BUS CH.6

Entrepreneurial team

-- A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product.

BENEFITS of HOME-BASED BUSINESSES

-Ability to start your business immediately -Minimal start-up capital needed -No rent or excessive set-up charges -Comfortable working conditions -Reduced wardrobe expenses -No commuting -Tax benefits -Elimination of office politics -Low risk for trial and error

DOWNSIDES of HOME-BASED BUSINESSES

-Difficult to establish work habits -Limited support system -Isolation -Work space may be limited -Clients may be uncomfortable coming to your home -Zoning restrictions -Success is based 100% on your efforts

HOME-BASED BUSINESS ISN'T EASY

-Getting new customers is difficult. -Managing your time requires self-discipline. -Work and family tasks are sometimes not separated. -Government ordinances may restrict your business. -Homeowner's insurance may not cover business-related claims

ADVANTAGES of SMALL OVER BIG BUSINESS

-More personal customer service. -The ability to respond quickly to opportunities

WHY TAKE the RISK

-Opportunity -Profit -Independence -Challenge

MAJOR BUSINESS FUNCTIONS

-Planning -Financing -Knowing customers -Managing employees -Keeping records

WHAT DOES IT TAKE to be an ENTREPRENEUR

-Self-directed -Self-nurturing -Action-oriented -Highly energetic -Tolerant of uncertainty

Small Business Administration (SBA

A U.S. government agency that advises and assists small businesses by providing management training and financial advice.

Can you describe at least five sections of a business plan

A business plan needs to start with a strong cover letter. The nine key sections are: (a) executive summary, (b) company background, (c) management team, (d) financial plan, (e) capital required, (f) marketing plan, (g) location analysis, (h) manufacturing plan, and (i) appendix.

Intrapreneur

A creative person who works as an entrepreneur within a corporation

Business Plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners' qualifications.

Small Business Investment Company

A program through which private investment companies licensed by the SBA lend money to small businesses

Entrepreneurship

Accepting the risk of starting and running a business

Affiliate Marketing

An online marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its website.

Market

Consumers with unsatisfied wants and needs who have both resources and willingness to buy.

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle

Small Business

Independently owned and operated, not dominant in its field of operation and meets certain standards of size

Why do many small businesses avoid doing business globally?

Key reasons why many small businesses avoid doing business overseas include: (a) financing is often difficult to find, (b) would-be exporters don't know how to get started and do not understand the cultural differences between markets, and (c) the bureaucratic paperwork can threaten to bury a small business.

How do micropreneurs differ from other entrepreneurs

Most entrepreneurs are committed to the quest for growth in their business. Mircorpreneurs know they can be content even if their companies never appear on a list of top-ranked businesses. Many micropreneurs are home-based businesses.

Incubators

Offer new businesses low-cost offices with basic services

What are some of the advantages small businesses have over large businesses in selling in global markets?

Small businesses have several advantages over large businesses in global markets. These include: (a) global buyers often enjoy dealing with individuals rather than with large corporate bureaucracies, (b) small companies can usually begin shipping much faster, (c) small companies can provide a wide variety of suppliers, and (d) mall companies can give global customers personal service and undivided attention because each overseas account is a major source of business for them.

Enterprise Zones

Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

What does the government do to promote entrepreneurship

The government helps by creating enterprise and promise zones, offering tax breaks, enacting the JOBS Act (discussed further in Chapter 19), and "investor visas

What are the advantages of entrepreneurial teams

Whereas an entrepreneur has to wear many hats and take huge responsibility, a team allows members to combine creative skills with production and marketing skills right from the start. Having a team can also ensure more cooperation and coordination later among functions in the business

venture capitalist

individuals or companies that invest in new businesses in exchange for partial ownership of those businesses