CHAPTER 21 OPPORTUNITIES IN SMALL BUSINESS

SMALL BUSINESS OPPORTUNITIES OWNER AS MANAGER NOT DOMINANT IF FIELD OF OPERATION EMPLOYS SMALL NUMBER OF PEOPLE USUALLY “LOCAL” SERVICE BUSINESSES ARE THE MOST COMMON TYPE OF BUSINESS VENTURE BUSINESS IS A BUSINESS IN OPERATION LESS THAN THREE YEARS AND HAS NO EMPLOYEES OTHER THAN THE OWNER

SMALL BUSINESS PROBLEMS SMALL BUSINESSES CAN REACT QUICKLY AND ADAPT TO CHANGE, HOWEVER MANY SMALL BUSINESSES GO BANKRUPT OR CLOSE THE BUSINESS IS UNABLE TO PAY ALL ITS DEBT TO CREDITORS TYPICALLY MORE THAN 1/2 OF BUSINESSES THAT FAIL HAVE BEEN IN BUSINESS LESS THAN FIVE YEARS AND ARE CLASSIFIED AS A SMALL BUSINESS

MOST COMMON REASONS FOR FAILURE NOT KEEPING ADEQUATE RECORDS NOT HAVING ENOUGH START-UP MONEY LACK OF SALES OR MANAGEMENT EXPERIENCE NOT CONTROLLING OPERATING EXPENSES POOR LOCATION (LOCATION, LOCATION, LOCATION) FAILURE TO MANAGE PAYMENTS DUE FROM CUSTOMERS FOR PURCHASES MADE SEEK HELP WHERE YOU NEED IT!!!

HELP AVAILABLE SMALL BUSINESS ADMINISTRATION (SBA)-- GOVERNMENT FUNDED; HELP BORROW MONEY AND MANAGE MORE EFFICIENTLY SMALL BUSINESS INSTITUTES--PROGRAMS OFFERED WITH COLLEGES PROVIDING MANAGEMENT COUNSELING SCORE (SERVICE CORPS OF RETIRED EXECUTIVES)--RETIRED VOLUNTEERS WITH EXPERTISE ORGANIZATIONS THAT HELP PROVIDE VENTURE CAPITAL

CHARACTERISTICS OF BUSINESS OWNERS SELF STARTERS; DO THINGS ON THEIR OWN LEADERSHIP ABILITIES ASSUME RESPONSIBILITIES; TAKE CHARGE GOOD ORGANIZERS; LIKE TO PLAN HARD WORKERS; WORK LONG HOURS DECISION MAKERS; QUICK DECISIONS TRUSTWORTHY ACHIEVERS; STAY ON TASK GOOD HEALTH AND ENERGY

CHARACTERISTICS OF BUSINESS OWNERS WOULD RATHER WORK FOR THEMSELVES EVEN IF IT MEANT LESS MONEY USUALLY AT LEAST 24 YEARS OLD HAVE HAD A VARIETY OF BUSINESS EXPERIENCE DESIRE TO USE SKILLS AND ABILITIES

YOUNG ENTREPRENEURS ENTREPRENEUR IS SOMEONE WHO TAKES RISKS, HAVE A DESIRE TO BE THEIR OWN BOSS, DEVELOPS A GOOD BUSINESS PLAN, THINKING OF NEW IDEAS ENTREPRENEURSHIP IS THE PROCESS OF STARTING, ORGANIZING, MANAGING, AND ASSUMING RESPONSIBILITY FOR A BUSINESS