Chapter 6-3

 The process begins with an idea and concludes with a careful study of information to establish whether the idea can be successful

 Business ideas come from many sources such as hobbies, interests, and business experiences

 Putting your business ideas into action means finding the right place to open the business  Most retail businesses need good customer traffic  Wholesalers need to have access to manufacturers where products are obtained for resale to other businesses  Manufacturers must be located in an area with access to the necessary raw materials  Timing is another key factor

 The most important step in starting a business is preparation.  Information is needed about customers, competitors, important operations, government regulations, and others.  SBA great place to get this info

 A business plan is a written description of the business idea and how it will be carried out, including all the major business activities.  Most business plans are designed for one year and then updated for the next year.  Business plan is used to persuade lenders and investors to finance your venture.

 Executive Summary  Company Description  Market Analysis  Organization & Management  Service or Product Line  Marketing & Sales  Financial Plan

1. Gather and review information 2. Develop the “game plan” 3. Prepare a written plan

 Start-up financing is the amount of money needed to open the business  Short-term financing is the money needed to pay for the current operation activities of the business.  Long-term financing is money needed for the main resources of the business such as land, building and equipment