Entrepreneurship
Accepting the risk of starting and running a business.
Why do people take the entrepreneurial challenge?
1. Opportunity.
2. Profit.
3. Independence.
4. Challenge.
What does it take to be an entrepreneur?
1. Self-directed.
2. Self-nurturing.
3. Action-oriented.
4. Highly energetic.
5. Tolerant of uncertainty.
Entrepreneurial Team
A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.
Micropreneurs
Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.
Some reasons for the growth of home-based businesses:
1. Computer technology
2. Corporate downsizing
3. Social attitudes have changed
4. New tax laws
A few of the challenges of working at home:
1. Getting new customers
2. Managing time
3. Keeping work and family tasks separate
4. Abiding by city ordinances
5. Managing risks
Affiliate Marketing
An internet-based marketing strategy in which a business rewards individuals or other businesses (affiliates) for each visitor or customer the affiliate sends to its website.
Enterprise Zones
Specific geographic areas to which governments try to attract private business investments by offering lower taxes and other government support.
Intrapreneurs
Creative people who work as entrepreneurs within corporations.
Incubators
Centers that offer new businesses low-cost offices with basic business services.
Small Business
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.
Business Plan
A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).
Venture Capitalists
Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
Small Business Administration (SBA)
A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.
Small Business Investment Company (SBIC)
A program through which private investment companies licensed by the Small Business Administration lend money to small businesses.
Market
People with unsatisfied wants and needs who have both the resources and the willingness to buy.
Service Corps of Retired Executives (SCORE)
An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses).
You have a business idea that is a good opportunity if ...
1. If fills customers needs
2. You have the skills and resources to start a business
3. You can sell the product/services at a price customers are wiling and able to pay - and still make a profit
4. You can get product/services to customers before your wi
NBIA
National Business Incubator Association
SEA
Self-Employment Assistance program
Start-up America
A White House initiative to "celebrate, inspire, and accelerate high-growth entrepreneurship throughout the U.S. It is a public and private effort to bring together the country's most innovative entrepreneurs, corporations, universities, foundations, and
SBA
Small Business Administration
A businesses value is based on:
1. What the business owns
2. What it earns
3. What makes it unique
When learning about small business you can ...
1. Learn from others
2. Get some experience (3 yrs in comparable business first)
3. Take over a successful firm
4. Be an apprentice
What is the importance of small business?
1. 60-80% of U.S. new jobs are in small business
2. Provide employment opportunities
3. Personal customer service
4. Respond quickly to opportunities
What are Major Business Functions?
1. Planning your business
2. Financing your business
3. Knowing your customers (marketing)
4. Managing your employees (HR development)
5. Record keeping (accounting)
What does the SBA say is the major causes of small business failures?
Poor management (poor record keeping, poor planning, poor inventory control, and poor employee relations)
CDFI
Community Development Financial Institutions
Sources of Capital
1. Personal Saving
2. Relatives (friends and family)
3. Former employers
4. Bank and finance companies
5. Government agencies
6. Angel investors
7. Venture capitalists
McDonald's
Used suppliers to finance start-up business
What are some of the alternate ways to fund your dreams?
1. Get close to your customers
2. Make clients pay upfront
3. Borrow from suppliers
SBIC
Small Business Investment Company program
What is SBIC ?
A program through which private investment companies licensed by the SBA lend money to small business. They keep defaults to a minimum buy identifying business trouble spots and giving entrepreneurs advice, and sometimes reschedule loan payments.
What are the nine sections of a Comprehensive Business Plan?
1. Executive Summary
2. Company Background
3. Management Team
4. Financial Plan
5. Capital Required
6. Marketing Plan
7. Location Analysis
8. Manufacturing Plan
9. Appendix
What types of SBA Financial Assistance are available?
1. Guaranteed loans
2. Microloans
3. Export Express loans
4. Community Adjustment and Investment Program (CAIP) loans
5. Pollution Control loans
6. 504 Certified Development Company (CDC) loans