University:
Columbia University
Course:
UN 1105 | Principles of Economics
Academic year:

2023
Views:

140

Pages:

2
Author:

Adam B.

Why do Small businesses fail. lack of capital, cash flow problems lack of management skills over expansion Importance of a Small business provide employment provide competition fills needs of Society, other businesses Pros: Cons of a business Advantages Disadvantages personal relationships with * risks of failure/high failure customers, employees * limited potential ability to adapt change * limited ability to raise capital/limited funds simplified record keeping independence * high stress level * managerial inexperience advantages of sole proprietorships * inability to cope with keeping all profits growth ease + low cost of going into business keeping business info secret flexibility small business administration (SBA) a government agency that assists, counsels, protects the interests of small business in the United States the importance of a business plan lack of planning can be deadly a business plan - constructed guide for the person starting a business 3 basic purposes •communication -a buisness plan serves as a concise document that potential investors examine to if they would like to invest or assist in financing a new venture managment -a buisness plan serves as a consise document that Potential investors examine to see if they would like to invest or assist in financing a new venture •It serves to establish time lines + milestones + allows comparison of growth projections against actual accomplishments •Dianning -Copenents of a buisness plan guides a buisness- person through the various phases of busness franchising -what is a franchise: license to opperate an individually owned buisness as though it were part of a chain Of outlets Stores franchising actual granting of a franchise franchisor an individual or organization granting the franchise - provides a known advertised puisness name managment, SKILIS -the required training materials •a method of doing buisness -franchisee a person or organization purchasing a franchise • supplies capor, capital operates the franchised buisness •agrees to abide by the provisions of the franchise aaveement