BUS 101 Chapter 6

What are some of the factors that could be associated with small-business success?

Adequate financial planning and Managerial competence

In 2019, online retail sales reached over $365 _____ , or approximately _____ percent of all retail sales..

Billion, 12

A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which of the following?

Cover letter, company background, and Executive summary.

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

A comprehensive business plan will include cover letter, _____ _____ , company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

Executive Summary

Business _____ are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help.

Incubators

______ are individuals or companies that invest in new businesses in exchange for partial ownership in those businesses.

Venture capitalists

An inexpensive marketing research study may help you determine which of the following?

Where to locate, Whom to select as your target market, and What is an effective strategy for reaching your target market?

After Hurricane Sandy devastated the area where Wilson ran his business, Wilson moved his outdoor program indoors, which prompted him to move to annual memberships. Why did he make this decision?

Wilson's overall business expenses increased and he needed a way to cover the costs, which included investing in more marketing, equipment, space, and staff.

A business plan includes

a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

a market

When writing a business plan, it is important to:

analyze the competition and calculate how much money you need to start.

Shark Tank led to a partnership with Barbara Corcoran, a real estate tycoon who invested $55,000 for 15 percent in the business. She also served as a mentor who encouraged them to go into franchising. Barbara Corcoran is considered a(n)

angel investor.

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:

delegate more often, be respectful of employees' opinions, and provide more challenging opportunities to learn.

High growth businesses that can help you create independence and wealth, are often the most ______ to sustain.

difficult

The cousins made the decision very early on to work with their franchisees in a way that they let them run the show in their city. This is called

empowerment

The section of the business plan that is designed to initially captivate and energize a potential financial investor would be the

executive summary.

Planning, _____ , keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.

financing

Wilson cites that one of the biggest mistakes he made when starting JCF was not taking it seriously enough, which led to some financial issues and "a big bill from the IRS." This mistake exemplifies which potential cause of small-business failure?

forgetting about taxes, insurance, and other costs of doing business

JCF Health and Fitness was born of wanting to give women a solution to a traditional gym setting. Which aspect of a successful business does this scenario illustrate?

fulfilling a need

What are the three main factors addressed in a business plan?

goals, plan, metrics for success

All organizations require the following:

information management and capital

Entrepreneurs start a business with the desire to grow the business and generate wealth while ______ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

microprenuers

Entrepreneurs often come up with an idea for a new business and need financing. At this stage, it is important to develop a business _____, which forces potential small-business owners to be quite specific about the products or services they intend to offer (answer is one word).

plan

In the interview Sabin says, "We didn't want to tell anyone our idea and have them say, 'Well, I don't know...' We believed in it, we believed in each other, so we went for it." Which entrepreneurial attribute is this an example of?

self-nurturing

Wilson states, "Culture is important to me. Our culture is based on accountability, camaraderie, and results. I've moved from finding the best person for the job to finding the best fit for our culture." Which attribute of a successful entrepreneur does this represent?

self-nurturing

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was:

she did not develop a thorough business plan

An entrepreneurial _____ is a group of experienced people from different areas of business who join together to form a _____ team with the skills needed to develop, make, and market a new product.

team, managerial

Which section of the business plan details and outlines the authority structure that exists inside the company?

the management plan

A business plan is a detailed written statement that describes:

the target market and the resources and qualifications of its owner(s)

Why do people create a business plan?

to provide an overall road map of how to start the business and to attract/satisfy investors

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

understands the steps needed to start a small business

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship