How many of you have started your own business or currently own a business?
How many of you hope to start your own business someday in the future?
What is an Entrepreneur?
Coming from an entrepreneur himself, Bob Reiss says,
"Entrepreneurship is the recognition and pursuit of opportunity without regard to the resources you currently control, with confidence that you can succeed, with the flexibility to change course as necessary, and with the will to rebound from setbacks.“
A person who organizes, operates, and assumes the risk for a business venture.
http://www.thefreedictionary.com/entrepreneur
Statistics
How many businesses open and close each year?
Starts and Closures of Employer Firms from 2000-2004.
Category
2000
2001
2002
2003
2004
New Firms
574,300
585,140
569,750
553,500e
580,900e
Firm Closures
542,831
553,291
586,890
572,300e
576,200e
Bankruptcies
35,472
40,099
38,540
35,037
34,317
http://www.sba.gov/advo/stats/sbfaq.pdf
What is the survival rate for new firms?
“Two-thirds of new employer establishments survive at least 2 years, and 44% survive at least 4 years, according to a new study.”
“Major factors in a firm’s remaining open include an ample supply of capital, the fact that a firm is large enough to have employees, the owner’s education level, and the owner’s reason for starting the firm in the first place, such as freedom for family life or wanting to be one’s own boss.”
http://www.sba.gov/advo/stats/sbfaq.pdf
What role do women and minority entrepreneurs play?
“66% of all home based businesses are owned by women.”
“Today, 4.7 million women are self-employed in the United States. This represents a 77% increase since 1983.”
http://www.sba.gov/advo/stats/sbfaq.pdf
What role do women and minority entrepreneurs play?
“Of the 23 million firms in 2002, 6.9 percent were owned by Hispanic Americans, 5.2 percent by African Americans, 4.8 percent by Asian Americans, 0.9 percent by American Indians and Alaskan Natives, and 0.14 percent by Native Hawaiian and other Pacific Islanders.”
“In 2002, minorities owned 4.1 million firms that generated $694.1 billion in revenues and employed 4.8 million workers.”
http://www.sba.gov/advo/stats/sbfaq.pdf
Top 10 Cities For Entrepreneurs
Minneapolis
Norfolk/Virginia Beach/Newport News Va.
Washington D.C.
Atlanta
Miami
Fort Lauderdale, Fla.
Charlotte/Gastonia/ Rocky Hill, N.C.
Salt Lake City
West Palm Beach, Fla.
Orlando Fla.
Journal of Accountancy
Source: Entrepreneur and D&B;, 2003
Entrepreneurial Characteristics
A Good Match
Outside the Norm
http://www.startupjournal.com "Are You Qualified To Be an Entrepreneur"
Entrepreneurial Characteristics
A Good Match
Self confident
Multi-skilled
Innovative
Results-Oriented
Risk taker
Committed
http://www.gdrc.org/icm/micro/define-micro.html
Entrepreneurial Characteristics
A Good Match
Children or grandchildren of immigrants
Relationship with key breadwinner in the family is competitive
Complete a college degree
Get fired from several jobs; Dislike working for others
http://www.startupjournal.com "Are You Qualified To Be an Entrepreneur"
Entrepreneurial Characteristics
Some of the most often found qualities in successful entrepreneurs are tenacity, leadership skills and the ability to adapt to unexpected developments.
Some argue that although personal traits are important, they do not necessarily determine why someone becomes an entrepreneur.
"Mastering the Entrepreneurial Life Cycle"
Entrepreneurial Characteristics
Outside the Norm
Some people think in order to be entrepreneurial, you have to start your own company; but this is not true.
“Most startup articles focus on the mechanics of launching a business. But the inner journey to starting a business is just as important as writing a business plan and getting financing.”
“The best way to succeed is simply to avoid failure.”
To avoid making mistakes Entrepreneurs must:
Examine the 3 T’s
Time
Temperament
Talent
Five Mistakes Entrepreneurs Make Jim Stovall.ﾊ Accounting Technology:ﾊCPA Wealth Provider: Best in ShowﾊBoston:Oct 2005.ﾊ p.ﾊ18-19ﾊ(2ﾊpp.)
5 Mistakes Entrepreneurs Make
Find his/her market niche
“I never perfected an invention that I did not think about in terms of the service it might give others… I find out what the world needs, then I proceed to invent.”-Thomas Edison
Have ample financing
Be ready to do everything by themselves
Understand the amount of time and passion it takes to be successful
Five Mistakes Entrepreneurs Make Jim Stovall.ﾊ Accounting Technology:ﾊCPA Wealth Provider: Best in ShowﾊBoston:Oct 2005.ﾊ p.ﾊ18-19ﾊ(2ﾊpp.)
Getting Started
This website helps you get started:
https://www.sos.mo.gov/
Interviews David Garthe Harry Brumleve
David Garthe
Age 33
Single
From Ballwin, Missouri
University of Missouri-St. Louis
B.A. in Finance
Minor in Partying
David Garthe
Watlow Electric, Inc.
Started in Accounting, then IT
Net Assist Temporaries
Providing temporary Network Specialist
CareerConnection.com
Similar to Monster.com
Used by many Fortune 500 Companies
Garthe Corporation
Garthe Corporation
Incorporated in 2000
Initial Business Plan
Create websites that provide advertising value to casinos
Sell advertisement to Casinos
It was easy then (dot com boom)
Garthe Corporation
Time Management
15% Sales, 25% Admin, 60% Projects
Results of Initial Business Plan
Very Profitable until dot com bust
Clients changed after bust
Sold off sites to fantasy sports group.
Garthe Corporation
Refined Business Plan
Create websites that provide subscription-based services
ConnectMe.com
Refined Time Management
50% Marketing, 15% Admin, 35% Projects
Results
Closed site after legislative issue with State of Missouri
