1. Daily Information 11/12 Objectives: 1.Describe the characteristics of successful entrepreneurs. 2.Discuss the advantages and disadvantages of sole proprietorships. Warm Up: Would you want to own and run a business someday? Why or why not? If so, what would your dream business be? Agenda: 1.Warm Up 2.Complete Business Plan activity 3.Sole Proprietorship P.P. 4.Group Activity 5.Bottom Line

2. Assignments Prior to Teacher P.P. Check your grade in infinite campus Be sure all grades are updated Management Team Plan Correct/Complete individual resumes Create a job description for your business title Vision and Mission Statements Write the vision statement for your business Write the mission statement for your business Get the vision and mission statement of 2 competitors

3. Daily Information 11/13 Objectives: 1.Describe the characteristics of successful entrepreneurs. 2.Discuss the advantages and disadvantages of sole proprietorships. Warm Up: Log onto your computers!! Agenda: 1.Warm Up 2.Sole Proprietorship P.P. 3.Group Activity 4.Bottom Line

4. What is an Entrepreneur? Someone who assumes risk of owning and operating a business Purpose to make a profit Invest time and effort to become successful Most fail for financial reasons 4

5. Characteristics of Entrepreneurs Self-starters Energetic Independent Take-charge Creative Personable Experienced Well informed 5

6. Starting a Business What business will you start? What is your business plan? Type of business ownership Necessary skills and characteristics Business goals 6

7. Elements of a Business Plan Nature of the Business Detailed description of products and/or services Estimation of risk based on analysis of industry Size of business Location of business Background of entrepreneur(s) Chapter 5 Proprietorships and Partnerships Goals and Objectives Basic results expected in the short and long run Results expressed as sales volume or profits Marketing Plan Customers and demand for the product or service Prices for the product or service Comparison of product or service with competitors Financial Plan Investment needed to start and maintain business Projected income, expenses, and profit Cash start-up and cash flow needs Organizational Plan Legal form of ownership Legal factors: licenses, leases, contracts Organization chart Job descriptions and employee skills needed Physical facilities: building, equipment, tools

8. Why have a business plan? In your notes, describe the advantages of developing a business plan. 8

9. Sole Proprietorship A business owned and operated by one person (must have expertise and money) Proprietor: the owner/manager Simplest and most common form of business ownership Many large businesses began as small struggling sole proprietorships. 9

10. Sole Proprietorships in Comparison Breakdown of Business Ownership Total Sales Revenue

11. Sole Proprietorship: Disadvantages  Unlimited liability  Lack of continuity  Lack of money  Limited management skills  Difficulty in hiring employees Advantages  Ease of start-up/closure  Pride of ownership  Retention of all profits  Quick decision-making  No special taxes  Flexibility/Your the boss!

12. Unlimited Liability A legal concept that holds a business owner personally responsible for all the debts of the business. **This is the major factor discouraging the use of sole proprietorship. © EDYTA PAWLOWSKA/SHUTTERSTOCK

13. Proprietorships In general, the type of business that can be operated suitably as a proprietorship is one that: Is small enough to be managed by the owner or the few people the owner hires Does not require a large amount of capital (money) Part-time businesses (common b/c they work well for stay at home parents) 13 *What are some examples of proprietorships?

14. Sole Proprietorships Businesses providing personal services Dentists Accountants Landscape Gardeners Carpenters Painters Hair Salons Website Developers Small scale sale of merchandise Newspaper Stand Television-Repair Shop Family Restaurants Flower Shops Corner Grocery Stores Clothing Boutique Web based businesses

15. Group Activity Checkpoints on page 113,119,120 Assessment on page 116: 1,2,4 Assessment on page 120: 1,2,4 Page 130 & 131: 2,3,6,7,9,11,13,14,17,18 15

16. 16 Daily Information Nov. 14 Objectives: 1. Explain advantages and disadvantages of partnerships. 2. Compare sole proprietorships and partnerships. Warm Up: List the criteria you would use to select a partner to open a new business. Agenda: 1.Warm Up 2.Review activities 3.Partnership P.P. 4.Group Activity 5.Bottom Line

17. Group Activity Checkpoints on page 113,119,120 Assessment on page 116: 1,2,4 Assessment on page 120: 1,2,4 Page 130 & 131: 2,3,6,7,9,11,13,14,17,18 17

18. Review Go to the following website: www.socrative.com Enter the class number: c2e084ee Enter your FULL NAME Begin 1 18

19. Individual Activity Page 134 in the Textbook Case: 5-2 “To Partner or Not to Partner” Questions: 1-5 **These are short answer questions so be specific with your answers. 19

20. Why Seek A Partnership? Partnership: a business owned by two or more people (no limit to the number of partners) Expand your business Managerial Responsibilities Pool of special talents Additional capital Sole proprietor taking on a partner 20 **Least common form of ownership

21. Partnership General partnership: management responsibility and liability for all losses (liable for everything the business does; all debts) Limited partnership: a business co-owned by one or more general partners who manage the business and limited partners who contribute capital Limited partners have no management responsibility and no liability for losses beyond their investment 21

22. The Partnership Agreement Articles of partnership 1. An agreement listing and explaining the terms of the partnership; written is preferable to oral 2. Agreement should state Who will make final decisions What each partner’s duties will be How much each partner will invest How much profit or loss each partner receives or is responsible for How the partnership can be dissolved 4 22

23. Partnership Disadvantages Unlimited liability Management disagreements Lack of continuity Frozen investment 4 23 Advantages  Ease of start-up  Availability of capital and credit  Personal interest  Combined business skills and knowledge  Retention of profits  No special taxes

24. Businesses Suited for Partnerships Common among businesses that furnish more than one kind of product or service Example: Car dealership, Food stores 24

25. 25 Daily Information Nov. 18 Objectives: 1. Explain advantages and disadvantages of partnerships. 2. Compare sole proprietorships and partnerships. Warm Up: No Warm up Today!! You may need a textbook! Agenda: 1.Warm Up 2.Review activities 3.Group Activity 4.Review Games 5.Bottom Line

26. Group Activity Page 130 & 131: 4, 5,15 Page 129: Partnerships – Ben & Jerry’s, questions 1,2,3 26

27. Group Activity Page 130 & 131: 4, 5,15 Page 129: Partnerships – Ben & Jerry’s, questions 1,2,3 ***If you finish early, review the partnership agreement on page 122 (figure 5-4). You will be creating a partnership agreement for your business. 27

28. Group Activity Page 130 & 131: 4, 5,15 Page 129: Partnerships – Ben & Jerry’s, questions 1,2,3 Page 133: Case 5-1 Partnership Problems, questions 1-5 ***If you finish early, review the partnership agreement on page 122 (figure 5-4). You will be creating a partnership agreement for your business. 28

29. Advantages of Partnerships Skills and abilities pooled Sources of capital increased Credit position improved Contribution of goodwill (bring customers with you) Increased concern in business management (every partner works toward success) Lower tax burden than corporations Reduction in competition (partner with competition) Retirement (new owner continues the business) Operating economies (reduce operating costs) 29

30. Disadvantages of Partnerships Unlimited financial liability (one partner may be stuck paying all the debts) Disagreement among partners Each partner bound by contracts of others Uncertain life (heirs may demand price/payoff) Limited sources of capital/inefficient operations Unsatisfactory division of profits Difficulty in withdrawing from partnership (other partners have to accept the new buyer) 30