Business Ed chapter 6

What are the 5 elements of a business plan?

1. Description of the business 2. Customer Analysis 3. Operations Plan 4. Marketing Plan 5. Financial Plans

What are the 2 small business advantages?

1. Meeting Customer Needs 2. Providing Unique Services.

What 2 places can a small business owner get help from?

1. Universities and colleges often have faculty members 2. Local Chambers of Commerce 3. The Small Business Administration

Over 60% of new jobs were created by businesses with fewer than---employees between the years 1990 and 2005.

500

----of startup capital comes from owner savings, bank loans, and credit card debt.

75%

If the ownership structure is a corporation, who/what is the source(s) of financing?

A corporation is owned and financed by the shareholders.

36) What are "strategic alternatives" in a business plan? (pg. 139)

Alternative plans for production, marketing, staffing, and financing. The alternatives should be studied and identified. The owner can select the best choices from the alternatives.

What is an Entrepreneur?

An entrepreneur is someone who takes a risk in starting a business to earn a profit.

List 4 personal characteristics that are common to most successful entrepreneurs?

Competitive, creative, energetic

What is an entrepreneurship?

Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business

Where do entrepreneurship opportunities begin?

Entrepreneurship opportunities begin with the creation of new or improved products and services.

If the ownership structure is a bank, who/what is the source(s) of financing?

If the ownership structure is a bank, the source of financing comes through borrowed funds obtained through loans.

---is a design change that increases the usefulness of a product, service, or process

Improvements

If the ownership structure is a partnership, who/what is the source(s) of financing?

In a partnership, financing comes from each partner will be expected to contribute.

If the ownership structure is a proprietorship, who/what is the source(s) of financing?

In a proprietorship, financing comes from one person will supply the money.

-----is an invention or creation that is brand new.

Innovation

List 4 of the sources of financing that entrepreneur's use for their new businesses?

Owner savings, bank loans, credit card debt, family and friend

What is the most important step in starting a business?

Preparation is the most important step in starting a business.

is when new and/or small businesses produce a large volume of goods and services for the economy.

Productivity

In addition to owner-supplied capital, what are 2 other sources of financing for a small business? (pg.140)

Sources for financing a small business may come from borrowed funds from banks, family, or friends, funds through partnerships, funds from a shareholder, or credit from companies that one does business with.

The amount of money needed to open the business.is what?

Start-up financing

procedures followed to start a business. The process begins with an idea and concludes with a careful study of information to establish whether the idea can be successful. Is the?

The Business Decision

What is the purpose of the financial plan?

The financial plan gives information about the start-up costs, short- and long-term financial needs, sources of financing, and the budget and financial statements.

What is the purpose of the marketing plan?

The marketing plan gives a description of major marketing activities, a description of resources needed, and a schedule of marketing activities.

What is the purpose of the operations plan?

The purpose of the plan is to give an organization of the company, description of major operations, an analysis of resources needed, and the human resource plan.

What is a small business administration?

The small business administration is a government agency that helps small business owners develop business plans and obtain financing and other support for their companies

Business idea is?

hobbies, interests, and business experiences. It often gives people ideas for new businesses. Few people should think about starting a business without working for some time in a small business.

Venture Capital is when?

money is provided by large investors to finance new products and new businesses that have a good chance to be profitable

Long-term financing

money needed for the main resources of a business

Short-term financing

money needed to pay for the current operating activities of a business.

Small businesses are responsible for what?

most new employment.

Inventory

products and/or raw materials on hand.

What is a small business?

small business is an independent business with fewer than 500 employees

Good customer traffic is when?

what most retail businesses need. If the business is not easy to find or requires a great deal of travel time, many potential customers will stay away.

Business Plan is what?

written description of the business idea and how it will be carried out, including all major business activities.

Why is it important to use a team approach when starting a new business?

​The team approach is important because a business can be quite difficult to run without the help of others. It is also important to gain assistance from people who specialize in small business knowledge.

What is the purpose of the customer analysis?

• Give a description of customers • Location, number, and resources of customer's sales forecasts.

List 4 common reasons for small business failure

• Not keeping adequate records. • Not having enough start-up money • Lack of management experience • Lack of experience with the type of business • Not controlling operating expenses • Poor location for a business • Failure to manage credit offered to customers.

What are the 4 descriptions of a small business? (pg. 130)

• The owner is usually the manager • It operates in one or very few locations. • It typically serves a small market • It is not dominant in its field.