Entrepreneurship and Starting a Small Business

(1)

*

Nickels McHugh

Nickels McHugh McHughMcHugh

*

Entrepreneurship

and Starting

a Small

Business

6

C

H

A

P

T

E

R

*

(2)

*

•

• Students able to:

_{Students able to:}

•

• Explain why people are willing to take

Explain why people are willing to take

the risks of entrepreneurship

•

• Summarize ways to learn about how

Summarize ways to learn about how

small operate

•

• Analyze what it takes to start and run a

Analyze what it takes to start and run a

small business

(3)

*

•

• Lecturing on teaching material

Lecturing on teaching material

•

• Discuss about,

Discuss about,

“

entrepreneurs

magnet for productive

-

age

people

”

•

• Opportunity Game

Opportunity Game

•

(4)

*

•

• Entrepreneurship

Entrepreneurship

Accepting the risk of starting and running

a business

•

• Why take the entrepreneurial

Why take the entrepreneurial

challenge?

•

• Opportunity

Opportunity

•

• Profit

Profit

•

• Independence

Independence

•

(5)

*

(6)

*

•

• 3 co

3 co

-

exist dimensions of entrepreneur

•

• Must have become the best

Must have become the best

entrepreneur that can ever be

•

• Brought the enterprise to the highest

Brought the enterprise to the highest

level it could ever reach

•

• Developed people working in the

Developed people working in the

enterprise to perform to the limit of

their ability

(7)

*

Getting into

a business

Venturing into

entrepreneurship

(beyond simply making money outside of employment)

Passion

(not because of you have to but because you love to)

(8)

*

• 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

(9)

*

18

18 -

-

24

24 8%

8%

25

25 -

_-

34 ₃₄

71%

_71%

35

35 -

_-

44 ₄₄

13%

_13%

45

45 -

-

54

54 6%

6%

55+

(10)

*

•

• Self

Self

-

Directed & Self

-

-Disciplined

Disciplined

•

• Self

Self

-

Nurturing

•

• Action

Action

-

Oriented

•

• Highly Energetic

Highly Energetic

•

(11)

*

Entrepreneurship

•

• Entrepreneurial Teams

Entrepreneurial Teams

A group of experienced people from different areas

of business who join together to form a managerial

team with the skills needed to develop, make, and

market a new product

•

• Micropreneurs

Micropreneurs

and Home

-

Based

Businesses

Entrepreneurs willing to accept the risk of starting

and managing the type of business that remains

small, let them do the kind of work they want to do,

and offers them a balanced lifestyle

(12)

*

Entrepreneurship

•

• Web

Web

-

based Business

New channel (internet) based business

development

•

• Intrapreneurs

Intrapreneurs

Creative people who work as entrepreneurs

within corporations

(13)

*

! "

#

$

•

• Technology

Technology

•

• Downsizing

Downsizing

•

• Attitudes

Attitudes

•

(14)

*

• New Customers

New Customers

•

• Time Management

Time Management

•

• Work vs. Family

Work vs. Family

•

• City Ordinances

City Ordinances

•

• Risk

Risk

Focus

•

• Find Opportunity

Find Opportunity

•

• Results vs. Routine

Results vs. Routine

•

• Profit vs. Paycheck

Profit vs. Paycheck

•

• New Ideas

New Ideas

•

• Long Term vs. Short

Long Term vs. Short

Term

(15)

*

%

""

&

%

""

&

! "

#

$

! " " #

! $ " % "

&

" '$ ( "

(16)

*

'

"

(

'

"

(

•

• Enterprise Zones

Enterprise Zones

Specific geographic areas to

which governments try to

attract private business

investment by offering lower

taxes and other government support

•

• Incubators

Incubators

Centre that offer new business

low

(17)

*

"

•

• 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

Receipts)

(18)

*

)* *

"

•

• 20 Million Full/Part

20 Million Full/Part

-

time Businesses

•

• Account for More Than 50% of Gross

Account for More Than 50% of Gross

Domestic Product (GDP)

•

• Jobs

Jobs

•

• 80% of Americans 1

80% of Americans 1

stst

_{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

Rapidly

(19)

*

&

$

52% 30%

18%

(20)

*

+ "

,

$

& & & & & #& )"*

(21)

