$This is important because people can understand the once you start your own business you are an entrepreneur. Simply the combining of ideas, hard work and adjustment to the changing business market. Innovation is the primary factor that governs the very creation of a small business or entrprenurship. Can be anything that introducues the inventions of new products that change the marketplace or create a new marketplace.
This is important because this can be considered the first step in starting a business. Answering these questions will help go on to step twoWhat is your love and passion: the is very important because you will be doing something that will effect you for the rest of your life. You want to do that something that you enjoy and makes you happy. To make this decision a little easier ask yourself these question: “What am I good?”- am I better at one subject then I am at another“What do I like to do?”- do I like to play sports or play inturtesments?“What are my strengthens and weakness”?- Am I good working with people, computers? Am I leader? Do people listen to me?“Do I experience?” Do I the ins and outs of the business? What kind of business will you open?What type of business will it be?3 types:Sole proprietorship, partnership, and corporation each has its disadvantages and advantages
This is important in my project because will understand the three types of business and will understand why I decided my business to become a sole proprietorships.Sole Proprietorships- owns and manages the business and is responsible for all business transactions, are fever the 500 employeesAdvantages: easiest to start, complete control, your own bossDisadvantage: all responsibilities and business decisions fall on the shoulders of the sole proprietor, investors usually don’t invest money in sole proprietorships, can be hard to maintianPartnerships- consist of two or more partners who are both responsible for the business. They share assets, profits, liabilities and management responsibilitiesAdvantages: there limited costs, work with someone else, not all the decisions is on youDisadvantages: shared profit, conflict over the direction of business, goals, etc, Corporation- a legal entity or structure created under the authority of a state’s laws, consisting of group of people who become shareholders. Existence is considered separateAdvantage: make a bigger profit, attract investors Disadvantage: are harder to start, more money to start, take a long time to become a corporation
$ Sole proprietorship business are important in America. They make up the Marjory of business in the United States The graph show how many small business were started since 2004. Once again there are very easy to start but the main idea that is very hard to maintain. This is why planning is important and know what you like to do is important to understand.
This is important information to be included in my project because people must understand what your business is going to do.A service:is a business which sells services directly to consumers or other business, it doesn’t always have to be a product. For example a teacher is a service. They are providing students with information. Starting a service business can be less costly than starting up a business which make and sells products Running a service business is also appealing to many people who are interested in working independently.
This is important in my project because must understand what the advantage of a service. Once they know the advatage they will better understand why I decided to start company based on service.Capitalize your skills- don’t worry if you lack business skills or experience. Things like management, personal-contact-selling, negotiating and so on can be learn over time. The question you must ask “What skill9s0 do you have that can be sold as a service?” doing something that your are great at makes your product that much better.Selling part time- enable you to eliminate risk by limiting your financial investment. Allows you to test the water to sure a businessman is something that you enjoy and want to do.. Keeping income rolling in, taking advantage of current health and employee benefits and building your business over a longer period of time. Creates a more stable foundation for your business.Full time- MUST develop a business and marketing plan, very risky because if you decide to do it but then switch idea you leave your employess at risk of losing your job, a lot of responsibility, make more money and gain control of your furtureSelling Seasonally- can be operated with a full-or-part time effort. Must are normally run full time to maximize reveunes and profits over a normally short time period.
It is important because people must understand that they have to answer these question before they start thinking of starting a business. It can be risky but people must be confident. Answering these questions can help them.Were will the startup money come from?- In order to start a business you need money to start. There are three ways to finance star-up cost :use your own money, obtain a loan, or investors. It is better to start off small and use your savings but most people get a bank loan and pay it off through out the yearsDoes it fit a need in your area? In order to make profit you need to separate yourself from other business in the area. If your business is very similar to another will be difficult to attract clients. You have to make your business stand out.
