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EntrepreneurshipEntrepreneurshipMerit BadgeMerit Badge

John GilbertPete Robinson

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EntrepreneurshipEntrepreneurship

• Entrepreneurship is Applied Scouting• Know Yourself• Opportunity Identification, Evaluation, and

Execution: Ready – Fire – Aim

Requirement 1

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Characteristics SkillsCharacteristics Skills

• Passionate• Faith

– In self– Others– Ideas

• Opportunity Focused• Want CONTROL• Innovative• Always Learning

– Reader

• Selling• Planning• Communication• Marketing• Interpersonal• Management• Personally Effective• Team Builder• Leadership

Requirement 1

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Characteristics SkillsCharacteristics Skills

• Entrepreneurship is not as RISKY as some would have you believe.– Myth – 90% of businesses fail in 5 years

• You can systematically improve the probability of your succeeding as an entrepreneur

Requirement 1

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Roles and ContributionsRoles and Contributions

• Elephant, Mice, and Gazelles• Economic Development

– SME represent 99% of all employers and provide 75% of all new jobs.

• Providing for People’s Needs• Providing most innovations

Requirement 1

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Interview an EntrepreneurInterview an Entrepreneur

• John GilbertOwner of Add-Options

Requirement 2

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Opportunity IdentificationOpportunity Identification

• N-E-W-S

• Every Problem is an Opportunity– Find the angle– Pain, Pleasure

WOW

Requirement 3

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Finding The OpportunitiesFinding The Opportunities& Reducing Pain& Reducing Pain

GettingGettingThrough & AroundThrough & Around

BarriersBarriers

New Ideas andCompetitive Angles

© 2002 COPYRIGHTGary K. Rhoads,

Steven Mack Covey Professor of Marketing

Entrepreneurship Entrepreneurship is building a new is building a new

boxbox

It’s not thinking

outside the box

Requirement 3

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Nine methods for new product successNine methods for new product success

Method1. Take something out

of your product

2. Put something inyour product

3. Answer to consumergripes

4. Visible difference

5. Make the taskeasier

6. Use products in anew way

7. Productsubstitutability

8. Don’t be literal,be creative

9. Look overseas

ExampleRoyal Crown removedcaffeine

Adding fruit juice tosoda

“Locked my keys inmy car”

“Same old cereal”

Time-consumingoven cooking

Phone & MP3 player

Cereal substitute forcereal-avoiding teens

A healthy Popsicle

Healthy Breakfast

ResultFirst decaffeinated cola

Slice

Warning bell, OnStar, Keyless Entry

Flavoring the O’s in Cheerios

Jet Stream Oven, Pre-cooked meals

iPhone

Total Breakfast Bars

Fruit Juice Bars / Longboard

Yoplait Yogurt© 2002 COPYRIGHT

Gary K. Rhoads, Steven Mack Covey Professor of Marketing

Requirement 3

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How to Crap On Your Friends for $39.95(Plus Shipping and Handling)

With regard to time, here's the latest poop

© 2002 COPYRIGHTGary K. Rhoads,

Steven Mack Covey Professor of Marketing

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Feasibility StudiesFeasibility Studies

• Personal– Three “M’s”

• Me• Market• Money

Make Goals that are: S pecific

M easurable A ttainable R ealistic

T imely

Requirement 4

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Feasibility StudiesFeasibility Studies

• Business– Technical (Good or Service)

– Market– Financial– Human Resources (Personnel)

Requirement 4

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Technical FeasibilityTechnical Feasibility• Good or Service

– Simple– Observable– Understandable

• Patents– Not for protection– Safely share ideas with others

Requirement 4

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Target CustomerTarget Customer

• Who is the Customer– Demographic– Psychographic– Geographic

• How Many Customers Are There

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There are three levels of a product1. Product or Service – What it is.

2. Features – What it has.

3. The Benefits – What does it do for my customer.

Product

Features

Benefits

Product/Service VisionProduct/Service Vision

What are we selling?What are we selling?

Requirement 4

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Financial FeasibilityFinancial Feasibility• Questions

– Am I going make money?– When will I make money?

• Budget– Start-Up Costs & Operating Costs– Fixed Costs & Variable Costs

• Proforma – Profit & Loss Statement– Cash Flows

Requirement 4

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600600

500500

400400

300300

200200

100100

1010 2020 3030 5050 6060

Fixed ExpensesFixed Expenses

Profit AreaProfit Area

Breakeven PointBreakeven Point

SalesSales

Total CostsTotal Costs

Loss AreaLoss Area

Unit SalesUnit Sales

Exp

ense

s (th

ousa

nds o

f dol

lars

)E

xpen

ses (

thou

sand

s of d

olla

rs)

Break Even Analysis (Units)Break Even Analysis (Units)

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Financial FeasibilityFinancial Feasibility

• Finding the Money– Personal Savings– Love Money– D &D– Angels

• Bootstrapping

Requirement 4

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Human Resource FeasibilityHuman Resource Feasibility

• The Entrepreneur’s “SWOT”S – StrengthsW – WeaknessesO – OpportunitiesT - Threats

• Mentoring• Outsource

Requirement 4

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Start a BusinessStart a Business• Do a Good Turn Daily

– Any service can be turned into a business opportunity• During the next two weeks do the following

– Pick an idea & ask others about it• Write about what you are going to do

– Do Feasibility Study on idea– Promote your Business

• Make promotional materials• Advertise your business

– Start your Business– Bring back Evidence

Requirement 6

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Show Me The MoneyShow Me The Money• Option #1

– Sketch Prototype– Write Detailed Description

• Option #2– Create a Prototype– Write about Creation– Materials list

• Option #3– Design a Promotional Poster or Flier

• Option #4– Proforma Income Statement– Describe Assumptions

Choose 2

Requirement 5

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HomeworkHomework

• Finish Requirement #3 d & e• Do Requirement #4 – all four sections• Do Requirement #5 – Do 2• Do Requirement #6 – Start a business

• You can download files from www.AddOptions.org/merit-badge

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RememberRememberIf your mind can conceive it,

and your heart can believe it,then you can achieve it!

&An Opportunity is

Hard Work and PreparationMixed with

a Vision and Passion