DOCUMENT RESUME

ED 373 198 CE 067 032

TITLE Business Opportunities. Unit 3. Level 1. InstructorGuide. PACE: Program for Acquiring Competence inEntrepreneurship. Third Edition. Research &Development Series No. 301-3.

INSTITUTION Ohio State Univ., Columbus. Center on Education andTraining for Employment.

PUB DATE 94NOTE 23p.; For the complete set, i.e., 21 units, each done

at three levels, see Ch. 067 029-092. Supported by theInternational Consortium for EntrepreneurshipEducation, the Coleman Foundation, and the Center forEntrepreneurial Leadership Inc.

AVAILABLE FROM Center on Education and Training for Employment, 1900Kenny Road, Columbus, OH 43210-1090 (order no.RD301-03 IG, instructor guide $4.50; RD301-03 M,student module, $3; student module sets, level1--RD301M, level 2--RD302M, level 3--RD303M, $45each; instructor guide sets, level 1--RD301G, level2--RD302G, level 3--RD303G, $75 each; 3 levels andresource guide, RD300G, $175).

PUB TYPE Guides Classroom Use Teaching Guides (For

Teacher) (052) Guides Classroom UseInstructional Materials (For Learner) (051)

EDRS PRICE MFO1 /PCO1 Plus Postage.

DESCRIPTORS Behavioral Objectives; *Business Education; Careers;*Competency Based Education; Economic Change;Economic Factors; *Economic Opportunities;*Employment Opportunities; *Entrepreneurship;International Trade; Learning Activities; Marketing;Population Trends; Postsecondary Education; SecondaryEducation; *Small Businesses; Student Evaluation;Teaching Guides; Technological Advancement

IDENTIFIERS *Program for Acquiring Competence Entrepreneurship

ABSTRACTThis instructor guide for a unit on business

opportunities in the PACE (Program for Acquiring Competence inEntrepreneurship) curriculum includes the full text of the studentmodule and lesson plans, instructional suggestions, and other teacherresources. The competencies that are incorporated into this moduleare at Level 1 of learning--understanding the creation and operationof a business. Included in the instructor's guide are the following:unit objectives, guidelines for using PACE, lists of teachingsuggestions for each unit objective/subobjective, model assessmentresponses, and overview of the three levels of the PACE program. The

following materials are contained in the student guide: activities tobe completed in preparation for the unit, unit objectives, studentreading materials, individual and group learning activities, casestudy, discussion questions, assessment questions, and references.Among the topics discussed in the unit are the following: factors toconsider when starting a business, effects of shifts in U.S.population on small business development, changes in internationaland community markets, effects of technology on careers, creativity,business ideas from career training, and ways of creating new

business ideas. (MN)

UNIT 3LEVEL 1

Objectives:

Program for AcquiringCompetence inEntrepreneurship

If,fenti a pr,11.11mt "Sr..- 101.3

Describe the factors that should be considered whenstarting a business.

Identify the trends and changes occurring in the busi-ness environment.

Discuss new technological changes that are occurringin potential career areas.

Define the process of creativity.

Complete a list of small business ideas related to a Assess your students on the unit contentcareer area. when they indicate they are ready. You

PERMISSION TO REPRODUCE THIS may choose written or verbal assessmentsMATERIAL HAS BEEN GRANTED BY

Create a new business idea. accordin to the situation. Model re-create

Unit 3

BusinessOpportunities'Level 1

U S DEPARTMENTOF EDUCATION

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HOW TO USE PACE

Use the objectives as a pretest. If a studentis able to meet the objectives, ask him orher to read and respond to the assessmentquestions in the back of the module.

Duplicate the glossary from the ResourceGuide to use as a handout.

Use the teaching outline -rovided in theInstructor Guide for as-,,,tance in focusingyour teaching delivery. The left side ofeach outline page lists objectives with thecorresponding headings (margin questions)from the unit. Space is provided for you toadd your own suggestions. Try to increasestudent involvement in as many ways aspossible to foster an interactiN e learningprocess.

When your students are ready to do theActivities, assist them in selecting thosethat you feel would be the most beneficialto their growth in entrepreneurship.

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TO THE EDUCATIONAL RESOURCESINFORMATION CENTER (ERICI"

sponses are provided for each module ofeach unit. While these are suggestedresponses, others may be equally valid.

