Lecture (1 ) Small Business

1. Lecture (1 )Small Business

2. An entrepreneur is someone who starts or operates a business venture and assumes the responsibility for it. He or she provides goods or services to individuals or businesses for payment .

3. Managing my own business People who start their own business have control over what they do in their working life. By managing their own business, they have the opportunity to shape their work environment and make an impact on their community. But often there will be resistance, especially if a new business idea is introduced. Therefore, one needs management skills to make the business successful as well as to convince the community that it can only help them, or at least can do them no harm.

4. A good manager is a planner, a person who has vision, sets goals for achieving that vision and ensures that the necessary resources, financial and human, are obtained and allocated in time. Some key qualities good managers have: 􀁘 reliability 􀁘 integrity (financial and ethical) 􀁘 ability to lead 􀁘 ability to set a goal and work towards it in small steps 􀁘 eagerness to meet obligations, etc.

5. Communicating Good communication in business is important, because clients and business partners need to understand precisely what you are trying to buy or sell. Businesspeople need to be cheerful, keen, polite and helpful. Entrepreneurs should show interest in the customer and listen carefully to find out as much as possible about his or her needs. Listening is an important part of communicating.

6. The entrepreneur needs to inform clients and business partners about the products and/or services they are selling and how these can meet their needs. Being honest and frank about our product or service can help build clients’ trust and confidence in us. This means that we should not give the client an incorrect impression of our product. Being frank in general may also help us to buy materials or services at a reasonable price from our business partners.

7. The client should describe his or her needs, which may or may not be satisfied by the product. The businessperson should clearly describe the product or service and its uses, and explain how the product can be adapted to suit the client’s needs.

8. Making the best use of my time Managing time is an essential part of good business planning, because time is a resource that has a monetary value. Poor time management usually leads to last minute rushes to meet deadlines, causing stress and inferior performance. This may result in a product or service of poor quality and/or it not being delivered in time. A disappointed customer may seek a more reliable business provider.

9. Good time management allows for contingencies beyond our control, such as bad weather. Often, we must undertake several tasks at the same time in order to complete our job. We do this by estimating the amount of time necessary for each task and organizing our work accordingly. This is true of many of the activities that we take on in our everyday lives.

10. The time taken for the various stages of production should be recorded, so that clients can be given estimates of delivery time and the timeframe of future projects may be planned .

11. Opening a Small Business Creating a More Flexible Lifestyle Why Opening a Small Business Might be a Great Idea For You Opening a small business can give you a more flexible lifestyle, especially if you are starting a home business. Millions of people have already found the greater freedom you are looking for.You can find it too!

12. Nearly half of the world's richest people are entrepreneurs, making opening a small business the number one way to get rich, and sometimes very rich. Need to satisfy that creative drive in you? There are more than enough opportunities for you in creating a successful business.

13. Opening a small business has never been easier or less expensive! There are profitable small businesses that you can start today for under $2,000. For example, you can start a website business with hardly more than a laptop computer

14. Anybody with the desire, drive, and average intelligence, can start a successful small business of their own. People just like you have not only thought about starting a small business of their very own, but have actually done it, and with amazing success

15. Opening a Small Business Contains Valuable Information, Including the Following: You can start your small business today! MyStarting a Small Business page has step-by-step instructions on how to start a small business. Find Small Business Ideas, including creating a website business, market gardening, an eBay business, computer repair, and many more.

16. Have you successfully started a small business  but are uncertain as to what to do next? On myBusiness Growth page you can find some solid suggestions and tips that will help you grow your business. For retailers, eBay sellers, and other merchandisers, a free list of genuine wholesale companies that are some of the best wholesalers.

17. Many business plans can be pretty complex. On this page you will find a simple Business Plan Template that will show you the main components of a good, professional business plan. The best ways to finance your small business. Should you try for a small business loan? If so where to get the best small business loans.

