DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 03/25/11, Topic: Entrepreneurship2) Next line, write “Opener #40” 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) Complete your podcast worksheet

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)

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 #, Title “Do It Better”As a Team:1) With your team, identify

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

Example: Jack in Box could offer whole wheat buns or other healthy options. It’s about doing something better than other people. Improve or invent, what ever will increase a customer’s utility.

Journ #, Title “Do It Better 2”As a Team:1) List of possible businesses to finalize

on Monday (BE INNOVATIVE! ANY BIZ BUT YOU WILL BE WORKING ON IT FOR WEEKS SO CHOOSE WISELY!).

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

Notes #, Title: “Entrepreneurship”3) 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)

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

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).

Homework: 1) Complete your podcast worksheet

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)