Entrepreneur Day For Grade 7? The 86 New Answer

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Summer 2014

By John Sullivan

Third, fourth, and fifth graders from Allendale Columbia School (New York) share everything they’ve learned about starting a business at Entrepreneur Day, the school’s annual two-hour open market event in early May.

Work begins in the fall when students participate in a series of interactive presentations. Local entrepreneurs, including Allendale alumni and entrepreneurship professors, will address a variety of topics including: generating an idea, knowing your market, the fundamentals of supply and demand, the concept of mass production, finding seed capital, packaging – and promotional crafts, creating on-site displays and the art of selling.

Students wishing to participate in Entrepreneur Day as sole proprietors or in a partnership must submit a business plan detailing how they intend to raise capital to manufacture their product. (I am sending parents a letter recommending that they help their children earn money for this endeavor at home, rather than simply “borrowing” the money to their children.)

After the school’s enrichment specialist approves their business plan, the students are left on their own to raise capital, manufacture and package their products, and design a business. The school provides a six-foot table, tablecloth, paper bags, and $10 in change; Students provide displays, signage, cash boxes, and point-of-display marketing.

Throughout the process – from generating an idea to developing a product and executing a marketing plan – the enrichment specialist and I are available to guide the students. We hope that a successful and rewarding experience will help them see self-employment as a viable career option.

Entrepreneur Day has been a highly anticipated event on campus since Allendale Columbia School introduced it three years ago. Participants will be released 30 minutes before the start of the business day to set up their businesses in the gym or on the outdoor quad. During business hours, students, teachers, staff, parents, relatives and friends fill the venue to support creative and hard-working ideas.

At the end of the event, students complete and submit a final balance sheet, beginning with the total amount collected. From this sum, students are asked to return the $10 in change, pocket their initial investment, and donate the profits to a predetermined charity of their choice.

The young entrepreneurs select the charity months before the Entrepreneur Day. They start by submitting names of organizations and sharing their reasons why a particular charity is worth their donation.

In one year, students donated $2,000 to the Make-A-Wish Foundation to support a boy with cancer who wanted to build a train. A year later, the boy’s cancer went into remission. He was then able to come to the school to personally thank the students – a poignant moment for everyone!

Entrepreneur Day is an important part of Allendale Columbia’s financial literacy program and keeps students motivated long after the day is complete. Some newer entrepreneurs have used the experience as a springboard to launch online businesses, sell their products in existing stores, or plant a seed for future ventures.

Starting a business as a child or teenager is exciting! With this, you have the opportunity to learn lifelong skills that will help you become a successful adult. And of course there’s the money you can make! But how do you start a business as a child or teenager? Well, regardless of your age, you need to follow pretty much the same business-related rules as when starting a business as an adult.

Your parents or guardians will be one of the most important resources on your journey. While you are a dependent in their household, you should involve them in the process so you can get your business off the ground.

While it may be tempting to start a business and ignore the federal, state, and local regulations for running a business legally, know that doing so could land you in legal hot water. Even simple business ventures like a lemonade stand in a front yard were closed because neighbors reported them for lack of permits and other documentation!

Just as with starting an adult-owned business, it helps to get expert advice from a lawyer, accountant and tax advisor. The information in this article is intended to help you understand many of the things you need to think about, but it is not a substitute for professional legal, financial, or tax advice. I highly recommend speaking to licensed professionals who can answer your questions about starting a business as a child and give you the right guidance based on your situation.

After identifying everything you need to do to start a business as a teenager, CorpNet is here to help. We make preparing and filing required business paperwork with local, state and IRS governments a simple process!

What to think about when starting a business

1. Decide on the business you want to start.

Children and young people:

For some child and teen entrepreneurs, this step can easily be ticked off the list. For others it can be a struggle! Is there a hobby that you can turn into a job? For example, if you are creative, you might want to consider making artwork or jewelry for sale. Or maybe you enjoy being outside and being physically active. In this case, helping homeowners with their lawn jobs could be a good solution. If you enjoy caring for and entertaining young children, babysitting might be for you.

Think about the things you enjoy doing and the things you have the talent and skills for when deciding the type of business you want to start.

If you’re struggling, you can get inspiration online by googling “business ideas for kids” or “business ideas for teens.”

As a parent of a teenager with an entrepreneurial mindset, I have direct experience of both the opportunities and challenges that the field brings. My son has tons of ideas all the time and tends to start multiple projects at once. He often finds that he can’t finish them all because he’s stretched too thin. Learn from the lesson he learned: start with a business idea, focus and see it through.

Parents:

If your child expresses an interest in starting a business as a child or teenager, you can provide valuable guidance and feedback in deciding the path they will take. Help them brainstorm and take stock of their skills and talents. Her insights will also prove helpful in excluding types of businesses that have prohibitive start-up costs, take an inordinate amount of time, or come with extensive liability implications. You can also help them focus on their idea and the tasks ahead. As I said before, follow-through is the key to success.

2. Talk to your parent or guardian.

Children and young people:

As I mentioned before, your parents or guardians need to be part of the process. You have to deal with many pieces of the puzzle – paperwork, taxes, bank accounts and legal matters.

Parents:

Keeping your child’s business activities “under the radar” doesn’t seem like a big deal. However, you can get into trouble if your child’s business doesn’t follow the rules that apply to an adult-owned business. Potential responsibilities include obtaining local licenses or permits, collecting and remitting sales tax on taxable goods or services sold, paying income taxes if the business has a profit of $400 or more, and paying taxes for the self-employed. Other obligations may also exist depending on the type of business and the location of the business.

3. Talk to potential customers.

Children and young people:

It’s amazing what you can learn when you talk to people you think need or want your products and services! You not only learn what potential customers want to buy, but also how much they are willing to pay. For your own safety, do not go out and talk to strangers. Instead, consider talking to friends, trusted adults, and family who could become your customers.

You might also consider creating prototypes (samples) of your products or offering demonstrations of your services to show people what you intend to sell. By getting feedback, you’ll know how to improve your products and services so you can get more customers.

Parents:

You can help your kids by giving them your honest feedback and useful suggestions. You can also help them identify potential customers who make good beta test candidates. While starting a business always involves the risk of failure, it helps to encourage your children to test their business ideas to ensure they come to market with products and services that improve their chances of success.

4. Create a business plan.

Children and young people:

You’ll have a better idea of ​​everything you need to do to start and run your business when you write (or type) a business plan. Add things like:

Where will you run your business?

Who will your customers be? (e.g. adults, other children or young people, men, women, people with dogs, people who own their homes, etc.)

What materials, tools and equipment do you need? Where can you get these things and how much do they cost?

How much money do you need to get started and run your business until the money comes in from your customers?

How much do you charge for your products or services?

What will you name your company?

How will you advertise your business?

Also think about the goals for your business. For example, is there a certain number of customers you want by a certain date? Or do you want to earn a certain amount of money by the end of the year? These are just a few examples of the types of goals you could set.

Parents:

You can help your child through the planning process by helping them think through the logistics needed to start and run their business. Figuring out the financial aspects can be particularly challenging for children and young people who do not yet have extensive experience with their money. This is your time to shine as a mentor to your children. I believe you too will find this experience enriching.

5. Gather the necessary funds to start your business.

Children and young people:

If you earned an allowance or worked part-time for a company in your area, you may have saved some money. Will that be enough to start your business and keep it afloat until clients’ money starts flowing? If not, you might want to ask your parents if there are any extra chores you can do at home to earn some extra money, find a temporary weekend job, or ask friends and family members if they’re willing to lend you money.

Parents:

If you have funds to help your child start their business, consider creating a repayment plan to give them hands-on experience borrowing money from a lender and paying it back. You can also help them set repayment terms if your child or teen borrows money from friends or family.

6. Be aware of the legal requirements related to starting a business as a child.

Children, young people and parents:

Don’t treat the legal obligations that come with running a business as “simple,” even if it’s a business owned by children or young people. Child entrepreneurs must follow many of the same rules and legal requirements as adults. As I mentioned earlier, a lawyer and accountant or accountant are valuable resources to help you understand what to think about so you can make informed decisions and take care of any necessary tasks.

The typical steps to get started

1. Decide what you will name your company.

Choose a company name that is memorable and sets you apart from other companies. You also need to make sure there aren’t any other companies already using the name you’ve chosen. For example, let’s say Judith Marcos starts a business making charm bracelets and wants to name her business “Charmed by Judith”. She can use CorpNet’s free name search tool and free trademark search tool to ensure her name is not already taken.

2. Register your business in your state and region as needed.

First decide which legal entity (corporate structure) the company should be. Many child-owned businesses are run as sole proprietorships because it’s the cheapest and easiest way to get started. If the company offers products or services that put people or property at risk of injury, it may be beneficial to create a formal corporate structure, e.g. B. a limited liability company (LLC). Unlike a sole proprietorship, which does not provide for a legal separation between business owners and their company, an LLC is considered a separate legal entity. This means that if someone were to sue the company, the child owner’s and parent’s personal money and property would get some protection under the law.

A lawyer and chartered accountant can help you decide which corporate structure is best for your business. Then CorpNet can help you by preparing and submitting all the necessary business incorporation documents and other paperwork, such as:

A DBA (doing business as) required if you are operating a sole proprietorship under a fictitious name – as in our earlier “Charmed by Judith” example).

Obtaining an EIN (Employer Identification Number or Federal Tax ID Number)

Articles of Association when Forming an LLC

Parents may need to sign the official legal documents with or for subordinate business owners.

Another thing I should clarify: if you choose to operate your business as an LLC, you must designate a “registered agent” in your state to receive important tax, legal, and other regulatory communications on your behalf. CorpNet is authorized to be a registered agent in all 50 states, so no matter your location, we can help you that way too.

3. Get the necessary business licenses and permits.

Depending on the type of business you are starting, you may need county or local licenses and permits before you start selling your products or services. It’s helpful to call your local government agencies or read their websites for information about requirements so you understand what you need and how much it will cost.

In addition, CorpNet makes it easy to determine the required licenses and permits. Talk to us about our commercial license services. We can search for the required licenses and apply for them on your behalf, giving you one less thing to worry about when starting your business.

4. Open a bank account and keep accurate financial records for your business.

It’s important to separate your business money from money you receive as an allowance, from a job, and as Christmas gifts from your grandparents. Keeping track of all your business expenses and income separately from your personal expenses and income makes it easier for you to see how well your business is doing. It also makes tax return time a lot less complicated because you have a clear picture of what your business paid for and how much money it made.

5. Prepare to manage your money and pay taxes.

If a child’s business makes more than $400 in profits in a year, an income tax return must be filed. Even if a business does not meet the income tax minimum, the child business owner may still have to pay self-employment (Medicare and Social Security) taxes. Parents, you can help child entrepreneurs by guiding them to put money aside to cover their taxes. Most sole proprietorships and LLCs must report and pay taxes on estimated federal, state, and sometimes even local tax payments each quarter. Tax laws vary from state to state, county to county, and community to community. So consider speaking to a tax professional to make sure you understand which taxes you are responsible for.

Parents, even if a child files their own tax return, a parent may still be able to claim them as a dependent if the child meets the IRS description of a qualifying dependent child.

6. Keep track of your ongoing compliance responsibilities for your organization.

There may be some things that you need to do annually or on a different schedule to keep your business legal. For example, some business permits must be renewed and taxes filed when due. Keep an eye on your upcoming compliance tasks by using CorpNet’s free online monitoring tool, which notifies you when filings are approaching their due dates.

7. Promote your business.

Children and young people:

A variety of online and offline marketing can help you spread the word about your business and attract customers.

