Entrepreneurship Basics
What is entrepreneurship?
Starting and running a business by taking risks to create value.
Revenue minus costs equals what?
Profit
Who founded Microsoft?
Bill Gates.
You want to sell lemonade. What’s your product?
Lemonade.
What’s the money you put into a business called?
Capital.
What do we call the person who starts a business?
An entrepreneur.
Name one fixed cost and one variable cost in a business.
Fixed = rent; Variable = materials.
Who is the CEO of Tesla and SpaceX?
Elon Musk.
If lemonade costs $0.50 to make and you sell it for $1, what’s your profit per cup?
$0.50.
What does ROI stand for?
Return on Investment.
What’s the difference between an entrepreneur and an employee?
Entrepreneurs own/lead businesses; employees work for them.
What is a “budget”?
A plan for income and expenses.
Who founded Amazon?
Jeff Bezos.
If you sell 100 cups at $1 each, what’s your revenue?
$100.
If you invest $100 and it grows to $120, what’s your ROI?
20%.
Name one advantage and one risk of entrepreneurship.
Advantage: freedom/profit. Risk: financial loss.
What is the break-even point?
When revenue = costs (no profit/loss).
Who is the youngest billionaire from a beauty brand?
Kylie Jenner.
You spent $30 on lemons and sugar. How many $1 cups must you sell to break even?
30 cups.
Stocks, bonds, and real estate are examples of what?
Investments.
What does "innovation" mean in entrepreneurship?
Creating new ideas/products or improving existing ones.
Why is cash flow important?
It shows if the business has enough money to keep operating.
Name one entrepreneur who started with very little money but built a global business.
Oprah Winfrey, Howard Schultz (Starbucks), etc.
You want to expand to 3 stands. What’s one way you could fund the expansion?
Reinvest profits, borrow, or get investors.
Why should you diversify your investments?
To reduce risk by spreading money across different assets.