Small Business Lesson 1

Because most businesses don't have a one-size-fits-all approach, what do you need to do?

Add your own creativity to any concept.

When a potential business owner asks, "How can I improve on this?" it is an example of which of the following?

Coming up with a business idea

Which of the following business opportunities allows a business to purchase and sell a company's products, but not the right to use that company's trade name as its own?

Dealers/distributors

Lisa has been working a full-time job and then working on her business in the evening. She makes $6,000 per month at her full-time job. How much income should Lisa be making from her business before quitting her full-time job?

$1,800

What prompted Reed Hastings to start Netflix?

He got a big late fee for a movie rental.

Gardening supplies are hot now, but they haven't always been. Why is this true of other businesses, too?

Hot businesses often go through cycles.

How can you know if it's a good time to start your business?

If you feel excited about it

When you're evaluating the risk of starting a new business, which risk is likely to be worth it?

Losing time, energy, and money

What is one advantage of starting a business in hard times?

You can find equipment and products at bargain prices.

"Wouldn't it be great if we could get food delivered?" is an example of coming up with a business idea based on what?

Your own personal frustration

If you think carefully about what you're doing, always ask for advice when you need it, and keep asking questions, starting a business can be

a calculated risk.

Entrepreneurs can make money on fads, but they have to know

when to get in and out in order to make a lot of money.

The belief that you have to come up with something no one has ever done before to build a successful business is

wrong

Writing down ways you would like your community to improve is an example of which of the following?

Generating good business ideas

According to Greg Brophy, founder of Shred-It America, what do you need to figure out the formula for your particular business?

Determination

How can you avoid saying "This year I'm going to start my business" for years?

Do it now.

Why might a business based on a fad be a good idea?

Fads have made some business owners incredibly wealthy.

When you want to start a business, what is the first step?

Figure out what you want to do.

All franchises must provide potential franchises their ______ 10 days before an agreement is signed. This document contains extensive information about the company.

Franchise Disclosure Document (FDD)

How many businesses are started every year in the United States?

More than 540,000

Which of the following is the most important trait of a successful business owner?

Perseverance

What is a good way to discover trends in the big cities to bring to your hometown?

Read newspapers from those cities online.

Purchasing a franchise can be a good way to

transition to becoming an entrepreneur in a supportive environment.

A jewelry direct sales company pays its consultants based on recruiting new members.

The company is running a pyramid scheme, which is illegal.

When you start the idea process, what do you list first?

Things about yourself

In some areas, entrepreneurs can take advantage of _______ where they can lease low-cost office space and have access to office equipment and answering services.

business incubators

Lamar is researching a business opportunity and has asked his acquisition team to help him review and verify all of the information about the business. This process of research and verification is called

due diligence.

The best way for a franchisee and franchisor to evaluate each other is

for the potential franchisee to spend time working in a franchise location.

Looking for a solution for a common source of irritation and frustration can be a(n)

great way to generate an idea.

Micah has been working as a fitness trainer at a gym. He plans on opening a new gym of his own three blocks down the street. However, if he does this he will be in violation of the _______ he signed when he took the job, which prevents him from starting a gym within five miles of his employer.

noncompete agreement