18. Featured Small Business Ideas:Landscaping Business A landscaping and/or gardening business is a great small business to get into, especially for someone who loves working with their hands outside. And you'll be amazed how easy and fast it is to start, depending on your area of emphasis. Here are a few gardening and landscaping small business suggestions, much of it almost anyone can do, if not, you can learn:

19. Regular, monthly lawn and garden maintenance at homes and businesses, mowing lawns, pruning bushes and small trees, weeding, light sprinkler system repair. Specialize in lawn and garden sprinkler irrigation maintenance, repair, and instillation business. Tree pruning and removal service. Installing fish ponds.

20. The Gift Basket Business is Booming! Do you have a desire to start a small business but you're not certain as to what kind? Maybe your a person with some artistic ability, you are really tired, you want to leave your present job and start to fly on your own! • Your thinking, "I want to work out of my home, from my garage, from the back yard or patio." You know what? • Increasingly, there are more and more small businesses today that you can do just that. And that's exactly what this website is all about. • A suggestion? If you enjoy working with others as a team and you have artistic ability, there is a popular and often very lucrative small business today, a Gift Basket Business.

21. Your thinking, "I want to work out of my home, from my garage, from the back yard or patio." You know what? Increasingly, there are more and more small businesses today that you can do just that. A suggestion? If you enjoy working with others as a team and you have artistic ability, there is a popular and often very profitable small business today, a Gift Basket Business.

22. Selling Items on eBay or Amazon Selling on eBay can be very exciting and profitable, but only if you have a product that people really want. Otherwise, eBay's high and ever increasing fees and restrictions will first drive you crazy, and then absolutely kill your business.

23. Blogging Business idea Are you looking for online business you can start with little or no capital? Starting a blogging business could be the best choice for you if you have desire for writing. Blog business ideas are very viable and profitable and can be started with little or no capital. You can make money blogging and even make a living from this simple but very profitable online business. If you currently own a business and you sell a product or render a service, the best way to market your business is through a blog. -

24. Starting a business blog is the best decision every entrepreneur must made in this information age, this is because blog will constantly bring visitor (potential customers) to your business website and larger percentage of them may become your customer and the more the customer the more the money. Therefore, if you are just starting out or already into a business, blog business ideas will go a long way in liberating you from financial stress and bring passive income into your pocket for live.

25. Questions Before Starting So you’ve got what it takes to be an entrepreneur? Now, ask yourself these questions to make sure you’re thinking about the right key business decisions:

26. Do I have what it takes to own/manage a small business? You will be your own most important asset, so an objective appraisal of your strengths and weaknesses is essential. To determine if you have what it takes, you need to answer some questions about yourself: Am I a self-starter? How well do I get along with a variety of personalities? How good am I at making decisions? Do I have the physical and emotional stamina to run a business? How well do I plan and organize? Am I willing to travel? Are my attitudes and drive strong enough to maintain motivation? How will the business affect my family?

27. What business should I choose? Usually, the best business for you is the one in which you are most skilled and interested. For example, it you are trained as a children's librarian, you may want to consider storytelling. As you review your options, it is advisable to consult local experts and business persons about opportunities in your area. Matching your background with the local market characteristics will increase your chance of success.

28. What is a business plan and why do I need one? A business plan precisely defines your business, identifies your goals, and serves as your firm's resume. Its basic components include a market study, marketing/promotional strategy, current balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

29. What do I need to succeed in a business? There are four basic needs for success in small business:  1- sound management practices 2-  industry experience 3- technical support  4- planning ability. 

30. How can I hire qualified employees? Choose your employees carefully. Decide beforehand what you want them to do. Be specific. You may need flexible employees who can shift from task to task as required. Interview and screen applicants with care. Remember, good questions lead to good answers. The more you learn about each applicant's experience and skills, the better prepared you are to make your decision.

