Do I want to be an Entrepreneur?

• What is an entrepreneur?

  • An entrepreneur is a person who has an idea and persists in making a profit from it (Either selling the idea or building a business from it)

  • Being an entrepreneur means taking risks and investine time, energy, and effort to earn a profit

  • They are persistent, take calculated risks, innovated solutions, have a lifestyle that revolves around their business idea, and have determination even in times of failure. They’re problem solving and choose a career path off of the desire to make money and see their vision through to the end. They make choices between ideas that may make money as opposed to those that may fail. They are optimistic and give up personal time to put into working on their idea - taking financial risks all for the sake of making a profit.

• Quiz

  • I did a quiz seeing if I had what it takes to be an entrepreneur, it asked me questions about my focuses in life, how good I was at delegating responsibilities, how good I am at handling money, and my ambitions. Ultimately, it revealed that I was not ready as I was too focused on getting rich rather than working on my passions.

• Pros and Cons

  • Pros

    • Profit

    • Own Boss (Flexibility)

    • Influence Others

    • Follow Passions and be Creative

  • Cons

    • Time sacrifice

    • Financial Risks

    • Failiure

    • Competition

  • If you want to become an entrepreneur, you must be prepared to take on these risks without giving up and keeping yourself motivated, not only by profit, but by your own profits.

• Jeff Bezos

  • Jeff Bezos is the founder and CEO of one of the most successful companies in the world, Amazon. Amazon's initial idea was to be an online marketplace for any product imaginable, which he started from his own garage where he had an idea to sell online books. It took him a year to sell a single book, and over the years they have expanded to offer many different services, such as cloud computing, streaming media, and advertising. Bezos has been known for his vision and drive, as well as his willingness to take risks and work hard. His entrepreneurial characteristics include having a clear vision, being tenacious and resilient, being a good leader, and being able to innovate and adapt to changing circumstances.

Innovation or Invention

• An invention is something new that is unique, never been seen or created before.

• Innovation is the improvement of an existing product or process. This can start with an existing product and then an idea or modification can be implemented where it will meet the needs of society in an improved way. Innovation finds new ways to use the invention and improve upon it.

Moving from Home

• Why move from home?

  • As young people get older they begin to want more independence. This means a desire for more freedom and to make their own decisions regarding personal social and financial matters.

  • Most people eventually grow up and find a place of their own. However, everyone is different. Some people move out when they are young and other wait until well into their 30s to move out.

  • The main reasons people leave home include:

    • To further their education

    • For employment reasons

    • To establish an independent lifestyle

    • Disagreement with parents or carers

Support Organisations

• Government

  • Department of Social Services

  • Centrelink

• Religious

  • Salvation Army

  • Vinnies

• Community

  • Youth Refuge

  • Lifeline

  • Community centre

Arranging Accommodation

• What types of accommodation are there available to young people?

  • After considering the key issues and responsibilities of living independently, young people must consider reasonable alternatives for accommodation.

  • Accommodation costs money, and even though extravagant lodgings sounds appealing, it is likely this would not be reasonable or affordable to most young people

  • Accommodation choice depends on financial and personal circumstances

• Options

  • Young people can set up their own apartment, move into a share house, set up their own share house or enter a university college campus lodging

  • The most common choice is to set up your own apartment and find other young people to share it

Strategies when moving in with others

• Strategy 1

  • Each person pays an amount in a central ‘kitty’ fund. This is then used to pay for bills linked to all flat-mates such as rent, electricity, and communal food

• Strategy 2

  • The sharing of the internet and telephone can be a problem. Either determine to use your own device and plan or set up a fixed cost shared option.

• Strategy 3

  • Set up some rules. These would cover things such as a roster for cooking and cleaning as well as financial rules kitty contribution dates, and a plan for extraordinary expenses that pop up

• Strategy 4

  • Everyone should have a budget. The budget ensures housemates can meet expenses and plan for savings and luxury spending.

Budget

• A budget is a list of planned income and expenditure for a future period. It helps individuals to manage their finances.

• A simple budget shows; expected income, main expenses and remaining funds that may be able to be saved.

• Expenses can be classified into fixed expenses and variable expenses

• Fixed expenses

  • The same amount every time every time

• Variable expenses

  • Change over time or may not occur on a regular basis. For example, rates might be payable every 3 months instead of every month. Electricity may have a fixed connection fee but a variable amount of power used each month.

• Savings can only occur if spending is less than income.

Major Purchases

• A phone

  • A Pre-Paid mobile account comes with a set amount of data that does not require you to purchase any more after it expires, while a fixed-term contract must be used for the duration of the contract.

  • At Aldi, a $5 prepaid starter pack includes a SIM card and $5 credit

  • Mobile plans, family plans, data plans, and pay-as-you-go plans

  • Fixed plans allow you to budget however not everyone can afford it and you may still have to pay for the contract. Should you also need to buy a phone, it is a large starting cost. An advantage of the pre-paid plan is the flexibility to be able to increase or decrease your plan cost as you need it.

• A car

  • Ownership of a car involves two types of costs

    • Initial costs including stamp duty and dealer delivery charges

    • Recurring costs include insurance, registration, servicing, and replacing worn components and fuel

  • How to pay for the new car?

    • Pay in cash

    • Take out a loan

    • Dealer finance

Consumer Protection

• The Australian Consumer Law in the Competition and Consumer Act 2010 protects consumers from unfair business practices when purchasing items

• Consumers who purchase second-hand goods are also covered by the Australian Consumer Law.

• However, the age of the item, price, and condition will be taken into account. A second-hand dishwasher that is advertised for $450 and described as ‘used only a few times’ should last longer than one sold for $55 and advertised as ‘12 years old, still works’

• ‘caveat emptor’, buyer beware, by using the Personal Property Securities Register, consumers can search by serial number.

Insurance

• An excess is the amount of money paid by the insured to the insurer, the excess can be flexible, for example, if the insured would like to reduce their premium (pay per month), then they can choose to have a higher excess and vice versa.