Opportunities- Possibilities That Arise from Existing Conditions

Opportunities- Possibilities That Arise from Existing Conditions

Opportunities- Possibilities that arise from existing conditions

Ideas-Thoughts or conceptsthat come from creative thinking

A career will consume40-60years of their life longer if you own your own business and run it solely.

Set specific Financial Goalsbefore starting a business.

Goals should bemeasurableand easilyattainable in the time allotted.

Vaguegoals are like setting no goals.

Non-monetary Reasons for Running a Business:

1.Gain Personal Satisfaction

2.Serve a community need

3.Be in charge

Market Researchis system for collecting, recording, andanalyzing information about customers,competitors, goods, and services.

Primary Data consists of:

1.Survey

2.Observation

3.Focus Groups

Example of:

Direct Competition is: Macy’s vs. Nordstrom’s

Indirect Competition is: supermarket vs. a convenience service store

Large retailers have a huge advantage in the marketplace. They can deal inlarge quantities, which means they can then offer better prices to customers.

When talking about maintaining customer loyalty, success is measured byrepeat business.

Draw, list, and describe each tier of the Maslow’s Hierarchy of Needs Pyramid.

Give at least 3 examples of:

Economic Wants:

1.Material goods and services

2.Clothing, housing, cars

3.Hair styling, medical care, airline tickets

Non-Economic Wants:

1.Sunshine

2.Fresh air

3.Exercise

List at least 3 roles of entrepreneurs in the US economy:

1.Supply goods and services to meet consumer demands

2. Provide capital investment

3.Create jobs

Target Market- Individuals (or companies) who are interested in a particular product or service and are willing and able to pay for it.

Potential customers will determinethe products, services, and special promotions used by the business.

Market Segments - groups of customers within a large market who share common characteristics.

When talking about common profiles, list at least three examples in each category:

Demographic

1. Age

2.Marital status

3.Gender

Physiographic

1.Individual tastes

2.Personality traits

3.Lifestyle habits

Describe the following when talking about the Marketing Mix Concept and Product:

  1. Branding-name, symbol, or design used to identify your product
  2. Packaging-box, container, or wrapper in which the product is placed
  3. Labeling-where information about the product is given on the package

When setting goals for your business plan, list at least 5 things you are hoping to accomplish:

  • The student can categorize a business plan and explain the need for a well-orchestrated business plan.
  • The student can explain a marketing plan, including price competition, non-price competition, market analysis, competition, marketing research, market segmentation, demographics, and sales forecasting.
  • The student can research business plan outlines, resources, and templates using web search engines.
  • The student can identify a legal plan, including the appropriate form of legal organization, including sole proprietorship, partnership, corporation, and S corporation.
  • The student can describe a leadership team
  • The can create and present a well-orchestrated business plan and critically explain the contents.

Define the following:

  1. Sole Proprietor-One person owns the company
  2. Partnership-Two or more people own the business
  3. Monopoly- possession or control of the supply or trade in a commodity or service (meaning there is no-one else who provides the same product or service in a given market)
  4. Revenue- income generated from sale of goods or services.
  5. Profit-the difference between the amount earned and the amount spent in buying, operating, or producing something.

A business planis a proposal that describes the new business to potential investors.

Organization– This should explain how the organization is set up. Who is in charge? How are duties divided among any other employees?

Marketing plan– This section explains how you plan on selling and promoting your product or service. Where will it be sold? To Whom? And how will you reach them?

Competitionis the struggle between companies for customers.

Some companies choose to compete focusing on sale prices; this is calledprice competition.

Non-price competitionbusinesses focus on factors other than price to attract customers: quality, services, location, financing, or reputation.

When discussing financial management you must identify the three factors in each of the following topics:

Identification of Risks

1. human

2. natural

3. economic

Financial Statements

1. Income statement

2. Balance sheet

3. Cash flow

Business Risksare the possibility of business loss or failure. There are three types of business risks.

1. Economic

2. Natural

3. Human

Economic Risksoccur from changes in the overall business conditions. These risks include the following:

1. Type of amount of competition

2. Product obsolescence

3. Government regulation

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