chapter6

Immigration

Act passed in 1990 created a category of "investor visas" that encourage entrepreneurs to come to the U.S.

•A good accountant can help in:

-Deciding whether to buy or lease equipment. -Deciding whether to own or rent a building. -Tax planning. -Financial forecasting. -Choosing sources of financing. -Writing requests for funds.

MARKETING RESEARCH

-Determine where to locate. -Whom to select as your target market. -What is an effective strategy for reaching the market.

•Advantages of global trade for small businesses:

-Overseas buyers enjoy dealing with individuals. -Small companies can usually begin shipping much faster. -They provide a wide variety of suppliers. -They can give more personal service and attention.

KNOWING the MARKET

.•Set out to fill the market's needs by offering top quality and great service at a fair price. Quirky allows customers to take part in designing products. Anyone in the community can take part in design, style, naming, packaging, and pricing. Products are sold through the site and can even be found in brick and mortar stores.

Entrepreneurship

Accepting the risk of starting and running a business.

FIVE STEPS to STARTING YOUR BUSINESS in SCHOOL

1.Find a problem or need. 2.Zero in on specifics. 3.Do research on campus, test products with students. 4.Move forward with your ideas. 5.Sacrifice.

Five Mistakes Business Owners Make

1.They're too afraid to take the leap! 2.They hire the wrong people. 3.They don't want to give up control. 4.They become complacent. 5.They fail to see new opportunities.

Business Plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners' qualifications. •A business plan is mandatory for talking with bankers or investors.

Entrepreneurial team

A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product. •An entrepreneurial team (Steve Jobs, Steve Wozniak and Mike Markkula) was key to Apple's success.

AFFILIATE MARKETING

An online marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website. •One of the easiest ways to start a web-based business is though Affiliate Marketing

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle About half of U.S. micropreneurs are home-based business owners - writers, consultants, video producers, architects, bookkeepers

Venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership.

Incubators

Offer new businesses low-cost offices with basic services.

Enterprise Zones

Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

Small & Medium Enterprises General Authority (SMEA).

Their mission is to develop and support SMEs to enable them to prosper by driving cooperation forward with strategic partners in the public, private and non-profit sectors, both locally and internationally.

Small & Medium Enterprises General Authority (SMEA)

is a KSA government agency that develop and support SMEs

The Small Business Administration (SBA)

is a U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans

WHY TAKE the RISK?

opportunity, profit, independence, challenge

A business potential owners should be

specific about the products or services they offer. They must analyze the competition, calculate how much money they need, and cover other details of operation.

Intrapreneur

•A creative person who works as an entrepreneur within a corporation. •Intrapreneurs use a company's existing resources to launch new products for the company.

WRITING a BUSINESS PLAN

•A good plan takes a long time to prepare. •A good executive summary catches interest OF potential investors to read on. •Getting the plan into the right hands

BENEFITS of HOME-BASED BUSINESSES

•Ability to start your business immediately •Minimal start-up capital needed •No rent or excessive set-up charges •Comfortable working conditions •Reduced wardrobe expenses •No commuting •Tax benefits •Elimination of office politics Low risk for trial and error

ACCOUNTING ASSISTANCE

•Computers simplify the process by helping with inventory control, customer records and payroll.

disadvantages of HOME-BASED BUSINESSES

•Difficult to establish work habits •Limited support system •Isolation •Work space may be limited •Clients may be uncomfortable coming to your home •Zoning restrictions •Success is based 100% on your efforts

HOW TO BOOST YOUR BUSINESS'S ONLINE PRESENCE

•Establish an identity. •Be easy to find. •Take good ideas and make them your own. •Look out for opportunities. •Remember other forms of marketing. Be friendly!

home based business difficulties

•Getting new customers •Managing your time requires self-discipline. •Work and family tasks are sometimes not separated. •Government ordinances may restrict your business. •Homeowner's insurance may not cover business-related claims.

MANAGING EMPLOYEES

•Hiring, training and motivating employees is critical. •Employees of small companies are often more satisfied with their jobs - they feel challenged and respected. •Entrepreneurs best serve themselves and the business if they recruit and groom employees for management positions.

Small Business

•Independently owned and operated, not dominant in its field of operation and meets certain standards of size. •Businesses are "small" in relation to other businesses in their industries.

we can call an idea a good opportunity if

•It fills customers' needs. •You have the skills and resources to start a business. •You can sell the product or service at a reasonable price and still profit. •You can get your product or service to customers before the window of opportunity closes. •You can keep the business going.

LEARNING ABOUT SMALL BUSINESS

•Learn from Others: Investigate your local colleges for classes on small business and entrepreneurship; talk to and work for successful local entrepreneurs. •Get Some Experience: Gain three years experience in the field; then start a part-time small business. •Take Over a Successful Firm: Serve as an apprentice and eventually take over once the owner steps down.

ADVANTAGES of SMALL OVER BIG BUSINESS

•More personal customer service. •The ability to respond quickly to opportunities.

BUSINESS FAILURES are LOWER THAN the REPORTS BECAUSE...

•Owner closing a business to start another is reported as a "failure." •Changing forms of ownership is reported as a "failure." •Retirement is reported as a "failure."

•A competent lawyer can help with:

•Owners need outside consulting advice early in the process. •Small and medium-sized firms cannot afford to hire experts as employees. •A competent lawyer can help with: -Leases -Contracts -Partnership agreements -Protection against liabilities

SOURCES of CAPITAL

•Personal savings •Relatives •Former employers •Banks & finance companies •Government agencies •Angel investors •Venture capitalists

MAJOR BUSINESS FUNCTIONS

•Planning •Financing •Knowing customers •Managing employees •Keeping records

What does it take to be an entrepreneur?

•Self-directed •Self-nurturing •Action-oriented •Highly energetic •Tolerant of uncertainty

HRDF

•The Human Resources Development Fund (Hadaf) is a Saudi governmental authority that was established in July 2000. It falls under the Saudi Ministry of Labor and Social Development. HRDF is mainly concerned with providing financial support to organizations that train and qualify Saudis in the private sector.

Angel investors

•are private individuals who invest their own money in potentially hot new companies before they go public.