Entrepreneurship and Small Business CHAPTER 5 TAKE A

Entrepreneurship and Small Business CHAPTER 5 TAKE A NOTE SHEET ON YOUR WAY IN

Entrepreneurship A business started by someone who notices a need for a product or service.

Characteristics of an Entrepreneur Strong need to achieve Spirit of adventure Self-confident Goal-oriented Innovative, creative and versatile Persistent Hardworking and energetic Positive thinker Willing to take initiative Willing to commit

Disadvantages ◦ ◦ Starting your own business means that you must be willing to give up the security of a regular paycheck Business may struggle in the beginning Work schedule is never predictable Long hours Emergencies may come up All the decisions of the business must be made by you You are responsible for everything

Advantages You are your own boss You can work whenever you want, wherever you want and however you want You offer a new service/product that no one else has offered before Due to its high capacity for risk, there is a lot of adventure

Small Business An independently owned business that usually has the owner as its manager

Characteristics of a Small Business Serves a limited geographic area Employs fewer than 500 people Is not dominant in its industry

Advantages of Owning a Small Business You are your own boss You can quickly respond to your customers’ needs They are easy to form ◦ Get a license for operation ◦ Meet local zoning requirements

Disadvantages Work long hours Make all the decisions ◦ financing, employee relations, production, customer relations, etc.

Small business owners must… Be aware of change and adapt quickly Be market savvy Have multiple skills Be financially smart ◦ Money management helps keep a small business successfully afloat.

Fact: Four out of five small businesses fail in their first five years

You have what it takes…now what? Create a Business Plan ◦ Summary of the plan ◦ Description of the company ◦ Description of product or service ◦ Marketing plan – how will you sell your product or service? ◦ Legal plan – how will you organize your company? ◦ Management plan – daily operation, key personnel, facilities, equipment, etc. ◦ Financial plan – projections for revenues, costs, and profits.

Chapter 5 Bookwork For the rest of the class, complete the book work for Chapter 5. ◦Page 72 #’s 1 -4 ◦Page 75 #’s 1 -5 ◦Page 77 #’s 1 -2 ◦Page 80 #’s 1 -6