Chapter 6 Intro to Business

choosing the ____ members becomes one of the most important initial business decisions

"team"

____ of all small businesses are home-based businesses. How much capital is usually only required for this type of business? example: educational services

1) half 2)$5,000

the most important step in starting a business is ___________. This includes___________________.

1) preparation 2) having enough information to make good decisions

women own _______ of all small businesses

1/4

How many sole proprietorships are there in the U.S.?

22 million

how much of new business owners run their own businesses with little to no help?

24.9%

small businesses employ nearly ___% of U.S workers and are responsible for __-__% of all new jobs

60% 60-80%

Small Business Administration (SBA)

A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.

business plan

a written description of the business idea and how it will e carried out, including all major businesses.

what is the key step in starting and running a new business?

adequate financing

List the factors which describe the business decision

an idea plus experience right place and time team approach preparation and research

Members of SCORE

are retired local business people who volunteer their services to counsel and mentor new business owners.

nearly as small businesses ___ and ___

close and begin

information is needed about

customers, competitors, important operations, government regulations, and many other topics.

key factors in starting your own business

desire to be your own boss developing a good initial plan having special skills and abilities coming up with innovative ideas

sections of a business plan include

detail the competition potential customers operations marketing finances

key features of a business plan are:

general description of the company credentials of owner(s) a description of the product or service analysis of the market (demand, customers, and competition) financial plan

mos successful business start when customer demand for certain products and services is

high

business ideas come from many sources, including:

hobbies interests business experience books magazines

primary reasons entrepreneurs close

low sales lack of adequate capital competitive pressure higher than expected expenses an owner unprepared to manage a growing business operations requiring more time than the owner is willing to commit.

long-term financing

money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years.

reasons for 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 businesses failure to manage credit offered to customers

where do most entrepreneurs get most of their start-up money?

owner savings, bank loans, credit card debt, friends and family.

three advantages small businesses have over large businesses are:

pay attention to their customers located close to the consumer depend less on other businesses to distribute or service their products

what is the most common type of small businesses?

retail/intermediate

is the failure rate higher for small businesses or large businesses?

small businesses

Entrepreneur

someone who takes a risk in starting a business to earn a profit

Startup Financing

the amount of money needed to open the business

short-term financing

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

a key factor when putting your idea into action are

the right place to open