Chapter 2 Flashcards
Entrepreneur
Assumes risks of creating a business and takes advantage of it
Characteristics of entrepreneurship
Innovation
Running a business
Risk taking
Fears for starting a business
Money
Security
Competition
Lack of ideas
Small Business owners
Only start something to make an income
Small Business
Independently owned and operated organist strictly for profit. Accounts for 50% of our GDP
Importance of small businesses
Creates jobs
Sparks innovation
Provides opportunities
Supports big businesses
What small businesses do for, big businesses
Suppliers of goods
Suppliers of services
Sales agents
Advantages of small business ownership
Independence
Financial rewards
Learning opportunities
Creative freectom
Disadvantages of small business ownership
Financial risk
Stress
Time commitment
Undesirable duties
Business plan
Document that identifies the goals that will be achieved
Advantages of getting a franchise
Recognizant name/product
Help in start-up
Advertising
Ongoing support
Disadvantages of getting a franchise
Expensive
Franchisers rules
May not follow through
Purpose of a business plan
Planning strategic decisions
External uses of business plan
Persuade investors to invest in your company
Obtain financing from bankers
Determine if loans get repaid
10 sections of Business plan
- Executive summary
- Descriptive of proposed business
- Industry analysis
- Mission statement and core values
- Management plan
- Goods, services, and the production process
- Marketing
- Global issues
9.financial plan - Appendices
