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23 Cards in this Set

  • Front
  • Back
small business
1. co. that is independently owned & operated
2. is not dominant in its field
3. meets certain criteria for the # of employees and annual sales revenue
2 distinct types of small businesses
1. lifestyle
(self-employed consultant working p/t from home office, neighborhood pizza parlor, corner florist)
2. high-growth ventures
(run by a team, obtain a sizable supply of investment capital quickly, introduce new products or services into a large market.
Key characteristics (other than size that differientiate small biz from large
1. tend to sell fewer products/services to a more targeted group
2. closer contact with customers
3. tend to be more open minded & innovative
4. due to limited resources, owner must work harder and perform a variety of jobs
4 economic roles of small businesses
1. provide jobs--70% of new
2. introduce new products
3. supply needs of large corps
4. provide specialized g/s
3 factors contribute to the increase of small businesses
1. technology
2. increase in women/minorities
3. corporate downsizing & outsourcing
business plan
written document that provides an orderly statement of a company's goals & how it is going to achieve them
Key success factors of an entrepreneur
1. persistence
2. skill
3. passion
4. hobby
5. common sense
6. talent
3 ways to get into business
1. start a new business
2. buy an existing business
3. buy a franchise
1st 5 reasons a business fails:
1. management incompetence
2. lack of industry experience
3. inadequate financing
4. poor business planning
5. unclear/unrealistic goals
2nd 5 reasons a business fails
1. failure to attract/keep target customers
2. uncontrolled growth
3. inappropriate location
4. poor inventory & financial controls
5. inability to make the entrepreneurial transition
3 sources of small businesses
2. internet
3. incubators
expanding a small business:
1. get help
2. prepare to change your role
3. modify your systems
4. stay focused
venture capitalists (VC)
provide $ to finance a new biz or turnarounds in exchange for a portion of ownership with goal to make a considerable profit
angel investor
individual who is comfortable with risks that scare off banks
Bill Gates, Marc Andresseen
shares of ownership in a corp
corps 1st offering of stock to public
direct public offering (DPO)
sale of shares of a company's stock directly to investors instead of going through underwriters
preliminary printed statement distributed to prospective investors
increase price of g/s without corresponding increase in quantity or quality
(social science) how people react to economic issues
macroeconomics (study of the larger economy)
1. economic goals
2. full employment
3. price stability
1. frictional: general
2. structural: skill, or lack thereof
3. cyclical: (goes with the 6-9 yr. biz cycle
4. seasonal: holiday, ski resort, construction
study supply & demand