Chapter 8.1 Starting a Business

1. Chapter 8.1 Starting a Business • Terms to know • Entrepreneur • Startup • Small business incubator • Inventory • receipts

2. Reading objectives • 1. What things must be done before starting a business? • 2. What four elements are involved in every business?

3. Starting a Business • After making a decision to start a business , entrepreneurs must gather _______________to produce their good or service and decide on the form of business organization that best suits their purpose.

4. What do I need to know in order for me to be a successful entrepreneur? • Laws • __________ • Tax codes

5. Help From the Government • If you want to start a _________, help is available.

6. The Federal government’s Small Business Administration often helps finance _________ • State departments of commerce and community affairs also offer assistance as well as ___________and _______________.

7. What else is out there to help a small business? • ______________: private-or government-funded agency that assists new businesses by providing advice or low-rent buildings and supplies

8. A small business incubator can provide a ___________, management advice and ______________.

9. The goal of an incubator is to generate job creation and ______________, particularly in economically depressed areas.

10. Elements of Business Operation • 1. Expenses • 2. __________ • 3. record keeping • 4. __________

11. Expenses • “You have to spend money to make money” • Business expenses • 1. ___________ • 2. wages • 3. ___________ • 4. Taxes • 5. Electricity • 6. Telephone service

12. __________extra supply of the items used in a business, such as raw materials or goods for sale.

13. Wages are an _________. Because you could be working for some one else and earning an income, you should pay yourself a wage equal to what you could earn else where. • It is important not to forget this opportunity cost when you figure out the ______________your new business is making.

14. If I sell a lot of product am I for sure making a huge profit? • No you must ____________all your expenses from your receipts first to tell whether you have made a profit.

15. Keep records of how much you owe and to whom, and how much money your business is making. You will need this for your ___________.

16. Advertising • To start a business you must make potential customers aware that your _____________are available for a price.

17. Record Keeping • No matter what the size of your business you must have a method of keeping track of your ___________________.

18. You should purchase or download a program that will allow you to keep track of your receipts. • These programs write checks , calculate your losses and gains and tell you what you own and what you owe ___________________

19. You must keep your _______________in a safe place and organize them.

20. Risks • Every business _______________ • You must balance the risks against the advantages of being in business for yourself

21. Chapter 8 Section 2