ENT FINal

patent

(n.) exclusive rights over an invention; copyright; good for 20 years form field date and accepted by US patent and trademark office based on first to file not first to invent expensive to maintain and obtain only get it to have a competitive advantage

Unemployment Compensation

Financial assistance for some period of time to those people who lose their jobs through no fault of their own; provided in every state by law. person has to look for job while getting paid

critical difference between an ent business and venture capital

. An entrepreneurial business's resources are significantly more constrained than those of venture capital-backed business. Whereas the entrepreneurial firm generally develops a business plan as a promotional tool to be sent to venture capitalists and other potential investors, the entrepreneurial business develops a business plan as a guide for the running of the business.

government regulates child labor at

16

Fair Labor Standards Act

1938 act which provided for a minimum wage and restricted shipments of goods produced with child labor

suggest approach to the develop quality ideas

1st: should list/evaluate personal skill set 2: potential founders should analyze the moment for a gap or need in the not being met effectively 3: founders need to compare their ability to fill those gaps with the oppurtunity available

limited liability parntership LLP

2 individuals but 2 classes of partner general Partner: considered the mangager of the firm has unlimited liability limited partner: passive investors, can work for firm but may not be active only requirement: one partner is considered the general partner

31,4 percent of compensation cost for employment by large businesses

31,4

Small Business Administration (SBA) Stats

99.9 percent of all businesses in the United States are small. 48 percent of private sector employees (57 million out of 118 million employees in the United States). 33.6 percent of known export value ($471 billion out of $930 billion). Small businesses accounted for 63.3 percent of net new jobs from the third quarter of 1992 until the third quarter of 2013.

Sole Proprietorship (start of 9)

A business owned by one person simplest form of business organization treated as a separate entity process; go to courthouse, fill out form, pay a small fee, all of the business income/loses are treated as part of the individuals income and report on tax form problems - a business that involves more than 1 founder cant an sp - liability for owner - legitimacy - is popular among individuals who - unsure of idea and just wants to see what happens - when limitation will keep business from growing - cost of equipment is so low there is low risk

harvest plan

A plan to exit a business. Typically, the owners have the intention to sell the business to another firm or take it to an IPO.

performance review

A procedure that evaluates the work and accomplishment of an employee and provides feedback on performance. regualr basis

Subchapter S Corporation

A type of corporation that is limited to 75 or fewer shareholders has limited shareholder liability, and requires little financial reporting; taxed as a partnership; also known as an "S" corporation benefits : limited liability for owners, the potential to console financial statments of business and personal income for tax benefits relatively easy formation compared to sub c legitimacy in the market place because you can put inc after the name negatives cumbersome and expensive have to ger lawyers and account for process paperwork limit to shareholders

Plant Patent

A unique patent right granted to inventors of new forms of plants.

3 reasons businesses fail

An effective sales generation model. You are only as good as your pipeline. You must develop the ability to generate consistent and growing sales. Sustainable operating profit margins. Profit margins are key to successful businesses. Being properly financed. It is crucial that you have sufficient resources (either yourself or by raising funds) to get the business to the point where it is self-funding.5

Areas of entrepreneurship

Austin, Texas; the Denver-Fort Collins Innovation Corridor; Silicon Valley, and Boston's 128 corridor. These areas are well known for generating new employment with entrepreneurial ventures, providing a growing tax revenue base, and providing a basis for significant improvements to the area's economic vitality.

types of triggers

Being laid off from established employment. Being approached by one or more people with a new business idea. Reaching a point financially where the risk-return level of a proposed new business is tolerable. Having very little to lose financially by a failure. Receiving evidence that an idea is not only doable, but there is a concrete way to address a given problem. Being spurred to action by attending a seminar, reading a book, or talking with successful entrepreneurs. Experiencing a midlife (or early-life, or even late-life) crisis. Observing the establishment of an incubator, accelerator, or business development effort within the community. Experiencing the inability to climb the corporate ladder due to circumstances beyond one's control. These might include not having graduated from the "correct" school, being female in a male-dominated business, and having a marketing background in a manufacturing business. Graduaing from college you may also see new opportunities that others have not seen. Today more so than any time in the history of the United States starting a business from college is seen as highly possible.

small business assistance centers (end of 2)