Here are a few ideas:

Website – Assuming you don’t need anything too complicated to get started, you might want to explore setting up a website using a free website builder like WordPress, Wix, or Weebly.

– Assuming you don’t need anything too complicated to get started, you might want to explore setting up a website with a free website builder like WordPress, Wix, or Weebly. Social Media – Facebook, Instagram, Twitter, and other social networks provide a way to build a following for your business by posting updates, photos, and videos to showcase your products and services.

– Facebook, Instagram, Twitter and other social networks provide a way to build a following for your business by posting updates, photos and videos to showcase your products and services. Email Marketing – Consider asking people to be added to your email list to receive updates about your business and any special offers you will be offering. Email marketing platforms like MailChimp make it easy to craft attractive marketing emails.

– Consider asking people to be on your email list to receive updates about your business and special offers you will be offering. Email marketing platforms like MailChimp make it easy to craft attractive marketing emails. Flyers – Printed marketing materials such as flyers, brochures, and posters can also draw attention to your business. Just make sure you have permission from the property owners, business owners, or community you are targeting before displaying or distributing. Places that are good for your print materials are grocery stores, churches, and community centers.

Parents:

Your child or teen may need your help setting up accounts for the online tools I mentioned. And some platforms only allow an adult to create an account. Read the terms and conditions of each online platform carefully before proceeding. Also, find out how you can help your child stay safe online.

8. Be alert and careful

Children and young people:

Also, beware of scammers out there who want to take your money. You may receive offers from “business coaches” or “mentors” who claim they can help you achieve fame and fortune, but then take your money and never deliver on their promises. It happened to my son and it was a huge mess. He lost a lot of money and was heartbroken. I don’t want you to go through this!

Parents:

Help your child question offers of help that are too good to be true. Many adults fall victim to fraud, and children are even more vulnerable.

CorpNet is happy to help you start and grow your business

Kudos to you, kids and parents, for taking the initiative to research how to start a business as a teenager. The experience will surely be one that you all learn from and grow from. I wish you much success! Stay focused, work hard, get advice from legal and accounting experts, and talk to CorpNet’s corporate filing experts about how we can help make your business dream come true!

What is an entrepreneur?

An entrepreneur is a person who starts a new business, bears most of the risks and enjoys the most of the profits. The process of starting a business is known as entrepreneurship. The entrepreneur is generally viewed as an innovator, the source of new ideas, goods, services and businesses/or processes.

Entrepreneurs play a key role in any economy, using the skills and initiative needed to anticipate needs and bring good new ideas to market. Entrepreneurship that proves successful when it comes to taking the risks of starting a startup is rewarded with profits, fame, and opportunities for continued growth. Failing entrepreneurship leads to losses and reduced market presence for those involved.

KEY FINDINGS A person who takes the risk of starting a new business is called an entrepreneur.

An entrepreneur starts a business to realize his idea, known as entrepreneurship, which combines capital and labor to produce goods or services for a profit.

Entrepreneurship is very risky, but it can also be very rewarding as it creates economic wealth, growth and innovation.

Securing funding is critical for entrepreneurs: Funding resources include SBA loans and crowdfunding.

The way entrepreneurs file and pay taxes depends on the structure of the company.

1:37 Entrepreneurs

How entrepreneurship works

Entrepreneurship is one of the resources that economists categorize as an integral part of production, the other three being land/natural resources, labor and capital. An entrepreneur combines the first three of these to produce goods or provide services. They typically create a business plan, hire workers, acquire resources and finance, and provide leadership and management for the company.

Entrepreneurs often face many obstacles while building their business. The three that many of you cite as the biggest challenges are the following:

Overcome bureaucracy Hire talent Get funding

Economists have never had a single definition of “entrepreneur” or “entrepreneurship” (the word “entrepreneur” comes from the French verb “entreprendre”, meaning “to undertake”). Although the concept of an entrepreneur existed and had been known for centuries, classical and neoclassical economists left entrepreneurs out of their formal models: they assumed that perfectly rational actors would know perfect information and left no room for risk-taking or discovery. It was not until the mid-20th century that economists seriously attempted to include entrepreneurship in their models.

Three thinkers took center stage in engaging entrepreneurs: Joseph Schumpeter, Frank Knight, and Israel Kirzner. Schumpeter suggested that entrepreneurs—not just corporations—were responsible for creating new things in search of profit. Knight focused on entrepreneurs as carriers of uncertainty and believed that they were responsible for risk premia in financial markets. Kirzner viewed entrepreneurship as a process that led to discovery.

types of entrepreneurs

Not every entrepreneur is the same and not all have the same goals. Here are some types of entrepreneurs:

builder

Builders are trying to create scalable businesses within a short time frame. Builders typically generate $5 million in revenue in the first two to four years and continue to build up to $100 million or more. These individuals are trying to build a strong infrastructure by hiring the best talent and finding the best investors. They have high-spirited personalities suited to the rapid growth they desire but can make personal and business relationships difficult.

opportunist

Opportunistic entrepreneurs are optimistic individuals with the ability to spot financial opportunities, get in at the right time, stay on board during growth, and exit when a company is at its peak.

These types of entrepreneurs are concerned with profits and the wealth they will create, so they are drawn to ideas that will help them create residual or renewal income. Because they seek opportunities at the right time, opportunistic entrepreneurs can be impulsive.

innovator

Innovators are the rare individuals who come up with a great idea or product that no one has thought of before. Think Thomas Edison, Steve Jobs and Mark Zuckerberg. These individuals worked on what they loved and found business opportunities through it.

Instead of focusing on money, innovators are more concerned with the impact their products and services are having on society. These individuals are not the best when it comes to running a business as they are idea generators so they often leave day-to-day operations to those who are more capable in that regard.

specialist

These individuals are analytical and risk-averse. They have distinct skills in a particular area, acquired through education or training. A specialist contractor grows their business through networking and referrals, resulting in slower growth than a contractor.

4 types of entrepreneurship

As there are different types of entrepreneurs, there are also different types of businesses they start. Below are the main different types of entrepreneurship.

small business

Small business entrepreneurship is the idea of ​​starting a business without turning it into a big conglomerate or opening many chains. A single location restaurant, a grocery store, or a retail store where you sell your handmade goods are examples of small business entrepreneurship.

These people usually invest their own money and thrive when their business generates a profit they live on. They have no external investors and only take out a loan if it helps the business to continue.

Scalable startup

These are companies that start with a unique idea; Think Silicon Valley. The hope is to innovate with a unique product or service and continue to grow and continuously grow the business over time. This type of business often needs investors and large amounts of capital to develop their idea and reach multiple markets.

Large company

Large Company Entrepreneurship is a new business area created within an existing company. The existing company may be well placed to break into other sectors, or it may be well placed to participate in new technologies.

The CEOs of these companies either anticipate a new market for the company, or individuals within the company come up with ideas that they present to senior management to start the process.

Social Entrepreneurship

The goal of social entrepreneurship is to create benefits for society and humanity. They focus on helping communities or the environment through their products and services. They are not driven by profit, but by helping the world around them.

How to become an entrepreneur

After giving up her professional dancing shoes, Judi Sheppard Missett became an entrepreneur by giving dance classes to civilians to earn some extra money. But she soon found that women who came to her studio were less interested in learning precise steps and more interested in losing weight and toning up. Sheppard Missett then trained instructors to teach their routines to the masses and Jazzercise was born. A franchise deal followed. Today the company has more than 8,300 locations worldwide.

After taking an ice cream correspondence course, two entrepreneurs, Jerry Greenfield and Ben Cohen, combined $8,000 in savings with a $4,000 loan, rented a gas station in Burlington, Vt., and bought equipment to make ice cream with a unique taste for the local market. Today, Ben & Jerry’s has annual sales in the millions.

Although the self-made person has always been a popular figure in American society, entrepreneurship has become heavily romanticized in recent decades. In the 21st century, the example of Internet companies like Alphabet, formerly Google (GOOG), and Meta (META), formerly Facebook, both of which have made their founders enormous wealth, have excited people about the idea of ​​becoming an entrepreneur.

Unlike traditional professions where there is often a defined path, the path to entrepreneurship is a mystery to most. What works for one entrepreneur may not work for the next and vice versa. However, there are seven general steps that most, if not all, successful entrepreneurs have followed:

Ensure financial stability

This first step is not mandatory, but it is definitely recommended. While entrepreneurs have built successful businesses while they weren’t quite as financially strong (think Facebook, now Meta, founder Mark Zuckerberg as a college student), starting with a decent cash supply and securing ongoing funding can only do a budding entrepreneur help increase his personal growth runway and give them more time to work on building a successful business instead of worrying about making a quick buck.

Build a diverse skill set

Once a person has strong finances, it is important to build diverse skills and then apply those skills in the real world. The beauty of step two is that it can be done at the same time as step one.

Skill building can be achieved through learning and trying new tasks in real-world environments. For example, if an aspiring entrepreneur has a background in finance, they can move into a sales role at their existing company to learn the soft skills needed to succeed. Once a diverse skillset is built, it gives an entrepreneur a toolkit to rely on when faced with the inevitability of difficult situations.

There has been much debate as to whether a degree is necessary to become a successful entrepreneur. Many famous entrepreneurs are famous for dropping out of college: Steve Jobs, Mark Zuckerberg, and Larry Ellison to name a few.

While a degree isn’t strictly necessary to build a successful business, it can teach young people a lot about the world in many other ways. And these famous college dropouts are the exception rather than the rule. College may not be for everyone and the choice is personal, but it’s something to think about, especially with the high price of a college education in the US.

It is not true that a major in entrepreneurship is necessary to start a business. People who have built successful businesses have studied many different subjects and this can open your eyes to a different mindset that can help you build your business.

Consume content across multiple channels

As important as building diverse skills is, so is the need to consume a diverse spectrum of content. This content can be in the form of podcasts, books, articles or lectures. Importantly, whatever the channel, the content should be varied. An aspiring entrepreneur should always familiarize themselves with the world around them so that they can look at industries from a fresh perspective, giving them the opportunity to build a business in a specific sector.

Identify a problem to solve

By consuming content across multiple channels, an aspiring entrepreneur is able to identify various problems to solve. A business adage says that a company’s product or service must solve a specific pain point; either for another company or for a consumer group. By identifying a problem, an aspiring entrepreneur is able to build a business around solving that problem.

It’s important to combine steps three and four so that it’s possible to identify a problem to solve by looking at different industries as an outsider. This often gives an aspiring entrepreneur the ability to see a problem that others may not see.

Solve this problem

Successful startups solve a specific pain point for other companies or for the public. This is referred to as “add value within the problem”. Only by adding value to a specific problem or pain point does an entrepreneur become successful.

Suppose you realize that scheduling a dentist appointment is complicated for patients and dentists are losing clients as a result. The value could be in building an online appointment system that makes booking appointments easier.

network like crazy

Most entrepreneurs cannot do it alone. The business world is a cutthroat world and any help you can get will always help and reduce the time it takes to run a successful business. Networking is crucial for any new entrepreneur. Meeting the right people who can introduce you to contacts in your industry such as Having the right suppliers, financiers and even mentors can mean the difference between success and failure.

Attending conferences, emailing and calling people in the industry, talking to your cousin’s friend’s brother who is in a similar business will help you get out into the world and discover people who you can lead. Once you get your foot in the door with the right people, running a business becomes a lot easier.

Lead by example

Every entrepreneur has to be a leader in his company. Merely meeting daily requirements will not lead to success. A leader must work hard, motivate and inspire their employees to reach their best potential, which leads to the success of the company.

