entrepreneurial concepts retail management. what you will learn the meaning of entrepreneurship ...
TRANSCRIPT
Entrepreneurial Concepts
Retail Management
What You Will Learn
The meaning of entrepreneurship How to identify the risks involved in
entrepreneurship The advantages and disadvantages How to identify the personal skills and
characteristics necessary for entrepreneurs The scope of small business in the American
economy
What is entrepreneurship?
The process of starting and managing your own business
Entrepreneurs contributions to economy Henry Ford
Ray Kroc
Steve Jobs
Want to be own bosses
The Risks Involved
Major commitment Time
Money
Effort
60% of those who start a business are between ages of 25-40 Work experience
Personal drive
More than 3,000 businesses started each week in the U.S.
2 out of 3 close within first four years
Entrepreneurship
Advantages Personal Freedom
Increased Income
Personal Satisfaction
Increased Self-Esteem
Disadvantages Potential Loss of Income
Long Hours
Irregular Hours
Strong Self Discipline
Do you have what it takes?
Can you make your own decisions?
Do you like competition?
Can you adapt to changing conditions?
Are you willing to work 12-16 hours a day, weekends, and some holidays?
Are you prepared to lower your standard of living for a while?
Are you prepared to lose your savings?
Importance to Economy
Small Businesses
Less than 500 employees in manufacturing
Less than 100 in retailing
Make up a majority of businesses in U.S.
55% of labor force
Offer choices of goods and services
Help improve products
Logistics of Business Ownership
Retail Management
What You Will Learn
How to discuss business ownership opportunities
How to identify forms of business ownership
The legal steps to take in establishing a business
Business Ownership Opportunities
150,000 businesses are started each year
4 ways to enter a business
Develop a new business
Purchase a franchise
Purchase an existing nonfranchise business
Take over a family business
Forms of Business
Sole Proprietorship Partnership Corporation
Sole Proprietorship
Most common form of business ownership
70% of all U.S. businesses
Advantages
Easy to start
Make own decisions
Freedom from government regulation
Disadvantages
Unlimited Liability-financial liability is not limited to your investment in business
Use personal assets
Partnership
Legal agreement between two or more people to be jointly responsible for the success and failure of a business
Least common form of business ownership (10%)
Advantages Little regulation; taxed less heavily
Fairly easy to establish
Combines skills of owners
Disadvantages Decision making is harder because more people are involved
Business dissolved if one partner dies
Responsible for each others debts
Corporation
Business that is chartered by a state and legally operates apart from the owner
Most complicated form of business
Governing bodies called boards hire directors and managers to protect interest of stockholders
Stock is sold to stockholders (people who actually own the corp. with limited liability)
Legal Steps in Establishing Your Business
File a DBA (Doing Business As)
Sole Proprietorship or partnership
Registration process by which your county government officially recognizes that your business exists
Filing Fee; protects name of business in county
Articles of Incorporation
Identifies the name and address of your business, its purpose, the names of the official directors, and the amount of stock that will be issues to each director