Entrepreneurship in Healthcare

Introduction Entrepreneurs can change the world. - YouTube

Entrepreneur – what is it? Definition – a person who organizes, manages, and assumes the risks of a business enterprise, including taking a profit when successful and a loss if business fails. Represents basic American values. Must have initiative, persistence, and inventiveness to succeed and show a profit.

Characteristics of an Entrepreneur Well-motivated Persistent Self-Confident Responsible Creative/inventive An independent thinker

Several factors influence success: Estimate of finances involved, capital outlay, operating expenses, hidden costs, and living expenses Competition of other businesses Advertising and marketing of the business Accurate record keeping Maintaining supplies and materials Updating and improving methods of operation

Types of Ownership Sole Proprietor Vast majority of small businesses start this way Owned by one person, usually the individual who has the day-to-day responsibilities of running the business Own all the assets and profits generated by it Also have complete responsibility for all liabilities and debts

Types of Ownership (cont’d) Partnerships Two or more people share ownership of single business. Should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership, how partners can be bought out, and what steps will be taken to dissolve the partnership when needed. General Partnerships and Limited Partnerships

Types of Ownership (Cont’d) General Partnership Partners divide responsibility for management and liability as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states otherwise. Limited Partnership Limited means that most of the partners have limited liability (to the extent of their investment) as well as limited input regarding management decisions, which generally encourages investors for short-term projects or for investing in capital assets. This form of ownership is not often used for operating retail or service businesses. Forming a limited partnership is more complex and formal than that of a general partnership

Types of Ownership (cont’d) Corporation A corporation chartered by the state in which it is headquartered is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed, it can be sued, and it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes.

Entrepreneurs must develop a plan of action to include: Business plan – a written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement Marketing strategies - A strategy that integrates an organization's marketing goals into a cohesive whole. Ideally drawn from market research, it focuses on the ideal product mix to achieve maximum profit potential. The marketing strategy is set out in a marketing plan.

Components of a Business Plan Product or service to be sold Customers who will make the purchases Competition Kind of financing necessary and the method to obtain Time commitment required to make it work What it takes to keep a business going

Marketing Strategies Targeting a customer base with advertising, meeting supply and demand with a quality product, competitive, and providing quality services Successfully completing a product or service by a work force Maintaining a plan of action throughout the business venture

Conclusion Starting and operating a successful, small business requires a thorough understanding of the endeavor. Entrepreneurial Advice from Billionaires