31. How much money do I need to get started? Once you, have taken care of your building and equipment needs you also must have enough money on hand to cover operating expenses (fixed and variable costs) for at least one year. These expenses include your salary, as the owner, and money to repay your loans. One of the leading causes of business failure is insufficient start-up capital. Consequently, you should work closely with your accountant to estimate your cash flow needs. Writing a business plan will provide you with accurate information on your needs for capital. 

32. What are the alternatives in financing a business? Committing your own funds is often the first financing step. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence to others who may invest in your business. You may want to consider family members or a partner for additional financing. Banks are an obvious source of funds. Other loan sources include commercial finance companies, venture capital firms, local development companies and life insurance companies. Trade credit, selling stock and equipment leasing offer alternatives to borrowing. Leasing, for example, can be an advantage because it ties up less of your cash

33. What do I have to do to get a loan? Initially, the lender will ask three questions: How will you use the loan proceeds?  How much do you need to borrow?  How will you repay the loan? 

34. What kind of profits can I expect? Not an easy question, and you need to consider income and expenses before you even start to think about profits. However, there are standards of comparison called "industry norms and ratios" which can help you estimate your profits. Return on investment (ROI), for example, estimates the amount of profit gained on a given number of dollars invested in the business. These ratios are broken down by standard industrial classification (SIC) code for assets and size, so you can look up your type of business to see what the industry averages are.

35. What financial statements will I need? You should prepare and understand three basic financial statements: 1- the balance sheet, which is a record of assets, liabilities and capital at a specific point in time;  2- the income (profit and loss) statement, which is a summary of your earnings, expenses and net profit (or loss) over a given period of time; and  3- the cash flow projection, which shows the actual inflows and actual outflows of cash into and out of your business. 

36. What does marketing involve? Marketing is your most important operational concern. There are four basic aspects of marketing, often called the four P's: product: a description of the item or service you sell.  price: the amount you charge for your product or service.  promotion: the ways you inform your market as to who, what and where you are. place: the distribution channels you use to offer the product to the customer.

37. As you can see, marketing encompasses much more than just advertising or selling. For example, a major part of marketing involves researching your customers: What do they want? What can they afford? What do they think? Your understanding and application of the answers to such questions play a major role in the success or failure of your business. 

38. What about advertising/promotion? Your business growth will be influenced by how well you plan and execute an advertising program. Because it is one of the main creators of your business's image, it must be well planned and well budgeted. Contact local advertising agencies to assist you in devising an effective advertising/ promotional strategy .

39. How do I set price levels? The price of a service or item is based on three basic production costs: direct materials, labor and overhead (the share of facilities, utilities, taxes, insurance, security and other general operating costs of the business attributable to the product or service - for example, if one product accounts for 10 percent of your business, 10 percent of your overhead is assigned to it). After these costs are determined (the break-even cost) you factor in the profit desired. Because pricing can be a complicated process and you must remain competitive as well as profitable, you may wish to seek help from an expert.

40. Can I operate a business from my home? Yes. In fact, experts estimate that as many as 20 percent of new small businesses are operated out of the owner's home. Local offices and state chambers of commerce can provide pertinent information on how to manage a home-based business. 

41. Examples of new low cost industry ideas : Beauty Care Agriculture Arts and Crafts Services Technology Education Sports Automotive Food Fashion Financial Services Travel

42. Internet Business ideas Security Real Estate Import and Export Manufacturing Retail Business ideas Marketing and Advertising Media and Publishing Entertainment Healthcare and Medical Services Home Based business ideas

43. Assignment 1- What is the problems facing small business in Egypt. 2- What is the future of small business In Egypt .

44. 3- Select a product (or service) and do the following: - List the tasks involved in the preparation of the product to the point of delivery. - Estimate time needed for each stage of production, leaving a small margin (approximately 10%) for unforeseen contingencies. - Determine how different stages of production can be run simultaneously and draw up a time plan.

45. Thanks for Your Attention.