Business - Chapter 6

What are reasons for the growth of home-based businesses?

-Corporate downsizing -Tax laws that allow home office deductions -Computer technology

Working in a successful business is a good way to learn the operations and could ________________

Be a step in buying out the owner

A ___________ _____________ is also mandatory for talking with bankers or other investors.

Business Plan

A _____________ ___________ forces potential small businesses owners to be quote specific about the products or services they intend to offer. They must analyze the competition, calculate how much money they need to start, and cover other details of operation.

Business Plan

Entrepreneurs should be willing to take ___________ risks.

Calculated

Entrepreneurs of the following companies: -Amazon.com -Avon -Kodak -Facebook -Starbucks

-Amazon.com - Jeff Bezos -Avon - David McConnell -Kodak - George Eastman -Facebook - Mark Zuckerberg -Starbucks - Howard Schultz

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. A team may be better than an individual entrepreneur because team members can 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.

Entrepreneurial Team

Accepting the risk of starting and running a business

Entrepreneurship

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is....

Small Business

How did the 1990 Immigration Act encourage entrepreneurs to relocate to the United States?

-By creating a category of investor visas

A good business plan is between 25-30 pages long and takes many months to write. A comprehensive business plan will include what?

-Cover letter -Executive Summary -Company background

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

-To hire a good lawyer and accountant -That finding and retaining good workers is hard -Starting with enough money.

There are a few hurdles that prevent many small businesses from engaging in the global market. What are these hurdles?

-Financing is often difficult to find -Would-be exporters do not know how to get started

Which of the following are some challenges of running a home-based business?

-Keeping work and family tasks separate -Managing time

Small Businesses have several advantages over large businesses in international trade:

-Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies -Small companies an usually begin shipping much faster -Small companies can provide a wide variety of buyers -Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them

A self employment assistance program offered by some states is designed to.....

-Pay unemployment benefits while building a business -Provide training and counseling to the new business owner

Attributes to look for to become an entrepreneur

-Self Directed - You should be self disciplined and thoroughly comfortable being your own boss. You alone will be responsible for your success or failure. -Self Nurturing - You must believe in your idea even when no one else does, and be able to replenish your own enthusiasm. -Action Oriented - Great business ideas are not enough. Most important is a burning desire to realize, actualize, and build your own dream into reality. -Highly energetic - It's your business, and you must be emotionally, mentally, and physically able to work long and hard. Employees have weekends and vacations, entrepreneurs often work 7 days a week and don't take vacations for years. Working 18 hour days in your own business can be exhausting, but most entrepreneurs think it's better than working long hours for someone else. -Tolerant of uncertainty - Successful entrepreneurs only take calculated risks. Still, they must be able to take some risks.

Characteristics of an Intrapreneur

-Someone who uses company's resources to launch new products -A creative person who works within a corporation -He or she generates profits by leveraging a firm's human financial and physical resources

A small business is defined as....

1. One that meets certain standards of size in terms of employees or receipts 2. One that is independently owned and operated 3. One that is not dominant in its field

A good business plan is between __ and __ pages long and takes at least __ months to write.

25-50, 6

One of the greatest advantages small businesses have is the ability to know their customers better and ________

Adapt quickly to their needs

Becoming an _____________ is one of the best ways to learn about how to run a business.

Apprentice

An _________________________ can benefit both the trainee and the business owner by hiring the trainee to learn small business management while assisting the owner in getting daily work done.

Apprenticeship

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 qualifications of the owner(s).

Business Plan

A small business is considered "small" only in relationship to other ______________ in its industry.

Businesses

Other names for enterprise zones:

Empowerment zones or enterprise communities

_____________________ _________________ are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

Enterprise zones

_________________ help the country prosper by taking risks and creating thousands of jobs that generate wealth and strengthen the economy.

Entrepreneurs

Some causes of small-business _________ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and understanding how much time it will take to build a market.

Failure

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

Financing

If you want to be both rich and independent, you need to pursue a business with high......

Growth

Many people today who need to combine work and family are starting _______________-__________________ businesses.

Home - based

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 creative people who work as entrepreneurs within corporations.

Intrapreneurs

___________________ are the creative people who work as entrepreneurs within corporations.

Intrapreneurs

Creative people who work as entrepreneurs within corporations.

Intrapreneurs - The idea is to use a company's existing resources; human, financial, and physical, to launch new products and generate new profits.

A necessary and invaluable aid to entrepreneurs is a competent, experienced _____________ who knows and understands small businesses. This person can help with leases, contracts, partnership agreements and protection against liabilities.

Lawyer

At what point is it most important to make your marketing decisions?

Long before you introduce a product or open a store

The part of a business plan that includes an organization chart, descriptions of listed positions, and detailed resumes of the current and proposed executives is called the ______________ ______________ section.

Management Team

The section of the business plan that describes minimum plant size, machinery required, production capacity, inventory and inventory control methods, quality control, and plant personnel requirements is called the:

Manufacturing plan

One of the most important elements of small-business success is knowing the......

Market

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

Market

Within the comprehensive business plan, the ___________ plan outlines sales, advertising, promotion, and public relations programs. This section also compares prices to competitors and forecasts sales in dollars and units.

Marketing

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called ________________

Micropreneurs

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

Micropreneurs

The phrase "poor management" covers a number of faults. Those faults include

Poor planning and poor employee relations

What are the two primary concerns when you start your business?

Planning and Financing

According to the Small Business Administration, one of the major causes of small-business failure is ____________ ________________.

Poor Management

Entrepreneurs must be _____________ __________________ enough to maintain enthusiasm, regardless of others' opinions.

Self-Nurturing

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.

Small Business

What defines a small business?

Small Business Administration

A US Government agency that advises and assists small businesses by providing management training and financial advice and loans

Small Business Administration (SBA)

___________ ____________ count for more than 50% of the gross domestic product. (GDP)

Small businesses

Entrepreneurial ____________ may be better suited to run a business than individual entrepreneurs because members can combine creative skills from the start and it may ensure cooperation and coordination later among functions in the business.

Teams

_____________ __________ may finance your project - for a price. They may ask for a hefty stake in your company (as much as 60%) in exchange for cash to start your business. If they take too large of a stake, you could lose control of the business.

Venture Capitalist

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

Venture Capitalists