Small business Flashcards
1
Q
why do people start small businesses?
A
Profit - many believe it is the best way to improve financial position. wealth is not guaranteed
freedom/independence - can choose hours worked. Not guaranteed when working as an employee
Market opportunity - an idea for a new/ cheaper/better product that is not out in the market is an incentive to go into business
unemployment - may feel self employment is their only option
2
Q
what are risks of small business?
A
- many hours of hard work
- increased stress
- loss of secure income
- loss of paid holidays
- investing your own funds into the business
3
Q
what are resources needed to establish a small business?
A
- qualities and traits: humility, enterprise, expertise, determination, confidence, cordiality
- financial resources: how it’s financed
- external support resource: many experts than can help
- accountants: provide financial advice around tax, superannuation, pricing policies
- lawyers: when working through legal matters such as establishing ownership structure, any trademarks or any civil cases
- bank managers: specific advice around finance and funding options
- sponsored assistance programs: government programs that help small businesses
(SALTFB)