Check out some of the biggest and most successful companies; they all had great leaders. Apple and Steve Jobs, Bill Gates and Microsoft, Bob Iger and Disney and so on. Study these people and read their books to see how you can be a great leader and become the leader your people can follow by example.

corporate finance

Given the risk of a new business, raising capital is a particular challenge, and many entrepreneurs deal with it via bootstrapping: funding a business using methods such as using their own money, providing sweat capital to reduce labor costs, minimizing inventory, and factoring Requirements.

While some entrepreneurs are lone wolves struggling to get small businesses off the ground on a tight budget, others are embracing partners endowed with better access to capital and other resources. In these situations, new businesses may receive funding from venture capitalists, angel investors, hedge funds, crowdfunding, or through more traditional sources such as bank loans.

Resources for Entrepreneurs

Various sources of funding are available for entrepreneurs starting their own business. Obtaining a small business loan through the Small Business Administration (SBA) can help entrepreneurs get the business off the ground with affordable loans. SBA helps connect businesses with credit providers.

When entrepreneurs are willing to give up a piece of equity in their business, they may find funding in the form of angel investors and venture capitalists. These types of investors offer advice, mentoring, and connections in addition to the capital.

Crowdfunding has also become a popular way for entrepreneurs to raise capital, particularly through Kickstarter. An entrepreneur creates a page for their product and a financial goal to achieve while promising donors specific rewards such as products or experiences.

Bootstrapping for Entrepreneurs

Bootstrapping refers to building a business solely from your savings as an entrepreneur and from the initial sales of your business. This is a difficult process as all financial risk lies with the entrepreneur and there is little room for error. If the business fails, the entrepreneur may also lose all of their life savings.

The benefit of bootstrapping is that an entrepreneur can run the business with their own vision and without outside interference or investors demanding quick profits. That being said, the support of an outsider can sometimes do more for a business than harm. Many companies have had success using the bootstrapping strategy, but it’s a tough road to take.

Small Business vs. Entrepreneurship

A small business and entrepreneurship have a lot in common, but they are different. A small business is a business, usually a sole proprietorship or partnership, that is not medium or large, operates locally and does not have access to a large amount of resources or capital.

Entrepreneurship is when a person who has an idea acts on that idea, usually to disrupt the current market with a new product or service. Entrepreneurship usually starts as a small business, but the long-term vision is much larger to make big profits and capture market share with an innovative new idea.

How Entrepreneurs Make Money

Entrepreneurs make money like any business: they strive to generate revenue that exceeds costs. Increasing sales is the goal that can be achieved through marketing, word of mouth and networking. It is also important to keep costs down as this translates into higher profit margins. This can be achieved through efficient operation and eventually economies of scale.

Taxes for Entrepreneurs

The taxes you have to pay as an entrepreneur depend on how you structure your company.

Sole proprietorship: A corporation formed in this way is an extension of the individual. Business income and expenses are entered on Appendix C of your personal tax return and you are taxed at your individual tax rate.

Partnership: A partnership works like a sole proprietorship for tax purposes, with the difference that income and expenses are divided among the partners.

There are many benefits entrepreneurs can gain from taxes such as: B. the deduction of home office and ancillary costs, mileage allowance for business trips, advertising and travel expenses.

C Corporation: A C corporation is a separate legal entity and has separate taxes that are filed with the IRS by the business owner. Income from business operations is taxed at the corporation tax rate and not at the income tax rate.

Limited Liability Company (LLC) or S Corporation: These two options are taxed the same way as a C corporation, but usually at lower amounts.

7 characteristics of entrepreneurs

What else do entrepreneurial success stories have in common? They invariably involve hardworking people engaged in things they are naturally passionate about.

If the adage is to be believed, “Find a way to get paid for the work you’d do for free,” passion is arguably the most important component startup business owners need to have, and every advantage helps.

While the prospect of becoming your own boss and amassing a fortune is alluring to entrepreneurial dreamers, the potential downside to hanging up your own clapboard is tremendous. Income is not guaranteed, employer-funded benefits fall by the wayside, and if your business loses money, your personal wealth can suffer. not just the bottom line of a company. But adhering to a few tried-and-true principles can go a long way toward spreading risk. Below are some qualities required to be a successful entrepreneur.

1. Versatile

When starting out, it’s important to handle sales and other customer interactions in person whenever possible. Direct customer contact is the best way to get honest feedback on what the target market likes and what you could do better. If being the only customer interface isn’t always practical, business owners should train employees to solicit customer comments as a matter of course. Customers not only feel strengthened by this, but more satisfied customers are also more likely to recommend companies to others.

Personal answering is one of the key competitive advantages work-from-home entrepreneurs have over their larger competitors. In an era of high-tech backlash, when customers are frustrated with automated replies and touch-tone menus, hearing a human voice is a sure-fire way to attract new customers and make existing customers feel valued. an important fact considering that around 80% of all business is generated from repeat customers.

Paradoxically, while customers appreciate high-touch phone access, they also expect a highly polished website. Even if your business isn’t in a high-tech industry, entrepreneurs still need to use internet technology to get their message across. A garage startup can have a better website than an established $100 million company. Just make sure there’s a live human on the other end of the phone number listed.

2. Flexible

Few successful business owners find perfect formulas right out of the gate. On the contrary: ideas have to change over time. Whether you’re tweaking product design or changing foods on a menu, finding the perfect sweet spot takes trial and error.

Howard Schultz, former Starbucks chairman and CEO, initially thought that playing Italian opera music through store speakers would punctuate the Italian coffeehouse experience he was trying to replicate. But customers saw things differently and didn’t seem to like arias with espresso. As a result, Schultz dropped the opera and introduced comfortable chairs instead.

3. Economical

At the heart of every successful new business, a venture beats the lifeblood of a steady cash flow, which is essential to purchasing inventory, paying rent, maintaining equipment and promoting the business. The key to staying in the black is rigorous accounting of income and expenses. And since most new businesses don’t turn a profit within the first year, entrepreneurs can help mitigate the risk of a lack of funding by setting money aside for that emergency. In this context, it is important to keep personal and business expenses separate and never resort to business means to meet the expenses of daily living.

Of course, it’s important to pay yourself a realistic salary that will cover the basic necessities, but not much more; especially when investors are involved. Of course, such sacrifices can strain relationships with loved ones, who may have to adjust to a lower standard of living and worry about jeopardizing family wealth. For this reason, entrepreneurs should communicate these issues in a timely manner and ensure that significant family members are on board spiritually.

4. Resilient

Running your own business is extremely difficult, especially starting one from scratch. It takes a lot of time, dedication and failure. A successful entrepreneur must show resilience to any difficulties on the way forward. Whenever they encounter failure or rejection, they must keep moving forward.

Starting your business is a learning process, and every learning process comes with a learning curve that can be frustrating, especially when money is involved. It is important to never give up in difficult times if you want to be successful.

5. Focused

Similar to resilience, a successful entrepreneur needs to stay focused and eliminate the noise and doubt that comes with running a business. Getting distracted, not believing in your instincts and ideas, and losing sight of the end goal is a recipe for failure. A successful entrepreneur must always remember why they started the business and stay on course to see it through.

6. Business Smart

Knowing how to manage money and understanding financial statements is vital for anyone running their own business. It’s important to know your income and expenses and how to increase or decrease them. Making sure you don’t burn any money can help keep the business alive.

Executing a sound business strategy, knowing your target market, your competitors, and your strengths and weaknesses will enable you to maneuver the difficult landscape of running your business.

7. Communicator

Successful communication is important in almost every area of ​​life, regardless of what you do. It is also of paramount importance in running a business. From communicating your ideas and strategies to potential investors, to communicating your business plan to your employees, to negotiating contracts with suppliers, all of this requires successful communication.

Entrepreneurship in Business

In the language of economists, an entrepreneur functions as a coordinating agent in a capitalist economy. This coordination takes the form of redirecting resources to new potential profit opportunities. The entrepreneur moves various tangible and intangible resources, thereby promoting the formation of capital.

In a market full of uncertainty, it is the entrepreneur who can actually help remove the uncertainty by making decisions or taking risks. Since capitalism is a dynamic win-and-loss system, entrepreneurs drive efficient discovery and consistently reveal knowledge.

Established companies face increasing competition and challenges from entrepreneurs, which often spurs them on to R&D efforts as well. Economically, the entrepreneur upsets the course toward stationary equilibrium.

In 2021, there were 32.5 million small businesses in the United States.

How entrepreneurship helps economies

Encouraging entrepreneurship can have a number of positive effects on an economy and a society. First of all, entrepreneurs create new businesses. They invent goods and services, leading to employment, and often create a ripple effect that leads to more and more development. For example, after some IT companies were established in India in the 1990s, companies in related industries such as call center operations and hardware providers also started to develop and offer support services and products.

Entrepreneurs contribute to gross national income. Existing companies can remain confined to their markets and eventually reach an income ceiling. But new products or technologies create new markets and new prosperity. And more jobs and higher incomes add to a nation’s tax base and allow for more government spending on public projects.

Entrepreneurs create social change. They break traditions with unique inventions that reduce reliance on existing methods and systems, sometimes rendering them obsolete. Smartphones and their apps, for example, have revolutionized work and leisure around the world.

Unternehmer investieren in Gemeinschaftsprojekte und helfen Wohltätigkeitsorganisationen und anderen gemeinnützigen Organisationen, indem sie Anliegen unterstützen, die über ihre eigenen hinausgehen. Bill Gates zum Beispiel hat sein beträchtliches Vermögen für Bildungs- und Gesundheitsinitiativen eingesetzt.

Unternehmerische Ökosysteme

Es gibt Untersuchungen, die zeigen, dass ein hohes Maß an Selbständigkeit die wirtschaftliche Entwicklung bremsen kann: Unternehmertum kann, wenn es nicht richtig reguliert wird, zu unlauteren Marktpraktiken und Korruption führen, und zu viele Unternehmer können Einkommensungleichheiten in der Gesellschaft schaffen. Insgesamt ist Unternehmertum jedoch ein entscheidender Motor für Innovation und Wirtschaftswachstum. Daher ist die Förderung des Unternehmertums ein wichtiger Bestandteil der Wirtschaftswachstumsstrategien vieler lokaler und nationaler Regierungen auf der ganzen Welt.

Zu diesem Zweck unterstützen Regierungen üblicherweise die Entwicklung unternehmerischer Ökosysteme, zu denen Unternehmer selbst, staatlich geförderte Hilfsprogramme und Risikokapitalgeber gehören können. Sie können auch Nichtregierungsorganisationen wie Unternehmerverbände, Gründerzentren und Bildungsprogramme umfassen.

Beispielsweise wird das kalifornische Silicon Valley oft als Beispiel für ein gut funktionierendes unternehmerisches Ökosystem genannt. Die Region verfügt über eine gut entwickelte Risikokapitalbasis, einen großen Pool an gut ausgebildeten Talenten, insbesondere in technischen Bereichen, und eine breite Palette von staatlichen und nichtstaatlichen Programmen zur Förderung neuer Unternehmen und zur Bereitstellung von Informationen und Unterstützung für Unternehmer.

Fragen für Unternehmer

Der Einstieg in die unternehmerische Laufbahn zum „sein eigener Chef“ ist spannend. Aber stellen Sie neben all Ihren Recherchen sicher, dass Sie Ihre Hausaufgaben über sich selbst und Ihre Situation machen.

Ein paar Fragen, die Sie sich stellen sollten:

Habe ich die Persönlichkeit, das Temperament und die Denkweise, um die Welt zu meinen eigenen Bedingungen zu erobern?

