Entrepreneurship Basics

Business Sheet

• Entrepreneur: A person who recognizes a business opportunity, organizes, manages, and assumes the risks of starting a business. They must study competitors, and most successful entrepreneurs share similar characteristics.
• Entrepreneurship: The process of recognizing a business opportunity, testing it in the market, and gathering resources to start a business venture.
• Venture: A new business undertaking that involves risk.
• Small Business: An independently owned business, typically owned and managed by the owner.
• Virtual/Online Business: A business that operates solely on the internet. Advantages include ease of shopping, a large customer base, and accessibility for anyone with internet.
• Rewards of Entrepreneurship: Being your own boss, doing what you enjoy, creative opportunities, and building an enterprise.
• Challenges of Entrepreneurship: Securing funding, complete responsibility (unlimited liability), long hours, uncertain income, risk of investment loss, and feeling isolated.
• Questions to Consider Before Starting a Business: What will you produce? Who are your main competitors? Why is your product/service needed? How much will it cost to produce? How many people are needed to run the business? What physical facilities are required?

Business Plan

• Business Plan: A written description of a new business venture, outlining all business aspects.
• Business Plan Parts (16): Executive summary (company description), management team plan, product/service plan, vision statement, mission statement, industry overview, market analysis, competitive analysis, marketing plan, operational plan, organizational plan, financial plan, growth plan, contingency plan, demographics, market, and marketing functions (distribution, finance, marketing information management, pricing).

Advertising and Marketing

• Media Planning: Deciding where and when ads should appear.

• Medium: The method used for communication to the public (words, pictures, videos, etc.).

• Billboards, Transit: Examples of ad mediums.

• Advertising Agencies: Businesses that specialize in developing ads for clients.

• Ad Campaigns: A series of ads sharing a common theme and idea.

• Media Measurements: Audience, impressions, frequency, and cost per thousand.

• Factors Affecting Ad Rates: Advertisement size, number of people reached, frequency, and placement.

• Product/Service Management: Obtaining, developing, maintaining, and improving products to fit market opportunities.

• Promotion: Any effort to inform, persuade, and remind customers about a business/product.

• Selling: Providing customers with the goods or services they desire.

• Marketing Mix/Matrix (4Ps): Product, place, price, and promotion (and sometimes a fifth "P" – people).

• Channel of Distribution: The path products take to reach consumers (direct or indirect).

• Break-even Point: The point where total revenue equals total costs/expenses for a product/service.

• Market Research: Gathering and analyzing information about a market's size, location, and composition.

• Target Marketing:Focusing on customer segments most likely to buy your product/service.

• Market Segmentation: Dividing a market into groups based on shared needs/wants.

• Advertising: Public promotion to increase interest in a product/service.

• Reasons Why Companies Advertise: Generate brand loyalty, create a positive image, attract new customers, increase traffic, keep customers informed, and make money.

• Technology and Business: E-workforce, E-commerce, digital workflow, start-ups, Multi-channel businesses, E-tail (online sales)

Business Types

• Brick-and-Mortar: Businesses with physical locations.
• Click-and-Mortar: Businesses having both physical and online operations.
• Retailer: Individuals or companies selling goods to the public.