BEST COPY AVAILABLE

Objectives Teaching Suggestions

1. LIST THE FACTORS THATSHOULD BE CONSIDEREDWHEN STARTING A BUSINESS

What are some of the factors thatshould be considered when startinga business?

2. IDENTIFY THE TRENDSAND CHANGES OCCURRINGIN THE BUSINESSENVIRONMENT

What are some of the shifts in theUS population?

How have international marketschanged?

What are the market shifts in yourcommunity?

3. DISCUSS NEWTECHNOLOGICAL CHANGESTHAT ARE OCCURRING INPOTENTIAL CAREER AREAS

How does technology change ca-reers?

Invite a new business owner in your area to speak to the class.Before their presentation, give them a specific list of questionsyou wish them to answer. Be sure to include the important fac-tors that are in this section.

Tell the students that you have a friend who is considering start-ing a health-care newsletter business. Ask them what yourfriend needs to know before starting her business. Write theirresponses on the board, and then categorize according to theheadings in this section. You may need to add headings.

Ask your students when their parents/grandparents were born.Those who were born between 1945 and 1954 are baby boomers.Their children are part of the baby boomlet. Ask the studentswhy the baby boomers are so important. Discuss typical life-style changes for baby boomers.

Ask students what they have seen or heard related to changes ininternational markets. Discuss potential business opportunitieswhich have developed because of these changes.

Ask students what changes have occurred in your communitywhich might affect business opportunities. List them on theboard and discuss their impact.

Refer back to your friend who wants to start a health-care news-letter. Ask the class how technology affects his/her business.

Objectives Teaching Suggestions

4. DEFINE THE PROCESSOF CREATIVITY

What is creativity?

5. COMPLETE A LIST OF SMALLBUSINESS IDEAS RELATEDTO A CAREER AREA

What business ideas might comefrom career training?

6. CREATE A NEWBUSINESS IDEA

How can you create a new busi-ness idea?

List a number of inventions and ask whether they required syn-thetic or creative imagination. For example, you might askabout light bulbs, telephones, personal compr' rs, and waterbeds.

Ask your students when they are most apt to come up with crea-tive ideas. Usually, it will be daring a relaxation period.

Divide the class into small groups and ask each group to selectone career area to study. This career area should not already bediscussed in the text. Ask each small group to generate as manybusiness opportunities as possible in the career area they havechosen. Reconvene the class and discuss the lists of businessopportunities.

Draw the attention of the students to a new business in yourtown. Ask them to identify the ideal characteristics of theentrepreneur. Then ask them to identify the factors in yourmarket which make it likely that this business will be successful/unsuccessful.

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MODEL ASSESSMENT RESPONSES

1. The following factors should be considered when starting a business: (1) your interests and abilities, marketdemand, time commitment, financial commitment, staffing, equipment and location.

2. Some of the most significant changes in the U.S. population in the last two decades include: (1) aging ofthe baby boomers who are now 40 to 50 years old, (2) the baby boomlet, (3) increase in dual career fami-lies, (4) increased awareness of the environment, and (5) the changing racial balance.

3. The increased importance of the personal computer has changed the secretarial role, accounting and record-keeping practices, and inventory control. In addition, the Xerox"' machine has made rapid reproduction pos-sible. The fax machine has sped up the transfer of documents. The telephone answering machine and cel-lular phone have made verbal communication in, and out of the office more convenient.

4. For example, in the food service area there are many opportunities including operating a restaurant, catering,street vending, baking, and lunch delivery.

5. The three steps to creating a new business are (1) identify the entrepreneurs interests and abilities,(2) understand market demand, (3) evaluate and refine the new business idea.

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Program for AcquiringCompetence inEntrepreneurship

Incorporates the needed competencies for creating and operating a small business at three levels of learning, with experiences andoutcomes becoming progressively more advanced.

Level 1 Understanding the creation and operation of a business.Level 2 Planning for a business in your future.Level 3 Starting and managing your own business.

Self-contained Student Modules include: specific objectives, questions supporting the objectives, complete content in form of answersto the questions, case studies, individual activities, group activities, module assessment references. Instructor Guides include thefull textof each student module and lesson plans, instructional suggestions, and other resources. PACE,Third Edition, Resource Guide includesteaching strategies, references, glossary of terms, and a directory of entrepreneurship assistance organizations.

