Business Overview and Community Benefits

Study Notes

Executive Summary

Assesses the business, products/services, strategic position, competition, industry analysis and trends, marketing plan, use of proceeds summary, and income and assets summary.

Benefits to the Community

Benefits include job creation, purchasing local supplies, and economic development.
Economic development includes new skills and training, career advancement opportunities, leadership development, and attractive wages.
Benefits do not include only community development.

Business Overview

Describes the business's vision, mission, values, goals, objectives, and corporate strategies.
Highlights strategic initiatives and emphasizes competitive advantages.

Mission Statement

A broad statement describing the business's purpose, long-term aspirations, core activities, strategic goals, and business priorities.
It does not affirm long-term commitment to the mission.
Guides employees with a clear direction and sense of purpose.
Communicates the business's purpose to internal and external stakeholders.

Vision Statement

An inspiring statement of what the business aims to become in the future.
Often includes competitive terms and describes future aspirations without specifying the means needed to reach them.

Core Values

Reflect the business's core ideology and are independent of current industry trends and product life cycles.
Values are not immutable and can change even if the industry changes.

Goals and Objectives

Goals are broad business results, while objectives are quantifiable and specify a timeframe for results.
Objectives link the mission statement to business actions and influence organizational choices.

Reasons for Small Business Failure

Money-related problems, including capital or money needed to operate.
Cash flow obstacles.
Lack of management skills.
Success and expansion, which can lead to problems such as overexpansion and loss of control.

Advantages and Disadvantages of Small Businesses

Advantages include personal relationships with customers and employees.
Disadvantages do not include personal relationships, adaptability to changes, simple record keeping, or high potential.

Other Factors Affecting Small Businesses

Owner-managers need permissions to adapt changes.
Technical opportunities allow for growth into bigger businesses.
Small businesses are hit hard by recessions.
Limited ability to raise capital.
Well-conceived plans can help avoid risks.
Founders, who initiate new businesses, can be inventors, pure entrepreneurs, or artisan entrepreneurs.
Bringing a firm into existence involves surveying markets, raising funds, arranging facilities, and acting as an administrator.
Second-generation entrepreneurs follow founders.

Entrepreneurial Opportunities and Small Businesses

A promising entrepreneurial opportunity involves a product or service appealing enough for customers to pay for.
A given opportunity is not equally attractive to all businesses.

Description

This quiz covers key aspects of business strategy, including the assessment of market position, competition, and strategic initiatives. It also explores the benefits that businesses provide to the community, such as job creation and economic development. Test your knowledge on these crucial components of business operations.