RSM100Y1 Chapter Notes - Chapter 5: Small Business, Business Plan, Franchising
Document Summary
5. 1 small vs. large business. 5. 3 survival rate of small business. 5. 2 contributions of small business to the economy. Chapter 5 forms of business ownership and organization. Small business: an independent business with fewer than 100 employees and revenues less than million. Industries: non- institutional health care, construction, accommodation, food, forestry: home- based business: Pros: more control over business and personal time, easier to run (internet & advanced technology), less cost, Cons: less visibility to customers. Creating new industries (e. g. facebook, online shopping) New industries are formed as sb shift focus to meet consumer interests/preferences. Innovation (airplane, personal computer, soft contact lenses, zipper) First year (96%), third year (85%), fifth year (70%: management shortcomings: Owner has to take multiple role vs. corporate hires experts. Resource: credit lines, loans, vehicles, leases. Solution: spend less on employees, marketing, inventory. Business plan: a formal document that details a company"s goals, methods, standards. Executive summary that briefly answers 5ws, h.
