beginners Flashcards
What are the 5 general processes for beginning any new business?
- Creative Thinking
- Research
- Planning
- Gathering Resources
- Production & Marketing
What are the 9 P’s of marketing?
- Purpose
- Process
- Place
- Product
- personnel
- Promotion
- Price
- Projections
- Performance
What does BAIL contacts mean?
B-Bankers
A-Accountants
I-Insurance agents
L-Lawyers
A business plan has 2 purposes what are they?
- creates a road map to what you want to do
2. allows you to pitch your business to potential lenders and investors
What are the 3 approaches to financing a business?
- Bootstrapping
- Debt financing
- Equity Financing
Purpose
What is the purpose or mission of your business?
Process
What will you do to accomplish your mission?
Place
Where is it located? Where will you do business?
Product
What is your product or service?
Personel
Besides yourself, who is necessary to make the business work?
Promotion
How will you promote your business? Advertisements, fliers & word of mouth are good options.
Price
What will you charge for your product or service?
Projections
How will you generate profit?
Performance
How will you measure how well you are doing?
What are some projection tools to use?
income statements (profit & loss statement)
cash flow statement ( the bottom line)
capital equipment list ( list of tools and equipment needed)
assets, liabilities & equity
what are some ways to measure your performance?
a business plan.. it can be technical or elaborate.
You may want help from your BAIL contacts.
Bootstrapping
Using financing you already have. cutting down your idea to bare bones. Could be crowdfunding or possible cash advance against credit cards
Debt Financing
requires moderate amounts of start-up $, beyond your available funds.
What is a disadvantage of Debt Financing?
Requires entrepreneurs to use their own assets as collateral.
Equity Financing
Finding investors who will hold some or all equity in the business
What are 5 important parts of research before starting a business?
- Identify your customers
- Check out competition
- Locate suppliers
- Take a hard look at cost
- Legal & Regulation restrictions
What are some possible key factors to identifying your customers?
find out customer patterns
use customer surveys
possibly hire a market research service
What is something you should do when you are checking out your competition?
seek out people who have experience in the field and ask for advice
What is an important part of locating suppliers?
Make sure you are getting the best product at the best price. Keep in good contact with them.
When looking at cost what are some things to keep in mind?
try to trouble shoot potential cost and problems before hand. Estimate things to cost 3x what is expected and for things to take 2x as long.
what are some legal and regulation restrictions you should be mindful of?
logos, names, storage of supplies, disposal of waste, zoning ordinances & Financial task (tax statement for example)
What are 6 steps of creative thinking?
- What are your financial resources?
- what are your special skills?
- Are you a “people person”?
- where do you live? (what is your market? be mindful of location and customer base)
- What do you enjoy doing? Also what don’t you enjoy? (those things may be able to be outsourced)
- What do you want from your business?
A good business idea generally does what?
connects your interest & values to produce products and services that people either want or need.
When it comes to online advertisement what does “SERP” mean?
Search Engine Results Placement
when it comes to online advertisement what does “SEO” mean?
Search Engine Optimization
When pricing your products what does “skimming” mean?
setting a price that is more likely to be purchased by interested, committed customers.
What does the strategy of “market penetration” mean?
setting price low in order to sell more. gets your product or service to a larger market
4 kinds of life goals?
- establishing primary relationships
- finding your ideal social place
- finding the meaning of your life
- work/life balance
the goal setting acronym “SMART” stands for what?
S-Specific M-Measurable A-Attainable R-Realistic T-Timely
What are Fixed Expenses?
items that occur on a regular basis such, rent, food, utilites, automobile
What are discretionary expenses?
expenses that dont occur on a regular basis such as eating out, clothing, vactions
