Introduction to Business Name
____________________
Ch. 5 - Entrepreneurship & Small Business Date _____________________
Entrepreneurship
Entrepreneur A person who recognizes a
business opportunity & organizes, manages & assumes the risks of a
business enterprise with the intent of increasing the market value of the
business.
Characteristics of an Entrepreneur
Are You an Original?
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Figure 5.1, pg. 70
Advantages of an Entrepreneurship (Examples
on pgs. 71 72)
w profit
$ left over after a business has paid all costs of producing its goods or
services.
Disadvantages of an Entrepreneurship
(Examples on pg. 72)
Fast Review, pg. 72
Characteristics of an
entrepreneur?
Advantages of an
entrepreneurship?
Disadvantages of an
entrepreneurship?
Main reasons
entrepreneurships fail?
Small Businesses as defined by the SBA
( )
An _____________________ owned business that usually
has the _______________ as its ___________________.
Serves a ญญญญญญญญญ________________ geographic area.
Employs fewer than ________ people.
_______ _________________ in its industry.
Small Businesses Employed in the US
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(Figure
5.2, pg. 74)
Facts About Small Businesses
_________ U.S. businesses
are ____________ businesses.
Approximately ญญญญญ
ญญญญญญ______ _____________ small businesses make up a vital part of the
US______________________.
Employ more than ญญญญ__________________ of the total workforce.
Generate more
than _______ the nations _______________.
Principal
______________ of new jobs.
________% of jobs
are in ญ___________ technology.
Real World
Application 2-4, pg. 73.
Advantages of Small Businesses
(easier to form than a large business, pg.
73)
Most Successful Small Businesses
Disadvantages of Small Business
Difficulties that arise:
w
w
w
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Reasons that 4 out of 5 Small Businesses
fail in the first 5 years
Too much _________________ to work whenever you choose
or choose _______to.
____________ -pricing or ____________-pricing of goods
& services.
Starting with __________or _____ experience or business
know-how.
Causes for Business Failures
Effect of Change
Managerial Skills Needed
Inadequate Financial Planning
Fast Review, pg. 75
SBA definition of
a Small Business?
Example of a
service a small business may offer that large
companies
cannot offer.
Which is more
difficult to form: large or small
business?
Give examples of
special skills that a small business owner needs.
List 2 financial
reasons that small businesses fail.
Preparing for Your Own Business
Analyze ญญญญญญญ________ you want to do and _______ you
want to do it.
___________ ___________ from the beginning is one way
to ensure the success of starting a new business.
A Business Plan
Def. -
Focuses on:
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___________ you want to do?
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___________ youll do it?
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____________ you expect to accomplish?
The Business Plan is _______________for potential
investors & financing agencies youll go to for start-up funds.
Checklist for Starting a Venture
-to organize your thinking
_____________
will I ___________________?
____________ are
my main ____________________?
________ is my
product ______________?
How _________
will my product ญญญญญญญ_________ to
_______________?
How
_______________ people will I need to _______ the business?
What ____________
facilities will I need?
What licenses,
permits, etc. do I _____________?
How much ________
will I need to get ____________?
The Business Plan
The Center for Entrepreneurship Management in New York reports that
most Business Plans take _________ than ___ months to prepare.
Parts of a Business Plan
Summary
Company Description
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Products & Services Section
Marketing Plan
Legal Plan
Management Plan & Operating Plan
Financial Plan
Summary
It should intrigue the reader so they want to read
more.
Company Description
Explains the type of company you plan to start:
w
w
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Products & Services Section
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Describe the _________ of ____________you will
sell or the ___________ you will ____________.
Marketing Plan
Describes your likely __________________.
Details your ___________________.
Legal Plan
Points out ___________ you will ____________ your
company:
w
w
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Management & Operating Plan
Detail the companies ______ ___________ & their
expertise and experience.
Specify the companies___________ ___________ , ญ____________,
overall personnel, ________________ & processing requirements, etc.
Financial Plan
Define the companies______________ ________.
__________________ for revenues, costs and profits.
Fast Review, pg. 77
What is a
Business Plan?
Name the
Essential Elements of a Business Plan.