For information on PACE or to order, contact the Publications Department at theCenter on Education and Training for Employment, 19(X) Kenny Road, Columbus, Ohio 43210-1090

(614) 292-4353, (800) 548-4815.

Support for PACE, Third Edition provided in whole or in part by:

International Consortium for Entrepreneurship Educationand

International Enterprise AcademyCenter on Education and Training for Employment

The Ohio State University

The Coleman Foundation

Center for Entrepreneurial Leadership Inc.Ewing Marion Kauffman Foundation

BusinessOpportunities

UNIT 3LEVEL 1

Your Potentialas an

Entrepreneur

Nature ofSmall Business Global Markets

TheBusiness Plan

Help forthe

Entrepreneur

Types of MarketingOwnership Analysis

LocationPricing

StrategyFinancing

the Business

LegalIssues

BusinessManagement

HumanResources

Promotion Selling

RecordKeeping

FinancialAnalysis

CustomerCredit

RiskManagement

Operations

Program for Acquiring11 Competence in

Entrepreneurship'CENTER ON EDUCATIONAND TRAINING FOR EMPLOYMENT

.......,COLLEGE OF EDUCATIONTHE OHIO STATE UNIVERSITY

1-1

0 Research & Development Series No. 301-3

BUSINESS OPPORTUNITIES

BEFORE YOU BEGIN . . .

1. Consult the Resource Guide for instructions if this is your first PACE unit.

2. Read What are the Objectives for this Unit on the following page. If you thinkyou can meet these objectives now, consult your instructor.

3. Look for these business terms as you read this unit. If you need help with themeanings, ask your instructor for a copy of the PACE Glossary contained in theResource Guide.

CreativityCreative imaginationMUPPIESSynthetic imaginationYUPPIES

Copyright © 1994, Center on Education and Training for Employment,The Ohio State University. All rights reserved.

3

BUSINESS OPPORTUNITIES

WHAT ARE THE OBJECTIVES OF THIS UNIT?

Upon completion of this unit you will be able to

describe the factors tlat should be considered when starting a business,

identify the trends and changes occurring in the business environment,

discuss new technological changes that are occurring in potential careerareas,

define the process of creativity,

complete a list of small business ideas related to a career area, and

create a new business idea.

WHAT THE UNIT IS ABOUT?

Have you ever thought about starting abusiness? What decisions do you need tomake? How does technology and the currentbusiness environment affect a new business?How would you go about creatively generat-ing a list of potential business opportunities?In this unit, these questions will beanswered.

WHAT FACTORS SHOULDBE CONSIDERED WHENSTARTING A BUSINESS?

Prior to starting a business, there are manyquestions you must answer. Your answersto these questions will determine the natureof the business itself. Here are a few of themost important aspects of owning and ope-rating a business that you must consider.

Your interests and abilitiesTo be suc-cessful, you must know who you are andwhat you can do. Imagine what would

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happen if someone who hated manual labortried to start a construction business. Theywould be doomed to failure. In order toexcel, an entrepreneur must honestly identifyhis or her own skills and interests, and thenfind a business in which his or her expertisecan be utilized.

Following are a number of points to considerbefore starting a business:

Market demand. Rapidly growing busi-nesses are usually in fields or markets thatare expanding. So, what do the consumerswant? Computers? CDs? Cellular Phones?We will discuss the market in greater detailin the next section.

Time commitment. Starting a new businesscan place tremendous demands on your time.The new entrepreneur often works day andnight to get the business off the ground. Inorder to reduce expenses, many new busi-nesses are short staffed during the start-upphase. Who makes up the hours? The busi-ness owner, of course.

On the other hand, the entrepreneur in manysuccessful businesses works part-time. Someentrepreneurs may prefer to work part-timebecause of family commitments. Otherswork part-time at their own business, whilemaintaining their employment elsewhere.By working for another business establish-ment, they earn sufficient income to paytheir current expenses. Once their ownbusiness generates enough income to paytheir salary, the new business owner mayplan to work full-time at his or her ownbusiness.

Financial commitment. What are you will-ing to invest in a new business? Almost allnew business requires an initial investment

for start-up. Even a newsletter requires aninitial cash outlay for printing, bulk mailpermit, and bulk mail postage. Larger busi-nesses many require an initial cash invest-ment of hundreds of thousands of dollars.Rarely, will the entrepreneur be able toborrow all of the money for initial invest-ment. Outside investors usually expect theentrepreneur to put up some good faithmoney as an indication of their commitmentto the business.

