Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 6:Entrepreneurship and Small-Business Ownership (FINANCING OPTION…
Chapter 6:Entrepreneurship and Small-Business Ownership
THE BIG WORLD OF SMALL BUSSINESS
Economic Roles of Small Businesses
provide jobs
introduce new product
meet larger organizations need
inject money into the economy
take risk that large company avoid
provide specialized good and service
Characteristics of Small Businesses
have narrow focus
limited resources
easy to make decision quickly and react the change in marketplace
Factors Contributing to the Increase in the Number of Small Businesses
Technological advances
Downsizing and
Outsourcing
Growing Diversity in
Entrepreneurship
Social Media
E-Commerce
THE ENTREPRENEURIAL SPIRIT
Why People Start their Own Companies
passion for new ideas
pursue bussiness goals that are important to them on a personal level
tired of working for someone else
inability to find attractive emplyment anywhere else
more control over their future
Qualities of Successful Entrepreneurs
confidence
drive
passion
THE START-UP PHASE:PLANNING AND LAUNCHING A NEW BUSSINESS
Small-Business Ownership Options
buy an existing independent bussiness
buy into a franchise system
create a new independent bussiness
Blueprint for an Effective Business Plan
products and service
management and key personal
company overview
target market
mission and objective
marketing stategy
summary
design and development plan
operation plan
start-up schedule
major risk factor
financial project
exit stategy
Advice and Support for Business Owners
Government Agencies and Not-for-Profit
Organizations
Mentors and Advisory Boards
Business Partners
Print and Online Media
Networks and Support Groups
Business Incubator
The New Business Failure Rate
marketing sale issues
uncontrolled growth
ineffective marketing
overreliance on a single customer
financial issues
inadequate financing
poor cash management
too much overhead
leadership issues
inability to make the transition from corporate employee to entrepreneur
lack of relevant experience
lack of stategic planning
managerial incompetence
system and facilitirs issues
poor location
poor inventory control
FINANCING OPTION FOR SMALL BUSSINESS
seed money
microlender
venture capitalism
angel investor
initial investor
initial public offering
crowdfunding
THE FRANCHISE ALTERNATIVE
Advantages of Franchising
Disadvantages of Franchising