Unit 2 Entrepreneurship

• SBA (Small Business Administration) connects entrepreneurs with lenders and funding to help them plan, start, and grow their business
• Traditional Business Plan:

  • Detailed plan setting out business objectives and strategies for achieving them
  • Includes objectives, mission, key to success, products and services, market analysis, and strategy
• Parts of a Business Plan:

  • Executive summary: summarizes the whole report for quick understanding
  • Business objectives: define company goals and direction (SMART goals)
  • Business environment: internal and external factors influencing the company's operating situation
  • Products/services: describes what the business will sell or services offered, including consumer benefits and intellectual property filings
  • Present market: describes the industry and target market
  • Competition: details current market conditions that can impact products/services
  • Marketing plan: comprehensive plan showing steps for advertising a target market
  • Management plan: detailed plan describing planning, monitoring, and controlling efforts in an organization
  • Financial plan: includes future financial projections like Income statement, Balance Sheet, and Cash Flow statement
• Value Proposition:

  • The reason why customers choose one company over another
  • Should solve a customer problem and satisfy a need
• Key Partners:

  • External companies or suppliers needed to perform key activities and deliver value to customers
• Key Activities:

  • Generate value, distribution, customer relationships, and revenue
  • Examples: making lemonade, marketing, selling
• Key Resources:

  • Such as office, human resources, transportation, etc., corresponding with key activities
• Cost Structure:

  • Includes all costs incurred to operate the business model like marketing, website costs, manufacturing, packaging, and raw materials
• Customer Relationships:

  • Describes the types of relationships a company establishes with customer segments, driven by customer acquisition and retention
• Channels:

  • How a company communicates with and reaches customer segments to deliver a value proposition
• Customer Segments/Demographics:

  • Different groups of people or organizations that an enterprise wishes to reach and serve
• Revenue Streams:

  • How a company generates revenue from customer segments
• Liability:

  • A company’s financial debt or obligations that arise during its business operations
• Types of Business Ownership:

  • Sole Proprietor: simplest form where a person owns a business and is personally responsible for its debts
• Partnership:

  • Business owned by two or more partners who share unlimited liability
• Corporation:

  • A legal entity separate from its owners, with advantages like unlimited number of shareholders and limited liability
• 1. Corporation:

  • A form of corporation that allows income to pass directly to shareholders to avoid double taxation
• LLC (Limited Liability Company):

  • Members cannot be held personally liable for the company’s debts or liabilities
• Non-Profit Corporation:

  • Organized to meet specific tax-exempt purposes
• Intellectual Property Law:

  • Rules for securing and enforcing legal rights to inventions, designs, and artistic works
• Contract:

  • A legally binding agreement
• Business License:

  • A legal document granting rights to conduct business in a specific city
• Business Registration:

  • Registering with proper jurisdictions to conduct business