DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 05/02/11, Topic: Last Biz Plan Day2) Next line, write “Opener #52” and then:

1) Write 1 high+1 low in last 24 hours2) Rate your understanding of yesterday: lost<1-5>too easy (3 is perfect)

3) Respond to the Opening Clip by writing at least 1 sentences about:Your opinions/thoughts OR/ANDQuestions sparked by the clip OR/ANDSummary of the clip OR/ANDAnnouncements: None

Agenda1) Intro to Starting Biz (non-restaurant)

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

Reminder1) Biz Plan 2 due Tu 5/10

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

Journ #39a, Title “SWOT 1”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

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

Include their name!

Work #39b, Title “SWOT 2”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 #39a, 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 #39a, 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!

Journ #40a, Title “SWOT 3”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

As a Team:1s, 1w, 1o, 1t) SWOT Dropbox.com2) Come up with a better business concept (killer idea) for startup “Tiger Storage” to kill Dropbox, kill kill kill kill kill kill! STEAL AND MAKE BETTER!

Journ #40a, Title “SWOT 3”Strength: Current StrengthsWeakness: Current WeaknessesOpportunity: Areas to ExpandThreats: Competitors

As a Team:1s, 1w, 1o, 1t) SWOT Etsy.com2) Come up with a better business concept (killer idea) for startup “Tiger Crafts” to kill Etsy, kill kill kill kill kill kill! STEAL AND MAKE BETTER!

Journ #40c, 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.

Notes #40a, 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!

1) Intellectual Property:a) Trademark: Brand ID (long as in biz)b) Copyright: Unique words, imgs, sounds

(120 years)c) Patent: Unique process is protected+public (17

years)d) 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)

ReviewBusiness Model: How you make moneyNBC TV: Comcast Cable: Google: Facebook: PayPal: Chase: Virgin Am Airlines: Ford: Best Buy: Costco: Pandora: Sarah Lee: KwickCart (Free Bike Taxi): NBA Team:

ReviewBusiness 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

Journ #40b, 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.

Notes #39b, Title: “Entrepreneurship”2) Who Will Give You Money?a) Private: You, family, friends (InNOut)b) Loan: Bank loan (Small Business

Administration backs your loan)c) Partnerships: Person gives you money, in

return you contractually give them partial ownership (general part. vs limited liability part.-LLP)

i) Angel Investors: Rich pplii) Venture Capital Firms: Biz who invest $ in biz c) Stocks-Initial Public Offering-IPO: Sell

ownership of your biz for $ (Google)i) Private Shares: Biz can sell shares in a limited

500 ppl (Facebok)

Notes #39b, Title: “Entrepreneurship”ii) Stock Ownership: Who/group that has most

controls (stocks can split, 1 shares can become 100 shares, you can lost control if your own shares don’t split)

Notes #43a, 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)

Notes #44a, Title: “Entrepreneurship”Th: Start Written Biz Plan (Mr. Chiang will check for progress)Fri: Continue Written Biz Plan (Mr. Chiang will check for progress)Home: Finish Written Biz Plan, Due 4/12

Notes #44a, Title: “Entrepreneurship”Th: Start Written Biz Plan (Mr. Chiang will check for progress)Fri: Continue Written Biz Plan (Mr. Chiang will check for progress)Home: Finish Written Biz Plan, Due 4/12

Notes #44a, Title: “Entrepreneurship”Tu 4/12: Start Powerpoints & Booth/TableTh 4/14: Finish PowerPoints & Booth/TableFri 4/15: Mr. Chiang's Grading @ 5th, Food Booths @ LunchEverything done by Friday 4/15

Notes #44a, Title: “Entrepreneurship”Tu 4/12: Start Powerpoints & Booth/TableTh 4/14: Finish PowerPoints & Booth/TableFri 4/15: Mr. Chiang's Grading @ 5th, Food Booths @ LunchEverything done by Friday 4/15

Notes #44a, Title: “Entrepreneurship”Booth Requirement:1) Logo + Misc on Display 2) Powerpoint on Laptop3) 2 Paper Copies of Business Plan4) Signature Dish + Cost Breakdown 5) Everyone knows the 90s pitch (see notes)

Laptop or not, make sure your section is “in sync” you must make GROUP DECISIONS for each section.

Project Leader: make sure Google Doc and Google Presentation are all uniform, keep group on deadline.

EC: Who is making food + 30sec Ad for Fri 4/15?

