Intro to business: Chapter 6

What are social entrepreneurs?

adopt a mission to create and sustain social value (do good in the hood)

How often are most business plans updated?

annually

What are some places small businesses can find help?

1) Faculties of universities and colleges 2) Local groups of business people 3) SBA

What are key factors to the success of a business?

1)An Idea Plus Experience 2)Right Place & Right Time 3)Team Approach 4)Preparation and Research

What is included in the "description of competition" part of the business plan?

1)Characteristics of the industry 2)Condition of the economy 3)Strengths and weaknesses of major competitors

How many new businesses are created each year?

500,000

What specific things can the SBA help do?

1)Create your Business Plan 2) Choose Your Business Structure 3) Register Your Business correctly 4) Obtain Business Licenses & Permits 5)Learn About Important Laws & Regulations for industry/company 6)Help Obtain Financing 7)Explore Loans, Grants, & Funding 8)Filing & Paying Taxes correctly 9)Help pick Location & obtain Equipment 10)Hire & Retain Employees

What is included in the "marketing plan" part of the business plan?

1)Description of major marketing activities 2)Description of resources needed 3)Schedule of marketing activities

What are the overall steps in developing the business plan?

1)Gather and review information 2)Develop Alternate Plans (Strategic Alternatives) 3)Business Plan sections are written 4)Ask an expert to review the plan

What are some reasons many new businesses fail?

1)Lack of adequate capital 2)Low sales / revenue 3)Higher than anticipated expenses 4)Competitive pressure 5)An owner unprepared to manage a growing business 6)Operations requiring more time than the owner is willing to commit

What is a small business?

1)Less than 500 employees 2)majority of U.S. Businesses are "small" 3)Owner is usually the manager 4)Operates in one or very few locations 5)Typically serves a small market 6)Not dominant in its field

What are common reasons small businesses fail?

1)Not keeping adequate records 2)Not having enough start-up money 3)Lack of management experience 4)Lack of experience in the type of business they have started 5)Not controlling operating expenses 6)Poor location for the business 7)Failure to manage credit offered to customers

what is included in the "operations plan" part of the business plan?

1)Organization of the company 2)Description of major operations 3)Analysis of resources needed 4)Human resource plans

What is included in the "financial plans" part of the business plan?

1)Start-up costs (Inventory / Supplies / Licenses) 2)Short-Term Financing (Money for current expenses) 3)Long-term financial needs (Land / Buildings / Equipment) 4)Sources of financing 5)Budgets and financial statements

What is included in the "description of the business" part of the business plan?

1)The business idea 2)Major products and services 3)Ownership structure 4)Strengths/weaknesses 5)Long- and short-term goals

what is included in the "customer analysis" part of the business plan?

1)demographic information(location, amount, and resources of customers) 2)sales forecasts (use conservative numbers and also look at competitor sales)

What are two ways that entrepreneurs can make and impact?

1)innovation: creation of a totally new product or service 2)improvement: A design change increasing usefulness of a product, service or process

What are entrepreneurs' main sources of finance?

1)owner's personal financial resources/family or friends 2)venture capital and angel investors/large investors or investing groups 3)loans (from banks) and credit (from other businesses)

What is an entrepreneur?

A person who starts a business and is willing to risk loss in order to make money; One who organizes, manages, and assumes the risks of a business or enterprise

About how many americans are involved in entrepreneurship?

about 13%

What advantages do small businesses have over large ones?

meeting individual customer needs and providing unique services

How should you do good preparation and research?

research information about 1) customers 2) Competition 3) Operations 4) Government Regulations 5)Small Business Assistance