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Entrepreneurship and Small Business

5. Chapter. Entrepreneurship and Small Business. pp. 68-83. Preparing for Your Own Business. A business plan is a written description of a new business venture that describes all aspects of the business. Checklist for Starting a Venture.

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Entrepreneurship and Small Business

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  1. 5 Chapter Entrepreneurship and Small Business pp. 68-83

  2. Preparing for Your Own Business A business plan is a written description of a new business venture that describes all aspects of the business.

  3. Checklist for Starting a Venture Some questions to consider before starting your own business are: • What will I produce? • Who are my main competitors? • Why is my product needed? continued

  4. Checklist for Starting a Venture • How much will my product cost to produce? • How many people will I need to run the business? • What physical facilities will I need? continued

  5. Checklist for Starting a Venture • What licenses, permits, or other legal documents do I need? • How much money will I need to get started?

  6. Business Building Blocks Elements of a Business Plan • The summary is a one- to three-page overview of the plan. • The company description explains the type of company. continued

  7. Business Building Blocks Elements of a Business Plan • Describe products or services in the products and services section. • The marketing plan describes your customers and your competition. • A legal plan points out how you will organize your company. continued

  8. Business Building Blocks Elements of a Business Plan • The management plan and operating plan detail the company’s key personnel. • Complete a financial plan. continued

  9. Business Building Blocks Tips for Writing an Effective Business Plan • Be brief and relevant. • Don’t inflate the importance or possible success of your business. • “Write short and be honest,” is a good rule of thumb.

  10. The Marketing Mix • The 4 P’s of Marketing • Product • Promotion • Place • Price

  11. Marketing Mix (cont.) Product Strategies What product How to package What brand name What image to project Example Coolpix Nikon Brand Trendy, celebrity endorsed, portable

  12. Marketing Mix (cont.) Place Strategies How/where a product will be distributed Mass marketing vs. specialty stores Example Mass marketed

  13. Marketing Mix (cont.) Price Strategies What customers are willing to pay Consider cost Consider competition Example $99.99 cost $20.00 for case $18.00 for strap

  14. Marketing Mix (cont.) Promotion Strategies How customers will be told about product What the message will be Where and when it’s delivered Incentives to buy Example Commercials Magazine ads Website offerings

  15. Key Words entrepreneurship virtual business or dot-com company small business entrepreneur risk taker profit

  16. The Ins and Outs of Entrepreneurship Entrepreneurships and small businessesare the majority of business firms.

  17. The Ins and Outs of Entrepreneurship • An entrepreneurship is a business started by someone who notices a need for a product or service. • An entrepreneur is a person who • Recognizes a business opportunity • assumes the risks of a business enterprise • Intent of increasing the market value of the business

  18. The Ins and Outs of Entrepreneurship A virtual business or a dot-comcompany is a business that operates on the Internet.

  19. Graphic Organizer Successful Entrepreneurs Desire achievement Recognize opportunities Have high energy Want to control destiny Successful Entrepreneurs Take risks Desire to earn profit Are determined Are enthusiastic Have self- confidence

  20. Advantages of Entrepreneurship There are many advantages to being an entrepreneur, including: • Satisfaction from taking a risk and becoming a success • Working from home • Gaining profit continued

  21. Disadvantages of Entrepreneurship The disadvantages to being an entrepreneur are: • Long hours • Total responsibility for the business • Financial risks

  22. Disadvantages of Entrepreneurship • The main reason why entrepreneurships fail is that they run out of money. • Starting with little money, • Spending carelessly, • Borrowing money without planning, • forgetting about taxes and insurance costs

  23. Fast Review • What are some characteristics of entrepreneurs? • What are three advantages of an entrepreneurship? continued

  24. Fast Review • What are some disadvantages of an entrepreneurship? • What is the main reason that entrepreneurships fail?

  25. Small Business: What You Need to Know • The Small Business Administration (SBA) defines a small business as • an independently owned business that usually has the owner as its manager • Serves a limited geographic area • Employs fewer than 500 people, • Not dominant in its industry.

  26. Small Business: What You Need to Know • Small businesses employ more than 50 percent of the total workforce in the United States. • Small businesses generate more than half the nation’s income. • They are the principal source of new jobs

  27. Fast Review • How does the Small Business Administration (SBA) define a small business? continued

  28. Fast Review • What is a business plan? • Name the essential elements of a business plan.

  29. Identify some reasons why a small business might be hard to manage. What are some benefits of selling online?

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