Chapter 1 the Entrepreneurial Life 5

1 The Entrepreneurial Life

— CHAPTER 1 LECTURE NOTES

1 Discuss the availability of entrepreneurial opportunities and give three examples of successful businesses started by entrepreneurs.

PPT 1-1 A. Entrepreneurial opportunities Chapter 1 The Entrepreneurial Life ÑPoint out how entrepreneurial ventures are critical to the health of the U.S. economy, so an entrepreneurial career contributes to personal rewards and societal PPT 1-2,3 welfare. Chapter 1 Looking Ahead 1. Three Success Stories a. SLR Contracting and Service Company (Buffalo, NY) PPT 1-4  In 1996, 21 yr old Sundra Ryce launched the company Entrepreneurial Opportunities  Traditionally a male dominated industry  Family business financing - $10,000 startup cash  Succeed in spite of her youth and gender  Worked in the industry first b. FlavorX (Bethesda, MD)  Started by Kenny Kramm, a pharmacy technician  Needed to overcome the “yuck” factor in children’s medicine  1995, FlavorX became an independent company, selling its “system” recipes and refillable sets of flavorings to other pharmacies  The product is in 10,000 chain pharmacies, 1,500 independent pharmacies, and 300 hospitals  Startup focuses on the social value of entrepreneurship c. Auntie Anne's (Gap, PA)  Originally started as a pretzel business founded by Anne Beiler when she purchased a booth at a farmer's market  Product lines change—started with variety, later focused on pretzels  Today: 800 stores in 42 states and 13 international territories  A business started with very limited resources and developed into an international franchisor. d. Evidence of opportunities (Many profitable business opportunities always exist)  Ask students for general ideas gleaned from the examples presented in this first section. What ideas stand out in their thinking?  Identify the implications of these examples: Diversity in entrepreneurship—these are three very different types of ventures started by very different individuals. Great potential—these ventures started small but grew rapidly (even if in a controlled fashion). Creative thinking—these people saw opportunities. (What limits our ability to see opportunities?)

1 2 Part 1 Entrepreneurship: A World of Opportunity

These entrepreneurs were very successful, but some more than others.

2 Explain the nature of entrepreneurship and how it is related to small business.

B. Entrepreneurship and small business PPT 1-5/TM 1-5 Who Are Entrepreneurs? 1. Who are the entrepreneurs? (Text's definition: all active owner-mgrs) Founders—“pure entrepreneurs,” typically among the bigger risk takers, often the most creative PPT 1-6 Second-generation operators of family-owned businesses -- carrying on the The Independent Entrepreneur. family tradition Franchisees—restricted in freedom, but having invested money and time PPT 1-7 Owner-managers who have bought out founders—new to the business, but The contributions of Small not too far removed from the essence of its founding Business? Excludes salaried managers of larger corporations (even those who lean toward innovation) 2. What is small business? PPT 1-8/TM 1-8  Ask the students how they would define “small business.” What is small business? [Acetate 1-8]  Despite numerous efforts to define “small business,” there is no generally accepted definition.  Emphasize and clarify the four-point definition used in the text. (1) Financing supplied by one individual or only a few individuals (2) Other than marketing, operations are geographically localized (3) The business is small when compared to biggest competitors (4) Fewer than 100 employees

3 Identify motivators or rewards of entrepreneurial careers.

C. The payoff of entrepreneurship PPT 1-9/TM 1-9  Entrepreneurial Incentives Ask students what they believe is the primary motivation driving entrepreneurs. [Acetate 1-9]  Ask students to identify an entrepreneur they know personally (or at least one they know about) and assess their primary motivation. PPT 1-10  Is there a difference between what they believe about the motivations of Why People become entrepreneurs in general and those they know personally? Entrepreneurs 1. Make money (profit) Profit is a strong motivator, but it’s a mistake to assume that it is the only motivator. Most entrepreneurs are satisfied with what they consider to be a "reasonable profit." 2. Be your own boss (independence) Ñ 38% of small business owners left the "corporate world" so they could "call their own shots."  Explain to students that entrepreneurs can avoid: Inflexible schedule—no more time clock and 8-to-5 routine Supervisory evaluation—no subjective performance review Locked-in strategy—change direction if you have a better idea Established policies—make your own policies, set vacations, etc.  Explain to students that entrepreneurs cannot avoid: Chapter 1 The Entrepreneurial Life 3

