Solution Manual For Entrepreneurship: Starting and Operating Small Business, 5th Edition

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Entrepreneurship:Starting and OperatingaSmall BusinessFifthEditionSteve MariottiCarolineGlackinEntrepreneurship: Starting andOperating a Small Business,Resource Manual(Download Only), 5eBy Caroline Glackin

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00-1TotheInstructorEntrepreneurship:Starting and Operating a Small Business,FifthEdition,is thelatest in aseriesofentrepreneurship textbooks writtenbySteveMariotti, thefounderoftheNetworkforTeachingEntrepreneurship(NFTE),and professorandentrepreneurCarolineGlackin. Thistextbook isanextensionoftheprogramsdevelopedbySteveMariotti undertheauspicesofNFTE.Since1987,NFTE hasreachedmore than500,000studentsand professionalsandcertifiedthousands of instructorsgloballyto implement its innovativeentrepreneurshipprograms. NFTE is widelyviewedasaworldleaderin promotingentrepreneurial literacyandhas aproven track recordofhelpingstudents start avarietyofsuccessful business ventures.Business students,as wellas thosefrom otherdisciplines,can benefitfromEntrepreneurship.Fortheformer, itrecasts theirpriorlearningfrom atypicallycorporatecontextandfocuses it on smallandentrepreneurialenterprises.Forstudentsin suchfieldsashospitality, thearts,engineering,andfashion merchandising, thetext introduces keybusinessconcepts in thecontext ofabroadrangeofcareers.Casesfrom hospitality,technology,retail,manufacturing, distribution,realestate,finance,and not-for-profit organizations present awealthofinsightsand learningopportunities. Most importantly,Entrepreneurshipis abalanced mixoftheacademicandappliedcomponents ofentrepreneurshipeducation.Studentsareintroduced tothetheories, methods,andrequisiteknowledgeand skillsforentrepreneurs andareimmediatelyprovidedpracticalexamplesand discussion opportunities. UsingtheApplication ExercisesandExploring Onlinefeatures, theyareencouraged to take this new knowledgeandapplyit to theirownlives, so that thecoursematerialsarereinforcedand internalized.This textbookcombinesSteveMariotti’sexperienceasanentrepreneurwithrelevantacademictheoryandpractice,supportedbyarichvarietyofexamplesandstories that includetheexperiences ofNFTEprogram graduates who havestarted theirown businesses.CarolineGlackin bringsyears ofexperiencein theuniversityclassroom,as alenderto smallandmicrobusinesses,andasanentrepreneurand small business owner. Together, theyhaveproduced atext that is practical, useful,andacademicallysolid.This bookencouragescollegestudents to think througheverystepofcreatingtheirownenterprisewhilelearningeconomic,financial,and businessconcepts. Uponcompletion of thiscourse, students will beableto:Create and test a Business Modelusing the Customer Discovery process.Writeand presentaprofessional business plan.Createincome,balancesheet,andcashflow statements.Usefinancialratios toevaluatebusiness performance.Analyzemarketsandcreateeffectivemarketingplans.Usesources ofcapital.Investearnings.Develop harvestingandexitstrategies.

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00-2TheMariotti/GlackinLearningSystem1.Beginningofchapter:LearningObjectivesQuotationEntrepreneurial Vignette2.Includedinthechapter:Step into theShoes oftheExpertsBizFactsEntrepreneurialWisdomGlobalImpact3.Endofchapter:ChapterSummaryKeyTermsEntrepreneurshipPortfolio—Critical ThinkingExercises—KeyConcept Questions—Application Exercises—ExploringYourCommunityand ExploringOnline__Canvas Connections—BizBuilderBusinessPlan Questions—ShortCaseStudy/CaseStudyAnalysis—LongCaseStudy/CaseStudyAnalysis4.UnitcasesContentsoftheManualThisInstructor’s Manual provides theinstructorwith asummaryofeachchapter,aswellasanswers toallchapterexercises,casestudyanalyses,and lists ofadditional printandInternetresources.ChapterOverview:Abriefsynopsis ofthechapterChapterObjectives:MatchingthetextLectureOutlines:Outlinesand teachingnotes, including class discussion and activity ideas,foreachchaptertopicareprovided.OutsidetheClassroom:Chapters includelistingsforadditionalwebsites, media(magazines,etc.),andorganizations(e.g.,SmallBusiness Administration)thatarerelevant to thechaptermaterialand help toexpand thelearningexperiencebeyond theclassroom.

