Business Plan, Business Reality
Fifth Edition
Chapter 1
The Business Model
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Chapter 1 Learning Objectives
1. Discuss the definition and role of “small business”.
2. Identify entrepreneurial characteristics and assess your
own potential as an entrepreneur.
3. Discuss techniques to stimulate creativity and idea
generation.
4. Identify the challenges of an entrepreneurial lifestyle.
5. Define a new business concept in terms of what it will sell
and to whom.
6. Compare at least three legal forms of business.
7. Prepare the Concept and Summary portions of a
business plan.
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What does it Mean to “Be in Business”?
LO 1 Discuss the definition and role of “small business”.
• Small business
– Examples
– Definition
– Micro-enterprise
• Entrepreneurship
– Definition
– Business ownership vs. self employment
– Freelance
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The Entrepreneurial Personality
LO 2 Identify entrepreneurial characteristics and assess your
own potential as an entrepreneur.
• Trait Test
• Entrepreneurial Characteristics
– Passion
– Motivation
– Optimism
– Risk Takers
– Creativity
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What Sort of Lifestyle Can I Expect?
• Personal demands
• Family issues
• Income potential
• Personal health
• Employee vs. entrepreneur
– Employee skills
– Entrepreneurial skills
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What Stimulates Creativity and Idea
Generation? (1 of 2)
LO 3 Discuss techniques to stimulate creativity and idea
generation.
• Embrace you Creativity
• “Take a Walk”
• SCAMPER
– Substitute
– Combine
– Adapt
– Modify
– Put to Other Uses
– Eliminate
– Rearrange or Reverse
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What Stimulates Creativity and Idea
Generation? (2 of 2)
LO 3 Discuss techniques to stimulate creativity and idea
generation.
• Journal
• Market Research
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Personal Demands
LO 4 Identify the challenges of an entrepreneurial lifestyle.
• Family Issues
• Employee vs. Entrepreneur
• Business Skills
– Financial Planning
– Marketing and Sales
– Communication and Negotiation
– People Management
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What is My Business Idea?
LO 5 Define a new business concept in terms of what it will
sell and to whom.
• Explaining the Idea
• Basis for a Business Plan
• Competitive advantage
• Defining the Business
– Define Gaps in the Marketplace
– Specialization or “Niche”
– Defining Customers
– Defining “What you are selling”
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Do I Need a Partner?
• Partner personalities
– Conflicting
– Complimentary
– Choosing a partner
• Partnership agreements
– Reasons for
– Provisions
Contributions
Profit entitlements
Authorities
Responsibilities
Dispute settlement
Alterations / dissolution
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What Will My Business Mean Legally? (1 of 4)
LO 6 Compare at least three legal forms of business
• Sole Proprietorship
– Cost
– Liability
– Taxes
– Inventors
– Image
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What Will My Business Mean Legally? (2 of 4)
LO 6 Compare at least three legal forms of business
• General Partnership
– Cost
– Liability
– Taxes
– Investors
– Image
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What Will My Business Mean Legally? (3 of 4)
• Corporation
– Cost
– Liability
– Taxes
– Investors
– Image
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What Will My Business Mean Legally? (4 of 4)
• Other Legal Forms
– Limited Partnership
– Limited Liability Partnership
– Business Co-operative
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Getting Started on Your Plan
LO 7 Prepare the Concept and Summary portions of a
business plan.
• The Business Plan
– The business model
– Feasibility
– Marketing
– Operations
– Finance
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The Business Plan: Section 1
The Business Model and Summary
• Introduction
• Products / services
• The customers
• The location
• The opportunity
• The owner(s)
• The legal organization
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Chapter 1 Summary
• What does it mean to “be in business”?
• The Entrepreneurial Personality
• What sort of lifestyle can I expect?
• What Stimulates Creativity and Idea
Generation?
• Personal Demands
• What is my business idea?
• Do I need a partner?
• What will my business mean legally?
• Getting Started on Your Plans
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