100 Point Project

Your Prompt (10 Points):A

2+EC for those who “volunteer” to read theirs at the end (I’ll pick a few at random as well).

1) 2 copies of the plan (leader provides)

2) PowerPoint on Laptop (bring laptop)4) Signature Dish + Cost Breakdown 6) Booth décor: self standing logo, dress (extra: table cloth, etc)

5) Everyone knows the 90sec pitch (everyone needs to know key parts of everyone’s sections!)

Fri Class + LunchFinal Checklist

Journ #40c, Title “Video: How I Made My Millions”

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

Journ #45c, Title “Americas Next Greatest Restaurant”

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

Journ #49a, Title “Virgin America”

1) Copy Source Title: Varied

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 Sections

Journ #49b, Title “Do It Better”As a Team:1) With your team, list

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

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

Journ #49c, Title “Do It Better 2”As a Team:1) 10-min FINAL IDEA, no changing after

that! (BE INNOVATIVE! Something you can do OR hire others to do with in a 1 year time frame)

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

Journ #49d, Title “Globalization=Global Competition”

1) Copy Source Title: Win in China

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 Sections

Notes #39a, 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 #39a, 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 #50a, Title: “Social Venture Notes” 1) Social Good: Good for those outside

the transaction (ideally to help the weak)2) Social Venture: Biz that makes a profit

(or atleast is self-sustaining), and does social good

3) Social Benefit: Est. finanical value of the social good

4) Global Social Venture Competition: College given $ to do their soc ven idea (www.gsvc.org)

5) $1.50 bottle $0.90 advertising, bottle/packaging, transportation$0.10 water$0.50 in profit (Profit Margin: 25-30%)

Journ #50a, Title “Bottle Social Venture Contest”Roles: Leader, Presenter, Ad Designer, Accountant

1) Draft an print ad that conveys:a) Brandb) Logoc) Bottled) Social Good (help outside transact)e) On the bottom, accountant writes how you plan to pay for your social good and still stay profitable/sustain Tips: social good could be profit sharing, in the design, or something else!

Journ #50b, Title “Do It Better 2”As a Team:1) 10-min alternative FINAL IDEA, that

has a social benefit! (BE INNOVATIVE! Something you can do OR hire others to do with in a 1 year time frame)

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

Notes #51a, Title: “Biz Plan 2 Notes” 1) Vision Stmt: How your biz will look/feel2) Mission Stmt: What you provide to your

customer3) Objectives: What you want to achieve

your first year4) Strategy: What are your keys to

success5) Plans: Action details on your first yearTIMELINE, things that are SMART: Specific, Measurable, Attainable,

Relevant, Timebound

Notes #51a, Title: “Biz Plan 2 Notes” 6) Biz Plan 2 all due 5/10 (bonus for social ventures)

1) Written Plan2) PowerPoint3) Ad (video or Prezi)4) Product/Service Demo (can merge into ad)

Only in class time is today + Monday1) Appoint project leader, this project

everyone must help with 3+4. Leader set up Google Docs

2) Assign sections each person

Notes #52a, Title: “Excel Notes” Spreadsheet: Math doc, biz used more than Word1) Boxes: Columns=Letters, Rows=Numbers (A1)2) Autofill: (right drag corner)3) Total: Type: =sum ( highlight boxes you want )4) Add: Type: = (click 1st box) + (click 2nd box)5) Subt: Type: = (click 1st box) - (click 2nd box)6) Multiply:Type: = (click 1st box) * (click 2nd box)7) Divide: Type: = (click 1st box) / (click 2nd box)8) Multistep: Type: =sum, use () like in math form9) Special Formulas: Type: =formula, () to pick Example: =AVERAGE(H3:H11)10) Merge: Type: = (click 1st box) & (click 2nd box)To merge with space = (box 1) & “ “ & (box 2)11) Charts: Highlight desired, click make “chart”12) Auto Filter: Highlight desired, click “filter”

Journ #, Title “A”

1) Copy Source Title: A

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 Sections

Journ #, Title “Do It Better #”As a Team:1) If your biz plan is a seed, name the 3

things needed most to grow (exp: water)

Things that are done: lenders willing to lend money to you, lower taxes, provide tax credits (gov gives you money to start, by taxing others), hard working workers, cheap workers, smart workers, creative workers, better infrastructure, low crime, strong courts to protect contracts, wealthy shoppers

Homework: 1) Work on your business plan

Workbook Check: If your name is called, drop off your workbook with Mr. Chiang (if requested, points lost if your workbook is not turned in)