Verfüge ich über das erforderliche Ambiente und die erforderlichen Ressourcen, um meine ganze Zeit meinem Vorhaben zu widmen?

Habe ich einen Ausstiegsplan mit einem klar definierten Zeitplan bereit, falls mein Unternehmen nicht funktioniert?

Habe ich einen konkreten Plan für die nächsten “x” Monate oder werde ich aufgrund familiärer, finanzieller oder anderer Verpflichtungen auf halbem Weg vor Herausforderungen stehen? Habe ich einen Minderungsplan für diese Herausforderungen?

Habe ich das erforderliche Netzwerk, um bei Bedarf Hilfe und Rat einzuholen?

Habe ich Brücken zu erfahrenen Mentoren gefunden und gebaut, um von ihrem Fachwissen zu lernen?

Habe ich den Rohentwurf einer vollständigen Gefährdungsbeurteilung inklusive Abhängigkeiten von externen Faktoren erstellt?

Habe ich das Potenzial meines Angebots realistisch eingeschätzt und wie wird es im bestehenden Markt abschneiden?

Wie werden meine Konkurrenten reagieren, wenn mein Angebot ein bestehendes Produkt auf dem Markt ersetzen wird?

Ist ein Patent sinnvoll, um mein Angebot abzusichern? Habe ich die Kapazität, so lange zu warten?

Habe ich meinen Zielkundenstamm für die Anfangsphase identifiziert? Habe ich Skalierbarkeitspläne für größere Märkte parat?

Habe ich Verkaufs- und Vertriebskanäle identifiziert?

Fragen, die sich mit externen Faktoren befassen:

Entspricht mein unternehmerisches Vorhaben den örtlichen Vorschriften und Gesetzen? Falls lokal nicht möglich, kann und soll ich in eine andere Region umziehen?

Wie lange dauert es, die erforderlichen Lizenzen oder Genehmigungen von den zuständigen Behörden zu erhalten? Kann ich so lange überleben?

Habe ich einen Plan, wie ich die notwendigen Ressourcen und Fachkräfte beschaffen kann, und habe ich dafür Kostenüberlegungen angestellt?

Was sind die vorläufigen Fristen für die Markteinführung des ersten Prototyps oder für die Inbetriebnahme der Dienste?

Wer sind meine Hauptkunden?

An welche Finanzierungsquellen muss ich mich möglicherweise wenden, um so groß zu werden? Ist mein Unternehmen gut genug, um potenzielle Stakeholder zu überzeugen?

Welche technische Infrastruktur benötige ich?

Sobald das Unternehmen gegründet ist, werde ich über ausreichende Mittel verfügen, um Ressourcen zu beschaffen und es auf die nächste Stufe zu bringen? Werden andere große Firmen mein Modell kopieren und meinen Betrieb beenden?

Was bedeutet es, ein Unternehmer zu sein? Ein Unternehmer ist eine Person, die das Risiko eingeht, ihr eigenes Unternehmen auf der Grundlage einer Idee oder eines Produkts, das sie entwickelt haben, zu gründen, während sie die meisten Risiken übernimmt und die meisten Gewinne des Unternehmens einfährt.

Was ist die beste Definition von Unternehmertum? Unternehmertum ist der Prozess der Unternehmensgründung von der Idee bis zur Realisierung.

Was sind die 4 Arten von Unternehmern? Kleines Unternehmen, skalierbares Startup, großes Unternehmen und soziale Netzwerke.

Was sind die 7 Merkmale von Unternehmern? Vielseitig, belastbar, flexibel, geldbewusst, geschäftstüchtig, fokussiert und kommunikativ.

The final result

Ein Unternehmer ist eine Person, die eine Idee oder ein Produkt nimmt und ein Unternehmen gründet, ein Prozess, der als Unternehmertum bezeichnet wird. Die Gründung eines Unternehmens erfordert viel Arbeit und Hingabe, für die nicht jeder geschaffen ist. Unternehmer sind hochmotivierte Risikoträger, die eine Vision haben und viel opfern, um diese Vision zu erreichen.

Entrepreneurs enter the market because they love what they do, believe their product will have a positive impact, and hope to make profits from their efforts. The steps entrepreneurs take fuel the economy; they create businesses that employ people and make products and services that consumers buy.

Stall ideas for your school fair

New parents in the school can bring new ideas. Look for businesses owned by the school. All items should be priced before the start of the show. In general, prices should be slightly below retail prices for a similar item. Don’t change prices until late in the day – towards the end of the fair, it may be decided to drop prices to encourage a quick sale. This should be discussed with the exhibition coordinator. Always ask companies if they are willing to supply consignment goods – this saves you from leftover stock at the end of the day and saves you from price cuts.

Below are a number of ideas that you may find useful when organizing your school fair. Some are only suitable for outdoor exhibitions but could be adapted for indoor use.

Asteroid Blaster

An easy sideshow for the kids to make. All you need are some very large squirt guns and some empty soda bottles – 3 liter bottles are good. The aim of the game is to balance a ball on the bottle, which has to be hit by a jet of water from the water pistol. If you remove the ball you win a prize. Spray paint your bottles with crazy colors and make your balls look like little planets. Experiment with different balls – ping-pong, golf, etc. to find what matches the power of your water guns. You don’t want everyone to win, but you don’t want it to be too hard either. You can vary the level of difficulty – each ball must be removed or just one.

balloons

Either ask a sponsor to provide printed balloons and helium to give away, or ask your local balloon shop to set up a booth.

book status

Second hand books and magazines are always popular – add DVDs and videos to your stand to expand your range

Bust a balloon

Great fun and easy to run, just have balloons attached to a board with a number behind each board. If the bettor destroys the balloon, he wins the prize corresponding to the number behind it. You can buy cheap toys as prizes and have a couple of great prizes for interest

cake stand

During the last week of the fair, send empty cake boxes home with a request for cakes to be delivered to the school the day before the fair.

coffee and tea stand

A must and given the popularity of specialty coffees, consult your local coffee shop to set up a cappucino machine

craft booth

Start a crafting group months before the event to create crafting items. If you can’t start a crafting group, you can always search your local markets for a suitable stall and ask them to pay a percentage of the earnings. Craft stalls are particularly useful if your county fair is held over Mother’s Day weekend. Consider dividing up your craft supplies – jams and pickles at a gourmet food stand, skincare and bathroom luxuries at a pamper stand, toys and baby clothes at a baby stand. You can also create themes around colors – a blue booth, a red booth, a pink booth.

Dunk-a-Teacher

Without a doubt one of the most popular activities with the kids! If you can’t source a dunk tank, consider building your own stand for a wet sponge toss – just as effective!

duck pond

Fishing plastic ducks out of a pond is an age old favorite. Insert a small metal hoop into the duck’s mouth and a small hook into the end of a bamboo pole. Number the base of each duck and make even number winners. You just need a small prize like a mini candy bar.

face painting

Always popular with the little ones. Select your designs in advance and make sure anyone can reproduce them. Photographing motifs and laminating pictures – this makes the choice easy for the little ones. Check out temporary tattoos for older kids. You can also hire professional face painters who will pay you a percentage of their earnings.

flower stand

The day before, take a trip to the flower market – you can make your own bouquets or buy ready-made ones. If you don’t live in a capital city with a flower market, source a local flower farm. Make sure you place your order on time to avoid disappointment.

farmers market

Consider hosting a farmers market at your fair to attract additional visitors.

Gourmet Food Stand

Pickles, jams and preservatives, gourmet biscuits and cakes, all very popular. This stand can complement the craft stand.

hair color stable

Especially popular with the kids – spray on wild colors for great fun. A good alternative to face painting for older children. You will have to buy several boxes of spray paint as it is very, very popular.

Ice

Ice cream is always a popular treat, especially on a hot day. It can be difficult for a school to set up its own ice cream stand due to the need for refrigeration. Booking an ice cream vendor/van is the ideal solution

lucky plate

Another simple sideshow with a paddling pool. Fill the paddling pool with water and float a small porcelain plate in the water. Place a €2 coin in the plate. Draw a line about 2 meters from the pool. If you can throw a dime on the plate, you win the prize. Practice while setting up the stall to determine the best distance for the leash. The 20c coins usually bounce off the plate.

Name the…

Have an item like a Baby Born Doll and sell tickets to name it. At the end of the day, the winning name is drawn from a box and the person who picked that name wins the doll. Alternatively, you can have already selected 100 names and sell the names

school goods

Sell ​​pre-printed school supplies like t-shirts, hats, mugs, keychains, and tea towels. This is especially good if you’re celebrating a school anniversary

white elephant

White elephant, pre-loved, trash and treasure – there is always a market for second-hold goods. If you can offer a fundraising service, you will always get a wide variety of items. You may also need to offer delivery of larger items.

Do you have any suggestions for great booths – please add them to the comments section below

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Are you looking for things for kids to make and sell at school (maybe for market day)? Here are 22 unique things kids, tweens, and teens can sell at school.

I love encouraging kids of all ages to roll up their sleeves and dive headfirst into entrepreneurship.

Because of this, I decided to tackle both brainstorming and finding some of the best things for kids to make and sell at school.

These are good for any time of year but especially for your child’s market day at school.

Before we get into all the details, let’s look at how to choose the best things for your child (you know, best selling and least time consuming?).

How to choose the best things for your child to make and sell

First and foremost, make sure you read your middle school (or elementary school) rules for market day.

You don’t want your child to put in all that work and effort just to not be able to sell anything!

Next, you want to do at least one practice run with what they’re making and how they plan to display and distribute it.

For example, if you decide to make the unicorn body butter recipe below and wrap it in the ice cream cone (using live scooping for more sales), then you’ll want your child to practice:

Create the recipe and use it to make sure it’s good

Pack an ice cream cone and let it sit for a few days to see what adjustments need to be made

Scoop the body butter into the ice cream cone, put on the cellophane wrap, and tie a bow in front of other people

Let’s talk about what to think about when helping your child, tween and teen choose a craft or thing to sell (for market day, TREPS ideas and beyond).

Psst: Does your kid need help pricing their market day product (and you want to give them a money/entrepreneurship lesson)? Here is my market lesson plan to teach kids how to value their market day product for sale. Here are also 3 sample business plans for kids. Could make great, complementary market day projects!

I’ll help you with some bullet points to consider:

Skillset required to craft the craft or thing

How many can your child create at once (remember, they will create many of these!)

Material cost of creating the craft

end customer and what they want to buy

What other kids (aka the competition) will create and how your craft stacks up

Still, the best market day ideas your kid could make and sell would be something that…

Kids/tweens/teens want to buy

It only costs a few dollars or less to make

Suitable for scaled production (i.e. your child can make several at the same time)

Is the age reasonable or can it be under adult supervision?

Is something your kid enjoys making (I have 17 ideas for boys crafts for sale too)

You either already know how to create, or you can learn it fairly easily and quickly

Unique things for sale at school for market day

If you’re looking for unique things to sell at your next school market day (and anything else to sell at school besides candy) then you’ve come to the right place.

Find brand new, creative business fair ideas below (and some seriously creative ways to package your products!).

1. Figure 8 Mason Jar

Grab a ton of popsicles and mason jars (don’t have some mason jars hanging around? You can also buy some cellophane cones or something else that will hold the popsicles).

Have your child print out general answers to yes/no questions on the computer to print, cut and glue onto the popsicle sticks.

Example answers:

You can bet on it

You can rely on it

I wouldn’t expect it

Only if you keep trying

Yes

no

Maybe

After a year

Sometime in the future

etc.