$Performance- Knows what their opponent companies are doing and effects their success. Selling the same product, their performance determines their success.Head to head- beats the opponent in performance but also take actions to try to prevent the opponent from making salesPredatory- complete control or monopolies in the marketplace, effort to drive smaller companies out of business or even simply purchase them, to take them out of competition
People must understand these three things because a business can not happen with these three things.Location (where is your business located): is/are natural resources not created by humansCapital: is the tools, products, tools, building, money etc. needed to produce Labor (employees): is/are people with all their abilities efforts, and skills
$S - is for SpecificBe really clear about what it is you wantM - is for MeasurableThere must be some sort of number of other measurable description of your goalA - is for ActionableYou have to have some verb in the goal - you have to DO something! The goals wouldn’t get done if you don’t do anythingR - is for RealisticMake your goal achievable, but don't be frightened to make it bigT - is for TimeboundAll of your great goals will fall by the wayside if you have no when about them - the 'maybe I'll start next week method'.
$ Profit is what keeps the business keep going. People must understand to calculate it and then once they do, they must understand how to improve it.Revenue-The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. Money that you make.Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. Money that is taken out.# Existing - Lost Customers + New Customers Gained = Total Customersx Frequency x Average $ = Gross Revenues - Cost of Goods - Overhead = Net Profit
This is important in my project because is explaines how a business is made and how they make money. People will get a better understanding if they look at it in a chart form.Production-Is the creation of something that hold value to othersGoods-Things that you can hold, that are useful and satisfy a need or wantBoth consumer and capitalConsumer goods-are goods that are intended for the individuals final useCapital goods-are goods that are used to produce other good/servicesGoods are also classified as durable and non-durableDurable goods last more then three yearsNon-durable goods last less then three yearsService-Work that is performed for an individual or group of individualsThis how a business becomes a business. Once you have land, capital, and labor you are then able to start production. Once you done with production your are then it becaomes a good or service. You set a price on that good and service and sell to your costumers. You always want to make your price higher then then amount it took you to make it because the goal is to make a profit!!!Profit is the money you have made
Is written description of a new business venture that describes all aspects of the business. It helps you focuses on exactly what you want to, how you’ll do it, and what you accept to accomplishThe business plan is your guide line to starting any business. Once completed it will tell you how the business will be runed, where it gets its startup money, its daily operates, about it employees, goals, how to plan to use marketing to convince clients and weakness and how it plans to make a profit.The business plan reflects your goals in life. Each business plan is different in size but the bigger the plan the bigger your business is going to be. In a business plan there will always be 7 sections but there many be more depending on how people plan to organize itInvestors and financing want to make sure that there money is not going to waste. They want to make sure that you have have good finical plan, that you will there money wisely and most importantly being able to pay them back in a timely matter.
Summary: one-to three page overview of the plan. Placed at the beginning of the finished proposal but it is done last after completing the rest of the sections. Must make it intrigues for readers to make them want to read more, you want to be very breif in this section. Its just an overview. Everything else will be explained in greater details in the different sectionsCompany Description: explains the type of company you plan to start. Will it be a manufacturing plant, a retail business, or will it provide a serviceProducts and service: describe the kinds of products you will sell or the services you sell
Marketing plan- describes your target market (likely customers) and details your competition. Indicate the marketing strategies that you plan to put into place. Include types and location of advertising. This is how you get your future clients…if you fail at this you not make be able to make money as a business because you do not have clients to work withLegal Plan- point out how you will organize your company, Will it be a sole proprietorship, a partnership or a corporationManagement plan- details the company’s key personnel as well as there expertise and experience, companies daily operation, facilitites, overall personnel, materials, and processing requirementsFinancial Plan- the company’s financial needs and financing as well as your projections for revenues , costs and profits
$ This is how business are going to make business. They are many types of people and all of them have different needs and wants. Understanding this is vital because you must understand which people are the right type for your business. If you target the wrong type of people, they will not buy your products because they don’t like it. More customers you have the more sale you are going to generate!How are you going to get the word out about your business?
