Finance and Business

Study Guide

Test 1 Small Business BSMG 2410

• How a business plan can be useful. A working blueprint outlining? nances and direction for a new start-up or expansion. Gives you something you “see”.
• The doorways to small business ownership.

There are three doorways to small business ownership.

1. Buy an existing business.
2. Buy a franchise
3. Start a new business.
4. Not one of the ten killer factors.

The Ten Killer Factors for Entrepreneurs

1. Weak personality
2. The loner syndrome
3.  Nebulous business ideas
4. No plan
5. Too little financial backing
6. Cash-flow troubles
7.  No marketing strategy
8. No controlling
9.  The wrong people
10. Underestimating the competition

The Ten Success Factors for Entrepreneurs

1. Willingness to succeed
2.  Self-confidence
3. A clear business idea
4. The Business Plan
5. Exact control of finances
6. Targeted marketing
7. A step ahead of the competition
8. Management support
9. Cooperation
10. Clear company structure

When you are the boss, you can take it easy.

A visionary self-starter who loves the adventure of a new enterprise and is willing to risk his or her own money

• Characteristics of today’s changing family
• Impact facts about the baby boomer generation.

1. Baby boomers
2. Persons born between 1946 and 1963
3. Retirement age. They will probably be your customers.

• What is accomplished by the Opportunity Selection Funnel

The Life Cycle Stages

1. A. Embryo
2. B. Growth
3. C. Mature
4. D. Decline

What is included in primary research?

Secondary research Reading and using previously published (primary) research

Steps in opportunity selection

1. Keep personal and business objectives in mind through the filtering process
2. Learn more about your favorite industry.
3. Identify 3 to 5 promising segments
4. Through research, identify problems that need solutions.
5. Brainstorm for solutions
6. Mesh possible solutions with your objective
7. Concentrate on the most promising opportunities.

What is gained by doing primary and secondary research? From my understanding, Primary and Secondary research are the difference in conducting the research. In Primary research, there is no data available for the researcher; hence the researcher has to start from scratch. This means that the researcher needs to design questionnaires, collect data from respondents and then analyses the result. If you are doing secondary research, the researcher have the necessary data available. These data are made available through other publications or reports, like newspaper or annual reports of companies.

If the researcher is doing secondary research, there is no need to start from scratch; he or she uses the data or information done by other organizations or publications. The important thing is that there are advantages and disadvantages for both methods. Primary research is more time consuming and costly. While some secondary research may not suit the researcher’s needs.

Parts of the NAICS structure

North American Industry Classification System (NAICS)

1. Industry sector (20 major sectors)
2. Industry subsector
3. Industry group
4. Industry . U. S, Canadian, or Mexican national specific industry

• How trade shows work.
• How to conduct primary research. Interviews
• How to use a matrix grid. Measurement tool with which ideas are screened and evaluated in order to
• What can be gain from market research. Collection and analysis of data pertinent to current or potential viability of a product or service. Do the research up front will save you money in the long run.
• What is included in a media kit. A media kit is a packet of information about your business that is created for use by the press.

Its purpose is to provide media members with the necessary data to report on your business.

Business Facts History

• Examples of target customers. Persons who have the highest likelihood of buying a product or service
• Other things included in a media kit. Readership pro? les, and information, and market research developed by magazines for potential advertisers
• Helpful websites in profiling target customers.

What Claritas information is based on

1. A company providing a household segmentation tool that concisely describes and categorizes people by their age, income level, and social preferences.
2. It is a sister company of National Decision