Chapter 22 Small business and Entrepreneurship study guide Intro to business
Terms in this set (3)
List and briefly explain the two motivations for owning your own business
1) Entrepreneurship: Some people are driven by the challenges and risks of starting something new "entrepreneurs". Entrepreneurship means starting a business and can be a motivation on its own. Some entrepreneurs have build huge companies.
2) Working for yourself: Most people would rather work for themselves than somebody else and that is the driving force behind most small business ownership. Most small business owners are satisfied once the business is up and going and arent driven to start other new ventures thus not all small business owners wouldnt be considered entrepreneurs.
List and briefly explain the four things you need to do to start a business
1) Figure out how you will get customers (MARK): your not in business until you have business. select your target market and make sure you have a way to reach them through promotion and distribution and that you have a competitive advantage within the target market.
2) Make sure you deliver on your promises (MANDY): Marketplace is brutal on companies that dont deliever on promises. Make sure that you can produce the quality of product or service for customers at a price they are willling to pay.
3) Make sure you have the funds you need to get the company going (Finely): It takes money to make money. Most of the time you have to start small and self-fund the operations. Start saving so that you can own your own business one day
4) Dream big while facing reality: keep your eyes on the money (TING) A) making money is like building in the sand with a toothpick and losing money is like pouring money on the sand. B) Work with rather than against the laws of economics (ECO): ignorance is a disaster with business. People who know how to work the laws of ecnomics thrive while the people who ignore the laws economics die.
List and briefly explain the three marching orders that were given at the very end of the last lecture
1) Take your next step in your business education seriously: Your next big step is to learn accounting and economics, these will help you face realities of the business world regardless of what your major is
2) Make sure you get an education and not just a degree: Employers will quickly figure out whether or not you have the skills they hired you for. If you dont develop the skills they want you will lose your job and be in a difficult spot to develop these skills later in life
3) Always be a student of success: Remember, success is one door with two locks. Learn form others. Life is too short to learn it all from scratch. Improve yourself daily through reading, that way you easily acquire what others have struggled hard to obtain