Intro to Business

On average, how much money is needed to start a part time business venture?

$5,000

How does the SBA define a small business?

how many employees they have

What is venture capital?

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

In a typical small business, in what other roles does the owner serve?

money supplier, manager, and the only employee.

Is every person who owns or manages a business an entrepreneur?

no

What is the most common type of small business?

professional, scientific, and technical services

What exactly is an entrepreneur?

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

Does a business plan have to be in writing?

yes

Approximately what percentage of US workers are employed by small businesses?

50%

What percentage of all new businesses will fail?

50%

Differentiate between an innovation and an improvement.

An innovation is an invention or creation that is brand new. An improvement is a designed change that increases the usefulness of a product, service, or process.

What are three questions you should ask yourself when deciding if you have the basis for a new business enterprise?

Can you think of some service or product that isn't being offered at this time? Is there some service or product that you can offer more efficiently? Is there some special talent you have that could become the starting point for a business of you own?

What is the most important step in starting a business?

Having a business plan

What are the characteristics of a successful entrepreneur?

Persistent Competitive Problem- solving skills Creative

Differentiate between start-up, short-term, and long-term financing.

Start up is the amount of money needed to open the business. Short- term is the money needed to pay for the current operation activities of a business. Long - term is money needed for the main resources of a business that will last for many times.

What are the steps in the process of starting a business?

Starting with an idea Seeking training/ gaining experience in a range of business operations Finding the right location Waiting for the right time Asking for/ hiring help Preparation- gather information about customers, competitors, operations, government regulations

Discuss the main reasons why new businesses fail.

The main reasons why new businesses fail is not keeping adequate records, not having enough start- up money, lack of management experience, lack of experience with the type of business, not controlling operation expenses, poor location for the business, failure to manage credit offered to customers.

What are the three circumstances in which a small business can gain an advantage over a large business.

The three circumstances in which a small business can gain an advantage over a large business is when customers want individual attention, if you're paying a little bit more, and wants a unique need.