$Advertising- brings quick results, ads keep your name in front of customersBusiness Cards-more the just basic information, it can serve as an effective, inexpensive marketing mediumWebsite- won’t generate sales immediately, supports your other sales efforts and gives your business credibilitySpecialty advertising products- imprint your company on just any item, this keep your name in front of themBillboards- can be seen by a lot of people, and gets people attention, and very effective
Details-will help you save money and time since you will be able to deal with issues before they become problems, help you save moneyFunding- helps you to get outside funds for your business. Most lenders and investors want to see that you have a clear business plan before they take a risk on your business. Show them that you are serious about being successful at your business.Management tool- it is a organizer for your business. Step by step what you are going to do. Helps you focus on where you are and where you want to be in the future. Will help keep your daily tasks well managed and helps you accomplish your short and long term goals. It is your guide to successes.
$ Start your own business, if you have that dream and passion a business plan will guide in that direction. Raising captial- A good business plan can convince investors to put up the money to help start a new venture or to move a business to the next level.Staying on track- Are your current activities or near-term goals in line with your original strategy?Long term planning-Use your business plan as a platform for testing future scenarios.
The money that you have saved from the bank. It is very unlikely that you can only use that money. You would probably need a bank loan to help you get started.Bankers are concerned about having their repaid. Bankers want to be assured of a company ability ti keep up a loan repayment schedule. Emphasis should be cash flow- past, present, and future. Having a past record of cast generation will be big because it will convince the bank that you are able to pay back the loan.After cash flow bankers look for tangible assets that can be sold to repay the loan in cash flow sours.Investors- are more interested in factors that can help predict growth. Growth is essential for them to get an attractive return on their investments.Factors include- market likely future, the management team’s experience, evidence of fast-growing sales, want to see a conciseplanThat is why is is difficult for small business to convince investors because smaller business are difficult to grow at first and take more time. Experience could be limited meaning someone could be starting there own business with no experience at all and it is difficult to convince the best employees to work at a business that just started.
$Character- means more than not having a criminal record. It means that the banker feels confident that you are not going to suddenly disappear for parts unknown if the business runs into trouble. Specifically bankers like to see ties to the community such as long residence, family ties, and home ownership. Personal impression you make on the potential lenderA clean credit history is important. A couple late credit card payments shouldn't be a factor, but missing mortgage payments for three months in a row will require a good explanation. Captail is the money you personally have invested in the business. Prospective lenders and investors will expect you to contribute your own assets and to undertake personal financial risk to establish the business before asking them to commit any funding.they live for solid collateral. Equipment, buildings and trucks--that's the kind of stuff that bankers really like for collateral--solid value and likely to be worth a lot even if the business goes bust. Inventory, raw material and goods are second choices for collateral--they will lose their value more quickly than fixed assets but still be worth something. guarantees are additional forms of security you can provide the lender. If the business cannot repay its loan, the bank wants to know there is a second source of repayment.Capacity-The prospective lender will want to know exactly how you intend to repay the loan. The lender will consider the cash flow from the business, the timing of the repayment, and the probability of successful repayment of the loan.
$ balance sheet is probably the first thing your loan officer will turn to. The balance sheet records your assets liabilities and capitalthey'll look very carefully at the profit or loss and the cash flow, which should be very closely related to the balance sheet and to each other.or both startups and existing companies, loan officers are going to expect realistic monthly cash flow for the next 12 months.That comes first in the descriptions of the backgrounds of the management team but also shows up in information about the business model, company history, locations, products and services, and strategy. Good bankers process a plan looking for evidence of success. They don't want to be part of failure, even if their banks' assets are protected by collateral.
$ Personal Financial Satement: Your lender will obtain your personal credit report as part of the application process. However, you should obtain a credit report from all three major consumer credit rating agencies before submitting a loan application to the lender. Inaccuracies and blemishes on your credit report can hurt your chances of getting a loan approved. It’s critical you try to clear these up before beginning the application process.Application for business loan:Forms vary by program and lending institution, but they all ask for the same information. Why are you applying for this loan?How will the loan proceeds be used?What assets need to be purchased, and who are your suppliers?What other business debt do you have, and who are your creditors?Who are the members of your management team?