Customer demands Government taxes and regulations Need for long hours, hard work Employee expectations 3. Escape a bad situation (Freedom)  Reluctant entrepreneurs - entered business ownership as a result of financial hardship 4. Enjoy a satisfying life (personal satisfaction)  Ask students for examples of the personal rewards of the entrepreneurial lifestyle based on their observations of the lifestyles of parents or others.  Pride of ownership, self-esteem, and a sense of achievement 5. Contribution to the community (personal satisfaction)  Chance to help the community in some way

4 Describe the various types of entrepreneurs and entrepreneurial ventures.

PPT 1-11/TM 1-11 D. The many varieties of entrepreneurship Varieties of Entrepreneurship 1. Founder entrepreneurs vs. other business owners and franchises  Founders start firms based on inventions, specialized skills, new marketing approaches, etc.  Administrative Entrepreneurs oversee successful, ongoing operations.  The differences between founders and administrative entrepreneurs are sometimes hazy (explore this with the students).  Franchisees are less independent than administrative entrepreneurs. PPT 1-12/TM 1-12 2. High-potential ventures vs. attractive small firms and microbusinesses Small Businesses,  High Potential Ventures (sometimes called gazelles)—fast growing Growth, and Profits enterprises or those that create significant opportunities  Attractive Small Firms—substantial financial rewards  Microbusinesses—very limited profit potential 3. Entrepreneurial Teams PPT 1-13/TM 1-13 4. Artisan vs. opportunistic entrepreneurs Characteristics of  Artisan Entrepreneurs—technical, paternalistic, slow to delegate, few Artisan Entrepreneurs capital sources, traditional marketing, personal sales, little planning examples: car repair shop, beauty shop, guitar shop PPT 1-14/TM 1-14  Characteristics of Opportunistic Entrepreneur—nontechnical, avoids paternalism, delegates, Opportunistic Entrepreneurs employs various marketing strategies and sales efforts, multiple sources of capital, plans for future growth.  Ask students to provide examples of Artisan and Opportunistic Entrepreneurs PPT 1-15/TM 1-15 5. Women entrepreneurs Women Entrepreneurs  Mention the great growth of women-owned businesses.  Note the unique struggles of female entrepreneurs (e.g., obtaining loans).  Cite local examples, if possible.  Ask students for examples of mothers, sisters, or others who are entrepreneurs.

5 Identify ways to gain a potential competitive edge for small entrepreneurial firms.

PPT 1-16/TM 1-16 E. Competitive advantages of entrepreneurial firms Competitive Advantage 4 Part 1 Entrepreneurship: A World of Opportunity

of Entrepreneurial Firms Ñ Small firms are an important part of the U.S. economy—almost all new jobs in the country have been generated by small businesses. 1.Customer focus—small firms can achieve greater customer satisfaction and loyalty by their flexibility. 2.Quality performance—small firms can outperform large operations by closely managing operations. 3.Integrity and responsibility—small firms can foster a reputation for honesty and reliability in their dealings and thereby win business. 4. Innovation—many entrepreneurs are innovators, and this mindset is thus more likely to surface in the operation of the small firm. (Note: 50% of all innovations and 94% of all radical innovations since World War II have come from small firms.) 5. Special Niche—small firms may be able to better meet the needs in a specific niche (segment) of the market (small markets, specialized products).

