Into to Business Ch.6
What are the main sections/elements of a business plan?
1. Description of a business 2. Customer Analysis 3. Operations Plan 4. Marketing Plan 5. Financial Plans
A small business should have ________________ employees.
500 or less
Approximately how many new businesses are create per year?
500,000
Over ______________ of new jobs are created by small businesses each year
82%
Improvement
A designed change that increases the usefulness of a product, service, or process
Where do most of the new business ideas come from?
A solution to solve a problem
Small Business Administration (SBA)
Government agency that helps small business owners develop business plans, and obtain financing and support
What are important factors in becoming an entrepreneur?
Having special skills and abilities, having the desire to be your own boss, and having self-confidence and persistence
What are some examples of common personal characteristics of entrepreneurs?
Having special skills and abilities, having the desire to be your own boss, and having self-confidence and persistence
What is the important of business plans?
Helps businesses stay organized and on track
Businesses begin with a(n)?
Idea
A manufacturer adds a new ingredient to make soap smell better. This is a(n)?
Improvement
Innovation
Invention or creation that is brand new
What are some examples of Long-Term Financing?
Land, buildings, and equipment
What is not an important factor in becoming an entrepreneur?
Living in a major U.S city
What are some examples of borrowed funds?
Loans from the bank or borrowed money from friends and family
Land, buildings, and major equipment are examples of?
Long-Term Financing
Most successful small business owners?
May utilize the help of local professionals
Long-Term Financing *lasts and is paid over many years (overlaps with start-up costs) ex. land, buildings, equipment
Money needed for main resources of a business
Start-Up Financing ex. buildings, equipment, inventory, licenses, etc.
Money needed to open a business
Short-Term Financing *less than a year
Money needed to pay for current operating activities
Venture Capital ex. Shark Tank Investors
Money provided by large investors to finance new products/businesses
Being an entrepreneur normally carries __________ risk than a normal business job
More
Why do small businesses fail?
Not enough start-up money, lack of management experience, not controlling expenses, and poor location
What does describe a typical small business?
Operates in 1 or fewer locations, owner is usually the manager, serves a smaller market
What are some common sources of financing for entrepreneurial businesses?
Personal Savings, Family and Friends, Banks and Loans, and Venture Capital
Entrepreneurship
Process of starting, organizing, managing, and assuming the responsibility of a business
What is NOT a main risk of becoming an entrepreneur?
Risk of not having control of your business
What are main risks of becoming an entrepreneur?
Risk of your product not being wanted, not having enough start-up money, and competitors
Most small business are?
Service businesses
Are the majority of U.S businesses small or large businesses?
Small
Are small businesses ALWAYS successful? Or do some also fail?
Small businesses have a high failure rate
Entrepreneur
Someone who takes a risk by starting a business to try to earn a profit
What are common characteristics of small businesses?
The owner is usually the manager, completes day to day operations, has 1 or fewer locations, serves a small market, and is not dominant in its field
What is one primary factor that helps successful businesses stand out from failing businesses?
They create, follow, and update their business plan
What are some common reasons why small businesses fail?
They lack capital or money, have low sales, bad management, or competition
How do Entrepreneurs contribute to the economy?
They provide a variety of options in products and services in our lives
Money provided by large investors to finance new products/businesses best decribes?
Venture Captial
What are common reasons for becoming an entrepreneur?
Wanting to pursue a personal dream or idea, setting own personal schedules, and wanting to leave traditional corporate environment
A competitive advantage that small businesses have over larger businesses is?
Attention to unique customer needs
Innovations are?
Brand new
Small Business
Business with fewer than 500 employees
Improvements are?
Changes in already existing designs to improve or better it
If you start a new business, you will need info about?
Customers, Competitors, and Government Regulations
Which does NOT describe a typical small business?
Dominant in its field
All small businesses are brand new innovations.
False
Entrepreneur's need an advanced business degree to be successful.
False
Once a business plan is written, you should never revise or update it.
False
The location of a small business usually has no impact of success.
False
Which is NOT a common reason for becoming an entrepreneur?
Working less hours
Business Plan
Written description of a business idea and how it will be carried out
