Entrepreneurship and Small Business Chapter 5 pp

Introduction to Business, Entrepreneurship and Small Business Slide 2 of 56 Preparing for Your Own Business A business plan is a written description of a new business venture that describes all aspects of the business.

Introduction to Business, Entrepreneurship and Small Business Slide 3 of 56 Checklist for Starting a Venture Some questions to consider before starting your own business are: What will I produce? Who are my main competitors? Why is my product needed? continued

Introduction to Business, Entrepreneurship and Small Business Slide 4 of 56 Checklist for Starting a Venture How much will my product cost to produce? How many people will I need to run the business? What physical facilities will I need? continued

Introduction to Business, Entrepreneurship and Small Business Slide 5 of 56 Checklist for Starting a Venture What licenses, permits, or other legal documents do I need? How much money will I need to get started?

Introduction to Business, Entrepreneurship and Small Business Slide 6 of 56 Elements of a Business Plan 1.The summary is a one- to three-page overview of the plan. 2.The company description explains the type of company. continued Business Building Blocks

Introduction to Business, Entrepreneurship and Small Business Slide 7 of 56 3.Describe products or services in the products and services section. 4.The marketing plan describes your customers and your competition. 5.A legal plan points out how you will organize your company. continued Elements of a Business Plan Business Building Blocks

Introduction to Business, Entrepreneurship and Small Business Slide 8 of 56 6.The management plan and operating plan detail the company’s key personnel. 7.Complete a financial plan. continued Elements of a Business Plan Business Building Blocks

Introduction to Business, Entrepreneurship and Small Business Slide 9 of 56 Be brief and relevant. Don’t inflate the importance or possible success of your business. “Write short and be honest,” is a good rule of thumb. Tips for Writing an Effective Business Plan Business Building Blocks

Introduction to Business, Entrepreneurship and Small Business Slide 10 of 56 The 4 P’s of Marketing Product Promotion Place Price The Marketing Mix

Introduction to Business, Entrepreneurship and Small Business Slide 11 of 56 Marketing Mix (cont.) Product Strategies –What product –How to package –What brand name –What image to project Example –Coolpix Nikon Brand –Trendy, celebrity endorsed, portable

Introduction to Business, Entrepreneurship and Small Business Slide 12 of 56 Marketing Mix (cont.) Place Strategies –How/where a product will be distributed –Mass marketing vs. specialty stores Example –Mass marketed

Introduction to Business, Entrepreneurship and Small Business Slide 13 of 56 Marketing Mix (cont.) Price Strategies –What customers are willing to pay –Consider cost –Consider competition Example –$99.99 cost –$20.00 for case –$18.00 for strap

Introduction to Business, Entrepreneurship and Small Business Slide 14 of 56 Marketing Mix (cont.) Promotion Strategies –How customers will be told about product –What the message will be –Where and when it’s delivered –Incentives to buy Example –Commercials –Magazine ads –Website offerings

Introduction to Business, Entrepreneurship and Small Business Slide 15 of 56 Key Words entrepreneurship virtual business or dot-com company small business entrepreneur risk taker profit

Introduction to Business, Entrepreneurship and Small Business Slide 16 of 56 The Ins and Outs of Entrepreneurship Entrepreneurships and small businesses are the majority of business firms.

Introduction to Business, Entrepreneurship and Small Business Slide 17 of 56 An entrepreneurship is a business started by someone who notices a need for a product or service. An entrepreneur is a person who  Recognizes a business opportunity  assumes the risks of a business enterprise  Intent of increasing the market value of the business The Ins and Outs of Entrepreneurship

Introduction to Business, Entrepreneurship and Small Business Slide 18 of 56 A virtual business or a dot-com company is a business that operates on the Internet. The Ins and Outs of Entrepreneurship

Introduction to Business, Entrepreneurship and Small Business Slide 19 of 56 Want to control destiny Want to control destiny Desire to earn profit Desire to earn profit Are enthusiastic Are enthusiastic Have self- confidence Have self- confidence Are determined Are determined Recognize opportunities Recognize opportunities Desire achievement Desire achievement Take risks Take risks Have high energy Have high energy Successful Entrepreneurs EntrepreneursSuccessful Successful Entrepreneurs Graphic Organizer

Introduction to Business, Entrepreneurship and Small Business Slide 20 of 56 There are many advantages to being an entrepreneur, including: Advantages of Entrepreneurship Satisfaction from taking a risk and becoming a success Working from home Gaining profit continued

Introduction to Business, Entrepreneurship and Small Business Slide 21 of 56 Disadvantages of Entrepreneurship The disadvantages to being an entrepreneur are: Long hours Total responsibility for the business Financial risks

Introduction to Business, Entrepreneurship and Small Business Slide 22 of 56 Disadvantages of Entrepreneurship The main reason why entrepreneurships fail is that they run out of money. Starting with little money, Spending carelessly, Borrowing money without planning, forgetting about taxes and insurance costs

Introduction to Business, Entrepreneurship and Small Business Slide 23 of 56 Fast Review 1.What are some characteristics of entrepreneurs? 2.What are three advantages of an entrepreneurship? continued

Introduction to Business, Entrepreneurship and Small Business Slide 24 of 56 Fast Review 3.What are some disadvantages of an entrepreneurship? 4.What is the main reason that entrepreneurships fail?

Introduction to Business, Entrepreneurship and Small Business Slide 25 of 56 Small Business: What You Need to Know The Small Business Administration (SBA) defines a small business as an independently owned business that usually has the owner as its manager Serves a limited geographic area Employs fewer than 500 people, Not dominant in its industry.

Introduction to Business, Entrepreneurship and Small Business Slide 26 of 56 Small Business: What You Need to Know Small businesses employ more than 50 percent of the total workforce in the United States. Small businesses generate more than half the nation’s income. They are the principal source of new jobs

Introduction to Business, Entrepreneurship and Small Business Slide 27 of 56 Fast Review 1.How does the Small Business Administration (SBA) define a small business? continued

Introduction to Business, Entrepreneurship and Small Business Slide 28 of 56 Fast Review 1.What is a business plan? 2.Name the essential elements of a business plan.

Introduction to Business, Entrepreneurship and Small Business Slide 29 of 56 Identify some reasons why a small business might be hard to manage. What are some benefits of selling online?