6 Discuss factors related to readiness for entrepreneurship and getting started in entrepreneurial careers.

F. Getting started PPT 1-17/TM 1-17 Age and Entrepreneurial 1. Age and entrepreneurial opportunity Opportunity  What is the “ideal” time to start (e.g., mid-20s to mid-30s)? [Acetate 1-17]  What determines the two ends of this period (e.g., experience, family obligations, little concern for retirement programs, etc.)? • Are there any exceptions? (Find an example of a student in business.) 2. Characteristics of successful entrepreneurs PPT 1-18/TM 1-18  Make it clear to students that that individual entrepreneurs differ greatly from Characteristics of one another. Successful Entrepreneurs  Select a specific entrepreneur, preferably a local one, and identify that person’s apparent entrepreneurial characteristics. If no example comes to mind, use the PPT 1-19 ones cited in the text. Entrepreneurial Characteristics  Discuss the characteristics that successful entrepreneurs seem to have: (1) Passion for the business (e.g., Michael Dell was willing to interrupt his education to devote his full energies to his computer company). (2) Self-confidence (explain how this relates to Internal Locus of Control). (3) Willingness to assume a moderate level of risk (accepting risk over which they have some control) Ask students for examples of entrepreneurs they know personally who exhibit one or more of these characteristics. PPT 1-20  Taking the Plunge Desirable and acquirable attitudes and behaviors of entrepreneurs 3. Taking the plunge  Precipitating events—catalysts that hasten the move to entrepreneurship  Discuss events that trigger entry into business, and give examples (e.g., losing a job).  What is the relationship between “readiness for entrepreneurship” and a “precipitating event”? (The latter gives the nudge.)  Give or solicit examples of precipitating events behind the founding of specific firms. 4. Growing and managing the business—outlines remaining parts of the text Part 1—Entrepreneurship: A world of opportunity (Chps 1-2) Part 2—Getting started with a new business (Chps 3-5) Chapter 1 The Entrepreneurial Life 5

Part 3—Developing the New Venture Business Plan (Chps 6-12) Part 4—Focus on the customer: Marketing growth strategies (Chps 13-17) Part 5—Managing growth in the small business (Chps 18-21) Part 6—Understanding what the numbers mean (Chps 22-23)

7 Discuss the values and intangibles that are a part of the entrepreneurial life.

G. Success in Business and Success in Life PPT 1-21 Living the Entrepreneurial Life 1. Looking back at an entrepreneurial career Access the journey an entrepreneur takes 2. Evaluating accomplishments Legacy—consists of those things passed on or left behind Entrepreneurial legacy—includes both tangible items and intangible qualities 3. Winning the wrong game Review how Ed Bonneau revolutionized the distribution of sunglasses Entrepreneurs work long hours, especially in the beginning An excessive focus on money or work, can twist the entrepreneurial process 4. Crafting a worthy legacy What is a worthy legacy? Nature of the endeavor itself  Genuine concern for the well-being of others  Bernard Rapaport, “how you achieve it is more important than if you achieve it 5. Beginning with the end in mind Entrepreneur builds a business, a life and a legacy day by day  It must be constructed during the life of the business itself

— SOURCES OF AUDIO, VIDEO, AND OTHER INSTRUCTIONAL MATERIALS

South-Western’s BusinessLink Video Series presents Second Chance Body Armor: A Study in Entrepreneurship (15 minutes, 23 seconds), free to adopters. One day while delivering pizza, Richard Davis was shot. This experience inspired Davis to create a product that would help save lives. With $70 in financing, Davis created and sold comfortable body armor. During the early years, Davis struggled with finances, supplies, and distribution, but he persevered. Now Second Chance is synonymous with body armor. Davis is a colorful character and a true entrepreneur. To show potential customers that his product works, he shot himself! In the video, Davis discusses the advantages and disadvantages of being your own boss, the challenge of promoting a product, and the continuous challenge of developing new products. This video illustrates a number of the topics in Chapter 1. You can use it at the beginning to introduce topics to come, or you can use it in your discussion of rewards and drawbacks of entrepreneurship, characteristics of entrepreneurs, precipitating events, or founders/risk takers. (It could also be used with Chapter 4 on business startups or with Chapter 14 on promotion.) To request your free copy of all five BusinessLink videos that accompany this text, contact your South- Western/ITP sales rep or ITP Faculty Support (fax (415) 592-9081 or E-mail [email protected]). Ask for ISBN 0-538-86708-6. Something Ventured is a comprehensive video primer with 26 half-hour programs produced by INTELECOM to parallel this textbook. The second video, titled On Your Own?, provides an introspective 6 Part 1 Entrepreneurship: A World of Opportunity

look into small business ownership, with owners themselves commenting on the difficulties of startup and the knowledge, tools, and commitment required. Entrepreneurs featured represent different businesses, backgrounds, and areas. Contact your South-Western/ITP sales rep or ITP Faculty Support (fax (415) 592- 9081 or E-mail [email protected]). The Fire Within is a video from the series entitled Venturing: The Entrepreneurial Challenge and is produced by Vermont ETV. The program introduces the concept of entrepreneurship and discusses the qualities and capabilities frequently found in entrepreneurs: passion, the ability to embrace and welcome risks, persistence, commitment, desire, self-confidence, good business skills, and the ability to delegate. The program features five different entrepreneurial companies. The entire series of 13 half-hour videos is available for under $100. Call (800) 866-1666. Inc. Business Resources provides three videotapes on entrepreneurship: How to Really Start Your Own Business ($59.95), How to Succeed in a Home Business ($39.95), and Women in Business ($39.95). Call (800) 468- 0800.

— ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS

1. The outstanding success stories at the beginning of the chapter are exceptions to the rule. What, then, is their significance in illustrating entrepreneurial opportunity? Are these stories misleading? p. 3 - 5 These examples provide dramatic illustrations of the substantial success one might achieve. Realistically, we recognize that only a few ventures are so spectacularly successful, that many others experience moderate success, that others are only marginally successful, and that a few fail. Many entrepreneurs find fulfilling lives in successful, independent careers without becoming multimillionaires. The success stories in the text show the great entrepreneurial opportunities available in this country. They suggest that we may go as far as our desires, abilities, preparation, and divine providence permit.

2. What is meant by the term entrepreneur? p. 6 Entrepreneur is a French term that dates back to the early eighteenth century. It refers to an individual who founds or starts a business firm. (The term also includes partnerships and entrepreneurial teams.) In this book we extend the definition to include owner-managers who operate firms started by others. The characteristics of risk-taking and innovation are associated with the image of the entrepreneur.

3. Consider an entrepreneur you know personally. What was the most significant reason for his or her following an independent business career? If you don't already know the reason, discuss it with that person. p. 7 - 10 Answers will vary, of course. Some students should know some entrepreneurs—parents, friends, or employers—quite well. The instructor might ask students first to explain the basis of their relationship with the entrepreneur and then to discuss their perceptions of that person’s motivations.

4. The motivators/rewards of profit, independence, and personal fulfillment attract individuals to entrepreneurial careers. What problems might be anticipated if an entrepreneur were to become obsessed with one of these rewards —that is, have an excessive desire for profit, independence, or a particular life-style? p. 7 - 10 A balanced perspective is needed. While each reward can give a strong motivation to build a good business, each also has some potential for creating havoc in an unbalanced life. An excessive desire for profit can lead to attempts to make short-run gains at the expense of long-run customer or employee relationships. It may also tempt one to lower ethical standards and to neglect family relationships. An excessive desire for independence may make one difficult to deal with in interpersonal relationships. Some degree of perceived interdependence between employer and employee contributes to mutual respect and cooperative relationships. An excessive desire for a satisfying way of life may dull one’s sensitivity to cost and profit issues. An entrepreneur must achieve a profit goal in order to be able to afford a life-satisfaction goal.

5. What is the advantage of using an entrepreneurial team? Chapter 1 The Entrepreneurial Life 7

p. 11 Individual entrepreneurs frequently have weak spots in education or experience. An entrepreneurial team makes it possible to cover such weaknesses by using individuals with varied talents and backgrounds.

6. Distinguish between an artisan entrepreneur and an opportunistic entrepreneur. p. 11 - 12 An artisan entrepreneur is a person with technical job experience (e.g., a painter who becomes a painting contractor) and who lacks general abilities in business management. An opportunistic entrepreneur has a more general education than the artisan entrepreneur and thinks in broader terms of strategy and financial planning.

7. Explain how customer focus and innovation can be special strengths of small businesses. p. 13 - 14 Small businesses are generally less bound by bureaucracy and corporate policies and usually maintain closer relationships with their customers. In other words, their flexibility affords them the ability to focus on their customers and meet their needs, which naturally generates customer loyalty. At the same time, small firms often grow out of the innovative ideas of their entrepreneurial founders, and therefore this mindset is likely to prevail in the small business.

8. Why is the period from the mid-20s to the mid-30s considered to be the best time in life for becoming an entrepreneur? p. 15 - 16 Most individuals in this age category have a significant amount of education and preparatory experience. At the same time, they typically are not locked into salaried positions by heavy commitments to pension plans, extensive family obligations, and so on.

9. Explain the concept of an entrepreneurial legacy. p. 17 A legacy refers to what one leaves behind or passes on to others – to one’s heirs and to others. An entrepreneurial legacy refers to the entrepreneurial aspect, the business side, of one’s legacy, and thus is concerned with what the business experience has meant to all those affected. This includes the tangible elements such as financial resources passed on to heirs and others and also the intangible elements such as the impact of the entrepreneurial experience on family relationships and the example of entrepreneurial integrity or avarice given to the community.

