Entrepreneurship-Vocabulary-1 PDF

Preview

Summary

Compiled and summarized vocabularies in entrepreneurship...

Description

Entrepreneurship Vocabulary Financial Plan-The financial plan present the forecasts for the future of the business. It also explains the assumptions made when calculating your forecast figures. (what you think you will make) Usually, this information is in the form of financial statements. This part of the business plan show that the new business will be financially healthy. Business Permit- a license from the city or county in which you plan to operate your business allowing you to operate your business. OSHA- Occupational Safety and Health Administration – department of the US government with the responsibility to ensure safety and healthful work environments CPSA- Consumer Product Safety Act – to protect the public against unreasonable risks of injury associated with consumer products FDA- Food and Drug Administration – assures the safety and effectiveness of a range of products Business plan- is a document that describes a new business. It explains to lenders and investors why the new business deserves financial support. Parts of the business plan may include: 1. Executive summary- brief summary of business plan. [so potential banks or lenders can decide if they want to “maybe” lend you money] if they like the executive summary they will then read the whole business plan 2. Product/service plan- the product or service you are offering [chocolate chip cookies] 3. Management team plan-qualifications you have, with your employees, to market your product [foods II class students] 4. Industry/market analysis-your research into the market, analyze your customers, competition and industry, info about location of business, economy of the area and demographics (boys, girls, $ they make, education, where they live, who they live with, etc. depends on what you want to sell) [Southside High School faculty and parents, students after school] 5. Operational plan-how, when, where you are going to make your product, time it takes, cost involved, etc. 6. Organizational plan-what is the goal of the business, legal form of the business, employment polices (who gets fired when) [to make a small profit to continue to be able to buy food, student gets a grade] 7. Marketing plan- advertising, who will be targeted to buy the product, pricing, company image, marketing budget, how will you reach the customer 8. Financial plan- predictions of success, how much $ you plan to make 9. Growth plan- how the business will expand in the future Income statement- a financial report that show how much a business has earned or lost during a year Cash flow statement- describes the flow of cash into (estimated sales) and out (estimated operating expenses) Of the business Mission statement- a philosophical statement describing your business Niche market- is simply a small segment of the market, usually based on customer needs that you’ve discovered in your market research Consumer survey- a questionnaire that you give to the people who might want to buy your product, asking them questions about your product i.e. Do you like cookies?

Customer profile- description of the people who might buy your product Market survey- process of investigating the areas of the market [is there anyone else making chocolate chip cookies] Business concept- an idea for a new business that can be tested Policy statement- general statement of intent about how to run your business ( they simplify day-today management so you don’t have to make the same decisions over and over again. A business may have a policy about working hours or overtime pay) [Rules in the classroom] Feasibility – if an idea for a new business is practical---are there customers who want what you have to offer?, what conditions must be present for you to decide to go forward with the business, is there enough demand for your product or service Prototype- an example of what you might want to sell Entrepreneur- a person who starts a business for themselves Quality control- the process of making sure that the goods or services produced meet the standards set for them [Sample some of those cookies!] Break-even point- the exact time that you start to make a profit Balance sheet- is a financial statement that tells you what your business is worth at any given time. The 5 P’s of Business: 1. Product: how you will design and package your product/service 2. Price: how you will price your product/service 3. Place: how products (and related services) are distributed to the consumer 4. Promotion: what media and marketing methods you will use to generate awareness and interest about your product/service; include examples of your promotional materials (brochures, print ads, copy for radio ads, calendar of events for special/regular promotions) 5. People: who will be responsible for marketing your product/service?...