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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
1. SCORE
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
stock
shares of ownership in a corp
IPO
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
prospectus
preliminary printed statement distributed to prospective investors
inflation
increase price of g/s without corresponding increase in quantity or quality
economics
(social science) how people react to economic issues
macroeconomics (study of the larger economy)
Goals:
1. economic goals
2. full employment
3. price stability
unemployment
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
microeconomics
Goal:
study supply & demand