$ Once you are approved from the bank for your business plan…you can start using there money to make your business happen. It is different for each person but most start out by rentingBuy the necessary equipment for you business to start.A business is nothing without employees. They help with running the business and make your job much easier.The reason why you started your own business is because your doing something you love to do and off course to make MONEY! At first that money is not all your because you have to pay the bank
Bad planning- not making a business plan, is your guide to limiting your mistakes. If your don’t make one your chances of failing has increased greatly. It forces you to think about the future and challenges you will face. Consider financial needs, your marketing and management plans, competition. It is your blue print, step by step guide and if you don’t do it or you mess up your numbers your business will not succeed.Factors:Bad Marketing- customers can buy your products if they don’t know you’re there. Promoting your business is very important some example of promotion are ads in local newspapers, web sites, blogs, billboard, radio. The different marketing stragties are endless. But is is only limited by your own creativity. Your marketing could be targeting the wrong group of people. You did not do your market research wellLack of funding- failure to prepare for volatile markets and uncontrollable costs like energy-rate increases, materials, labor, natural disaters. In on order to not let this happean make sure you protect your investment and keep enough reserve cash to carry you through market downtrends and seasonal slowneddWrong career choice- you realized that what you were doing no loner matched, the failure got the best of you, caused you make rash decisions. You lost your drive, and it takes up a lot of your time and can no longer see your familyLocation- Factors; Where your customers areTraffic, accessibility, parking and lightingLocation of competitorsCondition and safety of buildingLocal incentive programs for business start-ups in specific targeted areasThe history, community flavor and receptiveness to a new business at a prospective site
$ All three types of business, They best way to get over the first tough year is to prepared. Find out as much as you can. Once you hit 5 years, your odds of survival go way up. After running a business for a year or two, many people discover the effort is more than they anticipated. When reality sers in many decide they’d rather return to having a job.
$Improving and updating your offerings, going to be judged by the quality and consistency oy your products and serviceIf you want to survive or let alone grow your need to get the word out there fail from a lack of cash then a lack of profits, need to know and understand how to pay for your bills Compare your prices to other companies and make the necessary adjustment to the price,
state business license is the main document required for tax purposes and conducting other basic business functions. Many states have established small business assistance agencies to help small businesses comply with state requirements.f the state in which you operate has a state income tax, you'll have to register and obtain an employer identification number from your state Department of Revenue or Treasury Department. If you're engaging in retail sales, you will need to obtain a sales tax license.If you have any employees, you'll probably be required to make unemployment insurance contributions.
This is important because because this was included in my business plan. This is the billboard I will be showing on the highway and throughout the mall. This is important because it gets people to notice my company before it start. When people look at a billboard they look from the top left to the bottom right. That is why I put myself on th left side of the board. When they look the first thing they see is my face and then the second thing they they woud see is my company. The goal of the billboard to get people familiar with my company before I open.
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Thesis In order to start an own business entrepreneur will need capital, labor, and land. In order to make this successful he/she will need to make a business plan.
Inspiration I decided to do my project on business because I wanted to learn what it takes to start a own business. This will help me in the future because one of my goals is to start my own business.