Tip: You should write in a few answers, print them out and test if it fits on the popsicle sticks you have.

Fill jars or containers with the popsicle sticks. Put on a lid, create some labels for the top to say “Ask your yes/no questions” or “Get the answers you’re looking for” or “Figure 8 glass” or anything else you can think of. to display.

Demonstrate these on your market day by asking passing customers to ask their questions, then randomly pulling out a popsicle stick and getting the answer they’re looking for.

2. Ice Cream Cone Body Butter

Kids (of all ages) love ice cream cones, right? Your child can make a body butter using one of the following recipes:

Then use an ice cream scoop (or baker’s piping bag) and fill an ice cream cone with the body butter. Wrap it in cellophane bags – tie it with a bow or twist – and sell, sell, sell!

Bonus tip: If you can practice at home, put all your body butter in an old plastic ice cream cup and scoop it live on market day at your school. You might just get a crowd 😊).

Here’s an ice cream cone stand you can use for display!

3. Slime bar with ice cream scoop

There are literally TONS of homemade slime recipes out there. My twist on this?

Is to create your favorite slime recipes to sell but package them a little differently.

They will create 3-4 different varieties and then…wait for it…sell them by the spoonful.

Depending on your cost of making the product, you can charge $0.25/scoop, $0.50/scoop, or even $1.00/scoop.

Would you like to draw more attention to your stand on market day? Go ahead and let the kids scoop out the slime they want themselves.

Here are some slime recipes to get you started:

Pack these in cute Chinese takeout boxes. What an attractive presentation AND a cool product to sell!

4. Hand dipped chopsticks

These might be my favorite school business fair ideas (could be because I used to live in Japan!).

Children love to experiment with chopsticks while eating. And decorating the top of chopsticks (not where they eat with them, but where their hands go) is so easy!

Here’s a pack of 10 bamboo chopsticks that are dishwasher safe, and here’s dishwasher safe paint to dip the non-eating ends of each pair of chopsticks. You can pop a layer of color, let it dry, and then create a new layer of color over the last color and repeat until you’ve created a rainbow look.

Note: You should add a note that the chopsticks and paint are premium and dishwasher safe, but that hand washing would likely last them longer.

5. DIY Phone Pop Sockets

You know those little phone holders on the back of a smartphone? Your child can make something to sell.

Here is a video tutorial:

6. Shoe tag

Help other kids decorate their shoes and express themselves by making shoe tags!

7. Donut soaps

How cute are these DIY Donut Soaps? I would definitely want to buy some of these as gifts from a kid or teen who made them!

Psst: Make sure you really mark these as inedible!

8. Homemade sprinkles in jars

Check out these adorable homemade sprinkles your kid can sell in cute little jars!

Crafts for children to craft and sell

Here are even more craft ideas for kids to make and sell.

Note that many of these require adult supervision, so please plan ahead. And if you’re looking for your kid to start a real business out of their market day product? Maybe check out the Teen Entrepreneur Toolbox.

1. Batik Wax Bookmark

Why aren’t you the first person to make wax bookmarks?

Here is a tutorial on how to make wax paper from old candles. You can also use paraffin (and dye it different colors and then create a marbling effect). Cut the bookmark out of your wax paper, punch a hole at the top and add a cool tassel

The texture will be fun!

2. Door hanger

What kid, tween or teen wouldn’t want a cool door hanger to be proudly displayed outside their room?

Decorate these wooden door hangers however you like.

An idea for getting started? Paint with chalk paint and include a piece of chalk as part of your product.

3. Gem Soaps

These soaps are awesome! Bright, in the form of gems…what’s not to love?

They’re also ridiculously easy to make. Here’s a tutorial on how to make them, plus everything you need.

Wrap these in adorable party treat gift boxes (which happen to be cheap too!).

4. Popsicle soap

These popsicle soaps are not only easy to make but super cute too!

You can buy some cellophane to wrap around the soap item and then tie it off with a twisty.

5. Jell-O lip gloss

Buy a set of lip gloss containers and then head over to this post to learn how to make a bulk batch of lip gloss.

Tip: Make sure to read the comments section – there are some helpful tips from people who have used this recipe such as:

Cheap things for children to craft and sell

I’ve heard from many teachers that they need cheap ideas for things that kids can make and sell for market day – not everyone can afford many of the materials that some of the crafts involve.

Do not worry! I’ve dedicated this section to the cheapest market day ideas.

1. Decorated marshmallows

What I love about this idea is that not only can you get all the ingredients at the grocery store, but it’s pretty cheap without looking cheap. In fact, you can make some gorgeous looking marshmallows out of it!

Grab a bag of marshmallows, popsicles (in a pinch? You can use toothpicks), a bag of melted sugar, and sprinkles.

Melt the candy melts in a bowl and poke the marshmallow in with the toothpick/popsicle stick. Dip the marshmallow into the candy melt (doesn’t have to be the whole marshmallow—it could just be the bottom part), then dip into the sprinkles. Place on a cooling rack or plate to dry.

Create a display case by turning a bowl over and placing a plate on top. Voila!

2. Origami Animals

While this is a bit more tedious, it is definitely cost-effective. You need to look at an origami book in the library and get origami paper.

Here are a few online tutorials that are pretty easy to follow:

3. Soap jellies

These are super easy and very cheap to mass produce. You’ll need things like packets of gelatin, liquid soap, and ice trays!

I think kids will like how squishy they feel.

4. Create a folder to print out

In this age of digital products that we live in, why not let your child start creating printable products early?

Help them use free PDF creation software like Canva.

You can choose the PDF option and then create a printable binder that kids would love to put on the front of their binder, or punch holes and pin in their binder to give it a name.

Here are some video tutorials on using Canva.

Then help them print out a few of these at the office store (I would do color, and you can usually find a coupon for 15% off printing at places like Office Depot).

5. Super Soaker Sponge Balls

Head over to the dollar store and grab some kitchen sponges and twine, then check out this tutorial on how to make super soaker sponge balls. Here’s a bunch of them.

6. Create marbled shaving cream paper

This makes my cheap list IF you have several of the ingredients at home (which I think you could). Get some shaving cream and white paper from the dollar store. You may already have food coloring and the other materials.

7. Umbrellas for cupcake liners

Grab some toothpicks and muffin cases and you’ve got pretty much everything you need for this craft.

8. Stress Ball

You’ll need balloons and some flour for this stress ball craft – that’s about it!

9. Marshmallow shooter

You’ll need a bag of mini marshmallows, some of those cheap plastic cups, and a bag of balloons. Here is the tutorial. It’s simple… and this could be the hit of the market day!

10. Confetti bags

You could buy really small bags and have your kid cut up all the paper in your trash can to make confetti. Children can buy one pack each.

Because… what kid doesn’t want to throw confetti around?

11. Themes for smartphone home screen and lock screen

Many children have their own smartphone. Your student could design a wallpaper that kids can buy and use on their phones.

Here’s an example of one.

You may want to write down and print out instructions for installing the wallpaper on an iPhone to hand out to customers.

That completes my list of things kids can make and sell – it was so much fun brainstorming and coming up with some of these cool ideas! Leave a comment below with your child’s own market day ideas and it just might appear in the list above.

Pay people for the opportunity to play a round. Then award prizes to the winners. Use a classic carnival game like ring toss or dart toss, or create your own game. It’s easy to make money from gaming because it doesn’t cost a lot of money to set up or run and your customers can keep coming back to gaming.

Writing a business plan can seem daunting if you’ve never done it before. However, it is something you cannot afford to put off or ignore. A solid business plan is critical to the survival and development of your business. Alan Gleeson explains how to do it right

1. Tailor your business plan to your audience

The starting point for any business plan is the audience. who will read it What is the purpose of the plan – should it secure funding? You may need to recruit a business partner. While the key facts and figures remain the same, tailor different versions of your plan to meet the needs of specific audiences. For example, a potential investor is looking for a clear explanation of how to get a good return on their investment. Your bank account manager will look for evidence that you can afford to repay a loan before committing funds.

2. Research your market thoroughly

As viewers of the BBC series Dragons’ Den know, potential investors value market knowledge, so your research needs to be thorough. Information about your market needs to be detailed in your business plan and you need to show a great awareness of your opportunities and threats, which requires considering your strengths and weaknesses.

3. Identify your competitors

To understand your market, you need to recognize all of your competitors – who they are, their strengths and weaknesses, and the likely impact on your business. All businesses are competitive – your plan should demonstrate that you have a clear strategy for dealing with all of your competitors.

The Best Software Tools for Growing Your Startup Using the right software tools is essential when starting your business and can save you time, money and frustration. We want to help you get started, grow and thrive. To improve your productivity and run your business smoothly, take a look at these tools from our donut partners:

4. Pay attention to details

Your business plan should be to the point, but it must include enough detail to ensure the reader has the information they need to understand your business. Your plan should let people believe in your skill and professionalism, which means it shouldn’t contain spelling mistakes, mistakes, unrealistic assumptions, or fantasy characters.

5. Focus on the opportunities your startup offers to investors

If you are looking for an investment, describe the opportunity clearly. Why should anyone invest in your startup and not another? What is your unique selling proposition – what makes you special? Why do people buy from you? Your plan should answer all of these key questions.

6. Don’t omit important facts

Basically, your plan must describe your products/services, customers, competitors, management team, operations, finances, development goals and strategy. If you omit important facts, it will reflect badly on you when presenting your plan to others.

7. Get your financial information right

The financial information in your business plan is subject to a special check. The cash flow should be fully documented and your sales forecasts should be well-founded. While cost is easier to predict than revenue, both must be considered. It will be easier to keep track of and report on both if you have a separate business bank account. If numbers really aren’t your thing, seek help in creating your business plan, perhaps from an accountant or other trusted advisor.

8. Make your executive summary convincing

Your executive summary is arguably the most important part of your business plan. More experienced readers will read it first so they can quickly find out the most important facts and figures. If your summary doesn’t engage them and encourage them to read on, the battle is lost. A summary provides headlines and condenses your strategy into key points. Although it appears at the beginning of the document, write it to the end. By all means, make it appealing and impressive—but be realistic.

9. Get a second opinion from a management consultant

Once you have a draft of your plan ready, have it independently reviewed. Choose someone who can offer independent, constructive criticism—perhaps an accountant or management consultant. Your local chamber of commerce or business agency may be able to help you further. Your review may raise questions that you need to address in a revised draft.

10. Get your business plan right

A business plan should be a tool to help you assess performance and guide your strategy and the development of your business. It should contain concrete goals, deadlines and responsibilities. It needs to be reviewed and updated regularly. A successful business plan helps ensure your business is focused on what it needs to do to achieve its key goals.

Written by Alan Gleeson.

What is an entrepreneur?

An entrepreneur is a person who starts a new business, bears most of the risks and enjoys the most of the profits. The process of starting a business is known as entrepreneurship. The entrepreneur is generally viewed as an innovator, the source of new ideas, goods, services and businesses/or processes.

Entrepreneurs play a key role in any economy, using the skills and initiative needed to anticipate needs and bring good new ideas to market. Entrepreneurship that proves successful when it comes to taking the risks of starting a startup is rewarded with profits, fame, and opportunities for continued growth. Failing entrepreneurship leads to losses and reduced market presence for those involved.

KEY FINDINGS A person who takes the risk of starting a new business is called an entrepreneur.

An entrepreneur starts a business to realize his idea, known as entrepreneurship, which combines capital and labor to produce goods or services for a profit.

Entrepreneurship is very risky, but it can also be very rewarding as it creates economic wealth, growth and innovation.

Securing funding is critical for entrepreneurs: Funding resources include SBA loans and crowdfunding.

