1. Unit 4 Small Business Management Chapter 12 Managing a Small Business
General Business
Unit 4
Small Business Management
Chapter 12
Managing a Small Business

2. Text Book
Page 160
Techno Tips
Page 161
Focus on Real Life

3. Small Business Ownership is risky
< ½ last 5 years
Certain personality traits, knowledge & skills
Self-motivation, risk-taking, persistence
Management, finance, marketing

4. Who Owns Educated, younger female or minorities
Female owned increasing 3x’s faster than male
Females own 30% of small businesses
Minority ownership doubled since 1980’s

5. Starting Idea Sources: hobby, interests, business experience, books
Work in business first
Gather knowledge & experience

6. Starting Right place & time Location Time Retail: easy customer access
Manufacturing: raw material access & transportation
Time
High demand for products

7. Starting Team approach Full & part-time help – “team”
Banker, lawyer, accountant

8. Starting Prep & research Adequate info to make good decisions
Info on customers, competitors, gvt. Regulations
SBA, libraries, colleges

9. Business Plan
Written description of business idea & how it will be carried out
Includes all major business activities

10. Business Plan Includes: General company description
Qualifications of owner
Description of product/service

11. Business Plan Includes: Market analysis Financial plan
Demand, customers, competition
Financial plan

12. Business Plan Developed for 1 year Necessary for financing
Successful owners make & follow
Failures usually don’t

13. Business Plan Serves as a guide Identifies problem areas
Time & cost to run business
Forces owner to think about important activities

14. Computer Time!! Look at examples of business plans Complete Handout!!!
Soapy Rides Car Wash
Complete Handout!!!

15. Computer Time!! Business Plan – Small Business Administration
Starting your business
Business plans
Review site

16. Class Work Business Plan – CW12-1 Partnership – 2-3 people
Determine your business
Develop a business plan
Research SBA site for additional help
Present to class

17. Financing Start-up financing Amount needed to open business
Cost of building, equipment, inventory, supplies, licenses

18. Financing Short-term financing
Money needed to pay current operating activities
< 1 year – usually 1-2 months

19. Financing Long-term financing Large amount of money needed
Paid off over many years
Land, buildings, equipment
Lasts many years

20. Text Book Page 165 Page 169 Technological Perspectives
Making Small Businesses Competitive
Page 169
Global Navigator
Foreign Government Agencies

21. Work Book Pages 63 & 64 Study Guide Pages 61 & 62
Turn one per group in

22. Quiz
Quiz 12-1

23. The End
Chapter 12