| Goals Terms + Identify the characteris: » self-assessment tics of successful \ Focus on Small Business - ——ausiness Think it through! eo og g's 9 8 Gloria and Delia were excited about starting their own business, but as they continued their discussions, Gloria realized they needed to sk ¢ down and think through the process carefully. "You know, Delia, it’s not really easy to start our own business. When we talked about this in class, Mr. Riviera said that there are a lot of things to consider before starting a business. First, we need to decide what we like to do and what we are g good at. Then we have to do a lot of research and planning if we want ° Gy to be successful." ¢ Thinking about what Mr. Riviera told her in class, Delia sighed. “This entrepreneur thing sounds like a lot of work. What do you think € we should do?” Gq Work as a Team Many people go into business without first. taking time to examine ‘their strengths and weak- ¢% nesses and what they really like to do. Do you think it’s a good idea for Gloria and Delia to slow down and really examine ‘their interests before starting the business? Examine your svengths and weaknesses before Staring 3 business. Characteristics of Successful Entrepreneurs Many people dream of running thei to become entrepreneurs. own businesses. They would like Entrepreneurship can be exciting, bur many CS go into it not realizing how difficult itis to run their own business. a ° In fact, statistics show that mast new businesses will fail within a few Years, These startup businesses fil because of the owner's poor plan ning, lack of business knowledge, lack of entrepreneurial characteristics, ¢ inability to work with others, or failure to choose the right business. |<Successful entrepreneu, a 6. x 5g Researchers have ident Successful entrepreneurs their ows tr are independent, Th n decisions and de something they Successful entrepreneurs ar self-confident. Entrepreneurs make all the decisions, They must have the confidence to my alone and bounce back tiem ¢ poorly made de ful entrepreneurs have determination Entrepreneurs persist through hard times until joy choices, Succ sion, and perseverance. goals are met, are goal-oriented. ‘They Successful entreprenew they want, and they are able to foci nn Successful entrepreneurs have g standards for themselves, achieving challenging goals Successful entrepr market their busines problems, know what achieving it need to achieve hey are motivated by and to set high setting and neurs are creative, Th ses and at think of new ways to always looking for new solutions to Successful entrepreneurs are able to act quickly. They are not Afraid to make quick decisions when necessary, which helps them beat their competitors. Successful entrepreneurs k technologies emerge that ¢ order to run their business ep up to date with technology. New an help with many buyiness activities, In ciliciently, entrepreneurs should always be on the lookout for new technology they can apply to their businessced for his high school basketball team, Other boys. € mpeting with much ipted that he would have to work harder to win, Ryan Nelson has many entreprencurial characteristic: was 14, Ryan play his height—just 5" taller boys. Ryan ac He needed to be ereati believe in hime He did, and he by his team, If Ryan opened his own bus played as a ball player might help hiny suec '8"—would not have enjoyed & in hanaling the ball, Most of all, he had (0g me one of the top players on © ess, the characteristics he dis- . « ee & Checkpoint Name thiee important characteristics of entreprencurs. Characteristics of Good Team Members “4 Entrepreneurs realize that there are other stakeholders in ¢g their businesses—partners, investors, employees, suppliers, customers, creditors, and so forth. They must work with — ¢% others to get their business up and running, ‘They must have good team-building. skills as well as be effective team ¢ members, Gootl team members display the following traits: 1. Commitment They are committed to team goals and“ willing to work hard to achieve the goals 2, Competency They have the right set of skills needed “4 to get the job done and to help accomplish the team’s goals 3. Communication ‘They have good comnnuniea skills and can share ideas with others in both oral and written form, 4. Cooperation ‘They must work well with others know that they will not always get their way. ‘They are willing to accept the decision of the group for the good of the group. . 5. Creativity ‘They are able to look at things from difter- ent perspectives and st How can participation on a sports team help prepare you to become an entrepreneur? st new ways of doing things. Ryan Nelson displayed these traits as a member of his basketball tcanr: His experience will help him work effcetively as part ofa team in the business world. If Ryan becomes an entrepreneur, he could apply these skills when working with other people who will be impor- tant to his success. a Checkpoint Why is it important for entrepreneurs to be good team members?Are You Right for Entrepreneurship? Entrepreneurship is not for everyone, Some people liek the qualities cded to become suecessfal entrepreneurs, Others lack the aptitude “ded to run a business. To determine if entrepreneurship is right for Yon, vou fist need to perform a self-assessment. A. self-assessment is an evaluation of your st nesses. You ean do this in a number of ways, You ean fist what you believe to be your strengths and weak paper. You can ask others what they your strengths