Centers funded by the Small Business Administration that provide free advice to individuals wishing to start new businesses. end of 2

Economic Gardening

Creates jobs by helping small businesses expand locally. is growing across thePage 9 United States to help start new entrepreneurial businesses in an area. The support provided includes financing for the venture, tax incentives, support classes, and more. Memphis, Tennessee, has used the program as a way to revitalize key elements in the city's economy.9

Entrepenueral businesses rose to fill

However, the decline of the large multinational firms in the United States opened new opportunities that entrepreneurial businesses rose to fill. The economic growth and success that the nation experiences today is due primarily to the entrepreneurial firms that found an economic footing and grew very rapidly. Today many of the multinational firms in the United States are technology firms that began in the late 1970s and early 1980s. The vast number of businesses that start up each year are responsible for much of the innovation that pushes established companies to new levels.

Americans with Disabilities Act (ADA)

Legislation passed in 1990 that prohibits discrimination against people with disabilities. Under this Act, discrimination against a disabled person is illegal in employment, transportation, public accommodations, communications and government activities. have to have elevators and ramps

big 5 test

OPENNESS: CONSCIENTIOUSNESS: EXROVERSION: AGREEABLE: NEUROTICISM: Most widely accepted trait theory popular in universities

Robber Barons

Refers to the industrialists or big business owners who gained huge profits by paying their employees extremely low wages. They also drove their competitors out of business by selling their products cheaper than it cost to produce it. Then when they controlled the market, they hiked prices high above original price.

Great Depression 1930s

The Great Depression of the 1930s was harder on entrepreneurial businesses than on larger more mature businesses, and as a result it encouraged industrial concentration.

venture capital start ups can be characterized by

The businesses are well-funded by venture capital or angel investment. In fact, without such capital it is virtually impossible to begin this particular type of venture.* Venture capitalists are a specialized type of investor; they typically do not invest less than $2 million and in return they expect extraordinary returns. These businesses are formed with a harvest plan in place; this is a plan to exit the business that allows the investors to take advantage of growth. A harvest plan may include selling the business to another firm, selling it to a group of investors, or even participating in an IPO (a public offering of stock). Size is the deciding metric in a potential public offering or sale to a larger organization. As a result of the harvest plan, these firms are organized to grow as quickly as possible and are generally heavily laden with debt. Many are harvested before they can achieve positive net cash flow. They have a developed organizational structure. They often hire an experienced president to grow the company. They tend to develop operations in multiple locations very shortly after the initial investment. They are inherently risky operations whose growth is dependent on the exploitation of unknowns in the market (a new invention, unique patents, etc.). These businesses either start or grow quickly to employ a relatively large number of employees.

these firms are most often referred to entreprepeneurial firms and defined by these characteristics

The start-up is self-funded or closely funded. The development plan is oriented around positive cash flow. The management structure is designed to take advantage of the skills of the founder or founders. The operation is designed in the image of the founder(s). The business is oriented toward the personal goals of the founder(s). The number of employees may be zero or as few as one, and typically would not be expected to grow to more than 50 to 100.

stake holders

These are individuals or other organizations that may impact the success of the business and depend on the success of the business for their own livelihood. include key suppliers, customers, and employees—all of whom are critical to the success of the new business.

The Millionaire Next Door

Thomas Stanley and William Danko highlight statistics that demonstrate the potential for financial rewards from starting a business.7 For example, they point out that almost two-thirds of U.S. millionaires are self-employed, despite the fact that self-employed people make up fewer than 20 percent of the workers in America. They go on to state that 75 percent of these self-employed millionaires are entrepreneurs; the other 25 percent are self-employed professionals, such as doctors and accountants. So, close to 50 percent of the millionaires in this country are entrepreneurs. Most millionaires are individuals you know in your community. These individuals achieved their success by taking the bold step to actually start and run a business.

without finding a requisite skill set pursuing these opurtunites is simply

a frustrating waste of time

Copyright

a legal means of protecting intellectual property, grants ownership of creative materials, music artwork advertising or any other creative work

Fortune 500

a list of the 500 U.S. companies with highest earnings, published yearly by Fortune magazine all companies on list started as a new venture

