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  • CHAPTER 6 06/08/09 ITB

Itb Chap 06 Itb Chap 06 Presentation Transcript

  • Entrepreneurship and Small Business Management 6-1 Becoming an Entrepreneur 6-2 Small Business Basics 6-3 Starting a Small Business 6
  • LESSON 6-1 Becoming an Entrepreneur
    • Goals
    • Identify characteristics of successful entrepreneurs.
    • Recognize the importance of entrepreneurship in the economy.
    • Describe opportunities and risks of entrepreneurship.
    Chapter 6 Slide
  • Key Terms
    • entrepreneur
    • entrepreneurship
    • venture capital
    • innovation
    • improvement
    Chapter 6 Slide
  • CHARACTERISTICS OF ENTREPRENEURS
    • Desire to be your own boss
    • Special skills and abilities
    Chapter 6 Slide
  • ENTREPRENEURS IN ACTION
    • Pankaj Arora
    • Rich Stachowski
    • Jeffrey Rodriguez and John Serrano
    • Abbey Fleck
    Chapter 6 Slide
  • WHAT DOES IT TAKE?
    • Entrepreneurs are more
    • persistent
    • inquisitive
    • energetic
    • goal oriented
    • independent
    • self-confident
    • creative
    • reliable
    • competitive
    Chapter 6 Slide
  • WHAT DOES IT TAKE?
    • Entrepreneurs have
    • problem-solving skills
    • tolerance for ambiguity
    • strong integrity
    • personal initiative
    • ability to secure resources
    • capability to learn from failure
    • willingness to work hard
    Chapter 6 Slide (continued)
  • >> C H E C K P O I N T
    • What personal characteristic are common to most successful entrepreneurs?
    Chapter 6 Slide
  • ENTREPRENEURSHIP AND THE ECONOMY
    • Employment
    • Financing
    • Productivity
    Chapter 6 Slide
  • NUMBER OF EMPLOYEES IN NEW BUSINESSES Chapter 6 Slide
  • >> C H E C K P O I N T
    • What are the sources of financing that entrepreneurs use for their new businesses?
    Chapter 6 Slide
  • OPPORTUNITIES
    • Innovation
    • Improvement
    Chapter 6 Slide
  • RISKS
    • Recognizing risks
      • Lack of adequate capital
      • Low sales
      • Higher than expected expenses
      • Competitive pressure
      • An owner unprepared to manage a growing business
      • Operations requiring more time than the owner is willing to commit
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • Where do entrepreneurship opportunities begin?
    Chapter 6 Slide
  • LESSON 6-2 Small Business Basics
    • Goals
    • Identify important characteristics of small businesses.
    • Recognize the competitive advantages of small businesses.
    • Identify problems faced by many small businesses.
    Chapter 6 Slide
  • Key Terms
    • small business
    • Small Business Administration (SBA)
    Chapter 6 Slide
  • SMALL BUSINESS OWNERSHIP
    • Description of a small business
      • Owner is usually the manager
      • Operates in one or very few locations
      • Typically serves a small market
      • Not dominant in its field
    • Small business employment
    • Ownership diversity
    Chapter 6 Slide
  • COMMON TYPES OF SMALL BUSINESSES Chapter 6 Slide
  • >> C H E C K P O I N T
    • What percentage of employees in the United States work for small businesses?
    Chapter 6 Slide
  • SMALL BUSINESS ADVANTAGES
    • Meeting customer needs
    • Providing unique services
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • How can small businesses compete successfully with larger businesses?
    Chapter 6 Slide
  • COMMON REASONS FOR SMALL BUSINESS FAILURE
    • Not keeping adequate records
    • Not having enough start-up money
    • Lack of management experience
    • Lack of experience with the type of business
    • Not controlling operating expenses
    • Poor location for the business
    • Failure to manage credit offered to customers
    Chapter 6 Slide
  • SMALL BUSINESS ASSISTANCE
    • Faculties of universities and colleges
    • Local groups of business people
    • Small Business Administration (SBA)
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • List common reasons for small business failure.
    Chapter 6 Slide
  • LESSON 6-3 Starting a Small Business
    • Goals
    • Recognize important factors to be considered when starting a business.
    • Describe the elements of a business plan.
    • Identify types and sources of financing for a small business.
    Chapter 6 Slide
  • Key Terms
    • business plan
    • start-up financing
    • short-term financing
    • long-term financing
    Chapter 6 Slide
  • THE BUSINESS DECISION
    • An idea plus experience
    • Right place and time
    • Team approach
    • Preparation and research
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • Why is it important to use a team approach when starting a new business?
    Chapter 6 Slide
  • WHAT IS A BUSINESS PLAN?
    • A business plan is a written description of the business idea and how it will be carried out, including all major business activities.
    Chapter 6 Slide
  • ELEMENTS OF A BUSINESS PLAN
    • Description of the Business
      • The business idea
      • Major products and services
      • Ownership structure
      • Strengths/weaknesses
      • Long- and short-term goals
    Chapter 6 Slide
  • ELEMENTS OF A BUSINESS PLAN
    • Description of Competition
      • Characteristics of the industry
      • Condition of the economy
      • Strengths and weaknesses of major competitors
    Chapter 6 Slide (continued)
  • ELEMENTS OF A BUSINESS PLAN
    • Customer Analysis
      • Description of customers
      • Location, number, and resources of customers
      • Sales forecasts
    Chapter 6 Slide (continued)
  • ELEMENTS OF A BUSINESS PLAN
    • Operations Plan
      • Organization of the company
      • Description of major operations
      • Analysis of resources needed
      • Human resource plans
    Chapter 6 Slide (continued)
  • ELEMENTS OF A BUSINESS PLAN
    • Marketing Plan
      • Description of major marketing activities
      • Description of resources needed
      • Schedule of marketing activities
    Chapter 6 Slide (continued)
  • ELEMENTS OF A BUSINESS PLAN
    • Financial Plans
      • Start-up costs
      • Short- and long-term financial needs
      • Sources of financing
      • Budgets and financial statements
    Chapter 6 Slide (continued)
  • STEPS IN DEVELOPING THE BUSINESS PLAN
    • Gather and review information
    • Develop the “game plan”
    • Write the plan
    • Ask an expert to review the plan
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • What is the “game plan” in a business plan?
    Chapter 6 Slide
  • FINANCING THE SMALL BUSINESS
    • Types of financing
      • Start-up financing
      • Short-term financing
      • Long-term financing
    • Sources of financing
      • Owner-supplied funds
      • Borrowed funds
    Chapter 6 Slide
  • >> C H E C K P O I N T
    • In addition to owner-supplied capital, what are several other sources of financing for a small business?
    Chapter 6 Slide