Staffing. Do you want a business that youcan run all by yourself? Many small busi-ness owners start out running the businessby themselves. However, if you do not wantto ever hire anyone, then the size and typeof business you can enter is limited to yourown capabilities.

If you do want to hire a staff, then you needto know something about the labor pool.First, are you expecting family members towork with you? Are they interested in yourbusiness? Do they have the skills that youwill need? Second, what about the outsidelabor pool? Are there people available whohave the skills you need? Can you hirethem by the hour? By the project? Only asfull salary staff? What are they usuallypaid?

Equipment. Will you need major equip-ment for your new business? Do you wantto buy, rent, or lease the equipment? Howmuch will it cost? Equipment can be a sig-nificant expense for a new business. Forexample, if you want to start a new restau-rant, you may have to purchase all newkitchen equipment. Check to see if you canacquire used equipment to reduce thisexpense.

Location. Where do you want to work?Your home? Your car? An office? Astore? A manufacturing plant? Outside?Where you want to work indicates what kindof work you can do. For example, if youwant to work at home, you may not be ableto manufacture because of zoning restric-tions. If you want to work outside, youcould go into landscaping or construction.However, you probably would not want tobecome a tax accountant. In many cases,you may need to rent or buy facilities. If so,what is available in your area? What willyou have to pay for those facilities?

These are only a few of the most importantfactors you should consider when looking fora new business idea. Can you think of anyothers?

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Age. The baby boomers are aging. In the80s, the baby boomers created a bulge in thepopulation in the age category of 35 to 44.In the 90s, the baby boomers will be 45 to54 years old. What impact will this have onthe market? Most baby boomers have al-ready purchased the basics for their home.In the 90s, if they buy anything for theirhome, they are looking for quality. Inaddition, the aging baby boomers will prob-ably increase the demand for health careservice.

The baby boomers produced a baby boomlet.In the 90s, the children of the baby boomersrange in age from toddlers to college stu-dents. Although these children represent asmaller hump in the population than the

HOW DO sun-Ts IN THE U.S.POPULATION AFFECT SMALLBUSINESS DEVELOPMENT?

Changes in the business environment createopportunities for entrepreneurs. Successfulnew businesses are usually created to meet aspecific need in the society. So, what doessociety, or the market, need? Let's start bylooking at shifts in the general population'sage, lifestyle, and racial mix.

baby boomers, many of them have morematerial possessions than their parents did atthe same age. This explains the recent suc-cess of specialty children's stores, andrefrigerator/microwave combinations for col-lege students.

There are more elderly in the populationthan ever before. They need products andservices that help them to live full lives. Itis no wonder that the home health care in-dustry and retirement housing is booming.

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Lifestyle. The YUPPIES (young urban pro-fessionals) of the 1980s have become theMUPPIES (mature urban professionals) ofthe 1990s. They no longer need to furnishtheir home, instead they are interested inhealth and leisure activities. Hence, therapid growth of the health spa industry andvarious travel companies.

With the increase in dual career families,time is very important. Dual career familiesare buying many products and services tohelp them save time running the household.Fast-food, frozen food, house cleaning ser-vices, and lawn care services are all in

demand.

North Americans are becoming increasinglyaware of the environment. Recycling is thewave of the future. Many products havegreen labels indicating that they are environ-mentally friendly.

Race. The caucasian population in theUnited states will only increase by 3 percentbetween 1990 and 2000. In the same periodof time, the African American populationwill increase by 10 percent, and the Hispanicpopulation will increase by 20 percent.Obviously, there will more cultural diversityin the future. We might expect this to leadto greater demand for ethnic specialties. Forexample, a African American entrepreneur inOhio has become very successful sellingsweet potato pies to the African Americancommunity.

HOW HAVE INTERNATIONALMARKETS CHANGED?

International markets have changed dra-matically in the 1980s and 1990s. FormerSoviet block countries, such as Poland, aresetting up market economies. These coun-tries need both technological and educationalservices to develop their economies. As themarket economies are established and bar-riers to trade are removed, international tradewith the Soviet block countries is expectedto increase greatly.

With the uniting of many of the Europeancountries under the European EconomicCommunity, trade between member countriesis greatly simplified. It is expected thattrade between member countries willincrease.