Design Patent

a patent that offers protection for the way a product looks

Utility Patent

a patent that protects the way an invention is used and works

Equity Theory

a theory that states that people will be motivated when they perceive that they are being treated fairly

par value

a value assigned to a share of stock and printed on the stock certificate initial value at where stock is offered should be low so company can authorize millions of shares

living wage

a wage that is high enough to maintain a normal standard of living

partnership agreement

a written agreement among all owners what each is expected to do (cash, servieces, property) if an agreement is not placed: parntersjip will be governed by uniform partnership act or the revised uniform partnership act

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job all positions should have one having a description will assist founder a lot as he considers the skill and ability of a new hire

the offer

after you select a candidate suggest all the details of offer be developed prior to conversation with candidate consideration should be given if person wants to negotiate negotiation is an art establish an amount of time the offer will be on the table once agreed put in writing by founder singed and sent to candidate only when candidate returns signed original letter you should consider position closed

contract

agreement between two or more parties to preform certain activities

positives/negatives about SP an GP

all business debts flow directly to the owners meaning owners are responsible for any debts life savings can disappear if the business goes bankrupt

interview

always ask them to fill out application application should have name address, phone number, email, 3 year address, SSN, drivers liscesnse number and issue, work history, date available for work, position applying for, how they heard about the job, education and training, professional organization memberships, any record of conviction and is so details, if not a US citzen, references question that can't be asked age, race, disability, gender, national origin, religion or creed, marital or family status, English is first language, if you drink alc, pregnancy or if you have children, military discharge status

without the skill the founders would not have

an advantage

glass ceiling

an invisible limit on women's climb up the occupational ladder

lease contracts

any term that is agreeable between parties questions to ask - what exactly is the new owner leasing - can the owner renew the lease - who is responsible for improvements who has the authority for plant improvements - who has responsibility for matinacne and other property issues - who has to city liability insurance - can landlord enter at anytime if there are poblems what procedures for adressing them

personality test

assist indviduals in analyzing their strengths and weaknesses use test to help better understand yourself and your strengths not a guide for your carrer

job advertisement

attract the largest pool of applicants college placement offices online job posting trade associations employment agencies (expensive and take some of the first year salary)

most popular recourses for starting a business

background or hobbies

licensing (types of licensing and permits)

business license local abc ( alcohol beverage control) occupancy permits federal liquor license business license from local and county sign permits osha permits for food handling fire soply permits

large business regularly ignore

business opportunities if they do not believe the results will generate high profits, whereas entrepreneurial businesses are more flexible and willing to pursue a wider range of opportunities

an unhappy person not working at full potential will

cause the ENT to lose time dealing with the employee

Occupational Safety and Health Administration (OSHA)

charged with protecting the health of the workers shaped regulation stop be more lenient towards small businesses

personal motivation

come from the indivdulals themselves and are the strongest motivations available drive people to make career and life altering moves

advertisments should be

concise but get attention talk about culture of firm address excitement about the business should ask for resume/refernces

economies of scale

condition that allows long run cost of to go downward as production increases large firms can sometimes do things more efficiently because of their ability to operate on a larger scale than can a small firm

synergy

connection of skills to understanding of an industry and the ability to create a competitive advantage

US government classification of small businesses

considers any business with fewer than 500 employees to be a small business while the European Union caps that number at 50. We would suggest that a business with almost 500 employees is actually a large firm requiring formal personnel policies, specialized groups, and an administrative structure that is in no way close to the reality of most small businesses. For the vast majority of people, the businesses formed will have far fewer than 500 employees.

human resources

defined in economics as quantity and quality of human effort directed towards producing goods goods and services having the right number of people with the right skills for the job

entrepreneurs should never

do anything that does not let them sleep at night

retain employes that add value

don't retain people who waste your time

all business have

employer identification number for taxs

if business is covered by FLSa its also cover by the

equal pay act, can't discriminate in pay to man and women who have same job

the world bank

estimates that one of the strongest factors in the growth in any nation's GNP is the presence of entrepreneurial small- and medium-sized enterprises (SMEs). Today there are widespread efforts in almost all nations to encourage the development of small and medium enterprises. These governmental efforts range from tiny contributions of capital or time to large, multidimensional programs that cross the boundaries of multiple nations.

