Chapter 6 Flashcards
Define entrepreneurship
Accepting the risk of starting and running a business
What are four reasons people are willing to take entrepreneurial risk?
- Opportunity
- Profit
- Independence
- Challenge
What are five entrepreneurial attributes?
- Self directed and disciplined
- Self nurturing (stay enthusiastic, believe in yourself)
- Action-oriented
- Highly energetic
- Tolerant of uncertainty
What generates most inspiration
Asking questions and seeking solutions
What are three questions to ask when looking for ideas
- What do I want, but can never find
- What P/S would improve my life
- What irritates me and what P/S would help.
What five things need to exist for it to be a good idea
- It fills the customers needs
- You have the skills and resources to start a business
- You can sell the products or service a price people will pay and still profit
- You can get your P/S to customers in the window of opportunity
- You can keep the business going
Define an entrepreneurial team
a group of experienced people from different areas of business who joined to form a managerial team for a new product.
Define an intrapreneurs
Creative people who work as entrepreneurs in a corporation.
What is a micropreneur
entrepreneurs that are willing to the risk of operating a business that stays small and offers a balanced life style.
Online business have to offer more than what can be found in a store, they have to offer
unique products and services
What is an enterprise zone?
a specific geographic area to which governments attract private business investment by offering lower taxes and gov support.
What does an incubator do?
offers new businesses in the low cost offices with basic services such as accounting, legal, and secretarial help
What’s the advantage of entrepreneurial teams
Team members combine creative skills with production and marketing skills
Define a small business
one that is independently owned and operated, is not dominant in its field of operations, and meets standard size in terms of employees or annual receipts.
What four things might you hear from an experienced entrepreneur
- Location is critical
- Don’t be undercapitalized
- It’s difficult to hire and train good workers
- Keep good records, accountants, and lawyers.
What are six keys to succeeding in your business
- Plan your business
- Finance your business
- Know your customers
- Manage your employees
- Keep records
- Look for help
Define a business plan
A detailed written statement that resources and qualifications of the owners(s).
What is the first part of a business plan and what should it cover?
Cover letter should summarize the most attractive points
What is included in an executive summary?
two to three pages that summarize the venture
This is section two of a business plan and should include operations to date, risk, opportunity, legal considerations, balance sheets, cash flow, etc.
Company background
What should section three, Management Team, include
Org chart, resumes, job descriptions of current and proposed execs
Section four provides a five year projection for income, expenses, and funding. What is the title of section 5?
Financial Plan
What should you include in section 5, Capital Required?
Capital needed to commence or continue operations, and how those funds will be used.
This is the 6th Section and should include industry size, trends, and market segments. Most importantly it should include what makes your product more desirable.
Marketing plan
What should be included in section 7, the location analysis?
A demographic analysis of consumers in the area of the proposed business as well as the traffic pattern analysis.
Section 8 describes the minimum plant size, machinery required, production capacity, quality control, etc. What is it titled?
Manufacturing Plan
Name section nine and what’s included in it.
Appendix, all research and references.
What is a venture capitalist?
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
What is the SBA
Small Business Administration, a gov agency that advises and assists small businesses by providing management training, financial advice, and loans.
What is the SBIC
Small Business Investment Company Program, are private investment companies licensed by the SBA to lend money to small businesses.
Define the market
People with unsatisfied wants and needs who hav both the resources and the willingness to buy.
One of the most important aspects to starting a business is understanding the
market
What are three major hurdles to enter the world market?
- Financing
- Lack of knowledge on how to get started
- The bureaucratic paperwork
