Entrepreneurship small business certification

Entrepreneurship

the process of starting a business and being and entrepreneur

small business

an independent business with fewer than 500 employees, or a business with fewer than 100 employees

B2B (business-to-business)

the process of selling merchandise or services from one company to another

B2C (business-to-consumer)

the process in which businesses sell to consumers

unlimited liability

the owner of the business is legally forced to pay all debts with personal money and possessions.

limited liability

where the business owner only risks losing the money he invested in the business. Allows the owner to pay taxes on profits or losses through their own taxes using a personal tax rate.

Sole Proprietorship

when a single person owns the business, collects the profit, and has unlimited liability for the business debt. No ownership, pays no federal taxes.

risk

the chance of losing something

reward

The benefit or return gained from an investment.

characteristics

a quality or trait that describes someone.

entrepreneurial mindset

A blend of characteristics, attitudes, and skills that describe how successful entrepreneurs think and act

compensation

the money and benefits an employee receives for working.

wage

money paid to a worker hourly or based on when they finish their work.

salary

A fixed amount of money paid to an employee monthly, bimonthly, or weekly.

benefits

Compensation in forms other than direct payment

Initiative and Self-Reliance

setting goals ad establishing plans, managing time, facing challenges optimistically.

Flexibility and Adaptability

being able to adjust to situations and adapt to different roles.

communication and collaboration

articulating thoughts and ideas effectively, working well with others.

critical thinking and problem solving

Analyzes and resolves problems that arise in completing assigned tasks

future orientation

prioritizing long term success over short term sacrifice.

opportunity recognition

Identify problems as opportunities, Understand when there is a "window of opportunity," Assess business ideas to identify opportunities

Comfort with risk

understand the difference between risk and reward, learn how to calculate risk, differentiate between short-term and long-term risk,

Creativity and Innovation

view failure as an opportunity to learn, find creative solutions

Traits of entrepreneurial mindset

creativity and innovation, critical thinking and problem solving, flexibility and adaptability, comfort with risk, opportunity recognition, future orientation, initiative and self reliance, communication and collaboration.

intrapreneurship

when a business encourages employees to be creative within the company.

The company description part of a business plan should include what?

the markets the business will serve

mentor

an experienced person who volunteers to give free guidance.

philanthropy

donating money and other resources for a socially benefited cause.

What type of business ownership provides limited liability for owners?

corporation

Corporation

legally defined type of business ownership in which the business is considered a "person" under the law, and limited liability is granted to the business owner.

General Partnership

partnership in which partners share equally in both responsibility and liability

Non-Profit Corporation

organization that operates solely to serve the good of society, provides limited liability to its members.

manufacturer

a business that converts materials to goods for use and sell those goods to others.

wholesaler

A type of business that buys goods in large amounts and resells them to other businesses in smaller lots.

retailer

A business who sells goods in small quantities directly to consumers.

S Corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Avoids being double taxed.

C Corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders. Best for international businesses.

COO description

oversees the day to day administrative functions of a business; second in command

CEO description

the highest ranking employee of the company; reports to the board of executives

CIO description

develops policies and structures to protect the company data

CFO description

creates budgets, analyzes financial data, and forecasts company profits

Which is one of the greatest risks of entrepreneurship?

loss of money

business plan

multi page document describing and detailing the business

Lean Canvas

A one-page document business summary template.

pitch deck

slide presentation that you create for potential investors that summarizes the key items of a business

commision

a fee paid to an employee for completing a task

equity

non cash compensation, including ownership in the company, stocks, or shares

piece work

a worker paid a fixed rate for each unit produced

a common financial risk that entrepreneurs face is

bankruptcy

a non profit has a ____ status

tax exempt

franchises will generally have higher _________, but they offer ongoing support and training

start up costs

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

design thinking stages

empathize, define, ideate, prototype, test

empathize

spend time gaining an understanding by observing, engaging and empathizing with customers to understand experiences and their needs better.

define

analyze the observations and information to identify the core problem

ideation

the design team comes up with a solution

prototype

an original model on which later versions are patterned

test

identifies any additional problems and refines the final solution before the final product is produced

phase 1 of the business cycle

existence: a business owner gets a business up and running

phase 2 of the business cycle

survival: having a reliable amount of customers to stay open

phase 3 of the business cycle

Success: a business owner is generating a consistent income, and the business is economically healthy.

phase 4 of the business cycle

take off: the business owner needs to decide if they want their company to become a big business.

phase 5 of the business cycle

resource maturity: the owner has separated and financially operationally.

phase 6 of the business cycle

pivot or persist: exhausting all efforts and avenues with the current strategy before deciding to change the strategy.

phase 7 of the business cycle

exit plan: the owner decides to sell their ownership and company.

which two documents summarize the business plan?

lean canvas and pitch deck

how many pages should a lean canvas be?

one

how many pages should the executive summary be?

two

what are that factors that determine whether a business opportunity is viable or not?

market size, relationships, mange of cash flow, management skill sets, and passion

network marketers make money through what?

commissions

demographics

age/gender/race

psychographics

interests

geographics

where they live

What three statements help define a market/fit hypothesis?

1. when users love the product and tell others to use it

2. when people need your product rather than just seeing a potential benefit of using it

3. when you have the right solution to a problem worth solving.

economics of one unit

selling price - variable expenses