3rd element

examination of your own personality

gap analysis

examine the difference or gap between what expects and what occurs

ways to identify gaps

examine trends that haven't reached your loccation talk to and interview special and succesful people enptrenurs in the area discuss with family look for environmental changes brainstorm look at frustrating things

opentunity analysis

examines oppurunites in the marketplace side by side with the individuals ability to address gaps

organizational slack

excess resources in on organization that allows for reduancey

rewards of owning your own business

extend far beyond the financial. That said, the financial rewards to entrepreneurs can be stunning.

supports

family, social networks, community, and financial resources

New Business deal with

fewer regulation than big

5 categories of cap analysis (end of 3)

finances time nonfinancial resources risk competitors threats to profit margins (not being able to get enough profits threat to sales generation schemes (not being able to get enough sales requires to more the firm possible) threat to operational financing (not obtaining support financially to operate a firm)

Affordable Care Act (ACA)

firms with more that 50 people workers are required to give insurance to employees biggest beneefiearys of Aca are the ENT

entrepreneurs can purchase a canned package

for doing payroll and should meet those requirements

Entrepreneurial businesses act as a catalyst

for societal change in other ways as well. They have the ability to garner profits in markets that have been ignored by large corporations.

testing

founder has the right to insist a test, ENT should talk to a lawyer if they ae doing drug test if handing money the should take a math test test are acceptable if their a direct link to the performance and necessary for success

established businesses are more often hesitant to buy from start ups its not sure the new start up will

fulfill the order, firms will start slow then continue to buy more if they like the relationshiop

quality ideas are a

function and thoughtful of a person or persons creativity

crowd funding

funds received by a business by soliciting a large number of very small investors usually via the internet

partnerships

general and limited

board of advisors

group formed at the direction of the founders compromised form individuals outside the business who adivse the founder

owners and employees of the entrepreneurial businesses

have an understanding of the local community not easily obtained by a large conglomerate.

Limited Liability Corp (LLC)

have became one of the most popular forms of incorporation realitvley new California 1994 have flexible profit handling cost of formation is low

Board of directors (ch 9 done)

have responsibility to the shareholders of the organization, corporations must have board of directors

Ent has the right to hire and fire

have to have a documented reason for firing if not open your self up to law suit don't be afraid to say what they are doing wrong

greater debt

higher risk tolerance

Human Resource Management (HRM)

hiring, inspiring, managing personal, one of the toughest most important function for an ENT firm

possible ideas for a business

hobbies/activites education work experience family

Sub C/S both

holding annual board meetings reports standards to local, state, fed authorities have to have - corporate name - location of corporate hq - general nature of the business - names address of all corporate founders and investors - horizon for firms existence - authorized stock/capital - bylaws of organization (basic rules0

basic forms of compensation

hourly salary commission hybring compensation system

system review of a employee

how they preformed relative to their objectives plans for future defined objectives for next year pay raise being awarded

apple

in 1976, Steve Jobs worked with Steve Wozniak to design and sell the first Apple personal computer from Jobs parents' garage. To raise the approximately $1,600 in capital to start the business, Jobs sold his microbus and Wozniak sold his calculator. Their second Apple computer design had earned over $200 million by 1979

succesion should be planed out years (done 10

in advanced so no one is fighting over the business and successor should get the old persons resources

Discrimination

in workplace, hiring, dismal, level of pay, or promotions based on race, color, gender, beliefs and religion prohibited by state law title 7 civil rights act applies to all firms with 25 or more people state laws apply to all firms with 25 or fewer people fed laws can put ENt at risk if they have fewer then 15

Women starting new businesses have

increased to the point where they are now the largest single group of new business founders. In part, this growth has come from the fact that women are often frustrated by what is referred to as the "glass ceiling." This refers to the fact that women, like minorities, may be hired by large firms but experience limits placed on their advancement. As a result, these women leave the large firms and start their own businesses. Women entrepreneurs also start businesses to allow them to have greater control over their lives, so they can better balance their family's and children's needs.

liability insurance

insurance that provides protection from claims arising from injuries or damage to other people or property doesn't cover intentional acts of malice, but covers accidents and can be obtained to preserve legal defense fund in case of a law suit

new business development

is an important driver of the economic success of a community, a region, and a state. As a result, civic leaders increasingly look up to entrepreneurs as a means to promote economic strength.

its important for individuals to understand how their decison making

is bounded by their own version of reality

enneagram test

is that a person is a result of all the experiences, 9 different types of personalites

advantages of starting ones own business

it provides the setting where the business owner can be the boss. the owners of a new business are the most important single factor in the business's success. The new business owners have both the opportunity and the responsibility to lead.

