Who is an Entrepreneur?
An individual who undertakes the
risk associated with creating,
organizing,
and owning a business.
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Personal
Characteristics of
Successful
Entrepreneurs
•Persistent •Goal-oriented
•Creative •Independent
•Responsible •Self-confident
•Inquisitive •Risk taker
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Skills Needed by Successful
Entrepreneurs
•Communication skills
•Human relations skills
•Math skills
•Problem-solving & Decision-making skills
•Technical skills
•Basic Business skills
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Entrepreneurship and
the Entrepreneurial
Process
Understand entrepreneurship
and the entrepreneurial process.
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Entrepreneurship vs.
Entrepreneurs
ENTREPRENEURSHIP ENTREPRENEUR
The process of starting and An entrepreneur is an individual
running one’s own business who undertakes the risk
associated with creating,
This involves a considerable organizing, and owning a business.
amount of risk.
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5 Steps of the
Entrepreneurial
Process
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting
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Step 1: Discovery
The stage in which the entrepreneur
generates ideas, recognizes opportunities,
and studies the market.
Entrepreneurs consider the following:
Hobbies or Skills
Consumer Needs and Wants
Conduct Surveys and Questionnaires
Study Demographics
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Step 2: Concept
Development
Entrepreneurs prepare the following in this step:
Develop a Business Plan
◦ A detailed proposal describing the business idea
Choose Location for the Business
◦ Is the business online or does it have a physical location for customers
to visit to purchase products, services or combinations.
Decide if the idea will need a Patent or Trademark
◦ Patent –
◦ Trademark -
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Step 3: Resourcing
The stage in which the entrepreneur
identifies and acquires the financial,
human, and capital resources needed for
the venture startup, etc.
Entrepreneurs contemplate the following:
Identify Potential Investors
Apply for loans, grants and financial assistance
Hire employees
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Step 4: Actualization
The stage in which the entrepreneur
operates the business and utilizes
resources to achieve its goals /
objectives
Entrepreneurs prepare for the following:
Grand Opening of the Business
Day to Day Operations of the Business
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Step 5: Harvesting
The stage in which the entrepreneur
decides on venture’s future growth,
development, or demise.
Entrepreneurs consider the following:
Future Plans for the Business:
◦ Expansion to additional locations
◦ Company to change structure
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Starting a Business
Understand the procedures and
requirements
for starting a business.
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Starting a Business
1. Develop a Business Plan
2. Acquire Finances
3. Meet Legal Requirements
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Develop a Business
Plan
A Business Plan is a detailed proposal
that describes a new business.
Business Plans are:
◦ Presented to potential investors and lenders
◦ Most business plans are 30+ pages
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Purposes of a
Business Plan
Business Plans are used to:
◦ Obtain Financing
◦ Banks and Potential Lenders require a business plan
◦ Helps organize and analyze data critical to new business.
◦ Provides a start-up proposal
◦ Provides and outline to follow when starting the business.
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Components of a
Business Plan
Executive Summary:
◦ Brief one to two page description of the key points of each
section of the business plan
Product/Service Plan:
◦ Presents Product or Service being offered
◦ Unique features of the Product or Service
Management Team Plan:
◦ Qualifications of the Entrepreneur
◦ Qualifications of any Partners who may be involved in the
business venture
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Components of a
Business Plan
Industry/Market Analysis:
◦ Analyzes the: Customers / Competition / Industry /
Demographic / Geographic and Economic data
Operational Plan:
◦ Includes all processes involved in producing and/or delivering
the product or service to the customer
Organizational Plan:
◦ Management philosophy of the business
◦ Key management personnel
◦ Key employment policies
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Components of a
Business Plan
Marketing Plan:
◦ Describes how the business will make its customers aware of its products/ services.
◦ The Market being served / Marketing Strategies / Promotional Plan / Marketing
Budget
Growth Plan:
◦ Presents plan for future expansion of the business
Financial Plan:
◦ Includes financial statements that will help forecast the future financial
health of the business.
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Finance the Business
Identify Potential Investors
Examples:
◦ Family and Friends
◦ Other Businesses
◦ Employees
Contact Financial Agencies for loans, grants and financial assistance:
◦ Small Business Administration
◦ Banks / Credit Unions
◦ Insurance Companies
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THANK YOU
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