RSM100Y1 Chapter Notes - Chapter 5: Business Incubator, Small Business, Independent Business
Document Summary
Meet needs in more personalized manner than large firms. Small business: independent business with fewer than 100 employees, revenue less than million. Personalized service, specific location, low overhead cost businesses unlikely to be bought by larger firms. Hire those with difficulty finding job at large company. Outlet for developing new ideas that could become new industry. Small businesses that focus on providing services to larger firms. Businesses that shift focus to meet consumer interests. Lack of people skills, finance knowledge, tracking inventory/sales, judging competition. Inadequate financing and management results in difficulty attracting and retaining workers. Big company can offer better salary, more benefits. Business plan: formal document detailing goals, methods, standards. Executive summary: who, what, when, where, why, how. Financial, marketing sections: target market, marketing plan, financial forecast. Pays banks back for loans not paid back. Helps businesses obtain more money by sharing risk of loan.