*

"

-

-Major Causes of Failure

Major Causes of Failure

•

• Plunging in without first

Plunging in without first

testing

•

• Under/over pricing

Under/over pricing

•

• Too little capital

Too little capital

•

• Little/no experience

Little/no experience

•

• Borrowing money

Borrowing money

without planning

•

• Trying to do too much

Trying to do too much

with too little

•

• Buying too much on

Buying too much on

credit

•

• Expanding credit too

Expanding credit too

freely and rapidly

•

• Incomplete and/or

Incomplete and/or

inaccurate records

•

• Not understanding

Not understanding

business cycles

•

• Forgetting about taxes,

Forgetting about taxes,

insurances, etc.

•

• Owner working or not,

Owner working or not,

according to whim

(22)

*

"

-

-Situations for Success

Situations for Success

•

• Personal attention

Personal attention

•

• Products not easily

Products not easily

made by mass

enough for a large

firm

•

• Unattractive

Unattractive

neighborhood

•

• Franchising

Franchising

•

(23)

*

.

/

"

.

/

"

•

• Learn from Others

Learn from Others

•

• Get Experience

Get Experience

•

• Take Over a Successful

Take Over a Successful

Firm

(24)

*

$

&

Created Mickey in a Garage

Walt Disney

Vacant Former Restaurant

Estee Lauder

Abandoned Hardware Store

Williams

-

-Sonoma

Sonoma

YMCA room

Hallmark

(25)

*

Sold 40 Speakers 1

stst

_{Year (today #1}

312 Sandwiches 1

stst

_Day

Subway

Sold No Reapers 1

stst

_{10 Years}

Cyrus

McCormick

$3,000 Worth of Band

-

Aids 1

stst

_Year

Johnson &

Johnson

(26)

*

%

/

"

•

• Business Plan

Business Plan

•

• Adequate Funding

Adequate Funding

•

• Lenders/InvestorsLenders/Investors

•

• ““AngelsAngels””

•

• Venture CapitalistsVenture Capitalists

•

• Professional Advice/Help

Professional Advice/Help

•

• SBA and SBIC ProgramSBA and SBIC Program

•

• Lawyers, Loan Officers, Insurance AgentsLawyers, Loan Officers, Insurance Agents

•

• SCORESCORE

•

• Local College/universitiesLocal College/universities

•

• Know Your Customer

Know Your Customer

•

(27)

*

1

1 &

&

2

3

•

• I don

I don

’

t know

enough about

you or your

clearly stated

why you need the

money.

•

• Your numbers

Your numbers

don

’

t support the

loan request.

•

• Your collateral is

Your collateral is

lacking.

•

• Your business

Your business

does not support

the loan on its

own merits.

(28)

*

"

/

•

• Examine Marketing & ID Areas for Growth

Examine Marketing & ID Areas for Growth

•

• Profile Best Customers & Market to Similar

Profile Best Customers & Market to Similar

Prospects

•

• Invest in Sales Training & Technology

Invest in Sales Training & Technology

•

• Refresh Business Perspective With

Refresh Business Perspective With

Outside Views

•

(29)

*

• React/Not

React/Not

Overreact

•

• Understand

Understand

Financial Situation

•

• Find Professional

Find Professional

Help

•

• Develop

Develop

“

Recovery Plan

”

• Employees of

Employees of

Stake in Business

•

• Don

Don

’

t Get Stung

By Killer

“

(30)

*

1. World Market

World Market

2.

2. Absorb Excess

Absorb Excess

Inventory

4. Extend Product

Extend Product

Life

Negatives

1.

1. Financing

Financing

Difficult

3. Lack of Cultural

Lack of Cultural

Understanding

4.

(31)

*

• Begin Shipping

Begin Shipping

Orders Faster

•

• Variety of Suppliers

Variety of Suppliers

•

• Professional

Professional

Service with

Undivided Attention

Information

•

• Dept. of Commerce

Dept. of Commerce

-

-www.bxa.doc.gov

www.bxa.doc.gov

•

• SBA

SBA

-

International

-

-www.sba.gov/hotlist

www.sba.gov/hotlist

/internat.html

(32)

*

!

0 666

!

0 666

4 0 !

% % . 0

4 0 !

