Entrepreneurship
This is a person who starts a business, and takes risks by doing so.
Entrepreneur
What percentage of Businesses fail within the first 5 years?
50%
It is best to launch a business when demand is...
High
Business Plans should be written down.
True
This government agency helps new businesses with everything they need.
Small Business Administration (SBA)
What is the difference between an Innovation and an Improvement?
Innovation = Creating something entirely new.
Improvement = Building upon an existing creation.
A small business is one with fewer than _____ employees.
500
These are large individual investors who volunteer to help businesses with launching and expanding their business.
Venture Capitalists
How often should Business Plans be updated?
Annually
Give 2 areas where Entrepreneurs generate business ideas.
1. Personal/Business Experience
2. Hobbies and Interests
3. Books and Magazines
4. Needs in their community or their own lives
What are 3 advantages Small Businesses have other their larger counterparts?
1. More individual customer attention.
2. Can serve more niche and specific needs.
3. Can create specific goods and services.
What percentage of Small Businesses are owned by Women?
33%
What is the difference between Short-Term and Long-Term Financing?
Short term = Money for operations in the next year
Long-Term = Money for operations greater than a year
What is a Business Plan
An outline of the business, detailing everything that it plans to do.
The most important thing for an Entrepreneur to do before launching a business is to...
DO YOUR RESEARCH!
These are 4 characteristics of small businesses.
1. Owner is Manager
2. Small Market
3. Few Locations
4. Not Dominant in its Field
Small Businesses account for how much of U.S. GDP?
50%
This is the money required to start a business.
Start-Up Financing
This part of the business plan deals with the major operations of the business, as well as how the business is organized
Operations Plan
These are materials companies keep on hand, either for selling or for use in their operations.
Inventory
List 5 of the 7 reasons most small businesses fail.
1. Not keeping adequate records
2. Lack of financing
3. Lack of management experience
4. Lack of industry experience
5. Poor location
6. Failure to manage customer credit
7. Failure to manage operating expenses
What percentage of Americans between 18 and 64 are involved in Entrepreneurship?
13%
Provide 2 examples for what may go into Short-Term and Long-Term Financing?
Short: Utilities, Rent, Taxes, Payroll
Long: New buildings, new vehicles, machinery
This part of the Business Plan deals with sales forecasts, as well as the location of - and number of - potential patrons.
Customer Analysis
What are 3 reasons for Business Closures?
1. Competition
2. Low Sales
3. Higher than expected Expenses
4. Lack of time commitment on behalf of the owner
5. Lack of preparation for running an expanding business.