Business Basics
This business structure is owned by one person and generally offers no separation between personal and business liability
Sole Proprietorship
A person who identifies a business opportunity, organizes resources, and assumes business risk
Entrepreneur
A specific group of customers a business intends to serve
Target market
Product, Price, Place and Promotion are the four elements of marketing
The 4 Ps of marketing
Money generated from selling products or services before expenses
Revenue
This type of business structure generally provides liability protection for its owners
Limited Liability Company
This statement explains what a business does and who it serves
Mission statement
A boarding farm located nearby that serves the same type of customers is this type of competition
The identity, reputation, and customer experience associated with a business
Branding
Revenue minus expenses equals this
Profit
A document outlining business goals, operations, marketing and financial expectations
Business Plan
Generally operates an independent business and has greater control over how the controlled work is performed
Independent Contractor
What does SWOT stand for?
Strengths, Weaknesses, Opportunity, Threats
The process of gaining new customers
Customer acquisition
Equine businesses must have profit in 2 years out of every 7 years to be "presumed" to be in business by the IRS. Presumption begins after the 2nd year of profit.
This business structure involves two or more owners who share ownership of a business
Partnership
This is the difference between simply wanting to open a horse farm and having evidence that enough paying customers exist
Difference between a business idea and a viable business opportunity
A business specializing in retired racehorse retraining serves this type of specialized market
Niche market
The process of keeping existing customers and encouraging continued business
Customer Retention
Employee
This legal principle may expose an LLC or corporation owner to personal liability when the entity is improperly used.
Piercing the corporate veil
This section appears first in a business plan but is often easiest to write last
Executive summary
A demand for commodities or services
Market
How many tests for material participation are there and what is the qualitative definition?
What is the most important factor in demonstrating to the IRS that an activity is a business as opposed to a hobby?
Profit Motive