% % . 0

4

4 )

4

4 )

$

7

(33)

*

$

7 $

7

Tulis

Tulis 1 1 Jika

Jika andaanda SANGAT SETUJUSANGAT SETUJU

Tulis

Tulis 2 2 Jika

Jika andaanda SETUJUSETUJU

Tulis

Tulis 3 3 Jika

Jika andaanda KADANGKADANG--KADANG SETUJUKADANG SETUJU

Tulis

Tulis 4 4 Jika

Jika andaanda TIDAK SETUJUTIDAK SETUJU

Tulis

Tulis 5 5 Jika

(34)

*

1. SayaSaya termasuktermasuk orangorang yang yang optimisoptimis 2.

2. SayaSaya menyukaimenyukai persainganpersaingan dandan melakukanmelakukan lebihlebih baikbaik dari

dari orangorang lainlain 3.

3. PadaPada saatsaat memecahkanmemecahkan masalahmasalah sayasaya mencobamencoba memikirkan

memikirkan solusisolusi terbaikterbaik tanpatanpa memikirkanmemikirkan kemungkinan

kemungkinan lainlain 4.

4. SayaSaya menikmatimenikmati kebersamaankebersamaan dengandengan temanteman kerjakerja setelah

setelah jam jam kerjakerja 5.

5. JikaJika sayasaya bertaruhbertaruh padapada bapalanbapalan kudakuda sayasaya akanakan lebihlebih suka

suka bertaruhbertaruh padapada pasarpasar taruhantaruhan yang paling yang paling besarbesar 6.

6. SayaSaya sukasuka menetapkanmenetapkan target target untukuntuk sayasaya sendirisendiri dandan bekerja

bekerja sangatsangat keraskeras untukuntuk mencapainyamencapainya 7.

7. SayaSaya termasuktermasuk orangorang yang informal yang informal dandan easyeasy--going going dengan

(35)

*

9. SayaSaya mengerjakanmengerjakan yang yang terbaikterbaik jikajika sayasaya dibimbingdibimbing orang

orang lainlain 10.

10. SayaSaya bisabisa meyakinkanmeyakinkan orangorang lain lain jikajika sayasaya merasamerasa benar

benar

11.

11. SayaSaya merasamerasa orangorang lain lain seringsering membuangmembuang waktuwaktu berharga

berharga sayasaya 12.

12. SayaSaya sukasuka nontonnonton bola bola dandan event event olahragaolahraga lainlain 13.

13. SayaSaya cenderungcenderung berkomunikasiberkomunikasi secarasecara terbukaterbuka dengandengan orang

orang lainlain 14.

14. SayaSaya merasamerasa gakgak masalahmasalah dengandengan menjalankanmenjalankan perintah

perintah daridari orangorang lain yang lain yang berwenangberwenang 15.

15. SayaSaya lebihlebih sukasuka merencanakanmerencanakan sesuatusesuatu daripadadaripada menjalankan

menjalankan apaapa yang yang sayasaya rencanakanrencanakan 16.

16. SayaSaya merasamerasa kurangkurang tertantangtertantang untukuntuk bertaruhbertaruh padapada sesuatu

(36)

*

17. JikaJika sayasaya menghadapimenghadapi masalahmasalah, , reaksireaksi pertamapertama sayasaya akan

akan mengalihkanmengalihkan perhatianperhatian keke halhal lain lain daripadadaripada menghadapinya

menghadapinya

18.

18. BagianBagian daridari kesuksesankesuksesan adalahadalah memilikimemiliki waktuwaktu yang yang cukup

cukup untukuntuk keluargakeluarga 19.

19. SaatSaat sayasaya menerimamenerima income income pertamapertama kali, kali, sayasaya merasamerasa penting

penting untukuntuk menyimpannyamenyimpannya 20.

20. MenghasilkanMenghasilkan uanguang yang yang lebihlebih banyakbanyak akanakan mendapatkan

mendapatkan kesempatankesempatan liburanliburan yang yang lebihlebih panjangpanjang 21.

21. MemecahkanMemecahkan masalahmasalah biasanyabiasanya akanakan efektifefektif jikajika adaada banyak

banyak alternatifalternatif yang yang dipertimbangkandipertimbangkan 22.

