Financing
Banks keep approximately 20% of the money you put into your account. What do they usually do with remaining 80%.
Offer consumer or business loans or purchase government bonds (loan the government money).
When the product goes from producer to consumer.
What is direct distribution.
Using your own money, not an investors' money.
What is Bootstrapping.
Easier to raise money (like the big companies: Apple, Microsoft, Tesla, etc.)
What is a C Corporation.
Handles finances.
What is CFO, Chief Financial Officer.
Cost of borrowing money.
What is interest rate.
Holds the product before it is shipped off to the consumer.
What is fulfilment center.
First step in completing a sale.
What is determine whether the customer needs your service and can pay.
No legal protection. Easiest business to organize (pays self-employment tax). If you do not set up an LLC, you will not have liability protection.
What is a Sole Proprietorship.
Seeks resources for a start-up company.
What is a Founder.
Invests in business, for equity in the company, or debt.
What is Venture Capitalist.
From Producer to wholesaler to retailer to consumer.
What is Indirect Distribution.
Last step in completing a sale.
What is follow up.
Liability split w/ another person (pays self-employment tax).
What is general Partnership.
Makes final decisions.
What is CEO.
Divides ownership of the business into shares sold to the public.
What is IPO, Initial public offering.
Tends to ship from business to business or to fulfillment centers.
What is distribution center.
Allows business to take specific action. For example, parking a food truck in downtown Orlando.
What is a permit.
Benefit for opening a company/LLC.
Tax write offs.
Liability protection.
Understands the supply chain, the process of making the product and getting the product to the consumer.
What is COO, Chief Operating Officer.
Gives advice, invests in start-ups.
What is Angel Investor.
When a business sells products to another business, instead of the consumer.
What is B2B or Business to business.
Owner sells ownership into a retirement fund for its workers.
What is ESOP, Employee stock ownership plan.
High level of protection and individual tax rate.
What is S-Corp.
The governing body of a company, whose members are elected by shareholders.
What is Board of Directors.