

You haven ’ ’ t t clearly stated clearly stated why you need the why you need the money. money

• You haven

  Your business does not support does not support the loan on its the loan on its own merits. own merits.

• Your business
• * * *

  " /

  " /

Examine Marketing & ID Areas for Growth

• • Examine Marketing & ID Areas for Growth

Profile Best Customers & Market to Similar Prospects Prospects

• Profile Best Customers & Market to Similar

  

Invest in Sales Training & Technology

Invest in Sales Training & Technology

Refresh Business Perspective With Outside Views Outside Views

• Refresh Business Perspective With

  Streamline Business & Eliminate Waste

• Streamline Business & Eliminate Waste
• * * *

  ' / ' /

React/Not React/Not Overreact Overreact

Be a Visible, Be a Visible, Confident Leader Confident Leader

Understand Financial Situation Financial Situation

Remind Employees of Employees of Stake in Business Stake in Business

• Understand
• Remind

Find Professional Help Help

• Find Professional

Don Don ’ ’ t Get Stung t Get Stung By Killer By Killer

Develop Develop “ “ Recovery Plan Recovery Plan ” ”

  ” ”

  “ “

  Bankruptcy Bankruptcy

• * * *

  " (

  " (

  4

  5

  4

  5 Positives

Positives 1

Negatives Negatives 1

  3. Soften U.S. Soften U.S. Downturns Downturns 4.

  4. Extend Product Extend Product Life Life

  1. Financing Financing Difficult Difficult 2.

  2. How to Get How to Get Started? Started? 3.

  3. Lack of Cultural Lack of Cultural Understanding Understanding 4.

  4. Paperwork Paperwork

  1. World Market World Market 2.

  2. Absorb Excess Absorb Excess Inventory Inventory 3.

• * * *

  " "

Advantages Advantages

Deal With Deal With Individuals Individuals

Dept. of Commerce - - www.bxa.doc.gov www.bxa.doc.gov

• Dept. of Commerce

Begin Shipping Orders Faster Orders Faster

• Begin Shipping

  SBA SBA - - International International - - www.sba.gov/hotlist www.sba.gov/hotlist /internat.html /internat.html

Variety of Suppliers Variety of Suppliers

Professional Professional Service with Service with Undivided Attention Undivided Attention Information Information

• * * *

  ! 0 666 ! 0 666

  4 0 ! % % . 0 4 0 ! % % . 0

  4 4 )

  4 4 )

  $

  7 $

  7

• * * *

  anda

  5

  Tulis

  Tulis

  TIDAK SETUJU

  anda

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  4 Jika Jika

  4

  Tulis

  Tulis

  KADANG SETUJU

  KADANG

  KADANG

  anda

  3 Jika Jika

  5 Jika Jika anda anda SANGAT TIDAK SETUJU SANGAT TIDAK SETUJU

  2

  $

  7 $

  7 Tulis Tulis

  1

  1 Jika Jika anda anda SANGAT SETUJU SANGAT SETUJU

  Tulis Tulis

  2 Jika Jika

  3

  anda

  

anda

  SETUJU

  SETUJU

  Tulis

  Tulis

• - -
• * * *

  penyebabknya

  bekerja

  saya

  sendiri

  sendiri

  dan

  dan

  bekerja

  sangat

  untuk

  sangat

  keras

  keras

  untuk

  untuk

  mencapainya

  mencapainya 7.

  saya

  untuk

  termasuk

  yang paling

  pada

  pasar

  pasar

  taruhan

  taruhan

  yang paling

  besar

  target

  besar 6.

  6. Saya Saya

  suka

  suka

  menetapkan

  menetapkan

  target

  7. Saya Saya

  termasuk

  bertaruh

  terjadi

  tahu

  tahu

  apa

  

apa

  yang

  yang

  terjadi

  ingin

  dan

  dan

  mencari

  mencari

  tahu

  tahu

  penyebabknya

  ingin

  selalu

  orang

  going

  orang

  yang informal

  yang informal

  dan

  dan

  easy

  easy

  going

  selalu

  dengan

  dengan

  orang

  orang

  lain

  lain 8.

