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• Classic Entrepreneurs are risk takers who start their own companies
• Micropreneurs: start small and plan to stay small
• Growth-oriented entrepreneurs: want their business to grow into major corporations
• Multipreneurs are entrepreneurs who start a series of companies
• Intrapreneurs: entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than
starting a company of their own
The Entrepreneurial Personality
• Risk taking
Small business: a business that is independently managed, is owned by an individual or small group of investors, is
based locally, and is not a dominant company in its industry
• Services: easy and inexpensive to start. Includes repair services, restaurants, specialized software, companies,
accountants, travel agencies, management consultants, and temporary help agencies
• Wholesale and retail trade: Retailers sell goods or services directly to the end user. Wholesalers link manufacturers
and retailers or industrial buyers; they assemble, store, and distribute products ranging from heavy machinery to
produce. Most retailers also qualify as small businesses, whether they operate one store or a small chain.
• Manufacturing: Machine shops, printing ﬁrms, clothing manufacturers, beverage bottlers, electronic equipment
manufacturers, and furniture makers are often small manufacturers. Small businesses can focus on customized
products that would not be proﬁtable for larger manufacturers.
• Construction. Firms employing fewer than 20 people account for many of Canada's construction companies. They
include independent builders of industrial and residential properties and thousands of contractors in such trades as
plumbing, electrical, rooﬁng, and painting.
• Agriculture. Small businesses dominate agriculture-related industry, including forestry and ﬁsheries.
Three options for starting a business are:
Start from scratch
Buy an existing business
Buy a franchise
>Find an idea
>Choose a form of business organization
>Develop the business plan:
▯ ▯ ▯ a formal written statement that describes in detail the idea for a new business and how it
▯ ▯ will be carried out. It includes a general description of the company, the qualiﬁcations of
▯ ▯ the owner(s), a description of the product or service, and analysis of the market, and a
▯ ▯ ﬁnancial plan
▯ Debt: a form of business ﬁnancing consisting of borrowed funds that must be repaid with interest over a stated
▯ Equity: a form of business ﬁnancing consisting of funds raised through the sale of stock (ie. ownership) in a
▯ Angel investors: individual investors or groups of experiences investors who provide funding for start-up
▯ Venture capital: ﬁnancing obtained from investment ﬁrms that specialize in ﬁnancing small, high-growth
companies and receive an ownership interest and a voice in management in return for their money Ch 6.
Outline for a Business Plan
Title page: Provides names, addresses, and phone numbers of the venture and its owners and management
personnel; date prepared; copy number; and contact person.
Table of contents: Provides page numbers of the key sections of the business plan.
Executive summary: Provides a one-to three-page overview of the total business plan. Written after the other
sections are completed, it highlights their signiﬁcant points and, ideally, creates enough excitement to motivate the
reader to continue reading.
Vision and mission statement: Concisely describes the intended strategy and business philosophy for making the
Company overview: Explains the type of company, such as manufacturing, retail, or service; provides background
information on the company if it already exists; and describes the proposed form of organization—sole
proprietorship, partnership, or corporation. This section should be organized as follows: company name and
location, company objectives, nature and primary product or service of the business, current status (start-up, buyout,
or expansion) and history (if applicable), and legal form of organization.
Product and/or service plan: Describes the product and/or service and points out any unique features; explains why
people will buy the product or service. This section should offer the following descriptions: product and/or service;
features of the product or service that provide a competitive advantage; available legal protection—patents,
copyrights, and trademarks; and dangers of technical or style obsolescence.
Marketing plan: Shows who the ﬁrm's customers will be and what type of competition it will face; outlines the
marketing strategy and speciﬁes the ﬁrm's competitive edge. This section should offer the following descriptions:
analysis of target market and proﬁle of target customer; methods of identifying and attracting customers; selling
approach, type of sales force, and distribution channels; typ