1-19: Chapter 1, the Entrepreneurial Life
The entrepreneurs quiz what pretty fun to take. I realized that I scored very well in a lot of the areas that would make me a good entrepreneur. I feel that a few of the things that I am not crazy about in owning and operating my own business, such as customer service and finances are things that I can learn to get good at, and hopefully if I start a successful business, somewhere down the road I can hire somebody to do those things for me.
1-26: Chapter 8, teams, legal forms, and strategic alliances
There are many different ways to start a company,
- Sole proprietorship is a business owned by one person, who bears unlimited liability
- Partnerships are legal entities formed by two or more co-owners (their roles in the company do not have to be equal.)
- Corporation is a business organization that exists as a legal entity and provides limited liability to it owners.
- There are several different types of both partnerships and corporations. All have different stipulations and requirements by local government.
2-2: Chapter 9, choosing a location
In writing my location paper, I learned a lot about how expensive it can be to rent a business space. I learned that most often it isn’t just a $500 dollars a month and you are good to go scenario, but that there are a lot of other factors that will weigh in on your final rental costs. One of the things that surprised me the most that I had not really given much thought to before this assignment was snow removal. I spoke to a landlord that had to bill several of his tenants a few thousand dollars each for the winter month’s snow removal bill. It seems to me that unexpected expenses such as this could almost sink a small company.
2-9: Chapter 11, obtaining financing
I went through America first for my financing research paper and found out a lot of cool things. First of all, there are a lot of banks and credit unions out there that are more than willing to help out small business owners. Perhaps the best way to get funding for your small business is through a line of credit. Business loans are obtainable, but they usually require some type of collateral, such as your house or extremely valuable car.
2-23: Chapter 13, customer relationships
- Stephan R. Covey commits to be prof. for 10 years at USU
- Cognative dissonance is the feeling of regret that often follows most large purchases. ( it’s the “oh crap! What have I done! Feeling.”)
- Responding well to customer complaints is a great way to gain long term customers because it shows commitment.
3-2: Chapter 15, pricing and credit decisions
Colleen Loveless vacuum company
- 20 years to develop their vacuum and it is still changing.
- Money in the beginning came from whatever they could scrape together.
- Be sure to enjoy the work that you are in
- When you run your own company you need to be willing to share the load.
- Treat employees well, and be sure to promote good communication with them.
- Keep profit margins high enough to stay in business.
3-23: Chapter 16, promotional planning
Jullian’s Upholstery guest speaker
- Purchased the business after 3.5 years.
- Had no idea how to run a business, but picked it up as she went.
- Stay out of debt!
- Advertise on the radio, yellow pages and internet.
- Best customers are commercial accounts.
3-30: Chapter 2/18, integrity and ethics
Keep the saw sharp!! Often times we don’t take the time to refine our resources and as a result we always come up short of our expectations. Take the time to work out small problems or issues while they are still small to allow maximum production!
4-13: Chapter 22, managing assets
City council guest lecture
- Your personality is one of your greatest assets.
- Nothing can replace a face to face relationship and a firm handshake.
- Be sure to get to know your customers from the beginning so you can build a long term relationship
- The city wants your small business to succeed and has put many programs and helps in place to aid you and your small business.
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4-20: Chapter 21, managing risk
- There is no such thing as a risk free business or a risk free approach to running a business. Just really good methods of reducing risk.
- The two main types of risk are market risk and pure risk. Market risk is the uncertainty associated with an investment decision, and pure risk is the uncertainty associated with a situation where only loss or no loss can occur.
- A good example of pure risk is insurance.
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4-27: Chapter 10/23, evaluating financial performance
- Knowing where you are in your business is often something over looked in the first few years of a new business.
- Producing a profit and loss statement each month is a good way for a new business to constantly be measuring progress.
- Don’t fool yourself by counting unsalable inventory at cost. Depreciate it along with the rest of your depreciating assets.
- Be sure to also monitor your standing in relationships with vendors customers and employees to be sure that you are moving in the right direct