The way entrepreneurs file and pay taxes depends on the structure of the company.

1:37 Entrepreneurs

How entrepreneurship works

Entrepreneurship is one of the resources that economists categorize as an integral part of production, the other three being land/natural resources, labor and capital. An entrepreneur combines the first three of these to produce goods or provide services. They typically create a business plan, hire workers, acquire resources and finance, and provide leadership and management for the company.

Entrepreneurs often face many obstacles while building their business. The three that many of you cite as the biggest challenges are the following:

Overcome bureaucracy Hire talent Get funding

Economists have never had a single definition of “entrepreneur” or “entrepreneurship” (the word “entrepreneur” comes from the French verb “entreprendre”, meaning “to undertake”). Although the concept of an entrepreneur existed and had been known for centuries, classical and neoclassical economists left entrepreneurs out of their formal models: they assumed that perfectly rational actors would know perfect information and left no room for risk-taking or discovery. It was not until the mid-20th century that economists seriously attempted to include entrepreneurship in their models.

Three thinkers took center stage in engaging entrepreneurs: Joseph Schumpeter, Frank Knight, and Israel Kirzner. Schumpeter suggested that entrepreneurs—not just corporations—were responsible for creating new things in search of profit. Knight focused on entrepreneurs as carriers of uncertainty and believed that they were responsible for risk premia in financial markets. Kirzner viewed entrepreneurship as a process that led to discovery.

types of entrepreneurs

Not every entrepreneur is the same and not all have the same goals. Here are some types of entrepreneurs:

builder

Builders are trying to create scalable businesses within a short time frame. Builders typically generate $5 million in revenue in the first two to four years and continue to build up to $100 million or more. These individuals are trying to build a strong infrastructure by hiring the best talent and finding the best investors. They have high-spirited personalities suited to the rapid growth they desire but can make personal and business relationships difficult.

opportunist

Opportunistic entrepreneurs are optimistic individuals with the ability to spot financial opportunities, get in at the right time, stay on board during growth, and exit when a company is at its peak.

These types of entrepreneurs are concerned with profits and the wealth they will create, so they are drawn to ideas that will help them create residual or renewal income. Because they seek opportunities at the right time, opportunistic entrepreneurs can be impulsive.

innovator

Innovators are the rare individuals who come up with a great idea or product that no one has thought of before. Think Thomas Edison, Steve Jobs and Mark Zuckerberg. These individuals worked on what they loved and found business opportunities through it.

Instead of focusing on money, innovators are more concerned with the impact their products and services are having on society. These individuals are not the best when it comes to running a business as they are idea generators so they often leave day-to-day operations to those who are more capable in that regard.

specialist

These individuals are analytical and risk-averse. They have distinct skills in a particular area, acquired through education or training. A specialist contractor grows their business through networking and referrals, resulting in slower growth than a contractor.

4 types of entrepreneurship

As there are different types of entrepreneurs, there are also different types of businesses they start. Below are the main different types of entrepreneurship.

small business

Small business entrepreneurship is the idea of ​​starting a business without turning it into a big conglomerate or opening many chains. A single location restaurant, a grocery store, or a retail store where you sell your handmade goods are examples of small business entrepreneurship.

These people usually invest their own money and thrive when their business generates a profit they live on. They have no external investors and only take out a loan if it helps the business to continue.

Scalable startup

These are companies that start with a unique idea; Think Silicon Valley. The hope is to innovate with a unique product or service and continue to grow and continuously grow the business over time. This type of business often needs investors and large amounts of capital to develop their idea and reach multiple markets.

Large company

Large Company Entrepreneurship is a new business area created within an existing company. The existing company may be well placed to break into other sectors, or it may be well placed to participate in new technologies.

The CEOs of these companies either anticipate a new market for the company, or individuals within the company come up with ideas that they present to senior management to start the process.

Social Entrepreneurship

The goal of social entrepreneurship is to create benefits for society and humanity. They focus on helping communities or the environment through their products and services. They are not driven by profit, but by helping the world around them.

How to become an entrepreneur

After giving up her professional dancing shoes, Judi Sheppard Missett became an entrepreneur by giving dance classes to civilians to earn some extra money. But she soon found that women who came to her studio were less interested in learning precise steps and more interested in losing weight and toning up. Sheppard Missett then trained instructors to teach their routines to the masses and Jazzercise was born. A franchise deal followed. Today the company has more than 8,300 locations worldwide.

After taking an ice cream correspondence course, two entrepreneurs, Jerry Greenfield and Ben Cohen, combined $8,000 in savings with a $4,000 loan, rented a gas station in Burlington, Vt., and bought equipment to make ice cream with a unique taste for the local market. Today, Ben & Jerry’s has annual sales in the millions.

Although the self-made person has always been a popular figure in American society, entrepreneurship has become heavily romanticized in recent decades. In the 21st century, the example of Internet companies like Alphabet, formerly Google (GOOG), and Meta (META), formerly Facebook, both of which have made their founders enormous wealth, have excited people about the idea of ​​becoming an entrepreneur.

Unlike traditional professions where there is often a defined path, the path to entrepreneurship is a mystery to most. What works for one entrepreneur may not work for the next and vice versa. However, there are seven general steps that most, if not all, successful entrepreneurs have followed:

Ensure financial stability

This first step is not mandatory, but it is definitely recommended. While entrepreneurs have built successful businesses while they weren’t quite as financially strong (think Facebook, now Meta, founder Mark Zuckerberg as a college student), starting with a decent cash supply and securing ongoing funding can only do a budding entrepreneur help increase his personal growth runway and give them more time to work on building a successful business instead of worrying about making a quick buck.

Build a diverse skill set

Once a person has strong finances, it is important to build diverse skills and then apply those skills in the real world. The beauty of step two is that it can be done at the same time as step one.

Skill building can be achieved through learning and trying new tasks in real-world environments. For example, if an aspiring entrepreneur has a background in finance, they can move into a sales role at their existing company to learn the soft skills needed to succeed. Once a diverse skillset is built, it gives an entrepreneur a toolkit to rely on when faced with the inevitability of difficult situations.

There has been much debate as to whether a degree is necessary to become a successful entrepreneur. Many famous entrepreneurs are famous for dropping out of college: Steve Jobs, Mark Zuckerberg, and Larry Ellison to name a few.

While a degree isn’t strictly necessary to build a successful business, it can teach young people a lot about the world in many other ways. And these famous college dropouts are the exception rather than the rule. College may not be for everyone and the choice is personal, but it’s something to think about, especially with the high price of a college education in the US.

It is not true that a major in entrepreneurship is necessary to start a business. People who have built successful businesses have studied many different subjects and this can open your eyes to a different mindset that can help you build your business.

Consume content across multiple channels

As important as building diverse skills is, so is the need to consume a diverse spectrum of content. This content can be in the form of podcasts, books, articles or lectures. Importantly, whatever the channel, the content should be varied. An aspiring entrepreneur should always familiarize themselves with the world around them so that they can look at industries from a fresh perspective, giving them the opportunity to build a business in a specific sector.

Identify a problem to solve

By consuming content across multiple channels, an aspiring entrepreneur is able to identify various problems to solve. A business adage says that a company’s product or service must solve a specific pain point; either for another company or for a consumer group. By identifying a problem, an aspiring entrepreneur is able to build a business around solving that problem.

It’s important to combine steps three and four so that it’s possible to identify a problem to solve by looking at different industries as an outsider. This often gives an aspiring entrepreneur the ability to see a problem that others may not see.

Solve this problem

Successful startups solve a specific pain point for other companies or for the public. This is referred to as “add value within the problem”. Only by adding value to a specific problem or pain point does an entrepreneur become successful.

Suppose you realize that scheduling a dentist appointment is complicated for patients and dentists are losing clients as a result. The value could be in building an online appointment system that makes booking appointments easier.

network like crazy

Most entrepreneurs cannot do it alone. The business world is a cutthroat world and any help you can get will always help and reduce the time it takes to run a successful business. Networking is crucial for any new entrepreneur. Meeting the right people who can introduce you to contacts in your industry such as Having the right suppliers, financiers and even mentors can mean the difference between success and failure.

Attending conferences, emailing and calling people in the industry, talking to your cousin’s friend’s brother who is in a similar business will help you get out into the world and discover people who you can lead. Once you get your foot in the door with the right people, running a business becomes a lot easier.

Lead by example

Every entrepreneur has to be a leader in his company. Merely meeting daily requirements will not lead to success. A leader must work hard, motivate and inspire their employees to reach their best potential, which leads to the success of the company.

Check out some of the biggest and most successful companies; they all had great leaders. Apple and Steve Jobs, Bill Gates and Microsoft, Bob Iger and Disney and so on. Study these people and read their books to see how you can be a great leader and become the leader your people can follow by example.

corporate finance

Given the risk of a new business, raising capital is a particular challenge, and many entrepreneurs deal with it via bootstrapping: funding a business using methods such as using their own money, providing sweat capital to reduce labor costs, minimizing inventory, and factoring Requirements.

While some entrepreneurs are lone wolves struggling to get small businesses off the ground on a tight budget, others are embracing partners endowed with better access to capital and other resources. In these situations, new businesses may receive funding from venture capitalists, angel investors, hedge funds, crowdfunding, or through more traditional sources such as bank loans.

Resources for Entrepreneurs

Various sources of funding are available for entrepreneurs starting their own business. Obtaining a small business loan through the Small Business Administration (SBA) can help entrepreneurs get the business off the ground with affordable loans. SBA helps connect businesses with credit providers.

When entrepreneurs are willing to give up a piece of equity in their business, they may find funding in the form of angel investors and venture capitalists. These types of investors offer advice, mentoring, and connections in addition to the capital.

Crowdfunding has also become a popular way for entrepreneurs to raise capital, particularly through Kickstarter. An entrepreneur creates a page for their product and a financial goal to achieve while promising donors specific rewards such as products or experiences.

Bootstrapping for Entrepreneurs

Bootstrapping refers to building a business solely from your savings as an entrepreneur and from the initial sales of your business. This is a difficult process as all financial risk lies with the entrepreneur and there is little room for error. If the business fails, the entrepreneur may also lose all of their life savings.

The benefit of bootstrapping is that an entrepreneur can run the business with their own vision and without outside interference or investors demanding quick profits. That being said, the support of an outsider can sometimes do more for a business than harm. Many companies have had success using the bootstrapping strategy, but it’s a tough road to take.

Small Business vs. Entrepreneurship

A small business and entrepreneurship have a lot in common, but they are different. A small business is a business, usually a sole proprietorship or partnership, that is not medium or large, operates locally and does not have access to a large amount of resources or capital.

Entrepreneurship is when a person who has an idea acts on that idea, usually to disrupt the current market with a new product or service. Entrepreneurship usually starts as a small business, but the long-term vision is much larger to make big profits and capture market share with an innovative new idea.

How Entrepreneurs Make Money

Entrepreneurs make money like any business: they strive to generate revenue that exceeds costs. Increasing sales is the goal that can be achieved through marketing, word of mouth and networking. It is also important to keep costs down as this translates into higher profit margins. This can be achieved through efficient operation and eventually economies of scale.

Taxes for Entrepreneurs

The taxes you have to pay as an entrepreneur depend on how you structure your company.

Sole proprietorship: A corporation formed in this way is an extension of the individual. Business income and expenses are entered on Appendix C of your personal tax return and you are taxed at your individual tax rate.

Partnership: A partnership works like a sole proprietorship for tax purposes, with the difference that income and expenses are divided among the partners.

