Fluent Essays

the instruction are attachedBUSINESS PLAN PART 1. Consider the following scenario:  You recently inherited $50,000 and you would like to use this money to help start a small business. However, you will need additional funding. Create a business plan to convince the bank or other investors that you have a viable business plan. Decide on the type of business and a name for the business. Part 1 is worth 5\% 1. Read chaps.3, 6, 8 & 9 in the text. 2. Give an overview of your business. 3. List and describe your management team, describe the legal structure, and decide on a location.CHAPTER 3 Starting a Small Business © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OBJECTIVES By studying this chapter, you should be able to… 3-1 Distinguish among the different types and sources of startup ideas. 3-2 Use innovative thinking to generate ideas for high- potential startups. 3-3 Describe external and internal analyses that can shape the selection of venture opportunities. 3-4 Explain broad-based strategy options and focus strategies. 3-5 Screen business ideas to identify those with the greatest potential. 3-6 Assess the feasibility of a startup idea. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. INTRODUCTION • Opportunity recognition – Identification of potential new products or services that may lead to promising businesses. • Entrepreneurial alertness – Readiness to act on existing, but previously unnoticed, business opportunities. • Startups – New business ventures created “from scratch.” © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3-1 DEVELOPING STARTUP IDEAS • New venture concepts can come from many different sources. • By recognizing the nature and origin of startup ideas, an entrepreneur can broaden the range of new ideas available for his or her consideration. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3-1a Types of Startup Ideas • New market ideas – Startup ideas centered around providing customers with an existing product or service not available in their market. • New technology ideas – Startup ideas involving new or relatively new technology, centered around providing customers with a new product or service. • Because of the complexities involved with new technology businesses, it often becomes necessary for entrepreneurs to pivot at some point after startup. • Pivot – To refocus or recreate a startup if the initial concept turns out to be flawed. • New benefit ideas – Startup ideas centered around providing customers with new or improved products and services or better ways of performing old functions. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3.1 Types of Ideas That Develop into Startups © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3.2 Common Sources of Startup Ideas © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3-1b Common Sources of Startup Ideas (slide 1 of 2) PERSONAL/WORK EXPERIENCE • Often, knowledge gleaned from a CHAPTER 6 The Business Plan: Visualizing The Dream © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OBJECTIVES By studying this chapter, you should be able to… 6-1 Explain the purpose and objectives of business plans. 6-2 Give the rationale for writing (or not writing) a business plan when starting a new venture. 6-3 Explain the concept and process for developing a firm’s business model. 6-4 Describe the preferred content and format for a business plan. 6-5 Offer practical advice on writing a business plan. 6-6 Understand how to present to investors. 6-7 Identify available sources of assistance in preparing a business plan. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6-1 AN OVERVIEW OF THE BUSINESS PLAN • Business plan – A document that outlines the basic concept underlying a business and describes how that concept will be realized. • Writing a business plan is an opportunity to assess if a good idea is also a good investment opportunity. • It does so by providing evidence that your business can sell enough products or services to make an attractive profit. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6-1a Key Elements of the Business Plan • At a minimum, every business plan should include the following three key elements: 1. A logical statement of a problem and its solution. 2. A significant amount of hard evidence. 3. Candor about the risks, gaps, and assumptions that might be proved wrong. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6-1b The Business Plan as a Tool • Two important groups are users of business plans: 1. Company insiders. • They use the plan as a framework to focus on important issues and activities. 2. Outsiders. • They use the plan to determine whether they will partner with the firm. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6.1 Users of Business Plans © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6-2 WILL WRITING A PLAN MAKE A DIFFERENCE? • Studies attempting to measure whether entrepreneurs who have business plans do better than those who don’t have produced mixed results. • Some findings suggest a relationship; others do not. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6-2a The Business Plan Is Not the Business (slide 1 of 2) EXECUTION MATTERS • Business plans are not effective if not executed. • An entrepreneur must find the righCHAPTER 8 The Organizational Plan: Teams, Legal Structures, Alliances, and Directors © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OBJECTIVES By studying this chapter, you should be able to… 8-1 Describe the characteristics and value of a strong management team. 8-2 Explain the common legal forms of organization used by small businesses. 8-3 Identify factors to consider in choosing among the primary legal forms of organization. 8-4 Discuss the unique features and restrictions of six specialized organizational forms. 8-5 Understand the nature of strategic alliances and their uses in small businesses. 8-6 Describe the effective use of boards of directors and advisory boards. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8-1 BUILDING A MANAGEMENT TEAM (slide 1 of 2) • Management team – Managers and other key persons who give a company its general direction. • In general, the management team consists of individuals with supervisory responsibilities, as well as nonsupervisory personnel who play key roles in the business. • Investors consider the quality of a new venture’s management to be one of the most important factors in decisions to invest. • One reason that a management team often can bring greater strength to a venture than an individual entrepreneur can is that a team can provide a diversity of talent to meet various managerial needs. • In addition, a team can provide greater assurance of continuity, since the departure of one member of a team is less devastating to a business than the departure of a single owner. • The competence required in a management team depends on the type of venture and the nature of its operations. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8-1 BUILDING A MANAGEMENT TEAM (slide 2 of 2) • In many cases, a startup owner stacks the management team with family and friends, rather than seeking balanced expertise. • The upside to this is that: • The owner knows these people well and trusts them. • They often work for less compensation. • They are more likely to make personal sacrifices to keep the business alive. • The downside to this is that: • The team can quickly become very homogeneous. • The team lacks complementary strengths. • The team entertains feelings of entitlement. • The team carries the baggage of family dysfunction into the enterprise. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8-1a Achieving Balance • Not all members of a management team need competence in all areas—the key is balance. • Example: If one member has expertise in finance, another should have an adequate marketing backCHAPTER 9 The Location Plan © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OBJECTIVES By studying this chapter, you should be able to… 9-1 Describe the five key factors in locating a brick-and- mortar startup. 9-2 Discuss the challenges of designing and equipping a physical facility. 9-3 Recognize both the attraction and the challenges of creating a home-based startup. 9-4 Understand the potential benefits of locating a startup on the Internet. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9-1 LOCATING THE BRICK-AND- MORTAR STARTUP • The choice of a location for a physical facility is often a one-time decision, but a small business owner may later relocate a venture to reduce operating costs, be closer to customers, or tap other advantages. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9-1a The Importance of the Location Decision • Brick-and-mortar facility – The traditional physical facility from which businesses have historically operated. • The importance of the initial decision as to where to locate a brick- and-mortar facility is underscored by both the high cost of such a place and the hassle of pulling up stakes and moving an established business. • Also, if the site is particularly poor, the business may never become successful, even with adequate financing and superior managerial ability. • The choice of a good location is much more vital to some businesses to others. • Example: The location decision for an apparel store would be much different than the location decision for a painting contractor’s office. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9-1b Key Factors in Selecting a Good Location (slide 1 of 9) • Five key factors guide the location selection process: 1. Customer accessibility. 2. Business environment conditions. 3. The availability of resources. 4. The entrepreneur’s personal preference. 5. Site availability and costs. © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9.1 Factors in Determining a Good Business Location © 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9-1b Key Factors in Selecting a Good Location (slide 2 of 9) • Relevant questions to ask when making the location decision include the following: • Neighbor mix: Who’s next door? • Security and safety: How safe is the neighborhood? • Services: Does the city provide reliable trash pickup, for example? • Past tenants’ fate: What happened to previous businesses in that location?