Intro to Business Unit Four Review Careers in Our Economy Chapter 12, 13, 14

Chapter 12 Managing a Small Business  Small-business owners are independent, self- motivated, risk-takers, persistent, hard workers, and have technical knowledge and management ability.  Small-business ownership begins with an idea. Puttering a business idea into action means: 1. Finding the right location for a business 2. Choosing the right team to help run the business  The most important step in starting a business is preparation – spending time gathering and studying information before the business is started.

Chapter 12 Managing a Small Business  A written business plan serves as an objective guide to the development of a new business.  The three primary types of financing needed by many small businesses are: 1. Start-up financing 2. Short-term financing 3. Long-term financing

Chapter 13 Managing Human Resources  Employees can make a difference in the success or failure of a business. The impact of one person can be very noticeable in a small business with only a few employees.  Small-business owners should carefully: 1. Determine the category of employee needed 2. Study work requirements in preparation for hiring a new employee 3. Search for people who meet a specific need or skill requirement 4. Hire the qualified applicant

Chapter 13 Managing Human Resources  Compensation and benefits include: 1. a salary or wages 2. financial incentives 3. fringe benefits.  Sources of training within a small business include the owner or experienced employees.

Chapter 13 Managing Human Resources  Other sources of include: Trainers who conduct training sessions at the business site Training programs offered by schools and colleges Seminars Classes Training materials available through the Small Business Administration (SBA) Equipment vendors or other businesses that sell products.

Chapter 14 Maintaining Financial Information  Common sources of financial information for established businesses are financial records.  For businesses with limited/no previous financial information, the SBA provides planning tools.  Private businesses also collect and publish financial information on similar businesses.  A new franchise gets help from the franchisor.

Chapter 14 Maintaining Financial Information  Three types of business budgets are: 1. Start-up budget 2. Operating budget 3. Cash budget  Common financial records maintained in small businesses are Records of cash Credit accounts Inventory Payroll Assets

Chapter 14 Maintaining Financial Information  Balance sheets and income statements are used to compare financial performance.