student 06
TRANSCRIPT
-
7/29/2019 Student 06
1/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 1
Putting Yourselfin Charge:
Entrepreneurs and SmallBusiness Owners
-
7/29/2019 Student 06
2/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 2
The World of Small Business
Independently owned and operated
Not dominant in its field
Relatively small annual sales
Fewer than 500 employees
-
7/29/2019 Student 06
3/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 3
Roles of Small Business
Provide new jobs
Introduce new products
Service large corporations
Inject money into the economy
Take business risks
Provide specialty goods and services
-
7/29/2019 Student 06
4/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 4
Types of Small Business
Lifestyle High-Growth
Run by Individuals
Limited Products/Services
Limited Resources
Limited Marketplace
Run by Teams
Multiple Products/Services
Investment Capital
Large Marketplace
-
7/29/2019 Student 06
5/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 5
The Typical Small Business
Few products or services
Narrow customer base Close market contact
Limited resources
Increased innovation
-
7/29/2019 Student 06
6/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 6
How Entrepreneurs Spend Their Time
Dealing with employees
Keeping records
Direct selling
Production
Maintenance
Dealing with suppliers
Arranging financial matters
Planning growth and change
Other services
-
7/29/2019 Student 06
7/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 7
Factors Contributing to
Small Business Growth E-commerce and technology
Growing diversity Downsizing and outsourcing
-
7/29/2019 Student 06
8/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 8
Characteristics of
Entrepreneurs Highly disciplined
Self confident Energy and stamina
Control their destiny
Relate well to others
Learn new skills
-
7/29/2019 Student 06
9/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 9
Characteristics of
Entrepreneurs Learn from mistakes
Monitor market changes Exploit new opportunities
Driven to succeed
Think positively
Take moderate risks
-
7/29/2019 Student 06
10/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 10
Develop a Business Plan
Summarize the business
Communicate goals
Highlight plans
Show customer benefits
-
7/29/2019 Student 06
11/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 11
Importance
of a Business Plan Guide company operations
Outline a strategy Attract lenders and investors
-
7/29/2019 Student 06
12/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 12
Starting a New Business
+
Control your destiny+ Reach your potential
+ Unlimited profits
+ Recognition
+ Doing what you enjoy
Uncertainty of income Risk of loss
Long hours & hard work
Complete responsibility
High stress levels
Advantages Disadvantages
-
7/29/2019 Student 06
13/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 13
Buying an Existing Business
+
Customer base+ Business systems
+ Product or service
+ Location
+ Financing
Alienated customers Obsolescence
Location
Personality clashes
Outstanding receivables
Advantages Disadvantages
-
7/29/2019 Student 06
14/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 14
The Franchise Alternative
Franchisee
Franchisor
Types of franchises
Product
ManufacturingBusiness-format
-
7/29/2019 Student 06
15/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 15
How to Evaluate a Franchise
Initial franchise
Periodic royalties
Trademarks and names
Advertising and promotion
Business location
-
7/29/2019 Student 06
16/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 16
How to Evaluate a Franchise
Exclusive territory
Right of first refusal
Equipment and supplies
Agreement and termination
Franchise assignment
-
7/29/2019 Student 06
17/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 17
The Pros and Cons of
FranchisingAdvantages
Get a viable business
Name recognition
Network of support
Blueprint for success
Disadvantages
No guarantee of success
High monthly royalties
Limited independence
Limited flexibility
-
7/29/2019 Student 06
18/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 18
Why New Businesses Fail
Management Incompetence
Lack of Experience
Insufficient Financing
Poor Business Planning
Unworkable Goals
Diminished Customer Base
Uncontrolled Growth
Inappropriate Location
Poor System of Controls
Poor Entrepreneurial Skills
-
7/29/2019 Student 06
19/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 19
Sources of Small Business
Assistance SCORE
Incubators The Internet
-
7/29/2019 Student 06
20/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 20
Financing A New Business
Avoid common mistakes
Overestimating sales
Overestimating cash flow
Underestimating expenses
-
7/29/2019 Student 06
21/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 21
Sources of Private Financing
Banks and microlenders
Venture capitalists
Angel investors
Credit cards
-
7/29/2019 Student 06
22/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 22
Small Business Administration
SBA-backed loans
SBA-microloans
Small business investmentcompanies (SBICs)
-
7/29/2019 Student 06
23/23
Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 23
Going Public
Initial public offering (IPO)
Advantages
Raising capital
Disadvantages
Expensive and time consuming