Debt financing
involves borrowing money from another person, a bank, or a financial institution and repaying it over time with interest.
Mary Kay Ash started her business with
$5000
example of successful entrepreneurship born out of necessity
Anita Roddick's Body Shop
Business Plan
describes the direction for a new business and the financing needed to operate it.
Business plan should be
easy to read, and no more than 20 pages
Birth stage of the life cycle of entrepreneurial firms
struggles to get established, and survive long enough to test the viability of the underlying business model in the marketplace
Maturity Stage
focus on refining the strategy, continuing growth, and managing for success
Succession plan
is a formal statement describing how the leadership transition and related financial matters will be handled in a family business when the time for changeover arrives
Birth stage
fighting for existence and survival, struggles to get the new venture established and to survive
Entrepreneurs backgrounds and experiences
prior career or personal experience in the business industry/area they develop a venture in, seek independence and the sense of mastery, often try more than one business venture, have strong interests in creative production and enterprise control
Family businesses
are responsible for creating 78% of the new jobs in the US, are often impacted by inter-generational conflicts, provide 60% of all jobs in the US, represent largest percentage of businesses operating worldwide.
Breakthrough stage
focused on working on finances, becoming profitable, and growing
Stephen Coveys advice for moving forward
be a problem solver, get comfortable with teamwork, take risks to gain new experience and learn new skills, seek feedback
first mover advantage
exploiting a niche or entering a market before competitors
limited partnership
consists of a general partner and one or more "limited" partners who do not participate in day to day mngmt of the business
Marc Pincus, Zynga
fun and creative
sole proprietorship
individual or married couple pursuing business for a profit
Breakthrough stage
coping with growth and take-off
being strong in self mgmt means
ability to understand yourself, assess personal strengths and weaknesses, exercise initiative, accept responsibility for accomplishments
Limited liability corporation
hybrid business form combining advantages of the sole proprietorship, partnership, and corporation.