As the U.S. increases pressure to ease traderelationships with China and Japan, we maysee these two markets opening their doors toU.S. entrepreneurs. Both markets hold tre-mendous potential. Japan's population hasa high per capita income. China has a verylarge population. Success in these markets,as with other international markets, willdepend on business' sensitivity to consumerneeds.

WHAT ARE THEMARKET SHIFTS INYOUR COMMUNITY?

The market in your own community isunique. When developing a new business, itis most important to understand the market

ii.

in the immediate area. For example, if alarge factory in your area has recentlyclosed, then the number of dual career fami-lies may have declined. This might meanthat the demand for home maintenance ser-vices has declined in your area. Or theremay be a high demand for fast-food in yourarea, but there may also be a glut of fast-food competitors. Carefully review changesin your community to determine what thelocal market wants and needs.

NERRIC*4 likiME*40.

HOW DOES TECHNOLOGYCHANGE CAREERS?

The importance of changing technology canbe measured in terms of its impact on boththe private and public interest. Perhaps asmuch as one-third to one-half of all manu-facturers' profits are generated by productsless than 5 years old. In addition, nearlyhalf of all new jobs created in the last sev-eral decades have been the result of techno-

7

logical innovation. Historically, we haveviewed technological innovation as being thecornerstone of an increasingly higher stan-dard of living. We have learned that withoutinnovation, we face a future of inevitabledecline. The former Communist countrieslearned this lesson when their factoriesbecame outdated and could not produce pro-ducts that could compete in world markets.

One of the major changes to careers hascome about due to the influx of computersinto both the home and at work.

Within the business environment, thesecretarial position has been changed toadministrative assistance allowing formore creativity and flexibility.

The travel agency has a totally new con-cept with which tickets and reservations

S

can be made due :o computers and net- people conduct business. For many salesworking capabilities. people their car has become a mobile office.

Accounting and record keeping has beensimplified with the computer softwareavailable today.

The drafting and graphics industry hasbecome quite different with the use ofcomputer-aided design.

Manufacturing has been transformedgreatly by robotic equipment, allowingfor more precision in manufacturing.

Inventory control has become easier dueto computerized inventory databases.

Four other technological advances havegreatly changed the way we do business.The xerox machine has made it possible toeasily and rapidly reproduce printed material.Before the xerox machine, offices had to usemimeographs. Compared to xerox copies,mimeographed copies were of low quality.In addition, the number of copies that couldbe made from one mimeograph was limited.The fax machine has greatly sped up theway we transfer documents from one officeto another. In the past, if the documentswere mailed, at least 1 work day was lost inthe transfer process. Very important docu-ments formerly were hand delivered. Manyof these same in portant documents are nowfaxed, saving many labor hours. Anotherimportant technological innovation is thetelephone answering machine. We no longerhave to worry about missing important mes-sages at the office when we are out. (Justremember to turn the machine on!) Finally,cellular phones have changed the place many

WHAT DOESCREATIVITY MEAN TOTHE ENTREPREI 71JR?

Creativity is the ability to come up with anew idea. Entrepreneurial creativity is thecapacity to generate new business ideas.Creative thinkers spend time identifyingquestions or problems and then searching foranswers. They are open to new information,and new methods to solve problems.

Through imagination, men and women haveinvented, discovered, and harnessed many ofnature's forces. There are two forms ofimagination. One is known as "syntheticimagination" and the other as "creativeimagination." Synthetic imagination allowsone to arrange old concepts, ideas or plansinto new combinations. Creative imagina-tion allows one to develop entirely newideas or concepts.

Most people don't use the creative side oftheir brain very often, and it may becomesluggish. Just like a muscle, when it is notused, the creative side of the brain maybecome weak. To find a creative solution toa problem, try concentrating on the problemas much possible during the day. Then,when you go to sleep, your subconsciouswill continue to develop your thoughts. Thestronger your desire for a solution to theproblem, the harder your subconscious willwork to find it.

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The development of an idea can be dividedinto three parts: the creation of an idea, theevaluation of the idea, and the commerciali-zation of' the idea. After the initial creationof an idea, it must be evaluated to determinefeasibility. Research must be conducted toverify that the idea is truly original, andmeets a rnarket need. The next step, is ac-tualizing the idea through the production ofa quality product and/or service. The busi-ness entrepreneur must have means to pro-duce the new product or it will never reachthe market. If the new product produced isof poor quality, then it won't sell even if theidea is good.