  8. Saya Saya

  pada

  bertaruh

  $

  saya

  saat

  saat

  memecahkan

  memecahkan

  masalah

  masalah

  saya

  lain 3.

  mencoba

  mencoba

  memikirkan

  memikirkan

  solusi

  solusi

  terbaik

  3. Pada Pada

  lain

  tanpa

  orang

  7 $

  7 1.

  1. Saya Saya

  termasuk

  termasuk

  orang

  yang

  orang

  

yang

  optimis

  optimis 2.

  2. Saya Saya menyukai menyukai persaingan persaingan dan dan melakukan melakukan lebih lebih baik baik

  dari

  dari

  orang

  terbaik

  tanpa

  suka

  kuda

  bertaruh

  bertaruh

  pada

  pada

  bapalan

  bapalan

  kuda

  saya

  saya

  saya

  akan

  akan

  lebih

  lebih

  suka

  saya

  5. Jika Jika

  memikirkan

  menikmati

  memikirkan

  kemungkinan

  kemungkinan

  lain

  lain 4.

  4. Saya Saya

  menikmati

  kebersamaan

  setelah setelah jam jam kerja kerja 5.

  kebersamaan

  dengan

  dengan

  teman

  teman

  kerja

  kerja

• - -
• * * *

  $

  lain yang

  perintah

  perintah

  dari

  dari

  orang

  orang

  

lain yang

  menjalankan

  berwenang

  berwenang 15.

  15. Saya Saya

  lebih

  lebih

  suka

  menjalankan

  dengan

  merencanakan

  lain

  terbuka

  terbuka

  dengan

  dengan

  orang

  orang

  lain 14.

  dengan

  14. Saya Saya

  merasa

  merasa

  gak

  gak

  masalah

  masalah

  suka

  merencanakan

  secara

  pada

  tertantang

  untuk

  untuk

  bertaruh

  bertaruh

  pada

  sesuatu

  kurang

  sesuatu

  yang

  yang

  udah

  udah

  pasti

  tertantang

  kurang

  sesuatu

  apa

  sesuatu

  daripada

  daripada

  menjalankan

  menjalankan

  apa

  yang

  merasa

  yang

  saya

  

saya

  rencanakan

  rencanakan 16.

  16. Saya Saya

  merasa

  secara

  berkomunikasi

  7 $

  lain

  bisa

  bisa

  meyakinkan

  meyakinkan

  orang

  orang

  lain

  lain 10.

  jika

  jika

  saya

  saya

  merasa

  merasa

  10. Saya Saya

  lain

  benar 11.

  terbaik

  7 9.

  9. Saya Saya

  mengerjakan

  mengerjakan

  yang

  yang

  terbaik

  orang

  jika

  jika

  saya

  saya

  dibimbing

  dibimbing

  orang

  benar

  11. Saya Saya

  berkomunikasi

  event

  nonton

  bola

  bola

  dan

  

dan

  event

  olahraga

  suka

  olahraga

  lain

  lain 13.

  13. Saya Saya

  cenderung

  cenderung

  nonton

  suka

  merasa

  sering

  merasa

  orang

  orang

  lain

  lain

  sering

  membuang

  12. Saya Saya

  membuang

  waktu

  waktu

  berharga

  berharga

  saya

  saya 12.

  pasti

• * * *

  22. Saya Saya

  banyak

  alternatif

  alternatif

  yang

  yang

  dipertimbangkan

  dipertimbangkan 22.

  suka

  ada

  suka

  membuat

  membuat

  orang

  orang

  lain

  lain

  banyak

  ada

  terkesan

  masalah

  yang

  yang

  lebih

  lebih

  panjang

  panjang 21.

