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34 Cards in this Set
- Front
- Back
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Give 3 examples of employable skills. |
Math Oral/written Time management |
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Give 3 examples of entrepreneurial skills. |
Financial planning Negotiating People management |
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Name 3 common legal forms.
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1. Sole proprietorship 2. General partnerships 3. Corporation |
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What is sole proprietorship? |
Only one person owns the business, the owner and the business are one and the same (affects liability and taxes). If a sole proprietor died, the business is technically finished. |
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What are some pros and cons of sole proprietorship? |
Pros: Easy to set up, nothing super complicated. Cons: Owner of business has unlimited liability. |
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Definition of general partnership. |
2+ people who go into business as partners and have the right to manage the company. This does not mean there is an equal split in ownership. |
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Pros and cons of general partnership. |
Pros: Just like a sole proprietor, company is tacked onto your income tax. Cons: Each partner has 100% responsibility for debs of business. |
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Definition of corporation. |
Has nothing to do with the size of the business, but has everything to do with the fact that it exists as a separate entity from the individual. |
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Pros and cons of owning a corporation. |
Pros: Liability is only limited to the company, can't come after personal assets Access to equity financing Cons: Double taxation More $$ to set up |
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What are the 3 less common legal forms? |
Limited partnership Limited Liability Partnership Worker co-operatives |
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Define limited partnership. |
Even more expensive than a corporation, comprised of 1+ people with limited liability. |
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Define limited liability partnership. |
Self governing firms (such as law firms) that allow them to have limited liability permitting that they can get insurance to cover all levels of liability. |
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Pros and cons of LLP. |
Pros: Protects everyone in the business from being liable for everyone else in the business. Cons: Does not protect you from your own wrongdoing. |
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Define worker cooperatives. |
Employees are shareholders that have limited liability for the business. |
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Factors in choosing the right legal form of business. |
1. Initial cost 2. Liability 3. Tax considerations 4. The image the entrepreneur wishes to project 5. The number of investors and their financial circumstances |
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Business types. |
Manufacturing Wholesale Retail Service. |
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Why do we need a business plan? |
It increase chances of survival, formal business lenders want to see that you have a plan, writing the plan is more important than the finished plan. |
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Most businesses don't make it past ____ years. |
5. |
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What 3 questions need to be answered to find your company's vision? |
1. What are you passionate about? 2. What problem are you solving? 3. What makes your company different? |
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You should be at least ____x better than the status quo. |
10x. |
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What are some rules in choosing a good name? |
Stay close to the top of the alphabet. Avoid numbers. Has verb potential. Sounds different from competitors. Sounds logical. No trends, fads. |
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Weave a MAT - what does MAT stand for? |
Milestones Assumptions Tasks |
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Who should be your ideal customer? |
The very specific group of customers who will benefit most from what you are doing. |
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Lululemon's ideal customer is named Ocean, in her early thirties, does yoga 2x a week, likes to run and makes $100,000. What is this an example of? |
A muse.
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True or false: every customer has to fit the bill of the company's muse. |
False. |
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What is market potential? |
How much money a group of potential customers will spend on a product/service. |
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Where can you get info about market potential? |
StatsCanada Industry Canada SME Benchmarking Government Ministries Municipal Government Canada Business Trade publications/journals |
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What is a socially optimal solution? |
A good location that optimizes the number of steps customers have to travel. |
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What is a nash equilibrium? |
When you can't improve your position because you're at an equilibrium with competitors. |
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What do you need to consider when choosing a site for your business? |
1. Traffic 2. Visibility 3. Parking 4. Neighbouring businesses |
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What are indirect competitors? |
Not same primary business, but an alternative way for customers to buy that service. |
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What are direct competitors? |
Similar sized business, similar location and similar offering to a similar customer base. |
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What are different types of loss prevention? |
Pilfering Shoplifting Embezzlement Burglary Robbery Fraud |
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What are different types of intellectual property? |
Patent Copyright Trademark Industrial design |