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margin businesses is that of foods. Foodcareers also holds the position for the largestnumber of business failures. A business inthe food industry must be very well versedas to costs, waste, pricing and location in

order to be successful. Some food careersinclude the following:

Restaurants. The restaurant area rangesfrom the very inexpensive, fast-food to theluxurious dress up eating establishment.Much research must be completed beforeone should decide to pursue this type ofventure.

WHAT BUSINESS IDEASMIGHT COME FROMCAREER TRAINING?

Career experience and training often lead toideas for a new business. Here is a list of afew business opportunities related to specificcareer areas. Can you think of some more?

FOOD SERVICE

According to the U.S. Small Business Ad-ministration, today one of the highest profit

L

Catering. Within the last few years cateringfor parties, conventions, and even to familiesat the close of a busy day has grown. Thereis minimal start-up costs in this type ofbusiness. However, it is important toremember the rules that apply. For example,in the state of Ohio one must have a sepa-rate kitchen in which food for catering ispreparxl. The family kitchen can not beus d for preparation of food for sale.

However, in Ohio, baking of breads does notcarry the same requirement. The rulesplaced on baking of foods is governed by a

10

different agency and thus does not carry thesame requirements.

Vending machine routes. With life in thefast lane, many vending companies are add-ing items such as fruit, sandwiches, andsalads to the existing candy and junk foodline.

Street selling. Today many small carts withfood for sale can be seen in some of thelarger cities as well as on college campuses.The reason for the increasing popularity isagain due to the rush of today's society.

Food decorating classes. Classes that teachone how to make food look inviting are be-coming very popular. These can be as shortas how to prepare one item and as long ascreating a whole menu. As we are told, weeat with our eyesmeaning that we buy orenjoy food if it looks good.

Baking. As mentioned earlier, the regula-tions are not too stringent. Someone whoenjoys baking breads or cakes, may find thisan opportunity to pursue as a home-basedbusiness.

Food planner for parties. Today manybusinesses and organizations look for some-one that will plan entire conferences, meet-ings, and parties. Again there is very littlestart-up costs involved with this venture.

Candy making. Many people like candyand look for new and different types ofsweets. Especially at holidays, candy salesare high and one may find candy makingand/or teaching of candy making as a profit-able business.

Lunch delivery. This too is popular be-cause of our busy lifestyles. Many busy

workers find themselves eating at the deskwith no time to go out to purchase theirlunches. The creative foods person willgrasp on to the idea of delivering foods frommorning donuts to midmorning snacks, noontime lunches and meeting refreshments.This venture could be merely purchasingprepared foods at a deli and delivering tocustomers.

ELECTRONICS/COMPUTERS

Another popular industry today is that ofelectronics and computers. Acquiringknowledge and schooling in this field willallow a person a variety of opportunities.Some of these include the following:

Computer system building. With thegrowing need for specialized computerneeds, many businesses will look for aspecialist that can help them set up acomputer system as well as help withsoftware selection.

Computer application. Many companiesdo not have individuals in the firm that havethe expertise to select the software theyneed. These companies need someone whoknows about the different software packagesto recommend software packages that wouldmeet their specific needs.

Computer personal and business services.Services such as resume service, desktoppublishing, accounting and record keeping,inventory and database creation are becom-ing very lucrative business opportunities.Many people are setting up home-basedbusinesses with a computer system and areoffering a variety of services.

Computer training. Inhouse (at the busi-ness location), at one's home, and school

training of computer usage is a must fortoday's worker and offers another profitableventure.

Computer and computer supplies sales.Many manufacturer representatives work atselling supplies and computer accessories tobusinesses, schools, and retail establish-ments.

HORTICULTURE

The field of horticulture is rapidly gainingnew momentum today. The industry is notlimited to those who hold a degree or spe-cialized training. Someone who loves plantsand knows about them can be successful inthis field. A few business opportunities inhorticulture include the following:

Flower shop/Greenhouse. This offers twolevels of opportunities. One is selling to thegeneral public (retail), and the other is sell-ing to the business for resale (wholesale).The entrepreneur grows or purchases plantsor flowers, then sells them to wholesalers,retailers, or consumers. He or she may workwith cut flowers, silk flowers, and growingplants.

