intro to business n.
Skip this Video
Loading SlideShow in 5 Seconds..
Intro to Business PowerPoint Presentation
Download Presentation
Intro to Business

Loading in 2 Seconds...

play fullscreen
1 / 34

Intro to Business - PowerPoint PPT Presentation

  • Uploaded on

Intro to Business . Unit Four Business Operations Chapter 12 Small Business Management . GOALS. Describe the characteristics of small business owners. Identify key steps small business owners follow to start their business. Explain the importance of a written business plan.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about 'Intro to Business' - chin

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
intro to business

Intro to Business

Unit Four

Business Operations

Chapter 12

Small Business Management

  • Describe the characteristics of small business owners.
  • Identify key steps small business owners follow to start their business.
  • Explain the importance of a written business plan.
  • Detail various types of financing for a new business.
characteristics of small business owner s
Characteristics of Small Business Owners
  • Advantages:
    • Independence
    • Control
    • Set your own schedule
    • Make your own decisions
  • Disadvantages:
    • Long hours
    • Customer complaints
    • Making payroll
    • Taking responsibility for everything
characteristics of small business owner s1
Characteristics of Small Business Owners
  • Small Business Ownership is risky
  • Fewer than ½ of all new businesses survive 5 yrs
  • Personality–Based:
    • Self-motivation
    • Risk-taking
    • Persistence
  • Business-Related:
    • Knowledge & Skills
      • Management, finance, marketing, business operations
  • Most importantly – EFFORT
key steps in starting a business
Key Steps in Starting a Business
  • An Idea Plus Experience
    • Begins with an idea
    • Hobbies, interests, and business experiences
    • Training and experience from previous jobs
    • Various aspects of business operations
  • Right Place and Time
    • Location – customer traffic
    • Location – manufacturers, wholesalers, transportation, supplies accessible
    • Timing – customer demand is high
key steps in starting a business1
Key Steps in Starting a Business
  • Team Approach
    • Even the most independent people need help
    • Team = employees with right abilities
  • Preparation and Research
    • Preparation is most important step
      • Having adequate information to make good decisions
      • Time spent gathering and studying information
      • Info about: customers, competitors, operations and activities, government regulations, etc.
      • Sources: Libraries, Internet, Business Assistance Centers
importance of business plan pg164
Importance of Business Plan (Pg164)
  • Business Plan: a written description of the business idea and how it will be carried out, including all major business activities.
  • Key Features:
    • General Description of Company
    • Qualifications of the owner(s)
    • Description of Products & Services
    • Analysis of Market (demand, customers, competition)
    • Financial Plan
  • Forces owner to consider activities, time & cost
importance of business plan pg1641
Importance of Business Plan (Pg164)
  • Why write a Business Plan?
    • Persuade lenders/investors top help finance venture
    • Developed plan to follow through with:
      • Layout the idea
      • Analyze the concept
      • Make decisions about business activities(production, marketing, staffing, financing, etc.)
    • Provides Owner with:
      • Game Plan
      • Timeline
      • Goals
financing options
Financing Options
  • Start-Up Financing
    • Amount of money needed to start the business
  • Short-Term Financing
    • Money needed to pay for current operating activities of a business; Usually LESS THAN 1 year
  • Long-Term Financing
    • Money needed for the important resources of a business (such as land, buildings, equipment) that will last for many years
financing options1
Financing Options
  • Sources of Financing
    • Owner’s funds
      • Sole-Proprietorship = Personal savings
      • Partnership = contributions from both parties
    • Borrowed funds
      • Loans from banks
      • Loans from other financial institutions
      • Financing from private investors
      • Financing from other companies
intro to business1