  21. Memecahkan Memecahkan

  masalah

  jika

  biasanya

  biasanya

  akan

  akan

  efektif

  efektif

  jika

  terkesan

  dengan

  liburan

  yang

  olahraga

  lain

  lain

  dengan

  dengan

  seseorang

  seseorang

  yang

  atau

  lebih

  lebih

  jago

  jago

  dibandingkan

  dibandingkan

  saya

  olahraga

  atau

  dengan

  lakukan 23.

  apa

  apa

  yang

  yang

  saya

  saya

  lakukan

  23. Saya Saya

  tenis

  menikmati

  menikmati

  bermain

  bermain

  seperti

  seperti

  tenis

  liburan

  kesempatan

  $

  lain

  mengalihkan

  perhatian

  perhatian

  ke

  ke

  hal

  hal

  lain

  akan

  daripada

  daripada

  menghadapinya

  menghadapinya 18.

  18. Bagian Bagian

  dari

  dari

  mengalihkan

  akan

  kesuksesan

  masalah

  7 $

  7 17.

  17. Jika Jika

  saya

  saya

  menghadapi

  menghadapi

  masalah

  saya

  ,

  ,

  reaksi

  reaksi

  pertama

  pertama

  saya

  kesuksesan

  adalah

  kesempatan

  penting

  pertama

  kali,

  kali,

  saya

  saya

  merasa

  merasa

  penting

  

income

  untuk

  untuk

  menyimpannya

  menyimpannya 20.

  20. Menghasilkan Menghasilkan uang uang yang yang lebih lebih banyak banyak akan akan

  mendapatkan

  mendapatkan

  pertama

  income

  adalah

  cukup

  memiliki

  memiliki

  waktu

  waktu

  yang

  yang

  cukup

  untuk

  menerima

  untuk

  keluarga

  keluarga 19.

  19. Saat Saat

  saya

  saya

  menerima

  saya

• * *

  $

  7 $

  7

• * -

  24. Kadang kadang etika moral sedikit diabaikan 24. - Kadang kadang etika moral sedikit diabaikan dalam berbisnis dalam berbisnis

  25. Saya pikir teman baik akan menjadi anakbuah

  25. Saya pikir teman baik akan menjadi anakbuah yang terbaik dalam sebuah organisasi bisnis yang terbaik dalam sebuah organisasi bisnis Beri nilai 1 point jika anda memilih 1 atau

  2 Beri nilai 1 point jika anda memilih 1 atau

  2 pada pertanyaan nomor pada pertanyaan nomor 1, 2, 6, 8, 10, 11, 16, 17, 21, 22, 23 1, 2, 6, 8, 10, 11, 16, 17, 21, 22, 23 Beri nilai 1 point jika anda memilih 4 atau

  5 Beri nilai 1 point jika anda memilih 4 atau

  5 pada pertanyaan nomor pada pertanyaan nomor 3, 4, 5, 7, 9, 12, 13, 14, 15, 18, 19, 20, 24, 25 3, 4, 5, 7, 9, 12, 13, 14, 15, 18, 19, 20, 24, 25

• * *

  $

  7 $

  7

• *

  21-25 Your potential entrepreneurship is great,

  tunggu apa lagi ? 16-20 Your potential entrepreneurship is high, kembangkan bakat dan sumber daya yang tepat 11-15 Your potential entrepreneurship is transitional, anda harus bekerja sangat keras lho 6-10 Your potential entrepreneurship is doubtful, kayaknya pilihan menjadi entrepreneurs layak dipertimbangkan lagi deh 0-5 Your potential entrepreneurship is very low, realistis aja ya, hadapi kenyataan hidup deh
• * * *

  44 ) 8 % 44 ) 8 %

  “ “ SELL and BUY SELL and BUY ” ”

  Masing Masing - - masing masing kelompok kelompok membuat membuat

  2

  2 konsep konsep produk produk baru baru atau atau konsep konsep jasa jasa baru baru untuk untuk pasar pasar mahasiswa mahasiswa dalam dalam satu satu kelas kelas , , dimana dimana produk produk atau atau jasa jasa diperkirakan diperkirakan akan akan laku laku terbeli terbeli oleh oleh pasar pasar dan dan bersaing bersaing dengan dengan produk produk atau atau jasa jasa dari dari kelompok kelompok lain. lain.