Plantscaping. Many professional officesand businesses are incorporating live plantsinto their office decor. Research tends toshow that the use of live, green plants in abusiness environment reduces stress in theworkplace. This is a rather new opportunitythat is growing rapidly. It offers much pos-sibility of business growth and success.

Herbs growing. Another area that is gain-ing popularity is that of growing and dryingherbs. This too is a business venture thatlends itself to a home-based opportunity.

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Landscaping service and planning. Thehomeowner's desire to have a unique anddifferent yard and garden has spurred aninterest in landscape services. A trainedindividual with an eye for color, shapes, andsizes as well as knowledge about plants maydevelop a profitable landscaping business.

Lawn care and maintenance. With thebusy family, little time is left for the upkeepof lawns and gardens. A very limitedamount of equipment is needed to go into avery profitable business. Many high schoolstudents have pursued this type of businessand some have turned it into a full-timeprofitable business to continue after school.

CONSTRUCTION

This field also offers a wide variety ofbusiness opportunities. Some of theopportunities include the following:

General home repair. Another need causedby the busy lives of people is that of homerepair. The single parent home increases theneed for minor home repair and mainten-ance. In one city, a very creative husbandand wife team started a business called,Rent-a-Husband. The business aimed its ser-vices toward the single head of household,usually a female who had limited home re-pair skills. The wife made the contacts andsales and the husband would do the repairwork.

Residential and commercial remodeling.Due to inflation, many people are remodel-ing existing homes or business locationsrather than moving on to more expensivelocations. This has greatly enhanced theopportunities for remodeling businessventures.

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AUTOMOTIVE

The automotive industry also offers manybusiness opportunities. Some might includethe following:

Engine repair and body repair. Therenever seems to be enough good service ga-rages that can fix automobiles. With moreand more cars on the road, a creative automechanic or body repair person can be suc-cessful ir. auto repair.

Mobile auto service. Another automotiveopportunity is that of taking the repair ser-vice to the customer. This type of businessis rather new and it is growing in popularity.This is usually accomplished with a fullyequipped van or truck that will travel tocustomer's location to offer service.

Auto repair instruction. Because of in-creased costs many people want to learn howto repair their own automobiles. Manyrepair shops are now teaching how to dominor repairs. A new, nontraditional area ofservice is automobile maintenance classesfor women.

This type of business may not be extremelyprofitable, but the public relations it builds isinvaluable.

ARTS AND CRAFTS

There are many crafts that can lead to aprofitable business. This industry includesmaking and selling crafts as well as teachingvarious craft-making skills. From weavingand needlepoint to quilting and ceramics,craftpersons can have profitable ventures.Leather craft and wood working are very oldhobbies that can provide income. Cal lig-

raphy, interior design, and stained glasswork are other areas that can create income.

OTHER/MISCELLANEOUS

Free lance writing and drawing has beenaround for a long time and is becoming avery timely venture. House sitting, plantsitting and pet sitting are three rather new,unique services that people seem to needtoday. Home services such as painting,screen and storm window replacement andgarage and basement cleaning are alsopopular needs for today's busy family.

HOW CAN YOU CREATEA NEW BUSINESS IDEA?

The first step to creating a new businessidea is to identify the entrepreneur's interestsand abilities. If you are interested in devel-oping a business idea for yourself, then youneed to identify your own special talents andinterests. You may wish to list your abilitiesand interests on a piece of paper, and thenreview the list with your family and friends.

The second step is to understand the marketin which you wish to work. If you wish todevelop a business for your local commun-ity, discuss with other residents recentchanges in the community. Ask yourselfand other residents, what does this commun-ity really need?

On the other hand, if you wish to develop aproduct or service for a market other thanyour community, gather all the informationyou can about that market. This marketcould be another geographic market, or aparticular product area, such as educational

software. You may find information aboutthe market in newspapers and periodicals.Try to personally contact potential customersand ask what new products or services theyneed.

The third step is to evaluate and refine yournew product ideas. Eliminate those ideaswhich are impossible to produce profitably.From the remaining list of ideas, the entre-preneur should select one good idea whichutilizes his or her personal abilities andcaptures his or her interest.

Developing business opportunities can be funas well as profitable. To be successful, youmust know yourself and the market in whichyou want to work. No businesses are guar-anteed to be successful. However, as anentrepreneur you can greatly increase theprobability of success with proper planning.

