Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 03/19/10, Topic: Entrepreneurship2) On the next line, write “Opener #29” and then:

1) Plot your mood, reflect in 1 sent.2) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Other things going on in the news.Announcements: Still missing some bankers?Intro Music: Mr. Chiang’s class song list

Agenda1) Intro to Starting Biz (non-restaurant)

End Goal, you will be able to…1) Understand why entrepreneurs matter.

Reminder1) Work on your 2+ Docs+Slides for 3/25 (each section should be no more than a page)

Heads UpIn class we discuss general principals of business.

At home THIS week:1) Work on your 2+ Docs+Slides for 3/25

At home NEXT week:1) Drafting your sections for Biz Plan 2 due block: 4/06

Goal: To understand biz mindset for econ

Adsense1,000 page views per day. At a 1.0% click-through rate and

$0.15 pay-off per click to you, in a 30-day month you can expect to make:

Monthly income: 1,000 x 30 x 0.01(1%) x $0.15 =$45

1,000,000 page views per day. At a 1.0% click-through rate and $0.15 pay-off per click to you, in a 30-day month you can expect to make:

Monthly income: 1,000,000 x 30 x 0.01(1%) x $0.15 =$45,000

Work #28a, Title “Opener Shareout”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

With a partner:1s, 1w, 1o, 1t) SWOT: Raptr.com

Entrepreneur: Person who starts a business, fulfills a need, makes money.

Only 1/5th of Americans are self employed, but they account for more than 2/3rds of all American millionaires.

+ 650,000 new businesses each year- 30% left after five yearsOver the lifetime of a business,

40% are profitable, 30% break even, and 30% lose money

Small businesses produce 43% of GDP (Gross Domestic Product, all things produced in the USA)

Small businesses provide 44.4% of the total U.S. private jobs

Entrepreneurs have been responsible for 67% of the inventions and 95% of the radical innovations made since WW II

Women currently own approximately 9.1 million small businesses in the U.S. and are starting themat twice the rate of their male

counterparts.

Notes #28a, Title: “Entrepreneur Notes” 1) Entrepreneur: Starts a business2) Venture: New businessa) Capital: Money (Venture Capital)

3) Equity: Ownership (things you own) 4) Business Model: How you make moneya) Profit Margin: Price - Cost (often in %)Example: Cost: $100, Price: $150=PM: 33%

5) Market Target: Your Likely Customera) Market Size: # of Likely Cust.b) Market Growth: Increase in Likely Cust.

Notes #28a, Title: “Entrepreneurship”6) Winning Business IdeaTHIS IS NOT ABOUT INVENTING. It’s

about doing something better than others. Improve (or invent), what ever will increase customer utility.

Provide a product or service so superior, that customers will switch to you! You don’t need to be the first in a market, just the best. BUT DO NOT TRICK THE CUSTOMER!

Notes #28a, Title: “Entrepreneurship”

Provide a product or service so superior, that customers will switch to you! You don’t need to be the first in a market, just the best. BUT DO NOT TRICK THE CUSTOMER!

7) Trademark: Brand ID (long as in biz)8) Copyright: Unique words, imgs, sounds

(120 years)9) Patent: Unique process (17 years)10) Trade Secrets: Biz secret way of doing

things (gives you right to sue if stolen)

Mature Market Successful and stable companies already

exist. Start ups have the additional challenge of taking on pre-existing competitors, but for winners, the profits are proven. (Jetblue, Virgin America)

Growing Market None or not many companies providing it,

so the start up goal is to establish themselves. Easiest environment for start ups, but profits unproven.

(Online Video on Demand: Veoh, Lulu)

Work #28a, Title “Market Targets”With a partner (include their name):

1) Name a mature market that is open to fresh competition.

2) Name a new market that is not yet dominated by any significant companies, so it’s anyone’s game.

Review1) Business Model: How you make moneyNBC TV: Ad Revenue + Selling Shows (Syndic, DVD)Comcast Cable: Ad Revenue + Fee BasedGoogle: Ad RevenueFacebook: Ad RevenuePayPal: Transaction FeeChase: Interest on Loans, Buying Bonds, Cust. FeesVirgin Am Airlines: Airfare + Extra Add-on ServicesFord: Car Sales Best Buy: Product Sales + Ext WarrantiesCostco: Product Sales + Membership FeePandora: Ad Revenue + Fee BasedSarah Lee: Selling Branding Rights to Food MakersKwickCart (Free Bike Taxi): Sale of Ads on PedicartsNBA Team: Tickets + Licensing Brand

Notes #29a, Title: “Entrepreneurship”1) Elevator PitchIn under 90sec, covers:1-what’s the problem and solution2-how do you make money3-who is the market and how much is the

market worth 4-what is your advantage 5-how much will you (and they) make (%

of market captured)6-what are you asking ($ needed)

Work #29a, Title “Business Model”As a team, solve this:99% of electronic music is China is

pirated. Develop a business model that will make selling music in China profitable (Prize: $100).

1) Write down the business modelAssign person to give the elevator

pitch.

Work #29b, Title “Threadless”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

As a Team:1s, 1w, 1o, 1t) SWOT Theadless2) Come up with a business pitch (killer idea) for startup to “Tiger Shark Shirts” kill Threadless, kill kill kill kill kill kill! STEAL AND MAKE BETTER!

Work #29c, Title “Etsy”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

As a Team:1s, 1w, 1o, 1t) SWOT Theadless2) Come up with a business pitch (killer idea) for startup to “Tiger Shirts” kill Threadless.

Work #29c, Title “Do It Better”As a Team:1) With your team, identify

1 business that isn’t doing as good as it could. Explain how the business could be done better.

Example: Jack in Box could offer whole wheat buns or other healthy options. It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.

Work #29d, Title “Do It Better 2”As a Team:1) List of possible businesses to finalize

on Monday (BE INNOVATIVE! ANY BIZ BUT YOU WILL BE WORKING ON IT FOR WEEKS SO CHOOSE WISELY!).

It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.

Work #29f, Title “Video: Entrepreneurs”

1) Copy Source Title: CNBC

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work SectionsTime Bookmark: 00:00

Business Plan (Due Block 3/25-26)1) Work on your sections2) Make sure you talk with your group to have every section be in sync3) Save the links to resources that you will put in the appendix to back your claims.Example:5a: Webpage print out Competitor 15b: Webpage print out Competitor 2

Grading__/60 Your Google Docs Sections of the Written Business Plan__/10 Your Google Docs Presentation Slides For Your Sections __/10 Your Contribution to the Appendix (Labeled: 1a, 1b…8a) __/10 Your Oral Presentation (dress up for presentation, suit or uniform)__/10 Team Work (use of in class time and out of class time to help each other, leader eval, lose points if do each other’s work)__/100 Points Total