Intro to Business

Unit Four

Business Operations

Chapter 13

Managing Human Resources

  • Explain why human resources are important to the success of small business.
  • Identify factors to be considered by a small business owner when assessing human resource needs.
  • Outline types of compensation and typical benefits for employees.
importance of human resource
Importance of Human Resource
  • Human Resources
    • The people who work for a business
    • Small business may have few employees
    • Impact of one person can be very noticeable
    • Responsible for a number of activities
    • May make key decisions & solve problems
human resource needs
Human Resource Needs
  • Human Resource Management
    • Ensures that employees are available, that they are productive, paid, and satisfied with their work.
human resource needs1
Human Resource Needs
  • Categorizing Human Resources
    • Staffing is vital
    • Once hired, employee is paid (profitable or not)
    • Contribute to company’s profitability
  • Permanent: long term commitment
  • Temporary: specific time frame or assignment (seasonal) (Full/Part)
  • Full-Time: regular schedule, 30+ hours per week
  • Part-Time: fewer hours, fewer days (afterschool)
human resource needs2
Human Resource Needs
  • Determining Employee Qualifications
    • What work needs to be completed? (current or new activities)
    • What skills are needed to do the work?
    • What type of employee? Permanentor Temporary; Full or Part-Time?
  • Goal: Hire people who can meet those needs
human resource needs3
Human Resource Needs
  • Locating New Employees
    • Young & Older Employees looking for part-time.
      • Provides convenient location
      • more flexible schedules
      • pleasant work environment.
    • Skilled Workers
      • Want more decision-making responsibility
      • Greater variety of workload
      • Prefer smaller organizations
human resource needs4
Human Resource Needs
  • Locating New Employees
human resource needs5
Human Resource Needs
  • Hiring New Employees
    • Less formal than large company
compensation benefits
Compensation & Benefits
  • Compensation
    • amount of money paid to employee for work performed. Consists of two parts:
    • Salary & Wages: direct payment to employee for work completed
    • Benefits: indirect forms of payment (i.e. insurance, vacation, paid parking)
compensation benefits1
Compensation & Benefits
  • Time Wage
    • Pays employee a specific amount of money for each hour worked.
  • Straight Salary
    • Pays a specific amount per week or month worked.

Neither based on amount or quality of work.

compensation benefits2
Compensation & Benefits
  • Financial Incentives
    • Commission: performance reward (% of sales they were responsible for making)
    • Piece Rate: performance reward(amount per unit of work produced)
    • Base Plus Incentive: wage or salary in addition to (PLUS) performance reward
      • i.e. Profit Sharing: receive regular pay plus a share of the profits earned by the company
      • Encourages commitment to company, teamwork, effective customer service, etc. to ensure higher profits.
compensation benefits3
Compensation & Benefits
  • Fringe Benefits
    • Businesses offer and pay costs of benefits:
      • Compensation (including overtime pay)
      • Social Security
      • Medicare
      • Unemployment
      • Workers Compensation (injury)
      • Insurance plans (Health, life, dental, disability)
    • Vacation Benefits
      • Paid for time they aren’t working, but makes happier, more productive employees in the long run.
intro to business2

Intro to Business

Unit Four

Business Operations

Chapter 14

Maintaining Financial Information

  • Identifycommon sources of financial information for small businesses.
  • Describe the 3 types of business budgets.
  • Outline the primary financial records needed to manage a small business.
  • Explainthe financial statements used by a business.
financial planning
Financial Planning
  • Business Budget
    • Anticipate sources and amounts of income
    • Predict the types and amounts of expenses for a specific business activities or entire business
    • Income (Revenue) – Money Received
    • Expenses – Cost of Operating
financial planning1
Financial Planning
  • Sources of Information
    • Small Business Administration
      • Planning tools for small businesses (develop budget)
    • Private Businesses (Collect & Publish Info)
      • Dun & Bradstreet
      • Value Line
      • Standard and Poor
financial planning2
Financial Planning
  • Sources of Information
    • Business Magazines
      • Fortune
      • Forbes
      • Entrepreneur
      • Black Enterprise
      • The Wall Street Journal
    • Professional Associations
      • National Federation of Independent Business
      • National Retail Merchants Associations
budget prep budget 1
Budget Prep – Budget #1
  • Start-Up Budget
    • Plans income and expenses from beginning of the business until it becomes profitable
    • Needed before business can begin selling:Buildings, equipment, inventory, supplies, materials, employees, utilities, licenses, advertising, transportation
    • Investments and loans help get them started
budget prep budget 2
Budget Prep – Budget #2
  • Operating Budget
    • Financial plan for day-to-day operations of the business
    • Six months to a year
    • All revenue and expenses are listed and the planned net income (loss) for the period of time is shown.
budget prep budget 3
Budget Prep – Budget #3
  • Cash Budget
    • An estimate of the actual money received and paid out for a specific time period
    • Anticipates that cash will come into a business and that cash will be paid out during each week or month of operation.
financial records
Financial Records
  • Used to record and analyze the financial performance of a business.
    • Cash Records:
      • list all cash receipts and disbursements
    • Records of Accounts:
      • Accounts Payable: identifies companies from which credit purchase were made (we owe them)
      • Accounts Receivable: identifies companies that have made credit purchases (they owe us)
financial records1
Financial Records
  • Inventory Records
    • Identify the type and quantity of products available for sale. (needed for control & security)
  • Payroll Records
    • Contain info on all employees and their earnings
  • Asset Records
    • Identify buildings and equipment owned by business, their original and current value, & the amount owned if money was borrowed to purchase assets.
financial statements
Financial Statements
  • Reports that summarize the financial performance of the business.
  • Balance Sheet
    • Lists assets, liabilities, and owner’s equity (capital)
    • Prepared every six months or every year
  • Income Statement
    • Reports revenue, expenses, and net income (or loss) from the business for a specific time period.
    • Prepared every month (new) or 6 months (established)