There are many benefits entrepreneurs can gain from taxes such as: B. the deduction of home office and ancillary costs, mileage allowance for business trips, advertising and travel expenses.

C Corporation: A C corporation is a separate legal entity and has separate taxes that are filed with the IRS by the business owner. Income from business operations is taxed at the corporation tax rate and not at the income tax rate.

Limited Liability Company (LLC) or S Corporation: These two options are taxed the same way as a C corporation, but usually at lower amounts.

7 characteristics of entrepreneurs

What else do entrepreneurial success stories have in common? They invariably involve hardworking people engaged in things they are naturally passionate about.

If the adage is to be believed, “Find a way to get paid for the work you’d do for free,” passion is arguably the most important component startup business owners need to have, and every advantage helps.

While the prospect of becoming your own boss and amassing a fortune is alluring to entrepreneurial dreamers, the potential downside to hanging up your own clapboard is tremendous. Income is not guaranteed, employer-funded benefits fall by the wayside, and if your business loses money, your personal wealth can suffer. not just the bottom line of a company. But adhering to a few tried-and-true principles can go a long way toward spreading risk. Below are some qualities required to be a successful entrepreneur.

1. Versatile

When starting out, it’s important to handle sales and other customer interactions in person whenever possible. Direct customer contact is the best way to get honest feedback on what the target market likes and what you could do better. If being the only customer interface isn’t always practical, business owners should train employees to solicit customer comments as a matter of course. Customers not only feel strengthened by this, but more satisfied customers are also more likely to recommend companies to others.

Personal answering is one of the key competitive advantages work-from-home entrepreneurs have over their larger competitors. In an era of high-tech backlash, when customers are frustrated with automated replies and touch-tone menus, hearing a human voice is a sure-fire way to attract new customers and make existing customers feel valued. an important fact considering that around 80% of all business is generated from repeat customers.

Paradoxically, while customers appreciate high-touch phone access, they also expect a highly polished website. Even if your business isn’t in a high-tech industry, entrepreneurs still need to use internet technology to get their message across. A garage startup can have a better website than an established $100 million company. Just make sure there’s a live human on the other end of the phone number listed.

2. Flexible

Few successful business owners find perfect formulas right out of the gate. On the contrary: ideas have to change over time. Whether you’re tweaking product design or changing foods on a menu, finding the perfect sweet spot takes trial and error.

Howard Schultz, former Starbucks chairman and CEO, initially thought that playing Italian opera music through store speakers would punctuate the Italian coffeehouse experience he was trying to replicate. But customers saw things differently and didn’t seem to like arias with espresso. As a result, Schultz dropped the opera and introduced comfortable chairs instead.

3. Economical

At the heart of every successful new business, a venture beats the lifeblood of a steady cash flow, which is essential to purchasing inventory, paying rent, maintaining equipment and promoting the business. The key to staying in the black is rigorous accounting of income and expenses. And since most new businesses don’t turn a profit within the first year, entrepreneurs can help mitigate the risk of a lack of funding by setting money aside for that emergency. In this context, it is important to keep personal and business expenses separate and never resort to business means to meet the expenses of daily living.

Of course, it’s important to pay yourself a realistic salary that will cover the basic necessities, but not much more; especially when investors are involved. Of course, such sacrifices can strain relationships with loved ones, who may have to adjust to a lower standard of living and worry about jeopardizing family wealth. For this reason, entrepreneurs should communicate these issues in a timely manner and ensure that significant family members are on board spiritually.

4. Resilient

Running your own business is extremely difficult, especially starting one from scratch. It takes a lot of time, dedication and failure. A successful entrepreneur must show resilience to any difficulties on the way forward. Whenever they encounter failure or rejection, they must keep moving forward.

Starting your business is a learning process, and every learning process comes with a learning curve that can be frustrating, especially when money is involved. It is important to never give up in difficult times if you want to be successful.

5. Focused

Similar to resilience, a successful entrepreneur needs to stay focused and eliminate the noise and doubt that comes with running a business. Getting distracted, not believing in your instincts and ideas, and losing sight of the end goal is a recipe for failure. A successful entrepreneur must always remember why they started the business and stay on course to see it through.

6. Business Smart

Knowing how to manage money and understanding financial statements is vital for anyone running their own business. It’s important to know your income and expenses and how to increase or decrease them. Making sure you don’t burn any money can help keep the business alive.

Executing a sound business strategy, knowing your target market, your competitors, and your strengths and weaknesses will enable you to maneuver the difficult landscape of running your business.

7. Communicator

Successful communication is important in almost every area of ​​life, regardless of what you do. It is also of paramount importance in running a business. From communicating your ideas and strategies to potential investors, to communicating your business plan to your employees, to negotiating contracts with suppliers, all of this requires successful communication.

Entrepreneurship in Business

In the language of economists, an entrepreneur functions as a coordinating agent in a capitalist economy. This coordination takes the form of redirecting resources to new potential profit opportunities. The entrepreneur moves various tangible and intangible resources, thereby promoting the formation of capital.

In a market full of uncertainty, it is the entrepreneur who can actually help remove the uncertainty by making decisions or taking risks. Since capitalism is a dynamic win-and-loss system, entrepreneurs drive efficient discovery and consistently reveal knowledge.

Established companies face increasing competition and challenges from entrepreneurs, which often spurs them on to R&D efforts as well. Economically, the entrepreneur upsets the course toward stationary equilibrium.

In 2021, there were 32.5 million small businesses in the United States.

How entrepreneurship helps economies

Encouraging entrepreneurship can have a number of positive effects on an economy and a society. First of all, entrepreneurs create new businesses. They invent goods and services, leading to employment, and often create a ripple effect that leads to more and more development. For example, after some IT companies were established in India in the 1990s, companies in related industries such as call center operations and hardware providers also started to develop and offer support services and products.

Entrepreneurs contribute to gross national income. Existing companies can remain confined to their markets and eventually reach an income ceiling. But new products or technologies create new markets and new prosperity. And more jobs and higher incomes add to a nation’s tax base and allow for more government spending on public projects.

Entrepreneurs create social change. They break traditions with unique inventions that reduce reliance on existing methods and systems, sometimes rendering them obsolete. Smartphones and their apps, for example, have revolutionized work and leisure around the world.

Entrepreneurs invest in community projects and help charities and other not-for-profit organizations by supporting causes beyond their own. Bill Gates, for example, has dedicated his considerable fortune to education and health initiatives.

Entrepreneurial Ecosystems

There is research showing that high levels of self-employment can stunt economic development: entrepreneurship, if not properly regulated, can lead to unfair market practices and corruption, and too many entrepreneurs can create income inequalities in society. Overall, however, entrepreneurship is a key driver of innovation and economic growth. Therefore, promoting entrepreneurship is an important part of the economic growth strategies of many local and national governments around the world.

To this end, governments typically support the development of entrepreneurial ecosystems, which may include entrepreneurs themselves, government-sponsored assistance programs, and venture capitalists. They may also include non-governmental organizations such as business associations, business incubators and educational programmes.

For example, California’s Silicon Valley is often cited as an example of a well-functioning entrepreneurial ecosystem. The region has a well-developed venture capital base, a large pool of well-trained talent, particularly in technical fields, and a wide range of governmental and non-governmental programs to encourage new businesses and provide information and support to entrepreneurs.

Questions for Entrepreneurs

The start of an entrepreneurial career to “be your own boss” is exciting. But along with all your research, make sure you do your homework about yourself and your situation.

A few questions to ask yourself:

Do I have the personality, temperament and mindset to conquer the world on my own terms?

Do I have the necessary environment and resources to devote all my time to my project?

Do I have an exit plan ready with a clearly defined timeline in case my business fails?

Do I have a concrete plan for the next “x” months, or will I face challenges midway through family, financial, or other commitments? Do I have a mitigation plan for these challenges?

Do I have the necessary network to get help and advice when needed?

Have I found and built bridges to experienced mentors to learn from their expertise?

Have I created the rough draft of a complete risk assessment including dependencies on external factors?

Have I realistically assessed the potential of my offer and how will it perform in the existing market?

How will my competitors react if my offering replaces an existing product in the market?

Does a patent make sense to secure my offer? Do I have the capacity to wait that long?

Have I identified my target customer base for the initial phase? Do I have scalability plans for larger markets?

Have I identified sales and distribution channels?

Questions dealing with external factors:

Does my business venture comply with local regulations and laws? If not possible locally, can and should I move to another region?

How long does it take to get the necessary licenses or permits from the relevant authorities? Can I survive that long?

Do I have a plan for getting the necessary resources and skilled workers and have I considered the costs involved?

What are the tentative deadlines for the launch of the first prototype or for the services to become operational?

Who are my main customers?

What funding sources may I need to turn to to get this big? Is my company good enough to convince potential stakeholders?

What technical infrastructure do I need?

Once the company is established, will I have sufficient funds to source resources and take it to the next level? Will other big companies copy my model and shut down my business?

What does it mean to be an entrepreneur? An entrepreneur is a person who takes the risk of starting their own business based on an idea or product they have developed while assuming most of the risks and reaping most of the profits of the business.

What is the best definition of entrepreneurship? Entrepreneurship is the process of starting a business from idea to realization.

What are the 4 types of entrepreneurs? Small business, scalable startup, large enterprise and social networks.

What are the 7 characteristics of entrepreneurs? Versatile, resilient, flexible, money conscious, enterprising, focused and communicative.

The final result

An entrepreneur is a person who takes an idea or product and creates a business, a process known as entrepreneurship. Starting a business takes a lot of work and dedication, which not everyone is cut out for. Entrepreneurs are highly motivated risk takers who have a vision and sacrifice a lot to achieve that vision.

Entrepreneurs enter the market because they love what they do, believe their product will have a positive impact, and hope to capitalize on their efforts. The steps entrepreneurs take drive the economy; They create companies that employ people and make products and services that consumers buy.

Becoming an entrepreneur requires passion, perseverance and passion. Whether you are just starting out and starting a business or developing an existing one, understanding the types of entrepreneurship is an important part of your road to success.

By focusing on the unique differences of entrepreneurship, you can approach your business’ challenges with a deeper awareness of how you should approach them and the types of resources you need. From choosing the type of business you want to develop to creating a business website that caters to the right audience, there are many steps you need to take to become a successful entrepreneur.

What forms of entrepreneurship are there?

While the basic principles of entrepreneurship are the same—planning, starting, and operating a business—the nuances and skills required vary depending on the type of business you want to start. Becoming an entrepreneur requires the ability to define those differences and determine the unique elements that are needed.

Traditionally, entrepreneurship has been categorized into four main types: small businesses, scalable startups, large corporations, and social entrepreneurs. These models cover the basics of starting a business and focus more on the business itself than on the qualities of the entrepreneur. But as the world continues to change, so do companies. This means new opportunities for risk-takers and innovative game changers to pave the way for diverse entrepreneurial paths.

With this in mind, while there are some similarities when it comes to the challenges that all entrepreneurs face, there are certain types of entrepreneurship that are defined by the entrepreneur’s skills, attributes, and personality traits. Ultimately, it’s the way you run your business that sets them apart.

The 10 most common types of entrepreneurship:

01. Small Business Entrepreneurship

This type of entrepreneurship refers to any type of small business started by one person without the goal of expanding or franchising. For example, if you plan to open a nail salon, general store, or taco truck, your goal would be to open a single store. You would likely plan to hire local employees or even family members to get your business off the ground and would need to invest your resources directly into the business.

In this type of business, you only make a profit if your company does, which means you have to be very motivated, accountable, and committed to your vision. In 2020, there were 33.7 million small businesses in the United States, accounting for 99.9% of businesses, proving that small business entrepreneurship is on the rise.

