Chapter 6 - entrepreneur

Chapter 6 - entrepreneur

Logan Lefler
Chapter 6

1. An entrepreneur is someone that takes on greater than normal financial risks in order to organize and operate a business or businesses. Some common traits of entrepreneurs include: believing they control their own destiny, eager to learn and reach their goals, view failure as a chance to grow, are highly adaptive, take sensible risks, driven by passion to succeed, often don’t measure success strictly in financial terms, high confidence and optimism, relate well with personalities, have talent for inspiring others, willing to work hard for sustained periods of time, extremely disciplined, and are willing to make sacrifices in other areas of life.

2. One reason a new businesses fail in the first 10 years is managerial incompetence: the owner doesn’t know how to plan, lead, control or organize. Another reason would be overreliance on a single customer: on huge customer can disappear overnight, leaving the company in dire straights. The third possible reason could be poor location: being in the wrong place will doom a retail operation and can raise costs for other types of businesses as well. Another reason could be lack of relevant experience: the owner may be experienced in business but not the particular markets or technologies that are vital to the new firm’s success. The fifth reason could be lack of strategic planning: the owner didn’t think through all the variables needed to craft a viable business strategy.

3. The first essential function of a business plan is it guides the company operations and outlines a strategy for turning an idea into reality, Second, it helps persuade lenders and investors to finance your business if outside money is required. Third, it can provide a reality check in case an idea just isn’t feasible.

4. Some advantage of owning a franchise would be: you can be your own boss, hire your own employees, getting a proven viable business plan, instant name recognition, access...

Similar Essays