Starting your own business

A person who organizes and then runs a business Entrepreneurship A person who organizes and then runs a business Life is challenging….must be motivated Needs to make good decisions…..must be perceptive Find inventive solutions to problems….must be decisive Risks are high….but rewards can be great!

Advantages You are in charge Job satisfaction Can lead to a good income

disadvantages Financial risk …you can lose your investment Work long hours Competitors No guarantees…half of all business fail in first 4 years

Starting a new business 4 Ways to become a business owner Start a New Business Buy an Existing business Buy a Franchise Join A family business

New business Advantages: Disadvantages: It all you…..you build it from scratch Disadvantages: Requires more time & effort to start Start up costs are high (equipment, office supplies , insurance , etc…) Need to borrow money Very risky

Existing Business Advantages: Disadvantages: Steps ahead…take advantage of previous owners business agreements Build on former successes Disadvantages: Existing business may have problems- Poor location or reputation Competition Building or equipment is not new and may need repairs

Franchise Advantages: Disadvantages: Recognized name, reputation, & goodwill Established procedures and management systems Trained employees, support services, advertising & finance Disadvantages: Portion of profits go to parent company Must follow guidelines of parent company

Family Business Advantages: Disadvantages: Relatives can help with finance Family members are loyal, have a team of people you trust and know Teach you the business Disadvantages: Some families work well together others do not Issues at work could affect family relationships

Forms of Legal ownership Sole Proprietorship- business completely owned by one person Partnership- legal agreement in which 2 or more people share ownership Corporation- business chartered by a state that legally operates apart from owner(s). Owners by shares of company and are called shareholders

Sole proprietorship Advantages: Disadvantages: Owner makes all decisions Easiest form of business Least regulated Disadvantages: Limited by the skills, abilities and finance of one person Difficult to raise funds Owner is financially responsible

Partnership Advantages: Disadvantages: Can draw on skills, abilities and finance of more than one person Easier to raise funds Disadvantages: More complicated than sole proprietorship Tension among partners Owners liable for all business losses

Corporation Advantages: Disadvantages: Easiest to finance Financial liability of stakeholders is limited Disadvantages: Expensive to set up Record keeping can be time consuming and costly Can pay more taxes than other forms of businesses

Business plan project 9 slides 75 points : 60 information – 15 technical Must have : background, slide transition, clear and easy to read & at least 7 pictures tiles : 1 – title 2 – mission 3 – company description 4 – company founders and titles 5 – employees and job openings 6 – location 7 – market analysis 8 – SWOT Analysis 9 – Marketing & Sales strateg

Business Plan- CFM Total Points: _______/75 Percent: _____% Information 50 points   All 9 slides are present and all requested information is given. 45 points Presentation contains 7-8 slides, and/or most of the requested information is given. 40 points Presentation contains 4-6 slides, and/or some of the requested information is given. 35 points Presentation contains 2-3 slides, and/or little of the requested information is given. 0-30 points Presentation contains 0-1 slides, and/or very little of the requested information is given. Spelling / Grammar 10 points 0-1 mistakes 8 points 2-3 mistakes 6 points 4-6 mistakes 4 points 7-9 mistakes 0-2 points 10 or more Technical 15 points Both background and 7 appropriate pictures 12 points Background and 5-6 appropriate pictures 9 points Either no background, less than 4 pics, or not appropriate pics for the business idea Either no background, or no pictures 0-5 points Neither any background, or any pictures

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