Recognizing Opportunity Glencoe Entrepreneurship: Building a Business Understanding Entrepreneurial...

Recognizing Recognizing OpportunityOpportunityRecognizing Recognizing OpportunityOpportunity

Glencoe Entrepreneurship: Building a Business

Understanding Entrepreneurial TrendsUnderstanding Entrepreneurial Trends

Starting Versus Buying a BusinessStarting Versus Buying a Business

3.1Section

3.2Section

33

Chapter 3

Recognizing Opportunity


Understanding Entrepreneurial Trends

SECTIONSECTION 3.13.1

Chapter 3 Recognizing Opportunity

The ability to recognize new opportunities and to think creatively is essential for success in today’s global market.

The Main Idea





One way to identify business opportunities is to study current trends that provide opportunities for entrepreneurs.

Current Entrepreneurial Trends

Current Entrepreneurial Trends

4

Internet businesses

service businesses

home-based businesses

green businesses

social entrepreneurship

focus on technology

outsourcing and strategic alliances

corporate ventures





Internet Businesses

• The Internet has transformed the way business is conducted.

• An online business can reach customers around the world.

online business

a company that conducts business by means of the Internet

online business

a company that conducts business by means of the Internet





Service Businesses

• Service businesses dominate the American economy.

• Business services account for the largest part of U.S. economic growth.

services

intangible things that businesses do for consumers that enhance their lives

services

intangible things that businesses do for consumers that enhance their lives





Outsourcing

Outsourcing is hiring people and other companies to handle tasks that a business cannot do or chooses not to do itself.

outsourcing

contracting with other companies for services

outsourcing

contracting with other companies for services

Outsourcing

8

more efficientmore efficient

saves timesaves time

saves moneysaves money

lowers regulatory burden

lowers regulatory burden

speeds up projects

speeds up projects

attracts investorsattracts investors





Strategic Alliances

A strategic alliance is a partnership among companies.

strategic alliance

a partnership formed with another company for the purpose of supplying a product or service

strategic alliance

a partnership formed with another company for the purpose of supplying a product or service





Corporate Ventures

A corporate venture is formed within a company.

corporate venture

a new venture started inside a larger company

corporate venture

a new venture started inside a larger company





Creativity and Innovation

Creativity is the activity that results in innovation.

innovation

a new way of doing things

innovation

a new way of doing things





• You generate ideas by thinking creatively.• Opportunities are ideas that have commercial

potential.• You can find a good business opportunity by

recognizing an unfilled market niche.

Section 3.1 Understanding Entrepreneurial Trends

Idea vs. Opportunity

niche

a small specialized market

niche

a small specialized market





Thinking Creatively About Opportunity

During brainstorming, ideas are not judged as good or bad.

brainstorming

to think freely in order to generate ideas

brainstorming

to think freely in order to generate ideas





Watch for Demographic Changes

It is important for entrepreneurs to understand demographics and demographic trends.

demographics

personal characteristics that describe a population by age, gender, income, ethnic background, education, and occupation, among others

demographics

personal characteristics that describe a population by age, gender, income, ethnic background, education, and occupation, among others

15

Sources of

Information

trade magazines

specialty magazines

trade shows

exhibitions

newspapers

The Internet

government agencies

Sources of Information





Consult Outside Sources

• A trade magazine offers current, industry-specific news.

trade magazine

a periodical published for a specific type of business or industry

trade magazine

a periodical published for a specific type of business or industry

• A specialty magazine offers information about specific topics.

• You can use specialty magazines to identify the interests and needs of potential consumers.

specialty magazine

a periodical published for people with special interests, such as sports, camping, or fashion

specialty magazine

a periodical published for people with special interests, such as sports, camping, or fashion





Consult Outside Sources

• At a trade show, you can learn about new goods and services in a field.

trade show

a gathering or exhibition where vendors and manufacturers introduce new items and promote established products and services

trade show

a gathering or exhibition where vendors and manufacturers introduce new items and promote established products and services

Starting Versus Buying a Business




Whether you start a business or buy an existing one, make sure it is compatible with your personal values and goals.

The Main Idea





Personal Values and Goals

Personal values and goals should be used as a guide when choosing entrepreneurial pursuits.

values

the beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify your priorities

values

the beliefs and principles by which you choose to live that define who you are, shape your attitudes and choices, and help you identify your priorities





• The greatest advantage of a family business is the trust and togetherness that family members often share.

• Families that work well together have great potential for success in a family business.

Entering the Family Business





• In many ways, buying an existing business is less risky than starting one from scratch.

Buying an Existing Business

• When you buy an existing business, you often gain the goodwill of loyal customers.

goodwill

the favor and loyalty a business acquires by its good reputation

goodwill

the favor and loyalty a business acquires by its good reputation





Buying a Franchise

• When you buy a franchise, you buy the right to set up a new business patterned on an existing model.

franchise

a legal agreement to begin a new business in the name of a recognized company

franchise

a legal agreement to begin a new business in the name of a recognized company

• The franchisee is the buyer of a franchise.

franchisee

the buyer of a franchise who is given the right to the franchisor’s product, process, or service

franchisee

the buyer of a franchise who is given the right to the franchisor’s product, process, or service

franchisor

the seller of a franchise who is giving the buyer planning and management expertise

franchisor

the seller of a franchise who is giving the buyer planning and management expertise

• The franchisor is the seller of a franchise.





To evaluate a business opportunity:

Investigate the company.

Investigate the industry.

Talk to customers, employees, and suppliers.

Hire an accountant to advise you.

Hire an attorney to advise you.

Evaluating a Business Opportunity

Where to Find a Business

24

FindingBusiness

Opportunities

newspapersbusinesspublications

networkingbusiness brokers





• When you start your own business from scratch, you can do things your own way.

• You can build the company with fresh ideas and enthusiasm.

Starting Your Own Business

Recognizing Opportunity Glencoe Entrepreneurship: Building a Business Understanding Entrepreneurial...

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