1. Starting a Business and Business Structures
Chapter 8 Sections 1 thru 3

2. YouTube Clip of the Day

4. Entrepreneur
A person who starts his or her own business (A Risk Taker)
New Ideas
New Products
New way of doing something
Examples?

5. Starting a Business Learn the laws, regulations, tax codes Get Help
Gov’t Support – SBA (Small Business Administration), State Department of Commerce, Local Universities

6. Cont. Have a plan… Research (Magazines, Books, Internet)
Create a Business Plan
Business Objectives (Reason for it)
Financing your business
Growth Objectives
Business Structure (Executive Structure)
Business Description
Marketing Plan
Competition Analysis
Operations Plan
And more…

7. Basics to Consider 1st Expenses and Revenue Marketing (How & Cost)
Record Keeping (Accounting)
Risk

8. Business Organization
Sole Proprietor
Partnerships
Corporation
Franchises

9. Sole Proprietor Proprietor = Owner Single Owner Pros? Cons?
Unlimited Liability – Legal responsibility for all debts and damages.
Assets – Items of value that you own
Can be seized to pay off debts

10. Partnerships Two or more own and operate the business.
Agreement – Duties of each partner, division of profits/assets.
Pros
Cons

11. Cont.
Limited Partnership – One partner runs it while others are simply investors.
Limited Liability Company (LLC)
Joint Venture – Temporary Partnership
Ex. General Motors and Battery Makers

12. Corporation
Type of business organization owned by many but treated by law if it were a person (IE – It can own property, pays taxes, make contracts, sue and be sued).
Stock – Ownership rights to a certain portion of the future profits and assets of the company.
Dividend – A portion of the profits – Paid out to stockholders.
Pros
Cons

13. Franchises Firm sells the right to use its name and sell its products.
Franchisor = The firm who sells the rights (Ex. Subway)
Franchisee = The person who buys the rights (Ex. Yourself)
Pros
Cons