10. Explain the following statement: "One can climb the ladder to success only to discover it is leaning against the wrong wall." p. 17 – 18 Entrepreneurial achievements are varied, and the way we measure them also varies. If an entrepreneur concentrates too much on achieving financial goals, for example, that person may fail dismally in other areas of life such as family relationships. The statement points to the need to have one’s goals properly defined and to have one’s efforts properly forecasted.

— COMMENTS ON CHAPTER “YOU MAKE THE CALL” SITUATIONS

Situation 1

1. Should this venture be regarded as entrepreneurial? Is the owner a true entrepreneur? Whether this is entrepreneurial depends on one’s definition. The owner may or may not be a founder—the key issue in some definitions of a “true” entrepreneur. In this text, we use a looser definition of entrepreneur, which could include this owner-manager regardless of whether he founded the business. The venture is apparently not the high-growth, high-potential type. It may well be what we have called an “attractive small company.”

2. Do you agree with the philosophy expressed here? Is the owner really doing what is best for his family? This question calls for opinions and permits some discussion of the conflicting values and rewards in business. Some may feel the owner is insufficiently motivated to grow and even to serve his own family properly in that way. Others will see the family values and careful growth as appropriate. The question permits the instructor to discern the general orientation of students in a class. How many, after discussion, will give a vote of commendation to this owner? You might ask students to guess the 8 Part 1 Entrepreneurship: A World of Opportunity

owner’s age.

3. What kinds of problems is this owner trying to avoid? The owner is apparently avoiding or reducing problems related to inadequate customer service and product/service quality—areas of difficulty in a rapidly growing business. Also, the personnel and management functions (e.g., delegation, finding qualified key people) are simplified by slow growth. Slow growth may either postpone a transition to professional management or permit a more orderly transition to it.

Situation 2

1.If Kiersten Berger opens the piano studio, will she be an entrepreneur? Yes, even though this piano studio would be a small business (better described as a microbusiness, in this case), it is a new firm that she is starting. Those who launch new businesses are very much entrepreneurs.

2. Which type of reward(s) will be greatest in this venture? The payoffs of a satisfying life (for one who loves music) and also independence would seem to be the greatest. The reward that looks least likely is making money. This business is not likely to generate substantial profits. In fact, a key question is whether it will produce sufficient profits to survive. The business might need to begin as a part-time operation.

3.Even though she is an artisan, she will need to make decisions of a business nature. What decisions or evaluations will be especially difficult for her? Some of the questions she will face relate to marketing her services. What is the potential market? What kind of competition exists? How can she attract customers? What prices should she establish so that she can generate sufficient revenue and still attract customers? What will a projected income statement show in terms of net profits?

Situation 3

1. Is Dover’s feeling of unfairness justified? Is his business entitled to some type of legal protection against moves of this type? Dover’s feeling is understandable but difficult to defend rationally. The business has prospered, to some extent at least, by functioning in a free enterprise system. Capitalism does not protect one from competition. The law, of course, offers some protection from unscrupulous competition—for example, practices such as predatory pricing designed to drive competitors out of business.

2.How should Dover plan to compete against Wal-Mart, if and when this becomes necessary? Large retailers and discounters are more successful in some fields than in others. They are very strong, for example, in drugs, lumber, and general merchandise. In sporting goods, small firms continue to compete very well. Wal-Mart’s forte will be price competition. Dover must emphasize those factors that give small firms unusual strength: personal attention, excellent product knowledge, product lines that exceed those of a discount chain, advertising programs tailored to the interests of their customers, attractiveness (and possibly renovation) of physical facilities, and activities that will gain attention in the news media and thereby deny Wal-Mart a news monopoly. In brief, the store should do everything it does better than its competitor is able to do. If this family business can be an aggressive, bold competitor, it can continue to survive and do well. Meg Whittemore (a writer for Nation's Business) describes a small hardware business threatened by the advent of Wal-Mart in Sterling, Colorado. To cope with the new competition, the owners of the hardware store dropped product lines in which Wal-Mart was strongest and concentrated on basic hardware lines—paint, tools, electrical items, plumbing, carpentry supplies, lawn and garden supplies —and offering customers advice and instructions on how to use those items. In these areas, they could do better than Wal-Mart, and their sales tripled after Wal-Mart moved into town. Chapter 1 The Entrepreneurial Life 9

— ANSWERS TO EXPLORING THE WEB EXERCISES

For each chapter, the instructor’s manual will include a short summary of suggested results students will have after completing the various Web exercises. Because the Web is a constantly changing medium, the answers may vary, and the links may change as well. Thus, answers are only suggested, and the URL for resources, where required, is provided.

