Entreprenerial process

Question 1

Entrepreneurship process

Answer 1

The actions a person takes in order to come up with idea and develop a business out of it.

Question 2

Factors for starting a new business

Answer 2

factors impacting the start of a business include family, friends, other possible careers, state of economy, resources etc.

Question 3

Personal

Answer 3

personal reasons include:
Achieve independent success
Financial success
Skills
Role models
other

Question 4

Environmental

Answer 4

connections to people and contacts who are entrepreneurs and can help entrepreneurs succeed

Question 5

Sociological

Answer 5

Need just enough experience, and the right amount of optimism, a helping manager, knowledge of salary prospects and good contacts

Question 6

Timmons framework for evaluating buisness opportunities

Answer 6

Keys to a long lasting successful business are:

1. Opportunities- customer, timing
2. Management team- right experience in generating profits and losses
3. Resources- prioritize on gaining the most important ones, renting and contracting others.

Question 7

What type of experience should an entrepreneur have?

Answer 7

Should have experience in the industry their business in, managerial experience generating profits and losses and ideally one where profits and sales have been advanced.

Question 8

How should resources be allocated

Answer 8

Businesses should keep high productivity, low overhead and capital assets and should allocate the scarce resources that it has like money to spend on obtaining resources that make the company better than other companies like engineers for tech companies.

Question 9

What about secondary resources

Answer 9

work of expertise outside of the industry of the company can be contracted and start up companies should not buy any thing that can be rented

Question 10

How to obtain start up capital?

Answer 10

1. Debt- Borrow money and pay back with interest

2. Equity- borrow money in exchange for stock in company

Question 11

Ingredients of a successful business

Answer 11

1. Founder- need an entrepreneur
2. Focused- Should specialize in specific portions of the market
3. Fast-Make and implement decisions quickly
4. Flexible-open minded and willing to respond to change
5. Forever- Constantly innovating
6. Friendly- nice to employees, customers and suppliers
7. Flat- Very few managerial layers
8. Fun- Employees and business owners enjoy what they do

Question 12

Profits

Answer 12

Average profit is 5% of income , 15% or more is excellent

Profit is good when it pays off is equal to or exceeds original owner salary and investment placed in company.