22. SayaSaya sukasuka membuatmembuat orangorang lain lain terkesanterkesan dengandengan apaapa yang

yang sayasaya lakukanlakukan 23.

(37)

*

$

7 $

7

24.

24. Kadang

Kadang

-

kadang

etika

moral

sedikit

diabaikan

dalam

berbisnis

25.

25. Saya

Saya

pikir

teman

baik

akan

menjadi

anakbuah

yang

terbaik

dalam

sebuah

organisasi

bisnis

Beri

nilai

1 point

jika

anda

memilih

1

1 atau

atau

2

2 pada

pada

pertanyaan

nomor

1, 2, 6, 8, 10, 11, 16, 17, 21, 22, 23

Beri

nilai

1 point

jika

anda

memilih

4

4 atau

atau

5

5 pada

pada

pertanyaan

nomor

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

(38)

*

$

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

(39)

*

44

44 _“

_“

_{SELL and BUY}

)

8

8 _”

_”

%

•

• MasingMasing--masingmasing kelompokkelompok membuatmembuat 2 2 konsepkonsep produkproduk barubaru atau

atau konsepkonsep jasajasa barubaru untukuntuk pasarpasar mahasiswamahasiswa dalamdalam satusatu kelas

kelas, , dimanadimana produkproduk atauatau jasajasa diperkirakandiperkirakan akanakan lakulaku terbeli

terbeli oleholeh pasarpasar dandan bersaingbersaing dengandengan produkproduk atauatau jasajasa dari

dari kelompokkelompok lain.lain.

•

• 1 1 konsepkonsep dianggapdianggap sebagaisebagai unggulanunggulan, yang lain , yang lain sebagaisebagai non

non unggulanunggulan

•

• Display Display konsepkonsep semuasemua kelompokkelompok sebuahsebuah slide slide supayasupaya dapatdapat dibaca

dibaca oleholeh setiapsetiap mahasiswamahasiswa saatsaat memilihmemilih..

•

• SetelahSetelah ituitu mahasiswamahasiswa dimintadiminta keluarkeluar kelaskelas dandan masukmasuk satusatu persatu

persatu, , diberikandiberikan kertaskertas post it post it dengandengan warnawarna samasama untukuntuk memilih

memilih 1 1 produkproduk atauatau jasajasa yang yang akanakan dibelidibeli daridari semuasemua pilihan

pilihan yang yang tersediatersedia padapada slide. slide. PilihannyaPilihannya dianggapdianggap sebagai

sebagai sales.sales.

•

• RekapRekap hasilhasil penjualanpenjualan dandan bahasbahas mengapamengapa adaada konsepkonsep produk/jasa

produk/jasa yang yang lakulaku keraskeras, , lakulaku sedikitsedikit dandan bahkanbahkan tidaktidak laku

(40)

*

.

)

“

entrepreneurs magnet for productive

-

age people

”

•

• KelompokkanKelompokkan mahasiswamahasiswa dalamdalam kelompokkelompok sebagaisebagai berikutberikut : :

•

• KelompokKelompok 1 1 –– MahasiswaMahasiswa yang yang inginingin punyapunya usahausaha sendirisendiri dandan berkeinginan

berkeinginan memulaimemulai bisnisbisnis paling paling lambatlambat setahunsetahun selesaiselesai kuliah

kuliah S1S1

•

• KelompokKelompok 2 2 –– MahasiswaMahasiswa yang yang inginingin punyapunya usahausaha sendirisendiri dandan berkeinginan

berkeinginan memulaimemulai bisnisbisnis setelahsetelah bekerjabekerja dandan mengumpulkan

mengumpulkan pengalamanpengalaman dandan modalmodal

•

• KelompokKelompok 3 3 –– MahasiswaMahasiswa yang yang inginingin menjadimenjadi profesionalprofesional murnimurni dan

dan tidaktidak memilikimemiliki usahausaha sendirisendiri

•

• KelompokKelompok 4 4 –– MahasiswaMahasiswa yang yang belumbelum tahutahu apakahapakah inginingin punyapunya usaha

usaha sendirisendiri atauatau jadijadi profesionalprofesional murnimurni..

•

• BahasBahas apaapa alasannyaalasannya merekamereka mempunyaimempunyai pemikiranpemikiran sepertiseperti itu