Business sheet
 Entrepreneur: a person who recognizes a business opportunity and
organizes, manages, and assumes the risks of starting a business. They must
study their competitors. Most successful ones have similar characteristics.
 Entrepreneurship: the process of recognizing a business opportunity,
testing it in the market, and gathering the resources necessary to go into
business.
 Venture: a new business undertaking involves risks
 Small business: an independently owned business that usually has the
owner as its manager.
 Virtual or online business: a business that operates on the internet.
o Advantages: shopping easier \ potential to attract a huge number of
customers \ anyone with an internet connection is a potential buyer.
 Rewards of entrepreneurship:1) Be your own boss
3) Opportunity to be creative
2) Do what you enjoy
4) Building an enterprise
 Challenges of an entrepreneur:1) Getting funds to start the business
2) Being fully responsible (unlimited liability)
3) They work long hours
4) Facing uncertain income levels
5) Facing the risk of losing their investment if business fail
6) Facing the challenge of feeling alone and insecure about making right
decisions
 Questions to consider before starting a business:- (don’t memorize just
read)
1) What will I produce?
2) Who are my main competitors?
3) Why is my product or service needed?
4) How much will my product or service cost to produce?
5) How many people will I need to run the business?
6) What physical facilities will I need?
7) What licenses, permits, or other legal documents do I need?
8) How much money will I need to get started?
 Business plan: a written description of a new business venture that
describes all aspects of the business.
 The 16 parts of the business plan:1) The executive summary (company’s description): contains the important
info from each section of the business plan
2) Management team plan: presents the owner & partner’s qualifications
3) Product and service plan: is the description of the product and service
4) Vision statement: establishes the scope purpose of a company
5) Mission statement: expresses the aspirations and goals of a company
6) Industry overview: presents your research of the industry
7) Market analysis: should include geographic, economic, and demographic
data about the target market or audience.
8) Competitive analysis: gathers info on your competitors
9) Marketing plan: how a company makes its customers aware of its products
or services.
10) Operational plan: results in production and delivery of the product
11) Organizational plan: describes the people who will run the business
12) Financial plan: presents financial forecasts
13) Growth plan: looks at how the business will expand in the future
14) Contingency plan: looks at risks to the business and ways to minimize
those risks
 Demographics: facts about the population; it includes age, gender, location,
and income
 Market: a group of customers who share common wants and needs
 Marketing: is the process of creating, promoting, and presenting goods or
services to meet the wants and needs of customers
 Functions of Marketing:1) Distribution: is the process of getting goods and services to consumers
2) Finance: getting the money that is necessary for running a business
3) Marketing information management: gathering and analyzing info
about customers, trends, and competitor’s products
4) Pricing: deciding how much to charge for a product so the business can
make profit
5) Product\service management: obtaining, developing, maintaining, and
improving a product in response to market opportunities
6) Promotion: is any effort inform, persuade, and remind potential
customers about a business’s products
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7) Selling: providing customers with the goods and services they choose to
buy
Marketing Mix or Matrix: consists of 4 basic strategies: product, place,
price, and promotion known as the 4Ps + a fifth “P” for people
Channel of distribution: a pathway to direct products to consumers
Direct distribution: occurs when goods are sold from the producers to the
consumers directly
Indirect distribution: involves one or more intermediaries
Break-even point: is the point at which total revenues equal total costs and
expenses of developing and offering a product or service
Market research: is the gathering and analysis of information on the size,
location, and makeup of a market
Marketing concept: involves determining the wants and needs of customers
and providing them more efficiently and effectively than competitors
Target marketing (target audience): helps companies focus on the people
most likely to buy their goods or services
Market segmentation: is the division of a market for a product into groups
of customers who share common needs and wants
Advertising: is the public promotion of smth to increase interest in it
Why companies advertise? (memorize 5)
1) Generates brand loyalty
2) Gives your company a positive image
3) Attracts new customers
4) Increases company traffic
5) Keeps your business at the top of your consumer’s mind
6) Keeps your consumers up to date
7) Makes money to your company
Pop up ads: a type of online media that appears when you view a website
Banner ads: a type of online media that are displayed across the top or
bottom of the web page (internet)
Media planning: the process of selecting advertising media and deciding
the time and space in which ads should appear
Medium: the method through which a promotional message is
communicated to the public using words, speeches, pictures, or videos. It
includes billboards, magazines, radio tv, direct mail, and internet
 Billboards: example of print media. They are placed near highways (first
picture in p.6 sheet)
 Transit: consists of posters placed on the sides of buses and subway
stations. They are commonly used in urban areas (second picture ......)
 Advertising agencies: is a business that specializes in developing ads and
ad campaign for its clients
 Ad campaign: is a series of ad messages that share a single idea and theme
 Components of media measurements:1) Audience: number of people exposed to an ad
2) Impression: single exposure to an advertisement message
3) Frequency: number of times an audience sees or hears an ad
4) Cost per thousand (CPM): the media cost of exposing 1000 viewers to an
advertising impression
 Ad rates for newspaper and magazines are based on circulation.
 Factors that determine advertising rates:1) Size of the ad
2) The number of people it reaches
3) How often it appears
4) When it appears
5) Where it is placed
 Prime time: the time when the audience for network tv is the largest
 Technology: refers to the tools and machines that people have invented to
make life easier
 E-workforce: people who work with computers while doing business
 E-commerce: using the internet to do business
 Digital workflow: links all the steps in a process digitally
 Start-up: a newly formed business that is usually small
 Multi-channel: a type of company that sells in stores, by main, and online
(can be called multi-channel retailer)
 E-tail: sells products over the internet through e-commerce
 Brick-and-mortar: refers to businesses that use actual buildings
 Click-and-mortar: refers to businesses that use actual buildings & internet
 Retailer: is a person or business that sells goods to the public in small
quantities