Business Studies

Who is an entrepreneur?

• Grants a license to another

  person or business

• Entrepreneur is a person who organizes, operates and takes the risk for a new business venture.

• The owner of a business

• These are closely held businesses usually by family, friends and relatives.

A disadvantage of being an entrepreneur?

• Opportunity cost

• May become famous and successful if the business grows.

• Profit and income may be higher than the salary received from an employee.

• You make money doing something you love.

A FAMOUS ENTREPRENEUR we have learned?

A Characteristic of entrepreneurs?

• Friendly

• Lazy

• Weak communicator

• Optimistic

What is a business plan?

• Business plan should clearly layout the long term milestones that are most important to

  the success of your business.

• Business plan answers investor questions such as: is there a need for product/service? ;

  What are the financial projections? ; What is the company’s existing strategy?

• It is a written document that describes in detail how and a business (usually a start-up) defines

  its objectives and how it is to go about achieving its goals.

• Creating business plan forces you to analyse the competition. It can be direct or indirect

  and it is critical to understand the company’s competitive advantage.

What is included in a business plan?

• Name of workers

• Finance plan

• Expense

• Income

A method of measuring business size?

• Value of sales

• Names of workers

• Research

• Business idea and help

Main methods of business expansion?

• Internal growth & External growth

• Horizontal integration & Vertical integration

• Backward vertical integration & Forward vertical integration

• Conglomerate

Why some businesses remain small?

• Public Limited Companies

• Type of industry the business operates in

• Private Limited Companies

• Incorporated businesses are companies that have separate legal status from their owner.

WHY SOME BUSINESSES FAIL?

• Poor management

• Good workers

• Good owners

• The market size