What does it take to start a new business? Ms. Ramos Alta Loma High School

Essential Role of Entrepreneurs Responsibility & risk Innovative & creative thinkers Ms. Ramos

Characteristics of Successful Entrepreneurs Ambition Self-confidence Willingness to take risks Energy & self-discipline Perseverance Problem-solving Organizational skills Ability to motivate Ms. Ramos

Analyzing the Survival of Business Start-Ups Source: Amy E. Knaup & Merissa C. Plazza, “Business Employment, Dynamics Data,” Monthly Labor Review, vol. 130, no. 9 (Sep. 2007) Ms. Ramos

Risks & Rewards Risk:  44% of businesses last after 4 yrs  raising $ & finding employees Benefit:  near unlimited potential  Personal satisfaction & freedom  Knowing contributing to economy Ms. Ramos

What kinds of businesses are best organized as sole proprietorships? Ms. Ramos

Sole proprietor: one owner, one operator Responsible for all debt Simple est & easy manage Low-start up costs 7 of 10 businesses Ms. Ramos

Advantages Ease of start-up  Business license  Zoning permits  Business name Few restrictions Full decision making Full profits & individual taxation Ease of closing Ms. Ramos

Disadvantages Unlimited liability  Limited liability company (LLC) Limited growth potential Limited life Ms. Ramos

Analyzing US Business Revenue by Form & Revenue Ms. Ramos