Principles of Business BUS101

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Principles of Business(BUS101)

• Donald R. Simon, Esq.
• Adjunct Professor - Digital Photography
• Spring, 2009

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Principles of Business - Class 1

• Introduction to the course
• Course syllabus / webpage
• Get acquainted
• Lecture 20 Tips for Small Business Success
• Lecture Is a Small Business Right for You?
• Lecture Laying Your Personal Financial
  Foundation

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Principles of Business - Class 1

• 20 Tips For Small Business Success
• Determine whether running a small business is
  right for you.
• Get your personal finances in order.
• Pick your niche.
• Create a business plan.
• Dont think you need bankers and investors from
  the outset.
• Know the hats you can wear best.

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Principles of Business - Class 1

• 20 Tips For Small Business Success
• Remember that nothing happens until a sale is
  made..
• Hire superstars.
• Ignore regulatory issues at your peril.
• Know the tax laws.
• Protect your ideas and plans.
• You have to see a customer to know one.
• Solve your customers problems.

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Principles of Business - Class 1

• 20 Tips For Small Business Success
• Always remember that quality only takes a few
  minutes to lose and years to regain.
• Dont go it alone.
• Remember that vendors are partners, too.
• Fast, good, or cheap--pick any two.
• Put profitability first, rewards second.
• Develop a passion for learning.
• Its the people.

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Principles of Business - Class 1

• Is A Small Business Right For You?
• The language of the biz world
• cash flow,
• profit and loss,
• A/R,
• debt-to-equity ratio, etc.
• can seem far more complicated than it is really
  is!
• DONT BE FOOLED!

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Principles of Business - Class 1

• Is A Small Business Right For You?
• You are probably more acquainted
• the basic concepts of biz than you think!
• If youve ever held a bake sale, been hired
• to babysit, or been paid to take pictures
• youve been involved in a small business!
• Lemonade Stand vs. General
• Motors

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Principles of Business - Class 1

• Is A Small Business Right For You?

• The basics of doing biz are the same no matter
  what size the biz is
• Sales
• Cost of goods
• Expenses
• Profit

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Principles of Business - Class 1

• Is A Small Business Right For You?
• Many associated financial basics are the same
• A/P
• A/R
• Cash flow
• Assets
• Liabilities
• Net worth

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Principles of Business - Class 1

• Is A Small Business Right For You?
• Other things all biz have in common
• Each needs to do marketing to make their products
  or services known.
• Each needs sales to get their products or
  services in the hands of the customer.
• Each needs varying degrees of administration and
  financial accounting to satisfy internal
  information needs.

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Principles of Business - Class 1

• Is A Small Business Right For You?
• Of course there are major differences
• Some need employees, while some dont.
• Some require vast investments in real estate,
  equipment, and elaborate information systems,
  while some can get by with a desk, computer, a
  phone, and a an Internet connection.
• Each needs varying degrees of administration and
  financial accounting to satisfy internal
  information needs.
• For our purposes, a small biz is one with 100 or
  fewer employees.

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Principles of Business - Class 1

• Is A Small Business Right For You?
• Reasons to own a biz
• The satisfaction of creation
• Establishment of their own culture
• Self-sufficiency
• Flexibility and
• Special perks.

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Principles of Business - Class 1

• Is A Small Business Right For You?
• Reasons to not own a biz
• Responsibility
• Competition
• Change
• Chance
• Red tape and
• Biz failure.

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Principles of Business - Class 1

• Your Personal Financial Foundation
• One of the most under-recognized keys to
  achieving success in your biz.
• One significant oversight or mistake can detail
  your venture!
• Primary reason why entrepreneurs continue to work
  for someone else.
• Financial stress effects the biz and your family
  relations.

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Principles of Business - Class 1

• Your Personal Financial Foundation
• Financial To-Do List
• Assess your financial position and goals.
• Shrink your spending.
• Build up your cash reserves.
• Keep your income stable through part-time work.

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Principles of Business - Class 1

• Your Personal Financial Foundation
• Financial To-Do List
• Assess your financial position and goals.
• Measure your net worth
• Net worth financial assets - financial
  liabilities
• Its OK to have a number thats low or even
  negativeFOR NOW!
• Key to increasing your net worth is making sure
  that more money is coming in than going out!

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Principles of Business - Class 1

• Your Personal Financial Foundation
• Financial To-Do List
• Reduce consumer debt quickly.
• Good debt student loans and mortgages
• Bad debt credit cards and car loans
• Buy insurance.
• Without proper insurance, an illness or an
  accident could quickly turn into a financial
  nightmare.

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Principles of Business - Class 1

• Your Personal Financial Foundation
• Financial To-Do List
• Shrink your spending.
• Do all you can to reduce your expenses and
  lifestyle to a level thats lean and mean.
• Build up your cash reserves.
• Save for a rainy day.
• At a minimum, one should have 3 to 6 months of
  living expenses invested in an accessible account.

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Principles of Business - Class 1

• Your Personal Financial Foundation
• Financial To-Do List
• Keep your income stable through part-time work.
• Moonlight evenings and weekends.
• Watch out for non-compete issues!
• Small Business Aptitude Test

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Principles of Business - Class 2

• Go over Small Business Aptitude Test
• Lecture Timing Your Start-Up
• Lecture Financing Options
• Lecture Drafting a Business Plan
• Assignment Business Plan