Domain 1 Lesson 2

Domain 1 Lesson 2-Entrepreneurship Skills, Potential Business Opportunities & Plan Elements, and Intellectual Property Concepts

By Stephanie Wheeler

Characteristics of an Entrepreneurial Mindset

1. Self-Reliance

2. Forward-thinking mentality

3. Opportunity Recognition

4. Initiative

5. Resiliency

6. Grit

7. Risk Tolerance

8. Growth Mindset

9. Critical Thinking

10. Creativity & Innovation

11. Collaboration

12. Problem-solving

13. Personal agency (ability to work towards achieving a goal without someone directing you)

14. Ethical Practices

15. Social Responsibilities

Entrepreneurship Risks & Benefits

1. Entrepreneurship Risks

   1. A common financial risk that entrepreneurs face is bankruptcy

   2. Environmental Risks (Natural Disaster Poor Food Supply Inflation)

   3. Political Risks (Increased Tax Rates, Large Tariffs)

   4. Other Risks

      1. Direct or Indirect Competition, reputation

Entrepreneurship Risks & Benefits

1. Entrepreneurship Benefits

   1. Get to work with like-minded people of their choice

   2. Make your own hours (but no guaranteed paycheck)

   3. May be able to choose where you work

Characteristics of a Business Opportunity

A business opportunity is:

1. A well thought out idea, that when utilized that can earn a profit and continue to grow

2. An investment that lets the buyer start a business

3. Franchise

4. Network Marketing make commission (Mary Kay)

5. Licensing

   1. Anytime you want to use a brand name on your products, you must obtain a license in order to use it legally

Viability of a Business Opportunity

1. Viability=potential for success and survival

   1. Five Factors to look at to determine business opportunity viability

      1. Market Size

      2. Relationships

      3. Managing Cash Flows

      4. Management Skillsets

      5. Passion

Business Plan, Pitch Deck & Lean Canvas

1. Business Plan

   1. A written document that details how a business will be structured, managed, run and grown

   2. Strategic plan to help a business achieve long and short term goals

   3. To show investors how they will see a return on their investment

Business Plan, Pitch Deck & Lean Canvas

1. Pitch Deck

   1. Provide a Brief Overview of your business plan

   2. Products and services you are going to provide

   3. Funding needed

   4. And financial projections

   5. Purpose is to attract potential investors

1. Short Written Document discussing your business plan

2. Should only be one page long

3. Discuss Key Information

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Lean Canvas

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Key Components of a Business Plan

1. Executive Summary

   1. First key component of a business plan

   2. Most important as it is read first

   3. Establishes the first impression of a business

   4. Summarizes

   5. Products and services sold

   6. Financial outlook

   7. Funding needed

   8. Businesses goals

2. Marketing Plan

   1. 2nd Key component

   2. Identify market size using market analysis

   3. Identify Competitors 

      1. Strengths and weaknesses

   4. Describe potential customers and a plan to reach them

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3. Organizational Structure

• 3rd key component

• An overview of employees within the business

• Highlight team roles and experiences

  1. Include roles that are yet to be filled

4. Financial Plan

• 4th key component

• Should be directed towards investors & lenders

  1. Budget

  2. 12 month profit and loss projection

  3. Cash flow statements

  4. A break even analysis 

  5. Capital requirements

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Key Components of a Pitch Deck

1. Usually a slide presentation

2. 10-12 slides long

3. Should include

   1. What problem you will solve

   2. Vision & value proposition

      1. provides a brief overview of a business where one talks about the company's mission and the value provided to customers.

   3. Your team

   4. Milestones (what has your company already achieved)

   5. Business Model

      1. How your business works, how it makes money, and marketing strategies

   6. competition 

   7. Ask for $

      1. Specify how the investors’ money will be used and why

Trademarks, Trade Secrets, Copyrights and Patents

1. Legal Protections (protected by us federal government)

   1. Copyrights (used to protect creative works such as art, literature and music)

   2. Patents (used to protect an invention from being copied)

   3. Trademarks (used to protect brand names, logos and business names)

   4. Trade secret laws (protect a company’s practices, processes and/or formulas from being shared with competitors)

Using Licensed Materials

1. Trademarked Material

   1. Well-recognized 

      1. Using without permission can result in fines or jail time

      2. Pay a licensing fee and sign a licensing agreement

2. Copyright 

   1. Must obtain authorization from the author or creator and purchase a license to use their work

3. Trade secret

   1. Tested and true process or formula that is valuable to a company

   2. Typically not sold

   3. Many companies require confidentiality or non-disclosure agreements

4. Patents

   1. Patent owner must assign ownership of the patent to the third party

   2. Usually required to pay a royalty fee