Introduction
What does COGS mean?
Cost of Goods Sold
What are the 3 key Questions?
What to Produce?
How to Produce?
For whom to Produce?
What is a General Partnership?
A business that has 2+ owners that share profit, losses, and liability, and pass-through taxes
What is a Entrepreneur?
An individual or small group who strike out on a path to start a new business
What is a Recession?
When there's a contraction of the economy that lasts longer that 6 months
What is a Non-Profit?
A company that puts their profit into the goal's work
What is a Traditional Economy system?
What is a Sole Proprietorship?
A business that has 1 owner that has full control of everything, but their assets are all at risk of liability, has pass-through taxes
Why do people start new businesses?
To make profit
What is the point called when the Supply and Demand curve meet?
Equilibrium
What does Wholesale mean?
What is a Command Economy?
Government or central authority makes all major economic decisions, Government sets all production goals, prices, and distribution
What is a LLC?
A structure that has 1 or more, has limited liability (Personal assets are protected), Shared personal assets, good for growth, but lots of paperwork and annual reports
What are 3 traits of an Entrepreneur?
Passion, Risk-taking, Vision/Strategic thinking, Curiosity, Leaders, Creativity, Communication, etc.
What is a Economic Shock?
When there's a cycle disruption that leads to a contraction of the economy (Covid, etc.)
What does DTC mean?
Direct to Customer
What is a Market Economy?
Decisions are made by individuals and businesses through supply and demand, private ownership of resources
Unlimited share holders, limited liability, double taxation, lots of big brands use this
What % of new businesses fail in the first year?
20%
What are the 5 ways the Demand curve moves?
1. Preference
2. Number of Consumer
3. Related Goods price
4. Income
5. Expectations
What are the steps to the design process?
Empathize, Define, Ideate, Prototype, and Test
What is a Mixed Economy?
Private ownership with government intervention, mixed of Command, Market, and Traditional Economy
What is a S Corporation?
Has up to 100 shareholders, pass through taxes, and strict rules on the shareholders, its easy to raise capital, and has perpetual life, but is very costly and complex
How do you start a business? (7 steps)
2. Build a business plan
3. Create a budget & forecast
4.Raise appropriate capital
5. Formalize the Business (Structure, Licenses)
6. Operations/Logistics execution
7. Market your product
What are the 5 ways the Supply curve moves?
1. Input prices
2. Technology
3. Government Actions
4. Number of Sellers
5. Expectations