1. Chapter 4
Entrepreneurship

2. Section 1: What is Entrepreneurship

3. Advantages of Entrepreneurership
You are in charge
Job Satisfaction
Good Income

4. Disadvantages of Entrepreneurship
Financial Risk
Work long hours
Competition
No guarantees

5. Traits of Entrepreneurs
Motivation = Vision
Sight and Foresight = Research and Planning
Decision Making = Going for it

6. Section 2: Ways of Becoming a Business Owner
Starting a new business.
Buying an existing business.
Buying a franchise.
Taking over the family business.

7. Starting a New Business
Challenge:
Time and effort
Start up costs
Borrow money
Risky

8. Rewards Create your own business Build your own business
Personal satisfaction

9. Buying an Existing Business
Research before you buy

10. A Fast Start Save on Start up costs Lease Furnishings
Customer Goodwill

11. Drawbacks Location Competition Market Outlook Expensive Repairs
Poor Reputation

12. Buying a Franchise Franchise Existing advantages
Pay a percentage of profits
Follow the company’s guidelines

13. Less Risk Recognized product name Management systems
Business reputation
Training and support services
Financing

14. Less Gain
Less satisfaction
Profits go to company

15. Taking Over the Family Business
Smooth transition
Finance
Loyal
Teamwork
Problems
Business Relationships

16. Section 3: Getting Started in Your Own Business
Sole ownership
Partnership
Location

17. Forms of Legal Ownership
Three Choices
Sole Proprietorship
Partnership
Corporation

18. Sole Proprietorship
Sole Proprietorship
75%

19. Partnership
Partnership
Least common

20. Corporation
Corporation
Shareholders
Easier Financing

21. Location, Location, Location
Near customers
Type of business
Condition of streets and buildings
Location of Competition
Location of customers

22. Working at Home
Cheaper/Convenient
Some community restrictions

23. Financing Savings Loans from a friend Loan from a commercial lender
Business Plan
Financial Plan
Operating Expenses

24. Operating Your Own Business
Skills Needed
Reading
Writing
Math
Listening
Speaking

25. Knowledge Income Statement Revenue Gross Profit Net Profit
Balance Sheet
Assets
Fixed Assets
Liabilities
Equity
Net Worth
Cash Flow