Entrepreneurial Concepts Retail Management

What You Will Learn The meaning of entrepreneurship How to identify the risks involved in entrepreneurship The advantages and disadvantages How to identify the personal skills and characteristics necessary for entrepreneurs The scope of small business in the American economy

What is entrepreneurship? The process of starting and managing your own business Entrepreneurs contributions to economy Henry Ford Ray Kroc Steve Jobs Want to be own bosses

The Risks Involved Major commitment Time Money Effort 60% of those who start a business are between ages of 25-40 Work experience Personal drive More than 3,000 businesses started each week in the U.S. 2 out of 3 close within first four years

Entrepreneurship Advantages Disadvantages Personal Freedom Increased Income Personal Satisfaction Increased Self-Esteem Potential Loss of Income Long Hours Irregular Hours Strong Self Discipline

Do you have what it takes? Can you make your own decisions? Do you like competition? Can you adapt to changing conditions? Are you willing to work 12-16 hours a day, weekends, and some holidays? Are you prepared to lower your standard of living for a while? Are you prepared to lose your savings?

Importance to Economy Small Businesses Less than 500 employees in manufacturing Less than 100 in retailing Make up a majority of businesses in U.S. 55% of labor force Offer choices of goods and services Help improve products

Logistics of Business Ownership Retail Management

What You Will Learn How to discuss business ownership opportunities How to identify forms of business ownership The legal steps to take in establishing a business

Business Ownership Opportunities 150,000 businesses are started each year 4 ways to enter a business Develop a new business Purchase a franchise Purchase an existing nonfranchise business Take over a family business

Forms of Business Sole Proprietorship Partnership Corporation

Sole Proprietorship Most common form of business ownership Advantages 70% of all U.S. businesses Advantages Easy to start Make own decisions Freedom from government regulation Disadvantages Unlimited Liability-financial liability is not limited to your investment in business Use personal assets

Partnership Legal agreement between two or more people to be jointly responsible for the success and failure of a business Least common form of business ownership (10%) Advantages Little regulation; taxed less heavily Fairly easy to establish Combines skills of owners Disadvantages Decision making is harder because more people are involved Business dissolved if one partner dies Responsible for each others debts

Corporation Business that is chartered by a state and legally operates apart from the owner Most complicated form of business Governing bodies called boards hire directors and managers to protect interest of stockholders Stock is sold to stockholders (people who actually own the corp. with limited liability)

Legal Steps in Establishing Your Business File a DBA (Doing Business As) Sole Proprietorship or partnership Registration process by which your county government officially recognizes that your business exists Filing Fee; protects name of business in county Articles of Incorporation Identifies the name and address of your business, its purpose, the names of the official directors, and the amount of stock that will be issues to each director