Eco 8/1 Starting a Business

Entrepreneur  Someone who starts a business- takes risk. -Profit incentive -Be their own boss

Help From Government  Small Business Administration helps finance startups.  Colleges have small business development centers funded by gov’t to help.

Small Business Incubator  Private- or gov’t-funded agency that assists new businesses by providing advice or low-rent buildings or supplies. -Goal: generate job creation and economic growth, especially in economically depressed areas.

Elements of Business Operation  lawn service

Expenses  New Equipment, wages, insurance, taxes, electricity, telephone service, replacement parts, inventory  Receipts – Total expenses = profit. Keep records for your taxes.

Advertising ,,

Advertising

Record Keeping  Track your expenses.  Software- writes checks, calculates profits and losses, calculates net worth, difference between what you own and owe, etc.  Receipts (invoices)- document transactions. All is deductable from taxes.

Risk

 Balance risk against advantages of self- employment. Ex: Risk $ you spend on advertising. You may not generate enough business to cover those costs.