Importance of Business It fuels our economy Its how we make money It gives people endless job opportunists It creates products that the consumers uses
What is an a Entrepreneur? Can be anyone! Organizes and manages a business Key directive of any business-innovation “You can be a successful entrepreneur if you find a business that suits your entrepreneurial type.” Abrams, 10 http://www.zeromillion.com/ http://www.morebusiness.com/
Things to consider before starting.. What is your love or passion? Can you be a leader? What kind of business should you start? Manufacturing plant, retail business or service What type of business will it be? Sole proprietorship, partnership or corporation http://reviewallblogs.com/ http://www.businessknowhow.com/
3 Types of Business Sole Proprietorships Most Common Simplest Form of business Partnerships Corporation Each type has its Advantages and Disadvantages http://www.morebusiness.com/ http://www.allbusiness.com/
How many are there? “According to statistics from the U.S Small Business Administration, there are more the 23 million small Business functioning in the United States. These business employ 53 percent of the private work force and provide 47 percent of sales in the country.” Careers in Focus-Business In 2008, there were 29.6 million business, small firms fewer then 500 employees represent 99.9 percent of the 29.6 million business http://www.sba.gov/advo/stats/sbfaq.pdf http://www.sba.gov/advo/stats/sbfaq.pdf
Three Kinds of Business Manufacturing Merchandising Service The most kind used The easiest to sell Not always a product www.carchatclub.com www.principalspage.com www.erictric.com http://www.allbusiness.com/
Advantages of a Service Capitalize on Your Skills Selling full/part time Selling Seasonally Supplement you retirement “Perhaps the biggest advantage is you become your own boss, take control of your future, and in effect become the master of your destiny” (www.entrepreneur.com) www.entrepreneur.com
Things to Consider Were will the startup money come from? Does it fit a need in your area? Competition? Location, labor, and capital. Do you have all three? http://www.startupnation.com/
Competition Models Performance Head to Head Predatory “Its not enough for you to know the customers needs your product. The customer must believe they need you.” Adbrams,64 http://www.school-for-champions.com
A business is nothing… Without Capital Labor Location www.openforum.com www.buildinglanduk.co www.scienceblogs.com www.landandfreedom.org
Goals of A business To make Money!!! S- Specific M- Measurable A- Actionable R- Realistic T- Timebound http://ezinearticles.com/
Profit Measuring Profit Revenue - Expenses = Profit Improving Profit People x Process = Profit www.acpavlik.com/ http://www.irs.gov/
Business Creation Entrepreneur Capital Land Labor Production Goods/Services Price Profit www.landandfreedom.org
Business plan Your KEY to starting a business You start turning your daydream into reality It reflects you and your business A business plan does not have limits Is essential for potential investors and financing agencies How to Really Create a Successful Business Plan, pg 10 magazine.asiabusinessinvestor.com
Parts of the Business Plan In General: Comprised of 7 parts 1. Summary 2. Company Description 3. Products and Services Introduction to Business, pg 77
Business Plan 4. Marketing plan THE MOST IMPORTANT 5. Legal Plan 6. Management plan and operating plan 7. Financial Plan Introduction to Business, pg 77
Target Market Your Potential consumers for a product A Specific group of people Example: Coco Puffs target little kids “More Customers! More Sales!” Owner’s Manual for small Business The Owner’s Manual for Small Business, pg 105
Marketing Techniques How are you going to get the word out about your business? Advertising Business Cards Websites Specialty advertising products Billboards The Owner’s Manual for Small Business, pg 104
Why is a Business Plan Needed Consider the Details Funding Management Tool “Having a plan will also help you achieve the things you want to achieve and will help your business to find success.” (www.Ezinearticles.com) http://ezinearticles.com freelanceswitch.cdn.plus.org
What can You use a Business Plan For? To start your own business-not the only reason Raising capital-expand Staying on track Long-term planning www.businesswritingtoday.net
Getting the Money 3 ways Can use the money you saved A loan from the Bank From investors Difficult for small business http://stlcashexpress.com/paydayloanspic.jpg How to Really Create a Successful Business Plan, Pg 176
Get a Banking Loan Bankers look for the 5 C’s Character Credit Captial Collateral Capacity Most critical http://www.businesstown.com/planning/creating-bank.asp www.sba.gov
What Bankers look For in the Business Plan Balance Sheet Profit or Loss Cash Flow Founders and managers who know there business http://www.allbusiness.com
What is needed for a Bank loan? Not only your business plan is needed Personal Financial Statement Application for Business Loan http://www.business.gov/
Once Approved.. Take the steps necessary to start your business Build/Rent a Building Buy the assets needed Manage your business Find employees Be the leader Start making money! To pay back the bank.. www.sba.gov
Why do some Business Fail? Many Reasons but I think these are the most Important Bad Planning Bad Marketing Lack of Funding Wrong Career Choice Location http://www.istockphoto.com/ www.businessknowhow.com
Survival Rates of Businesses The Owner’s Manual for Small Business
Ways to Ensure Company Survival Only a Few 1. Provide a great product or service 2. Develop a marketing plan 3. Mange your cash flow 4. Increase or lower your price Owner’s Manual for Small Business
Requirements Only to name a few… Business licenses Tax registration Employer registration business-law.lawyers.com