6-1 Becoming an Entrepreneur 6-2 Small Business Basics 6-3 Starting a Small Business

6-1 Becoming an Entrepreneur  Entrepreneur –  Entrepreneurship –

6-1 Becoming an Entrepreneur  Characteristics of Entrepreneurs  Come from all _____ and _____ categories  Varied levels of __________  Must have an understanding of business __________  Many entrepreneurs ask for ______ in starting a business  See figure 6-1 (pg 128) for personality characteristics of successful entrepreneurs

6-1 Becoming an Entrepreneur  Entrepreneurship and the Economy  ________ Americans age is involved in some type of entrepreneurship activity  Over _____ of new jobs were created by businesses with fewer than 500 employees  Business with a single owner account for more than __________in sales annually  Small businesses are responsible for more than ______ of the U.S. GDP

6-1 Becoming an Entrepreneur  Financing a Small Business  Most of the money needed to start a new business comes from the ___________ or his or her ______ and __________  Venture Capital –  Loans from _______ and credit given by _______ are other sources of financing

6-1 Becoming an Entrepreneur  Business opportunities  Innovation –  Improvement –  Business risks 

6-2 Small Business Basics  Small Business –  ________ of all U.S. businesses are small businesses  A Typical Small Business:  Is managed by the _______  Serves a _____________  Operates is one or very few _________  Is _____ _________ in its field

6-2 Small Business Basics  Small Business Advantages   Can _________ in areas big businesses can’t/won’t  Serve fewer _________ and have more contact with them than big businesses  More likely to be located close to their customers   Can provide more individual __________  Can get more immediate _________ from customers regarding their wants and needs

6-2 Small Business Basics  Common Small Business Problems   Small businesses have a high failure rate.

6-2 Small Business Basics  Small Business Assistance  University and college professors  Chamber of Commerce  Small Business Administration (SBA) –  Service Corps of Retired Executives (SCORE)

6-3 Starting a Small Business  Start with an _______  Hobbies, interests, business experiences  Find the right ______ to open the business  Assemble a ______  Employees, service providers (accountant, lawyer, etc.)  Prepare and _________  Develop a _________ _____

6-3 Starting a Small Business  Business Plan –  Description of the business (products and services, location, goals)  Ownership structure  Customer analysis (sales forecast)  Operations plan  Marketing plan  Financial plan (budget, sources of financing, start- up costs, projected financial statements)

6-3 Starting a Small Business  Most popular use of a business plan is to _______ __________  __________________– the amount of money needed to open the business (inventory, supplies, licenses)  __________________– the money needed to pay for the current operating activities of the business; less than one year  __________________– the money needed for the main resources of the business that will last for many years (land, buildings, equipment)  Sources of financing include a combination of owner-supplied funds and borrowed funds