How to Run a Business: A Step-by-Step Guide Flashcard

Front

When should a business consider financing?

Back

When it has more customers than products in stock.

Front

What is the purpose of a business plan?

Back

To guide day-to-day business decisions.

Front

What is a characteristic of successful entrepreneurs?

Back

They are comfortable with failure.

Front

What is planning in a management context?

Back

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Front

What is a potential risk of high interest rates on loans?

Back

Cash flow crunches.

Front

What are the key components of a business plan?

Back

Executive summary, market analysis, organization structure, product line, marketing strategy, funding request, financial projections.

Front

Why is market analysis important in a business plan?

Back

It helps identify target customers, market trends, and competitive landscape.

Front

What is the role of cash flow management in a business?

Back

To ensure that a business has enough cash to meet its obligations and avoid financial difficulties.

Front

What is the significance of understanding customer needs in business?

Back

It allows businesses to tailor their products and services to meet market demand.

Front

How can entrepreneurs mitigate risks in their business?

Back

By conducting thorough market research, creating contingency plans, and diversifying their offerings.