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14

ACTIVITIES

The following activities are designed to helpyou apply what you have learned in thisunit.

INDIVIDUAL ACTIVITIES

A.

Make a list of all your skills and intereststhat could be used in a business.

B.

List as many small business ideas as possi-ble that are related to a specific career areaof interest to you.

C.

Contact the owner of a business in yourcommunity that has been in operation for 20years or more. Discuss how consumer de-mand has changed during the lifetime of thebusiness.

GROUP ACTIVITIES

A.

Form small groups. Each group shouldgenerate one new product or service ideathat they feel the local community needs.This product or service should be feasibleand profitable. Reconvene the class anddiscuss these business ideas.

B.

Ask for a student volunteer to demonstratethe development of a new business idea.Ask the volunteer to share with the class hisor her personal list of skills and interestsdeveloped under part A of the IndividualActivities. Then, have the class brainstormbusiness opportunities that would make useof the student volunteer's skills and abilities.

CASE STUDY

Bill and Cathy West just moved to town.Bill has a job, but Cathy has not been ableto find employment. Bill has had 12 yearsof experience in construction and Cathy hasbeen a primary teacher for 4 years. Thecommunity they live in is mainly residentialwith limited industry. Most of the residentsdrive 25 miles to an industry complex.

DISCUSSION QUESTIONS

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With one small child, Bill and Cathy have toshare the time at home since there is no daycare in the neighborhood. Cathy reallywants to work, but can't seem to find anywork that allows flexibility in hours.

1. Can you think of businesses that Bill and Cathy might start?

2. What limitations would they find as they start a business?

3. How should they develop their business?

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ASSESSMENT

Read the following questions to check your knowledge of the topics presented in this unit.When you feel prepared, ask your instructor to assess your competency on them.

1. What factors should be considered when starting a business?

2. How has the U.S. population changed in the last two decades?

3. What are some technological changes that have created business opportunities?

4. Identify some business opportunities that might develop from a specific career experience.

5. What are the three steps to creating a new business idea?

REFERENCES

Engel, J. F., et al. Consumer Behavior, 7th ed. Orlando, FL: The Dryden Press, 1993.

Greenfield, W. M. Calculated Risk, A Guide to Entrepreneurship. Lexington, MA: D.C. Heath

and Company, 1986.

Lipper, Arthur, III. "If Constructively Creative Divergent Thinking Equals Entrepreneurs: HowCan We Help Create More of Them." The Journal of Creative Behavior 21, no. 3 (1987):

214-218.

Michalko, M. Thinkertoys, A Handbook of Business Creativity for the '90s. Berkeley, CA: Ten

Speed Press, 1991.

Shook, Robert L. Why Didn't I think of That! New York: New American Library, 1982.

Sublette, Guen. "The 15 Hottest Businesses for 1994." Entrepreneur 21, no. 12 (December1993): 71-84.

Travela, John. Can You Make Money with Your Idea or Invention? Denver, CO: ManagementPublications, U.S. Small Business Administration, 1988.

Weckesser, Ernest. The $12,000 Housewife, A Practical Guide to Making Extra Money at Home.

Dunkirk, NY: The Green Tree Press, 1984.

White, Richard M. The Entrepreneur's Manual. Radnor, PA: Chilton Book Company, 1977.

Udell, Gerald G. Ideas into Dollars. Denver, CO: Business Development, U.S. Small BusinessAdministration, 1988.

Level 1

PACE

Unit 1. Your Potential as An EntrepreneurUnit 2. The Nature of the Small Business

* Unit 3. Business Opportunities

Unit 4. Global Markets

Unit 5. The Business Plan

Unit 6. Help for the Entrepreneur

Unit 7. Types of Ownership

Unit 8. Marketing Analysis

Unit 9. Location

Unit 10. Pricing Strategy

Unit 11. Financing the Business

Unit 12. Legal Issues

Unit 13. Business Management

Unit 14. Human Resources

Unit 15. Promotion

Unit 16. Selling

Unit 17. Record Keeping

Unit 18. Financial Analysis

Unit 19. Customer Credit

Unit 20. Risk Management

Unit 21. Operations

Resource Guide

Instructor's Guide

Units on the above entrepreneurship topics are available at the following levels:

* Level 1 helps you understand the creation and operation of a business* Level 2 prepares you to plan for a business in your future* Level 3 guides you in starting and managing your own business