Lesson 4: Types

In-depth market analysis

A comprehensive examination of market conditions, including demographics and buying power.

Geographic area

The specific location being analyzed for market potential.

Median income

The middle income level of a population, used in demographic analysis.

Public sector

Government entities (county, city, state) that make submitted information public.

Tax revenue

Income generated for a city from various fees and taxes.

Business types

Different structures and management styles of businesses.

Organizational structure

The arrangement of roles and responsibilities within a business.

Free market economy

An economic system where prices are determined by unrestricted competition between privately owned businesses.

Advantages of starting a new business

Control, flexibility, and decision-making power.

Start-up costs

Initial expenses incurred when starting a business.

Barrier to entry

Obstacles that make it difficult for new businesses to enter a market.

Human resources

The department responsible for hiring and managing employees.

Franchise advantages

Established model, brand recognition, and lower risk.

Franchise disadvantages

High costs, restrictions, and royalty payments to the main store.

Buying a business advantages

Existing systems, customer awareness, and established employees.

Buying a business disadvantages

High costs and potential unforeseen problems.

Forms of business ownership

Various legal structures including sole proprietorship, partnership, LLC, and corporation.

Sole proprietorship

A business owned and operated by a single individual, the most common form in the US.

DBA (Doing Business As)

A legal term allowing a business to operate under a different name.

Assumed name certificate

Another term for DBA, particularly in Texas.

Separation of funds

The practice of keeping business and personal finances in separate accounts.

New product launch

The introduction of a new product or service to the market.

Angel investors

Individuals who provide capital for startups in exchange for ownership equity or convertible debt.