02. Scalable Startup Entrepreneurship

Rooted in the idea of ​​changing the world, scalable startups focus on creating a business model that is both repeatable and scalable (more revenue with more resources). From the start, this style of entrepreneurship begins with hopes of rapid expansion and large profit returns. Many startups have a similar “Garage to Riches” narrative, starting with a simple idea brought to life through the tenacity of entrepreneurs with the backing of investors. Amazon, Google and Apple are examples of groundbreaking startups that have changed the world.

To create a successful startup, you need to pay attention to the amount of money you have (which is often backed by venture capital investors) and the human resources behind your company. The key to starting this type of business model is knowing the long-term profitability plans and how your business will grow, both for your investors and for yourself.

03. Entrepreneurship

Unlike an entrepreneur, who is also the founder, designer and managing director of a company, an intrapreneur is a self-motivated and action-oriented employee who thinks outside the box and works as an entrepreneur in the company. Intrapreneurship is one way companies can support and nurture employees with an entrepreneurial spirit.

For example, Shutterstock hosts an annual 24-hour hackathon where employees can pursue innovative ideas that benefit the company. Another example of intrapreneurial innovation is Facebook’s “Like” button, which also originated in a similar hackathon event and is now an integral part of the brand.

04. Entrepreneurship in large companies

Big company entrepreneurship refers to companies like Disney, Google, Toyota, and Microsoft that have finite lifecycles as they are constantly innovating and offering consumers new products that are variants of their core product line.

A distinguishing feature of this type of entrepreneurship is that it does not create a new company, but creates new products or subsidiaries within an existing company, or acquires smaller companies (like when Facebook bought Instagram and WhatsApp). More specifically, these businesses are focused on entering new markets, expanding the customer base, and growing the business.

Another component of entrepreneurship at large companies is a commitment to building a corporate culture that ensures that as a business expands, all employees are part of the growth.

05. Imitative Entrepreneurship

Imitation is the best form of flattery, and an imitative entrepreneur (also known as an adoptive entrepreneur) copies what successful innovative entrepreneurs have done before, often with less financial risk and limited resources.

When you use an imitative entrepreneurial style, you are essentially copying an idea but finding ways to improve it. By acknowledging the mistakes of others and finding creative ways to improve a business, you can become a lucrative entrepreneur.

06. Innovative Entrepreneurship

Innovative entrepreneurs, as the name suggests, are constantly trying to invent the next big thing. If you have breakthrough ideas about how to start a business, or specific services and products that can become business ventures, you may be an innovative entrepreneur.

As an innovator, you know you always need to be aware of current market conditions to find original and creative ways to disrupt them. Innovation relates not only to product ideas, but also to the way business is conducted. Innovative entrepreneurship changes the status quo and pushes boundaries.

07. Buyer’s Entrepreneurship

You’ve probably heard the saying “money makes money,” and for a buyer-entrepreneur, it definitely rings true. Rather than figuring out how to raise money for a business, a buying entrepreneur buys either a developing or a well-established business and helps it thrive.

Unlike investors, a buying entrepreneur has both a financial and a personal interest in the company, remaining active and directly contributing to the growth of the investment. It’s not uncommon for acquisition entrepreneurs to cede leadership to someone else at some point, but they always retain an active role in the companies they acquire.

08. Researcher entrepreneurship

Research entrepreneurs rely on facts, data and the belief that with the right preparation and knowledge, they will be more successful. If that sounds like you, then that’s what Research Entrepreneurship is all about – a great business idea coupled with academic research and an understanding of how to make the most of limited resources.

Take a look at Nobel laureate and physicist Theodor Hänsch, a research entrepreneur and co-founder of MenloSystems, who used his successful optical frequency comb technology to create products for the market.

09. Hustler Entrepreneurship

Don’t let the name put you off, a hustler in business refers to a self-starter, a highly motivated individual who is driven to succeed. This type of entrepreneurship grows straight out of the entrepreneur who must be confident, fearless and have a rigorous work ethic.

If you’re the kind of person who can sell anyone anything, is always aware of the next big thing, and able to spot opportunities, maybe you’re just a hustler after all.

10. Social Entrepreneurship

Social entrepreneurs are innovators whose primary goal is to create products and services that both benefit the world and make money. Social entrepreneurship refers to non-profit, for-profit, or hybrid businesses committed to social or environmental change. Some examples are educational programs, microfinance institutions and companies providing banking services in developing countries.

Toms Shoes was a pioneer of social entrepreneurship and from 2006 offered a one-for-one sale model, where for every pair sold, a pair of shoes was given away to a child in need. What distinguishes social entrepreneurship from other forms is the measurement of success, as the goal is not only focused on financial gain but also on social impact.

Bellows by Cecilia Lazzaro

Small business expert and author

Brought to you by Dell for entrepreneurs

Being an entrepreneur is stressful, no question. Like most things, it doesn’t happen overnight. Instead, it’s a journey with many stages, each with different challenges. The key to success is aligning yourself with programs and resources that can help you stay on track. Let’s start with phase 1: the beginning.

Stage 1: Inspiration and brainstorming

At this stage, entrepreneurs have their first brilliant idea. Typically, it involves identifying a problem, opportunity, or gap in the market that leads to a profitable business opportunity. The first real challenge in this phase is to come up with a good idea, because without it there is no entrepreneurial journey.

Next, it is important that the idea you come up with is viable and viable in the long run in order to build a successful business.

A perfect example of this is Elon Musk, who has successfully developed profitable ideas that fill gaps in certain markets with companies like Tesla and SpaceX. Throughout his journey he has taken risks and poured virtually everything he has financially into ideas he is passionate about and as a result now owns a number of very profitable, very successful companies.

Before you invest any time or money, make sure that the business idea has legs. CB Insights research shows that the number one reason companies fail is because there is no market need for them, with 42% of companies failing because of this. Test the idea and get early feedback to ensure there is market interest.

Dell Technologies’ Project Innovate is a great way to get input from a community of creators and innovators. This site is specifically designed to share ideas to see how people react. It’s the perfect way to get free, neutral and unbiased advice quickly and easily. No expensive focus groups and no relying on family and friends to just tell you what you want to hear. It contains useful content about ideas, active projects and more.

Stage 2: Execution

Next, it is time to implement the business idea. Deciding how to gather resources and find and attract the right people to help is crucial to getting the ball rolling. Going from perfecting the idea to executing it can be a struggle.

Part of Bill Gates’ success comes from partnering with the right resources (namely his childhood friend Paul Allen) and access to technology (at Harvard University’s computer lab) to hone his skills. After reading about the world’s first microcomputer, Bill and Paul set about writing programs for it. After proving successful, they founded Microsoft with a vision of “putting a computer on every desktop and in every home.” Today, its mission is to empower every person and organization on the planet to achieve more.

There are many resources to help turn a good idea into something tangible. Dell Technologies’ Project Innovate community is made up of entrepreneurs who want to help others succeed in their business goals and can recommend good resources.

In addition, Dell for Entrepreneurs offers an early opportunity to partner with Dell Technologies and provides free technology advice, support and infrastructure to support business growth. Entrepreneurs can realize the following advantages:

Access to technology capital through Dell Technologies Financial Services, who can provide financing for start-up companies that meet specific needs. A one-stop shop for the technology and support entrepreneurs need to start or scale their business. An IT consultant for startups, a one-stop shop providing IT recommendations based on the entrepreneur’s specific IT infrastructure needs and growth strategy. Dell Technologies entrepreneurial partner rewards including free expedited shipping, exclusive offers and more.

Stage 3: Scaling the business

Ideas start small and grow with effort over time. At a certain stage – with the right business and the right market for it – it’s time to expand. The limits of scaling can be almost unimaginable when your market can support such growth.

Scaling a business into a larger operation presents challenges as it requires more funding, more staff, more facilities and more factors that you may not even have considered. Additionally, a larger operation means more competition to attract customers and generate revenue at a much larger scale. According to The Hill, there are 582 million entrepreneurs worldwide — some of whom may be targeting the same markets. So think about what other companies in the same field are trying to do with their product or service and create a competitive advantage that will set your company apart from the rest.

The first step here should be to research the market further to ensure the business has room to grow and there are enough customers to support business expansion. If the answer to both questions is no, the revenue potential may not justify the growth, so make sure you do your due diligence.

Remember that even McDonald’s, the world’s top-grossing restaurant chain, started small. The first McDonald’s opened in 1940 in San Bernardino, California, where over time they introduced their Speeded Service system of 15-cent hamburgers. The restaurant’s success prompted the owners to start franchising their restaurant concept and now there are more than 36,000 outlets in 100 countries around the world.

Step 4: Reach the top of the mountain

Reaching the top of the mountain is a massive feat worth taking a breath and savoring the achievement. Keep the celebration short because when you reach the top you’ll have to face the prospect of going back down the other side. It’s a challenge to stay on top by maintaining your market position or finding ways to gain market share.

The challenge at this stage is that companies that reach maximum saturation typically struggle to stay innovative. Fifteen years ago, Blockbuster was at the top of the video rental mountain with 9,000 stores worldwide, but failed due to constant innovation. Competition from the Netflix mailing service, automated Redbox kiosks, and video-on-demand services were among the key factors that led to Blockbuster’s eventual demise and bankruptcy.

Entrepreneurs begin the journey with panache, passion, and excitement. After the entrepreneurial journey takes its toll, many lose the passion and drive to progress, preferring to hold on to what they have achieved. Often this results in a company that is almost indistinguishable from competitors and is often overtaken by newer, more passionate competitors.

The goal at this stage is to keep that entrepreneurial spirit – the one the company is built on – alive. This passion will drive the future success of the company.

Each phase of the entrepreneurial journey has its own unique challenges and solutions. Luckily, there are great resources like Project Innovate and Dell for Entrepreneurs to help you get inspired and learn from other entrepreneurs who prioritize new ideas, advancement, and innovation.

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The process can be easily broken down into three phases: thinking, acting and growing.

Thinking about starting

The start-up phase is thinking, making plans, developing the right starting motivation and developing entrepreneurial skills. For some people, this is the hardest part and they struggle to choose an idea, develop the idea further, and involve others in making the idea a reality. The majority of entrepreneurs have never had the luxury of sitting down and brainstorming ideas, then using innovation techniques to decide on the best idea, and then doing market research to shortlist which one to turn into a business. I still believe in the “gut feeling” method, if you don’t have the guts to make the decision you want to move forward then you don’t have the guts to make it work, so stay and find one Job someone else’s business.

Make a startup

The doing phase is the hardest, it’s the one that all famous entrepreneurs don’t talk about, it’s the part where you spend 18 hours a day, 7 days a week trying to make this business successful in some form. At this stage, you need to start building relationships with your employees, your bank, your suppliers, and your customers. This relationship must develop a trust and strong bond that allows everyone to understand who they are and the value they bring to the business model. If someone doesn’t understand this, they become the weakest link in your company.

Grow a startup

The final phase is growth, personal growth, business growth, network growth, and revenue growth. This phase typically lasts after 36 months and is the point where the business model and relationships with suppliers are well established. The bank actually likes and trusts you. The most important part of this phase is figuring out “What kind of entrepreneur are you?” and what you can and cannot do, what you want to do and what not. The things you don’t want to do, hire someone better than you. The thing you want to do and you’re not good at, then develop some skills, in fact you have to develop skills anyway. Knowing yourself ensures your business has a solid foundation. At this stage, you need to build stronger ties with your local community as you need more staff, more space, and more flexible and understanding relationships with those around you.