Workers Compensation

laws designed so that employees who are disabled or injured while on the job are provided with some type of compensation regulated by each state some states run their own funds given to empoyees if qualifies, if owners fault, or unsafe workplace

Workers' Compensation Insurance

legally required insurance for compensating workers injured on the job required and is a major expense

profit sharing

low level salary but offers to shARE a percentage of profit at the end of the year or some other thing with employees

large corps have

low risk

popular website for job posting

monster, indeed, zip recruiter

entrepreneurs have a big financial risk they need to

need to consider how much much debt you willing to take on

initially evaluate the Risk Tolerance to start a new business

next step is evaluate what level of risk you accept in business

Bonding

obtaining insurance protection against theft by employees, or damages in the performance of the workers

medical care

one of the most expensive cost of any business and is one of the most desired benefit form employes

Myers-Briggs Test

one of the most widely used personality evaluations Katherine briggs and daughter Isabel Myers

Subchapter C Corp

organizational that treats the firm as a unique entity responsible for own taxes no limit to shareholders owners protect beyond equity investment double taxation owners considered as employes and are paid salary and bonses owners can pay themselves all of the profits each year so little profit is reported and then little tax is owed fringe benefits

Small Business Administration (SBA)

originated 7/30/53 goal is to assist, aid, counsel, protect, insofar, the interest of small business

bounded rationality

our experiences, history, culture, and values establish what we consider possible/practical the reason individuals from outside the industry are able to establish a new business is because the business that wasnt considered

negatives of a bad employee

owners time is lost organization does not fully benefit form their employee problems may start with other employes other bigger firms can absorb difficulties due to organizational slack a ENT firm can be devistated by 1 bad hire

Benefits

paid vacations 401k plan paid holiday medial care reterimetn plan sick leave life insurance

General Partnership

partnership in which partners share equally in both responsibility and liability report profits on own tax returns more paper work than a SP business expenses have some flow dissolution is easy but requires formal record with authors liability: owners are held joint liable for all debts each partnership assumed to be involved with all decisions (have best interest for other person)

break even point

point where revenue coming into the firm is sufficient to cover expenses

succesful new businesses ideas are not determined by (start of 3)

race parents gender or religion

when starting a business it takes time for business to reach the level where

revenue coming in is sufficient to cover the expenses

bonus

reward offered to employes based on preforemence level of reward is left to the ent

1880s

saw the initial development of the nation's large industrial base. It was from these beginnings that the robber barons developed

low risk tolerance

spend less and save more (for Rainey day)

high risk tolerance

spend more save less (don't expect a rainy day)

agency theory

suggest that individuals act to maximize their own individual benefit

Trademark

the exclusive right to use a brand or part of a brand name, symbol, name of products, most large companies TM their name, symbols and tag lines new businesses should preform a search to ensure that its not violating a TM if a Tm is violated you can be sued pay damages, and be forced to change name

The federal General Accounting Office did an analysis of

the impact of the closure of military bases. It found that in cities with base closings including Salt Lake City, Kansas City, and San Jose, the areas around the bases had unemployment rates lower than the national average and income growth higher than the national average.

late 70s early 80s

the nation was in economic turmoil as many of the large firms that had grown to dominate the U.S. economy were having difficulty, owing to global competition. Entire industries, such as steel and automobile manufacturing, were in decline. It was during this time that President Jimmy Carter described the country as in a "malaise."

everyone brings to a business

their different view of the world

entrepreneurial provide more than just jobs

they also provide a means to meet the varied demands that individuals face in a society. Individuals can become frustrated with large corporations over the lack of promotion opportunities or the inflexibility of the corporations in dealing with the needs of family and children.

start a business you would like to do

times is the most valuable asset

compensation

when building compensation system the Ent need to fair equitable system for all empoyes employes will easy communicate about compensation

equity investments

where someone provides funding in return for some ownership in the new business.

woman stats

women businesses are formed at a 50 percent greater rate than that of men 1/3 of businesses are headed by women of color