Entrepreneurship and small business

S-corporation

Lower tax rate that prevents the company from being double taxed

c-corporation

Best for international business even with being double-taxed

sole proprietorship

Easy to create but comes with unlimited liability

equity

non0csh compensation

business life cycle stages

Existence, survival, success, take-off, resource maturity, pivot, next plan

existance

when a business begins

survival

Income and customers begin to grow

success

business is economically healthy

Take-off

owner decides whether to continue growing the business or to sell the business

resource maturity

owner can separate financially and operationally from a business

pivot

owner decides if they will continue to grow the business into a large company or pivot to a new project.

Exit plan

Owner may choose to sell their company in the exit plan stage.

Design thinking process

emphasize, define, ideate, prototype, and test

empathize

Identify the customer needs of customers and their challenges

Define

identify or defines any problems customers are fasting, problem statement.

Ideate

Creates multiple inexpensive versions of the product

test

testd and refines product

Business plan

includes executive summary, a marketing last, an organizational structure, and a financial plan.

pitch deck

attracting investors, getting them excites, and getting another meeting with them

lean canvas

allowing feedback from others and brainstorming ideas

Trademarks

protects brand names, logos, and business names

trade secrets

protects a company’s practice, process, or formula from being share with competitors

copyright

Protects create works

patent

protects an invention from being copied

value proposition

states why a customer should do business with a company

SWOT analysis

helpful to determine areas for improvement

Customer acquisition cost formula

marketing expenses + sales expenses / the number of new customers for the period

finding customers retention rate

number of new customers acquired during the period - number of customers at the end of that period / that number by the number of customers at the start of the period x 10

four P’s that make up a company’s marketing mix

product,price,place, and promotion

seven steps of the sales process

Prospecting, preparation, approach, presentation, objection, closing, and follow up

sales channel

How a business sells its products or services to a customer.

income statement

A financial statement that details a business’s revenue and expenses for a given period.

Balance sheet

a document that compares assets to liabilities plus owners equity

Selling price formula

cost x desires profit margin + cost

Calculations ROI

value of investment - cot of investment = net profit

bootstrapping

An owner uses their own savings to fund the business