CHAPTER 1: The Entrepreneurial Process Flashcards
it is the process of starting and running one’s own business, involved a considerable amount of risk and can contribute to the communities
entrepreneurship
he/she undertakes the risk associated with creating, organizing and owning the business
entrepreneur
skills needed by successful entrepreneurs (7)
• communication skills
• human relation skills
• math skills
• problem-solving skills
• decision making skills
• technical skills
• basic business skills
5 steps of the entrepreneurial process
- discovery
- concept development
- resourcing
- actualization
- harvesting
this is the stage where the entrepreneur GENERATE IDEAS, recognizes opportunities and studies the market
discovery
this is the stage where we develop a business plan, detailed proposal
concept development
entrepreneur identifies and acquired the financial, human and capital resources needed
resources
entrepreneur operates the business and utilizes resources to achieve goals and objectives
actualization
growth/losses, entrepreneur decides on the venture’s future growth/development
harvesting
3 steps in starting a business
- develop a business plan
- acquire finances
- meet legal requirements
detailed proposal describing a new business
develop a business plan
potential customers (family, friends, businesses, employees, banks)
acquire finances
components of business plan
I. executive summary
II. product/service plan
qualifications who may be INVOLVED in the venture
management team plan
all processes involved in PRODUCING
operational plan
management philosophy, key management personnel, key employment policies
organizational plan
how the business will make the customers aware of its product/services
marketing plan
future expansions
growth plan
financial statements that will help forecast the financial health
financial plan
what are the legal requirements
• permits, certification or licenses
• contracts
• zoning laws
• taxes
• trademarks
• patents
• copyrights
authorization to run their business under the local, state and federal laws
permit, certification or licenses
agreement concerning employment to be enforceable by law
contracts
areas in which residential, industrial, recreational or commercial activities may take place
zoning laws
enforced contribution of funds to state revenue
taxes
