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23 Cards in this Set
- Front
- Back
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small business
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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 |
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2 distinct types of small businesses
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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. |
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Key characteristics (other than size that differientiate small biz from large
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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 |
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4 economic roles of small businesses
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1. provide jobs--70% of new
2. introduce new products 3. supply needs of large corps 4. provide specialized g/s |
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3 factors contribute to the increase of small businesses
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1. technology
2. increase in women/minorities 3. corporate downsizing & outsourcing |
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business plan
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written document that provides an orderly statement of a company's goals & how it is going to achieve them
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Key success factors of an entrepreneur
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1. persistence
2. skill 3. passion 4. hobby 5. common sense 6. talent |
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3 ways to get into business
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1. start a new business
2. buy an existing business 3. buy a franchise |
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1st 5 reasons a business fails:
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1. management incompetence
2. lack of industry experience 3. inadequate financing 4. poor business planning 5. unclear/unrealistic goals |
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2nd 5 reasons a business fails
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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 |
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3 sources of small businesses
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1. SCORE
2. internet 3. incubators |
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expanding a small business:
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1. get help
2. prepare to change your role 3. modify your systems 4. stay focused |
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venture capitalists (VC)
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provide $ to finance a new biz or turnarounds in exchange for a portion of ownership with goal to make a considerable profit
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angel investor
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individual who is comfortable with risks that scare off banks
Bill Gates, Marc Andresseen |
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stock
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shares of ownership in a corp
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IPO
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corps 1st offering of stock to public
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direct public offering (DPO)
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sale of shares of a company's stock directly to investors instead of going through underwriters
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prospectus
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preliminary printed statement distributed to prospective investors
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inflation
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increase price of g/s without corresponding increase in quantity or quality
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economics
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(social science) how people react to economic issues
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macroeconomics (study of the larger economy)
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Goals:
1. economic goals 2. full employment 3. price stability |
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unemployment
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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 |
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microeconomics
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Goal:
study supply & demand |
