Unit 1 Entrepreneurship

Name five ways entrepreneurs can successfully present a well‐orchestrated business plan?

To effectively present a business plan, entrepreneurs should keep the following tips in mind: Demonstrate the need and value of the business idea Define the strategic plan clearly—providing an overview of the business model canvas can assist entrepreneurs in succinctly defining both value and strateg y Know every piece of financial data and how it was calculated Make regular eye contact with the audience Be prepared to respond to audience questions and challenges

What are the characteristics and major components of a well‐orchestrated business plan?

Cover Page Executive Summary Company Description Description of Products and Services Market Analysis Marketing Plan Social Media Marketing Plan Operating Plan Funds Required and Expected Uses Financial Statements Owner's Credentials Supplemental Attachments

What are the components that make up a business model canvas?

A business model canvas consists of* Customer segments* Value propositions* Key activities* Key resources* Key partners* Channels* Customer relationships* Revenue streams* Cost structure

What are the advantages (benefits) and disadvantages (risks) of entrepreneurship? *

ADVANTAGES:*Flexibility*Ability to follow a passion and retain control*Build a Legacy*Achieve Financial Success DISADVANTAGES:*Failure*Inconsistent Income*Employee Problems*High start‐up costs

What are the advantages (benefits) and disadvantages (risks) of entrepreneurship?

Advantages*Flexibility*Ability to follow a passion and retain control*Build a legacy*Achieve financial success Disadvantages*Failure*Inconsistent/uncertain income*Employee problems*High start‐up costs

In a few brief sentences, describe the differences between being an employee, intrapreneur, and entrepreneur. Describe how you could grow in your business career from each of these positions. Where would you start to where would be your ultimate goal?

An employee is someone employed by another for wages or salary, and typically in a position below the executive level. An entrepreneur is a person who organizes, operates, and assumes the risk for a business venture. Residing between the two spectrums of employee and entrepreneur is an intrapreneur. An intrapreneur is a corporate executive who develops new enterprises within a corporation. Throughout your working life, you may find that you fulfill all three types of employment. For example, you may start your career as an employee for someone else, grow into an intrapreneur, and eventually decide to start your own business and become an entrepreneur.

Name and describe the four basic business model concepts?

Direct sales:Employees of a business sell a product directly to a consumer. Franchise:Owner of a company grants another business owner the right to use the owner company's name .Freemium:Company provides goods or services for free but later charges for extra features. Subscription:Customers pay an up‐front subscription price for a product

Name and explain the five trends in entrepreneurship

Emerging technologies* Identifying and utilizing new technologies that can enhance product development.Social entrepreneurship* Business development with a social cause, such as solving social or cultural problems.Green entrepreneurship* Business development with an environmental cause.Lean start‐up* Business development methodology that shortens traditional start‐up launch time, money, and resources.Crowd funding* The collection of small investments from a large number of individuals, to finance their business, such as through websites like Kickstarter and Indiegogo.

What is entrepreneurship (include its process as well as its nature)?

Entrepreneurs are individuals who have an idea and create a business around it. Entrepreneurship is the process of devising an idea, taking risks, and establishing a business. The nature of entrepreneurship involves creativity, determination, and risk‐taking.

What impact does entrepreneurship and innovation have on your local, state, national, and international communities and economies?

Entrepreneurship has three crucial roles in society: (1) providing products to customers (2) creating markets (3) increasing economic benefits

What elements are included in a career plan?

GoalsEducational RequirementsSkill DevelopmentIncome PotentialJob OutlookPersonal Interests and AptitudesFinancial GoalsDesired Lifestyle

What are some of the resources available to help entrepreneurs create a business plan?

Helpful resources for examples of business plans, templates, and outlines include the following www.sba.gov/tools/business‐plan/1 http://www.bplans.com www.leanstack.com/lean‐canvas www.businessmodelgeneration.com/canvas/bmc

What is the role of operations and organization in a growing business?

Operational activities make up the majority of daily activities conducted by a business.They include operations that contribute to the net worth of a company.Entrepreneurs categorize operational activities into business functions.Business functions are four forms of operational activities that play necessary roles in running a business. They include finance, production, marketing, and management.Companies rely on organizational design to analyze the organization of a business by reviewing a company's size, goals, and budget.An effective organizational design is critical in order to avoid wasting time, money, and valuable resources.

Name 5 of the 7 Leadership Skills that are characteristics of Entrepreneurs *

PlanningConfidenceMotivationFuture-OrientedPersuasiveCommittedRealistic

What are pro forma financial statements and what are they used for?

Pro forma financial statements are projections of what the entrepreneur expects out of the sales and expenses of the business. Although these statements are only projections, they can give an entrepreneur and future investors a good idea of what the business's finances might look like to consider the right capital resources for the business.

Identify and analyze the four functions of business.

Production: Production functions involve all activities concerning the creation of products. Recalling the example of Microsoft, some of its production functions may include developing new software, hiring new software engineers, or fixing bugs within current software. Marketing: The marketing functions of a business serve to ensure the business is meeting the demand of its customers and able to compete with other companies. Research into competitors, analyzing trends, and social media marketing are important business functions. Management: Daily choices about the direction of business activities are part of the management function of operational activities. They can include leading employees, supervising work, or planning the future of a business. Finance: Financial functions, also known as financial activities, are any daily activities that involve money. Financial functions might include paying employees, collecting money from sales of products and programs, or performing accounting procedures.

Name 5 of the 7 Basic Skills that are characteristics of Entrepreneurs

ReadingWritingCommunicationListeningUnderstanding Basic TechnologyMaintaining RecordsUnderstanding Legal Requirements

Name 5 of the 7 Problem-Solving Skills that are characteristics of Entrepreneurs

ResilienceResourcefulnessVersatilityCreativityAdaptabilityOptimismFocused

How are small businesses defined? What is the nature of business?

The concept of business refers to the aspects of making, selling, and providing products in exchange for money. The US Small Business Administration defines a business as small based on either the number of employees over the past 12 months or the average annual receipts over the past three years.The two most widely used standards to qualify a business as small are 500 employees for most manufacturing and mining industries and $7.5 million in average annual receipts for many non-manufacturing industries.There are many exceptions to these standards because sizestandards vary by industry.

Explain the basic concepts of lean start‐up, a minimally viable product, pivoting, and "failing fast."

The lean start‐up is a business development methodology that shortens traditional start‐up launch time, money, and resources.One strategy entrepreneurs employ in this stage of idea generation is creating a minimally viable product. This development technique allows businesses to release a product to early users with basic features to gather feedback for future development.Releasing a minimally viable product helps entrepreneurs "fail fast," which means to identify the weaknesses in their product and pivot ideas in new directions—all before significant time and money are invested.