BUSN 1101 Lecture Notes - Lecture 6: Business Plan, Small Business Administration

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: William Matthews

Document Summary

Chapter 5: the challenge of starting a business. Someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. 5 advantages: be your own boss, accommodate a desired lifestyle, achieve financial independence, enjoy creative freedom, use you skills and knowledge. 5 disadvantages: money: lack of funding, security: no steady income, competition: how to distinguish ideas from others, lack of ideas: don"t know what business to get into. 27 million small businesses generate 50% of gdp. Supply components needed by big companies (outsourcing) Opportunities for women & minorities focused research programs. Industry: group of companies that compete selling similar products, 2 broad sectors. Goods-producing sector: businesses that produce tangible goods (construction. Service-producing sector: businesses that produce services including professional, business, or personal (retailers & wholesalers) Retailers: buy goods from other firms and resell them to customers, in- store, by phone, mail, or internet.