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1-1|P a g eUNIT1:ENTREPRENEURIALPATHWAYSChapter1Entrepreneursand EntrepreneurshipChapter1 ContentsUnderstanding Entrepreneurs andEntrepreneurship 3*WhatIsan Entrepreneur?3TheFree-EnterpriseSystem5VoluntaryExchange5BenefitsandChallengesofFreeEnterprise5WhatIs aSmallBusiness?6Definitions of Success–Monetary and Other 6Taking the Long View 7BenefitsandCosts ofBecominganEntrepreneur8Potential Benefitsof Entrepreneurship 8Potential Costs of Entrepreneurship10Cost/Benefit Analysis11OpportunityCost 11Seeking Advice and Information to Succeed12Entrepreneurial Options14The Many Faces of Entrepreneurship 16How Do EntrepreneursFind Opportunities toStartNewBusinesses?17EntrepreneursCreativelyExploitChanges in OurWorld18WhereOthersSeeProblems, EntrepreneursRecognizeOpportunities18Train YourMind toRecognizeBusiness Opportunities19Entrepreneurs UseTheirImaginations19AnIdeaIs Not Necessarilyan Opportunity19OpportunityIsSituational20TheFiveRoots ofOpportunityin theMarketplace21Paths toEnterpriseOwnership22SecureFranchiseRights22BuyanExistingBusiness22LicenseTechnology23MakingtheBusinessWorkPersonallyandProfessionally23ABusiness Must MakeaProfit toStayinBusiness23ProfitIs theSign That theEntrepreneurIs Adding Value24ProfitResultsfrom theEntrepreneur’sChoices24TheTeam Approach24DevelopingSkills for Your Career 25*Note: pagenumbersreferencethetextbook

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1-2|P a g eChapter1 OverviewThischapterisan introduction to theconcept ofentrepreneurship.Entrepreneurship isdefinedand thevariousadvantagesand disadvantages ofconductingbusinessasanentrepreneurare introduced.Someofthedecisions thatanentrepreneurfacesarepresented.Chapter1 ObjectivesLearningObjective1.1:Summarizewhatentrepreneurship is andwhatentrepreneurs do.LearningObjective1.2:Examinehowfree-enterpriseeconomies workand howentrepreneursfit into them.Learning Objective 1.3: Describe small business.LearningObjective 1.4:Understand the costs andbenefits of entrepreneurship.Learning Objective 1.5: Recognize the various entrepreneurial options.Learning Objective 1.6:Identifyandevaluateopportunities to startyourownbusiness.Learning Objective 1.7: Distinguish between ideas andopportunities.Learning Objective 1.8: Explore the multiple paths to entrepreneurship.LearningObjective1.9: Explainsuccesssignals forentrepreneurs.Learning Objective 1.10: Develop skills for a future career–employment orentrepreneurship.Chapter1 Outline1.Summarize what entrepreneurship is andwhatentrepreneurs do.a.Entrepreneurs start their own businesses and work for themselves.b.Entrepreneurs recognize and create opportunities to start businesses that other peoplemay not have noticed.c.Entrepreneurs shift economic resources from an area of lower productivity into an areaof higher productivity and greater yield. By doing this, they add value to scarceresources.2.Examine how free-enterprise economies work and how entrepreneurs fit into them.a.The free-enterprise system is based on voluntary exchange. Voluntary exchange is atrade between two parties who agree to trade money for a product or service. Bothparties agree to the trade because eachbenefitfrom the exchange.b.The free-enterprise system encourages entrepreneurs who use resources efficiently tosatisfy consumer needs by rewarding them with profit.3.Describe small businessa.A small business is generally defined by the U.S. Small Business Administration’sOffice of Advocacy as having fewerthan 500 employees and selling less than $5million worth of products or services annually4.Understand the costs and benefits of entrepreneurshipa.Benefitsi.Control over time

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1-3|P a g eii.Fulfillmentiii.Independence/autonomyiv.Creation/ownershipv.Financial reward/control overcompensationvi.Control over working conditionsvii.Self esteemviii.Contribution to societyb.Costsi.Business failureii.Obstaclesiii.Loneliness/isolationiv.Financial insecurityv.Long hours/hard workvi.Strain on personal relationships5.Recognize the various entrepreneurial optionsa.Social entrepreneurshipb.Green entrepreneurshipc.Microenterprised.Mainstream small firmse.Unicornsf.Corporate entrepreneurship6.Identify and evaluate opportunities to start your own business.a.The five roots of opportunity arei.problems that your business cansolve;ii.changes in laws, situations, or trends;iii.inventions of totally new products or services;iv.competition (if you can find a way to beat the competition on price, location,quality, reputation, reliability, or speed, you can create a successful businesswith an existing product or service); andv.technological advances (scientists may invent new technology, but entrepreneursfigure out how to sell it).7.Distinguish between ideas and opportunitiesa.Ideas are not necessarily opportunitiesb.Opportunity issituational

