1. MANAGING A SMALL BUSINESS Describe the characteristics of small-business owners. Identify key steps small-business owners follow to start their businesses. Explain the importance of a written business plan. Detail various types of financing for a new business. Unit 6, Part 1

2. Small Business Advantages  Independence  Control (make all decisions)  Setting your own schedule

3. Small Business Disadvantages  Long hours  Customer complaints  Meeting a payroll  Responsibility

4. IDENTIFYING THE SMALL-BUSINESS OWNER  What it takes  Personality traits  Self-motivation  Risk-taking  persistence  Business traits  Knowledge about business  Management, finance & marketing skills  effort

5. STARTING THE SMALL BUSINESS  An idea – from hobbies, interests or business experience  Experience – working for a period of time in that field will prepare someone for the role of business owner

6. Team Approach  Employees  good employees can be key to success  Professional assistance  Bankers  Lawyers  Accountants  people with specialized knowledge

7. Right Place Right Time  Location  Retailer – good customer traffic  Wholesaler – easy access to manufacturers  Manufacturers – access to raw materials  Timing  start when there is a demand for the product or service

8. Preparation  The most important step in starting a business - PREPARATION  Things to research  Customers  Competitors  Operations & activities  Government regulations (laws)

9. DEVELOPING A BUSINESS PLAN  What is a business plan?  Written description of the business idea and how it will be carried out  A guide to keep the business on track

10. BUSINESS PLAN ELEMENTS  Description of the business  Description of the competition  Customer analysis  Operations plan  Marketing plan  Financial plans

11. FINANCING THE SMALL BUSINESS  Types of financing  Start-up financing – until business becomes profitable  Short-term financing – current operating activities, payable in less than one year  Long-term financing – land, buildings & equipment, repaid over many years

12. Sources of financing  Owner-supplied funds  Borrowed funds