  1

  1 konsep konsep dianggap dianggap sebagai sebagai unggulan unggulan , yang lain , yang lain sebagai sebagai non non unggulan unggulan

  Display Display konsep konsep semua semua kelompok kelompok sebuah sebuah slide slide supaya supaya dapat dapat dibaca dibaca oleh oleh setiap setiap mahasiswa mahasiswa saat saat memilih memilih . .

  Setelah Setelah itu itu mahasiswa mahasiswa diminta diminta keluar keluar kelas kelas dan dan masuk masuk satu satu persatu persatu , , diberikan diberikan kertas kertas post it post it dengan dengan warna warna sama sama untuk untuk memilih memilih

  1

  1 produk produk atau atau jasa jasa yang yang akan akan dibeli dibeli dari dari semua semua pilihan pilihan yang yang tersedia tersedia pada pada slide. slide. Pilihannya Pilihannya dianggap dianggap sebagai sebagai sales. sales.

  

Rekap Rekap hasil hasil penjualan penjualan dan dan bahas bahas mengapa mengapa ada ada konsep konsep

produk/jasa produk/jasa yang yang laku laku keras keras , , laku laku sedikit sedikit dan dan bahkan bahkan tidak tidak laku laku . . Hubungkan Hubungkan dengan dengan konsep konsep fullfill fullfill opportunity. opportunity.

• * * * .

  4 – – Mahasiswa Mahasiswa yang yang belum belum tahu tahu apakah apakah ingin ingin punya punya usaha usaha sendiri sendiri atau atau jadi jadi profesional profesional murni murni . .

  4

  Kelompok Kelompok

  3 – – Mahasiswa Mahasiswa yang yang ingin ingin menjadi menjadi profesional profesional murni murni dan dan tidak tidak memiliki memiliki usaha usaha sendiri sendiri

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  Kelompok Kelompok

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  2 – – Mahasiswa Mahasiswa yang yang ingin ingin punya punya usaha usaha sendiri sendiri dan dan berkeinginan berkeinginan memulai memulai bisnis bisnis setelah setelah bekerja bekerja dan dan mengumpulkan mengumpulkan pengalaman pengalaman dan dan modal modal

  Kelompok Kelompok

  1 1 – – Mahasiswa Mahasiswa yang yang ingin ingin punya punya usaha usaha sendiri sendiri dan dan berkeinginan berkeinginan memulai memulai bisnis bisnis paling paling lambat lambat setahun setahun selesai selesai kuliah kuliah S1 S1

  Kelompok Kelompok

  Kelompokkan Kelompokkan mahasiswa mahasiswa dalam dalam kelompok kelompok sebagai sebagai berikut berikut : :

  ) “ “ entrepreneurs magnet for productive entrepreneurs magnet for productive - - age people age people ” ”

  ) .

  Bahas Bahas apa apa alasannya alasannya mereka mereka mempunyai mempunyai pemikiran pemikiran seperti seperti itu itu setelah setelah mengikuti mengikuti kuliah kuliah ini ini dan dan diskusikan diskusikan antar antar kelompok kelompok sampai sampai ketemu ketemu kesimpulan kesimpulan apa apa sih sih menariknya menariknya entrepreneurs entrepreneurs untuk untuk mahasiswa mahasiswa . .

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Buatlah Buatlah paper paper sebuah sebuah bisnis bisnis baru baru yang yang anda anda perkirakan perkirakan akan akan meledak meledak di di masa masa mendatang mendatang .

  Pembahasan Pembahasan : : Bagaimana Bagaimana obsesi obsesi pemiliknya pemiliknya Apa Apa yang yang bakal bakal menarik menarik dari dari bisnis bisnis ini ini bagi bagi calon calon pelanggannya pelanggannya ? ? Bagaimana Bagaimana keunikan keunikan bisnisnya bisnisnya Bagaimana Bagaimana potensi potensi pasarnya pasarnya Apa Apa saja saja faktor2 faktor2 kendala kendala untuk untuk bisnis bisnis ini ini tumbuh tumbuh