Into to Business Ch.6

What are the main sections/elements of a business plan?

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

A small business should have ________________ employees.

500 or less

Approximately how many new businesses are create per year?

500,000

Over ______________ of new jobs are created by small businesses each year

82%

Improvement

A designed change that increases the usefulness of a product, service, or process

Where do most of the new business ideas come from?

A solution to solve a problem

Small Business Administration (SBA)

Government agency that helps small business owners develop business plans, and obtain financing and support

What are important factors in becoming an entrepreneur?

Having special skills and abilities, having the desire to be your own boss, and having self-confidence and persistence

What are some examples of common personal characteristics of entrepreneurs?

Having special skills and abilities, having the desire to be your own boss, and having self-confidence and persistence

What is the important of business plans?

Helps businesses stay organized and on track

Businesses begin with a(n)?

Idea

A manufacturer adds a new ingredient to make soap smell better. This is a(n)?

Improvement

Innovation

Invention or creation that is brand new

What are some examples of Long-Term Financing?

Land, buildings, and equipment

What is not an important factor in becoming an entrepreneur?

Living in a major U.S city

What are some examples of borrowed funds?

Loans from the bank or borrowed money from friends and family

Land, buildings, and major equipment are examples of?

Long-Term Financing

Most successful small business owners?

May utilize the help of local professionals

Long-Term Financing *lasts and is paid over many years (overlaps with start-up costs) ex. land, buildings, equipment

Money needed for main resources of a business

Start-Up Financing ex. buildings, equipment, inventory, licenses, etc.

Money needed to open a business

Short-Term Financing *less than a year

Money needed to pay for current operating activities

Venture Capital ex. Shark Tank Investors

Money provided by large investors to finance new products/businesses

Being an entrepreneur normally carries __________ risk than a normal business job

More

Why do small businesses fail?

Not enough start-up money, lack of management experience, not controlling expenses, and poor location

What does describe a typical small business?

Operates in 1 or fewer locations, owner is usually the manager, serves a smaller market

What are some common sources of financing for entrepreneurial businesses?

Personal Savings, Family and Friends, Banks and Loans, and Venture Capital

Entrepreneurship

Process of starting, organizing, managing, and assuming the responsibility of a business

What is NOT a main risk of becoming an entrepreneur?

Risk of not having control of your business

What are main risks of becoming an entrepreneur?

Risk of your product not being wanted, not having enough start-up money, and competitors

Most small business are?

Service businesses

Are the majority of U.S businesses small or large businesses?

Small

Are small businesses ALWAYS successful? Or do some also fail?

Small businesses have a high failure rate

Entrepreneur

Someone who takes a risk by starting a business to try to earn a profit

What are common characteristics of small businesses?

The owner is usually the manager, completes day to day operations, has 1 or fewer locations, serves a small market, and is not dominant in its field

What is one primary factor that helps successful businesses stand out from failing businesses?

They create, follow, and update their business plan

What are some common reasons why small businesses fail?

They lack capital or money, have low sales, bad management, or competition

How do Entrepreneurs contribute to the economy?

They provide a variety of options in products and services in our lives

Money provided by large investors to finance new products/businesses best decribes?

Venture Captial

What are common reasons for becoming an entrepreneur?

Wanting to pursue a personal dream or idea, setting own personal schedules, and wanting to leave traditional corporate environment

A competitive advantage that small businesses have over larger businesses is?

Attention to unique customer needs

Innovations are?

Brand new

Small Business

Business with fewer than 500 employees

Improvements are?

Changes in already existing designs to improve or better it

If you start a new business, you will need info about?

Customers, Competitors, and Government Regulations

Which does NOT describe a typical small business?

Dominant in its field

All small businesses are brand new innovations.

False

Entrepreneur's need an advanced business degree to be successful.

False

Once a business plan is written, you should never revise or update it.

False

The location of a small business usually has no impact of success.

False

Which is NOT a common reason for becoming an entrepreneur?

Working less hours

Business Plan

Written description of a business idea and how it will be carried out