Intro to Business Chapter 6

• Entrepreneur

  someone whos starts a business to earn a profit
• Entrepreneurship

  process of starting, organizing, managing, and assuming responsibility for a business.
• Joshua Moore

  personal affections
• Ben Cathers

  web marketing and adversiting
• Rich Stachowski

  water talkies
• Abbey Fleck

  makin' bacon trays
• What does it take to be an entrepreneur

  all ages, categories, racial and ethnic groups

  divided equally between males and females
• Entrepreneurs

  persistent

  energetic

  competitive
• Entrepreneurs

  problem-solving skills

  strong integrity

  capability to learn from failure
• Employment

  over 60% of new jobs were created by businesses with fewer than 500 people
• Financing

  start with $10,000 or less
• Where does start-up money come from?

  banks

  owners savings

  family and friends
• Venture Capital

  money provided by a large investors
• Productivity

  businesses with single owners and no staff account for $770 billion in sales annually

  responsible for more than a half of the US - GDP

  more than half of all innovative products and services developed
• What are the sources of financing that entrepreneurs use for their new business

  family and friends

  banks

  owner savings

  loans
• innovation

  invention or creation that is brand new
• Improvement

  designed change
• Risks

  50% of new businesses fail

  not enough money

  low sales

  inflation

  unprepared owner
• Small business

  independent business with less than 500 employees

  99% of US businesses are small business
• Description of a small business

  owner is usually the manager

  operates in one or few locations

  not dominant in its fields
• Ownership diversity

  1/4 are owned by women

  the majority are 35 years or older

  have a high school degree

  17% of small businesses African-American, Asian-American, or Hispanic-American ownership
• small business advantage

  vital role

  meet needs

  direct info on likes and dislikes
• What does SCORE stand for and what does it mean?

  service corps of retired executives - volunteer services to new business owners
• The Business Decision

  and idea/experience

  right place and time

  team approach

  research
• Business Plan

  written description of all business ideas
• Elements of a business plan

  description of the business

  description of competition

  customer analysis

  operations plan

  marketing plan

  financial plans
• Developing the business plan

  gather information

  develop strategies

  write the plan

  review the plan
• Strategic Alternatives

  alternatives plan for production
• Start-up financing

  money needed to start and open the business
• Short-term financing

  money need to pay for the current operation activities of a business
• Long-term financing

  money needed for the main resources of a business
• Sources of Financing

  owner-supplied funds

  borrowed funds