Entrepreneurship Chapter 2

action plan

a multistep strategy to identify and achieve your goals

Bench marking

a process by which a company compares its performance with that of high-performing organizations

SWOT analysis

strengths, weaknesses, opportunities, threats

cash flow

the difference between cash coming in and cash going out of a business

due diligence

doing research in order to make more educated decisions in order to minimize risks

patent

exclusive rights over an invention; copyright

Business life cycle

The stages of growth and development a business can experience

business plan

a formal written document that describes the nature of a business and how it will operate

franchising

A contractual agreement between a franchisor and a franchisee that allows the franchisee to operate a business using a name and format developed and supported by the franchisor.

SMART goals

Specific, Measurable, Attainable, Realistic, Timely

breakeven point

the point at which the costs of producing a product equal the revenue made from selling the product

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business

vertical integration

when a company owns all means of production

Entrepreneurial Journey

your exploration to discover if entrepreneurship is right for you