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Entrepreneurship and Innovation
ENTI 201
Norman Althouse

!"#$$%&'()*+((%)*%,#*#-#% Ch 6. ! !""#$%&'(#)'*++)#,-.*&/01'234'#('*00'/.+0#1/)5' ! 6'774'#('8*%*9-*%':$5-%/55/5'/.+0#1'(/;/)'&=4'#('*00'%/;'?#:5'*)/'")/*&/9':1' ▯ of an existing firm. 5.*00':$5-%/55/5' • 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 Ambitious • • Independent • Self-confident • Risk taking • Visionary Creative • • Energetic • Passionate • Committed 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 >Financing ▯ Debt: a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period ▯ Equity: a form of business financing consisting of funds raised through the sale of stock (ie. ownership) in a business ▯ Angel investors: individual investors or groups of experiences investors who provide funding for start-up businesses ▯ 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 vision happen. 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
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