are and where your weakn also professional tests you can take t0 a i Assess Your Interests Success as an entrepreneur requires a strong commitment to a busi- ness and a lot of energy. To be able to commit yourself fully to a business, you should choose a field that interests you and that will provide you with an exp. you will enjoy. Many entrepreneurs 2 WHAT WENT WRONG Experience Needed Think Critically 1, What characteristics did Louise Possess that Louise was a theatre performer who sang and led her to become an entrepreneur? danced in Broadway-style musicals. The work 2. What circumstances out of Louise's control Was not always steady, so she earned additional led to the failure of this business? Money working part time at a print shop. The A elderly couple who owned the shop allowed Louise to work flexible hours so she could Pursue a music career, Sadly, the husband died, and the wife decided to sell the business and move away. Louise was excited about the opportunity to purchase the business, The former owner helped Louise gather financial information and put together a business plan. Louise's uncle cosigned a bank loan, and she was in business. She modernized the décor of the shop. Louise contacted all the existing cus- tomers to assure equal or better service. Sales increased the first two months. But then ae The former owner left town earligr than planned. Then Louise's chief printer quit Using part-time employees, Louise was frantically trying to get large orders out on time. With no forrnal business training and no management experience, Louise couldn't begin to deal with all these problems—problems that even an experienced businessperson would find difficult, She ended Up selling the business at a $50,000 loss, What steps could Louise have taken to try to save her business? Ho Get some business training before starting a business,& & & oc center a business on an interest or hobby. Analyzing past experiences and jabs can abo help. Building. business around job or expe that you found fulfilling could lead to success, iene Assess Your Aptitude ; Different jobs require different job aptitudes. Aptitude is the ability to learn a particular kind of job. Auto mechanies mast possess an ap tude for solving mechanical problems, They must also be good with their hands People who sel insurance must have good interpersonal skills, Answering questions like those in the Job Attributes Checklist can help you identify the kinds of entrepreneurial opportunities that might match your aptitudgs and interests. 1. L enjoy working with numbers. 2. enjoy working outdoors, 3. Lenjoy working with my bands. 4, T enjoy selling. 5. like working with people, 6.1 prefer to work alone, 7. I like supervising ather people. &. Tike knowing exactly what it is Lam supposed ta do, Assess the Advantages of Entrepreneurship Manji people see significant advant nesses. Some of the biggest advan. cs in owning their own busi- ayes include the followin; 1, Entrepreneurs are their own bos neur what to do. Ei es. Nobody tells an entrepre- treprencurs control their own destinies 2, Entrepreneurs can choose prencurs work in fields th and interests with business, & 5. Entrepreneurs ean be ereative, Linteepreneurs are al ays imple: menting creative ideas they think of themselves, 4. Entrepreneurs can make large sums of money, Entrepreneurship 4 involves risk, but if the business is successful, the beatae owner will reap the profits a business that interests them, Entre at interest them, Many combine hobbies Assess the Disadvanta, All prospective ay ges of Entrepreneurship entrepreneurs niust carefilly w inst the disadvantages before ness, Disadvantages include the igh the advantages making the decision to start a busi- allowing @ 1. Entrepreneurship is risky. ‘There i the pos ty of losing money SS and going out of business 8 ee ae2, Entrepreneurs fee umeertain ane irregular incom neurs may make Money one month and lose mone Entrepre- ; the next. 3, Entrepreneurs work long hours. Hntreprencury are never 1 finished with their jobs, They ean work long, receive no paid days ol and often work even ly rregular hours. They ¥ gs and weekends. — 4. Entrepreneurs must make all decisions by themselves. Unless they have partners, entrepreneurs have the final responsibility for all decisions that are made regarding the business, Checkpoint What characteristics do you have that are best suited to entrepreneurship? THINK ABOUT IT 4. Entrepreneurs can fail even if they are committed and have the characteristics needed to be successful. How can this happen? 2. What traits do good team members have? 3. Do you think the advantages of entrepreneurship outweigh the disadvantages? Why or why not? MAKE ACADEMIC CONNECTIONS 4. MATH One in three small companies begun this year will be out of business within the next two years. What percentage is this? Four years from now, only 44 percent of all businesses started will survive. Out of 90 new businesses, approximately : how many will still be open in four years? CAREER SUCCESS Choose a business idea that you think you would like. Using the Activity CD, open the activity “Job Attrib- e@ ttes Checklist.” Print a copy and complete the activity. Compare jour interests to your business idea. Is this a good choice for you? Why or why not? 5. TEAMWORK °°"""" wa Work in teams to choose a successful entrepreneur. List the traits and aptitudes this person has that have contributed to his or her success. Develop a presentation about the entrepreneur to give to the class.