Chapter 4 Entrepreneurship. Section 1: What is Entrepreneurship Entrepreneur.
-
Upload
barbra-price -
Category
Documents
-
view
247 -
download
0
Transcript of Chapter 4 Entrepreneurship. Section 1: What is Entrepreneurship Entrepreneur.
Chapter 4
Entrepreneurship
Section 1: What is Entrepreneurship
Entrepreneur
Advantages of Entrepreneurership
You are in charge
Job Satisfaction
Good Income
Disadvantages of Entrepreneurship
Financial Risk
Work long hours
Competition
No guarantees
Traits of Entrepreneurs
Motivation = Vision
Sight and Foresight = Research and Planning
Decision Making = Going for it
Section 2: Ways of Becoming a Business Owner
1. Starting a new business.
2. Buying an existing business.
3. Buying a franchise.
4. Taking over the family business.
Starting a New Business
Challenge:Time and effort
Start up costs
Borrow money
Risky
Rewards
Create your own business
Build your own business
Personal satisfaction
Buying an Existing Business
Research before you buy
A Fast Start
Save on Start up costsLease
Furnishings
Customer Goodwill
Drawbacks
Location
Competition
Market Outlook
Expensive Repairs
Poor Reputation
Buying a Franchise
FranchiseExisting advantages
Pay a percentage of profits
Follow the company’s guidelines
Less Risk
Recognized product name
Management systems
Business reputation
Training and support services
Financing
Less Gain
Less satisfaction
Profits go to company
Taking Over the Family Business
Smooth transitionFinance
Loyal
Teamwork
ProblemsBusiness Relationships
Section 3: Getting Started in Your Own Business
Sole ownership
Partnership
Location
Forms of Legal Ownership
Three Choices1. Sole Proprietorship
2. Partnership
3. Corporation
Sole Proprietorship
• Sole Proprietorship
75%
Partnership
PartnershipLeast common
Corporation
CorporationShareholders
Easier Financing
Location, Location, Location
Near customers
Type of business
Condition of streets and buildings
Location of Competition
Location of customers
Working at Home
Cheaper/Convenient
Some community restrictions
Financing
Savings
Loans from a friend
Loan from a commercial lender
Business Plan
Financial Plan
Operating Expenses
Operating Your Own Business
Skills Needed1. Reading
2. Writing
3. Math
4. Listening
5. Speaking
Knowledge
Income StatementRevenueGross ProfitNet ProfitBalance SheetAssetsFixed AssetsLiabilitiesEquityNet WorthCash Flow