Intro to Business Unit 3 Entrepreneurship

Unit 3: Entrepreneurship Entrepreneurship--according to Investopedia (paraphrased) is a way to use skills and initiative that are necessary to anticipate needs and bring good, new ideas to markets. Entrepreneurship is an important way to drive economic growth and bring new inventions/innovations. The skills of a successful entrepreneur It is very important for a successful entrepreneur to invest much-needed skills and time to themselves. The following characteristics are the ones that a successful entrepreneur should have. 1. Technologies ○ It is important to invest time in yourself to increase your knowledge of technologies. The alternative would be to invest in employees who have experience with technology that is needed in today's time. i. ex: payment methods compatible with mobile methods: apple pay, google pay. ii. ex: mobile and desktop-friendly websites. 2. Originality ○ Be able to execute effective market research. ○ The business may not do well if it lacks uniqueness or necessity. 3. Social Media Marketing ○ Be able to effectively market on social media. ○ Understand your demographics. i. depending on the age ranges, you may have to market more on different social media platforms. 4. Collaboration and network ○ Be able to collaborate and extend your networks. i. Collaborating with other businesses ii. Consulting different companies for certain parts of your business 1. ex: designs 5. Trustworthy Sources ○ Be sure to hire people you can trust if you are able to. ○ Trustworthy people are more likely to stay with you for a longer period of time. ○ You will be able to build good relations. 6. Good Business Plan ○ Make sure to map out how your business year or two will go. ○ Break down your goals into quarters. i. how much do you want to achieve per quarter? 7. Management of Finances ○ Make sure to have sufficient funds to begin your business. i. it is expected to lose some money throughout the first couple of years of your business while you try to build your brand and reputation. ○ Hire people who have the knowledge of how to manage money. i. if that is not possible, then educate yourself about money management, and find different ways of growing your money. 8. Managing Setbacks ○ Setbacks and obstacles are bound to follow through on a business journey. ○ Develop ways to bring yourself back up, and have a backup plan that may help you in these setbacks. Pitching The common way of pitching your idea to potential investors or consumers is to use the “elevator pitch” method. Elevator pitch: it’s a brief, persuasive speech used to spark interest in the minds of whomever it is you’re trying to appeal to. → If possible, keep a business card that you can give in case they (the people you’re trying to appeal to) want it. Steps to an elevator pitch: 1. Identify the goal ○ This can be an idea or product, selling a company, or you. 2. Enthusiastically explain what you do ○ It is important that you talk in an appealing manner. This can be based on the demographic of your audience. ○ Be enthusiastic and highlight the main/good parts. ○ Show the value of what it is you want to do. ○ Be specific about what you hope to gain, or what your goals are. 3. Communicate the USP well ○ USP: unique selling proposition. ○ Show what makes you, your product, or your company unique. 4. Engage in a fun manner ○ This is almost like a hook. i. tell a story, or say things that can engage your audience. 5. Practice ○ Make your pitch 30-60 seconds. ○ Practice giving it. i. record yourself practicing it. ii. practice it in front of a mirror. iii. the more that you practice, the better. Writing successful business proposals Business proposals are how small can win contracts from either larger businesses or the government itself. This is different from a business plan, as the latter is directed to strategy, and raises capital. In contrast, a business proposal is specific to a bidding sales pitch in order to earn more work. There are two different types of business proposals: Solicited business proposals ● This is requested by the potential contract holder. ○ Ex: government body, or a corporation looking for an outside company to complete a project. ● In this, a business proposal may be drafted in response to an open bid placed on the market. ○ Numerous companies may submit their business proposals as a competition. Unsolicited business proposals ● These are proposals that weren’t specifically requested. ○ These are submitted as an initiative of the seller, and work to attract the attention of a potential client. 5 requirements for a good business proposal 1. Have solutions ○ You must identify the company’s needs in the first paragraph, followed by ways to provide a solution for such problems. i. bring solutions your company can actually provide. 2. The benefits ○ Make sure to very clearly outline the benefits that will be brought by collaborating with your company. 3. The credibility ○ List any honors or awards your company has achieved. ○ List positive feedback that your company may have achieved in previous projects. ○ Show that your company is reliable. 4. Show samples ○ Present samples of previous projects your company has done or what it has provided to other customers. ○ This can be used to build credibility if they were positive. 5. Targeted language ○ You must show in a clear manner your intent, and your company's ability is. ○ Edit your business proposals based on the language that your target audience may find familiar. ○ Show open-minded knowledge.