Exercise 1

a. The answers will vary; however, each answer should include a few of the following.  Interactive Study Center (The interactive study center links to a Glossary, PowerPoint, Interactive Quiz, Exploring the Web, Company Web site, Learning Aids.)  Interactive Quizzes  Student Resources

b. The students will take the Chapter 1 quiz and email the instructor the results. If the instructor does not want the results, then the students can email the results to their own email account.

The students are required to take and print one of the self assessment interactive online quizzes.

Exercise 2

The students’ answers will vary; however they should list five of their favorite resources (excluding the SBA Web site) and explain why they selected each.

Exercise 3

The examples will vary. Since the textbook provided SLR Contracting and Service Company, FlavorX, and Auntie Anne’s as examples, the students should not use these as examples.

a. Answers will vary. The reasons why it has or has not been successful might include some of the advantages of small entrepreneurial firms, factors related to readiness of the entrepreneur, and the strengths of the entrepreneur.

b. Answers will vary. Possible answers include owner (individual or team), franchisee, artisan entrepreneurs, or opportunities entrepreneurs.

— SUGGESTED SOLUTION TO CASE 1:

BOSTON DUCK TOURS

1. What is Andy Wilson’s primary motivation?

As with most entrepreneurs, there is seemingly a variety of motivators, which primary can be debated. As a starter, note some that seem to exist: a. Wilson seemed to desire entrepreneurial independence and the greater freedom contrasted with 10 Part 1 Entrepreneurship: A World of Opportunity

prior employment. He was “no longer motivated by the suit-and-tie atmosphere of corporate America.” This dislike of a bureaucratic setting coupled with his own highly innovative exploits suggests such a motivation. b. While there is no evident obsession with making money, he clearly had some profit motivations. Investing $30,000 of his own funds must have carried such an expectation, and his later sale of the business gives us a hint of a desire to make money. c. Personal satisfaction and enjoyment were apparently experienced by Wilson. He seemed to have a flair for the theatrical. Designating the drivers as colorful figures and creating an accompanying drama allowed him to give his customers the “best show on wheels.” This sounds like a producer enjoying the great performance he has created.

2. What kind of entrepreneurial operation is Boston Duck Tours?

The business is a start-up with unique features and thus an example of what most people term “pure entrepreneurship.” Wilson is a founder and a “true entrepreneur.” Boston Duck Tours has shown excellent growth, but its growth and prospects are not of such spectacular mature that it would be classified as a high-potential venture or gazelle. Apparently it hasn’t become a large, high-income firm; on the other hand, it is much more than a microbusiness. It, therefore, fits into the “attractive small firm” category – probably at the more lucrative end of such firms. It is a firm led by opportunistic (in contrast with artisan) management. There is a strong record of marketing, innovation, and outside financing.

3. Describe the competitive advantage.

Boston Duck Tours has distinguished itself from its competitors in a number of ways that can give it an advantage with many potential customers. For example: a. There is an aura, something special, in riding in a vehicle that looks so distinctive and that can move from land to water travel so effortlessly. b. The very fact that customers can view the sights from water as well as land distinguishes this business from those giving only land tours. c. The colorful characters (drivers) and unusual entertainment atmosphere set Boston Duck Tours apart from typical tours of the area.

4. What characteristics does Andy Wilson display as an entrepreneur? Andy Wilson is almost a “poster” example of the entrepreneur. He displays many characteristics associated with entrepreneurs. Think, for example, of his:

a. Strong commitment to and passion for the business. He was not stopped by the skepticism he encountered. He refused to belief the person who told him he would have better luck trying to build a skyscraper in the center of Boston Public garden. b. Self-confidence or internal locus of control. He picked up the concept and held it tenaciously through the arduous process of the startup. c. Risk taking behavior. He invested $30,000 of his own money, and he invented large amounts of time and effort in the venture. d. His leadership was evident in his eventual ability to assemble the talent and resources for such a business. e. He showed awareness of a market opportunity that others did not see. f. He displayed remarkable creativity and an innovative spirit in the type of tour business be developed.