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65 Cards in this Set
- Front
- Back
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What acts "like a sales tool" for you
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Business Plan
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What helps raise money, get partners, and get interest in the idea?
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Business Plan
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Eugene Kleiner Venture Capitalist said, "Even if you have all the money you need you still need a _________ ________. A plan shows you how you'll run your business. Without a plan, you don't know where you are going and you can't measure your ___________."
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Business plan, progress
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What is the only part investors may read?
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Executive summary
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What is the most critical section of a business plan?
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Executive summary
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Criteria of an executive summary
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carefully thought out, capture their attention, hit main points of proposal, 1-2 pages, last
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What is the criteria of a good market?
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Large, accessible, and responsive
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What's a good market?
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See if the market demand is adequate to support your company, is it possible to make money in an industry that is experiencing hard times
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What is the hardest to measure with marketing?
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Market readiness
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What factors affect the industry?
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Technological changes, sociological changes, and competitive changes
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What is the #1 reason businesses fail?
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Lack of customers
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What is the number one reason businesses are started?
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Born out of a desire to solve a personal problem or handle an unmet need in the marketplace
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Make sure your business concept addresses a ______
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Need, Something new; better, an underserved market, new delivery system, new tech, offer more services or products in one place
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What does a standard contract need to be written in
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writing
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What does a good consulting agreement contain?
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Timeline of delivery, cost of service, and expectations of the final product.
AVOIDS: HE SAID, SHE SAID moments, and arguments over money |
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Rule of Thumb..."As you get more _________ in your service-based business, _________ _______"
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Demand, charge more
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What will raising prices cost?
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Loosing some customers, make more money, do less work, can hire others to assist, the more money you charge the more credibility you have. Rates will actually engender credibility in your potential customers.
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What are criteria of service-based businesses?
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Always provide the best quality service, understand clients needs and goals
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Where do most service-based relationships break down?
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Communication and expectations
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Don't leave it to your client to tell you what their expectations are because?
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They won't know, they will change
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What are three key components to service-based business?
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Timeline of delivery, cost of service, expectations of the final product
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What do you want to over deliver on?
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Promises and expectations
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"______ are your ________
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You, product
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How do you represent yourself?
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The highest light, provide the best quality work, you are your best source of marketing
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If lowest price gets all the business why is there what
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Advertisement, signage, sales, etc.
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What is important to purchase for customers?
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1) Service and Salesmanship
2) Delivery- do you have the product 3) Quality- Always wins out over cheaper price 4) Price- last consideration to purchase |
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What is the benefit of a strategic position?
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Enables you to capture a place in the market
distinguishes you from competition Development of a company style/ brand/ image |
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What is a sole proprietorship?
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A person who does business where there is no legal distinction of owner and business, businesses of one person,
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What are the advantages of a sole proprietorship?
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SImplest and easiest, does not require paperwork to be filed and with the state or federal gov't, just disclose information for tax purposes when it comes to income, the owner is the boss, the owner owns the assets
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What is the definition of a limited partnership?
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consists of two or more persons with at least one general partner and one limited partner.
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What is a partnership?
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an association of two or more persons to carry on as co-owners a business organization or other undertaking for profit
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What is a partnership agreement?
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Written agreement should always be drawn up, less disputes among partners, establishes how much is contributed per person, how are profits paid among the partners, spells out how the assets will be allocated if the company is dissolved, rights and responsibilities of each partner
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What is a corporation?
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generally associated with the most legal formality and requirements
Most sophisticated form of businesss most common among large companies |
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C-Corporations
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Double taxation
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Professional Corporation
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Only individuals licensed to provide the service may be stockholders, Attorneys, MD's, engineers, accountants, architects, other health care pros, lawyers, dentists, psychos, social works, and vets
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What are articles of incorporation?
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Filed in order to gain the right to use the name, domain of trademark law, name of the registered agent at that corporate office, the length of time that the corporation is to exist (perpetual or renewable). The capital structure, name and address of the incorporator
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Limited liability company (LLC)
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association of individuals known as members, hybrid of the partnership and the corporation
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S-Corporation Requirements
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Can't have n alien as a stockholder, hybrid of LLC and C-Corp
Pass through tax Certain amount of shareholders Chosen to avoid double taxation before LLC's became popular |
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Liquidity Business
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starts with a large outside investment
Aims to be purchased |
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Lifestyle business
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A business with the goal of creating the lifestyle you wnat or creates a good living for you and the people you want to employ in the venture
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Gross revenue
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Total amount of money that your company brings in or total sales
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Cost of Goods
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The direct cost of the goods purchased by your company
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Gross Profit
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Gross revenue minus cost of goods
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What are the Operating Expenses?
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Salaries
Rent Supplies Marketing Other Supporting Costs |
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What is the net income?
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a company's total profit after operating expenses are subtracted
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Who is a venture capitalist?
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An investor who back the businesses with a higher possible rate of return on investment; a professional money manager
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Where do you get money
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Limited partners (pension funds, universities, large private family holdings)
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Who is an Angel Investor?
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An investor who provides financial backing for small start-ups or entrepeneurs
Someone who has had some success in business or just has money, for small start-ups or entrepreneurs High Risk; High Reward |
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What is revolving credit?
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A loan where the commitment fee and funds are able to be used when they are needed
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What is personal collateral?
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Property or assets offered in case the borrower fails to pay back the loan
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What is seed round?
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an early investment meant to support the business until it can generate cash on it's own
"Friends and Family Round" Don't raise money from people who couldn't afford to lose that money |
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What is bootstrapping?
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Starting a company with minimal resources, mostly from your own personal funds
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What is equity?
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The value of ownership of business
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What is a copyright?
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The legal protection for a written work of authorship
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What is a patent?
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Legal protection of an invention
Need a business attorney |
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A trade secret
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formula or process that must remain private to maintain a company's economic advantage
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Trademark
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A trademark may be infringing if it is a sufficiently confusing mark in a similar space
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What does a patent cover?
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Logo
Short phrase Slogan associated with a business or brand |
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Stock options for employees
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Right to purchase stock
Must be judicious and thoughtful on how you give equity |
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Investors know _______ is a commodity you can trade to get things done in your business.
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Passion
Feed off energy Want to be with passionate people |
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How to handle payroll
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Outsource it
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Curriculum VItae
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Course of Life
Education is listed first on your CV |
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Resume
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1-2 pages; items specific to the job; used when employers are having a large pool of applicants
Summary of CV |
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What to include in Resume?
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Full name, temp and perm address, phone number, and email
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What not to include on resume?
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Social security number, age, gender, marital status, health status, children info, height, weight, nationality, and a picture
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