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1-4|P a g ec.Five roots of opportunityi.Problemsyour business can solveii.Changesin laws, situations, or trendsiii.Inventionsof new products or servicesiv.Competitive advantagesof importance to customersv.Technological advancesthat entrepreneurs take from thelaboratory to themarketplace8.Explore the multiple paths toentrepreneurship.a.Start your ownbusinessb.Buy an existing businessc.Secure a franchise or licensed.License technology9.Explain success signals for entrepreneurs.a.Profit is the sign that anentrepreneur has added value to the scarce resources he or sheis using.b.Not making a profit is a sign that the entrepreneur is not using resources well and is notadding value to them.10.Developskills for a futurecareer-employment or entrepreneurship.a.Written and oral communicationsb.Critical thinking and problem solvingc.Teamwork and collaborationd.Leadershipe.Creativity and discoveryf.Ethicsg.Information technology skillsh.Information literacyChapter1Teaching NotesClass DiscussionIdeas:1.Writeontheboard orposealoud thefollowing:Whatarethreethingsyou thinkothers would saythatyoucan“do”particularlywell?2.Ask thestudents to visualize:Whatkind oflifedoIwant?HowcanImakemycommunityabetterplace?

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1-5|P a g e3.Writeon theboardorproject thefollowingquoteandask thestudents torewriteorexplain it in theirown wordsand/orgiveanexampleofit:“Thepeoplewhoget on in this worldarethosewhoget outand lookforthecircumstancestheywantand, iftheycan’tfind them,makethem.”4.Inform thestudents that“entrepreneur”is not asocial orfinancialcategorybut astateof mind thatfocuses on seekingout opportunities, takingaction,andfindingways to solve otherpeople’sproblems in aprofitableway. Askstudents to thinkaboutand nameentrepreneurs theyknow,suchas small businesspeoplein theneighborhood.Can they think ofways theselocalentrepreneurs saw problemsasopportunitiesand solved thoseproblems in aprofitableway?Can students thinkofatimewhen theywereentrepreneurial in this way?5.Elicitfrom studentsseveralmeanings ofthewordfree.Stress that, in thecaseoftheterm“free enterprise,”it means thatanyonemaystart, own,orsell abusiness(“enterprise”); may sellgoodsandservicesforwhateverpricetheycangetforthem;and mayspend their moneyand invest theirassetsas theychoose.Invitestudents toshareopinionsabout afree-enterpriseeconomy,both theadvantages(suchasfreedomto succeed,rewardfor initiative, no interferencefrom others)and disadvantages(suchasfinancialriskand personalresponsibility).6.Ask studentsfortheirdefinitions ofopportunity.How isan opportunitydifferentfromaproblem?(An opportunityis viewed morepositivelythanaproblemandconsidered asituationan individualcan do somethingabout.Opportunityis moreamatterofattitudetoward potential problems than thescenario itself.)7.Ask what opportunitiesanemployeegenerallyhas.(Examples: training, promotions,raises—butall decidedbysomeoneelse.)Ask what opportunitiesanentrepreneurhas.(Examples:growingthebusiness, learningskills, meetingnew people,creatingwealthbased on his/herownand/orthemarket’sgoalsand needs.)Ask whatanemployeeownsinhis/herjob. Ask whatanentrepreneurowns.8.Summarizethedifferences betweenownership,as it implies that somethingbelongs toyou,andtenancy,whichimpliesyoucan usesomethingbelongingto others with theirpermission. Useexamples to makethisdifferencemoreconcrete.Createatwo-columnchart on theboardcomparingdifferentaspects ofhomeownership vs.renting,andbusiness ownership vs.employment. Emphasizethepoint that ownershipoften meansthatyou delayrewardsuntil somepoint inthefuture(e.g.,you don’tgetpaidforyoureffortsrightaway, thewayyou dowithemployment)but that therewardsareoftenbigger(e.g.,youget thecompany’sprofits, not asalaryorwages,andcanperhaps sellthecompanyforalot moremoneythanyoucouldhaveearned inwagesasanemployee).Chapter1LectureEnhancersPPTLectureSlidesforChapter1OutsidetheClassroom:www.sba.gov:TheSmallBusiness Administration(SBA)is agovernmentagencythatsupportsand promotesentrepreneurs. TheSBAoffersfreeorinexpensivepamphlets on avariety of

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1-6|P a g ebusiness subjects.Somelocal offices offercounselingto small business owners throughSCOREortheSBDCsystem.www.eonetwork.org: EntrepreneursOrganization provides learningandnetworkingopportunitiesworldwideforyoungentrepreneurs.www.zeromillion.com: This site,runbyZero toOneMillionauthorRyanAllis, providesresourcesforyoungentrepreneurs,anetworkinglist ofcontactscalledTheEntrepreneurshipDirectory, discussionforums,and links toarticlesandcourses.EntrepreneurmagazineSubscriptions:www.entrepreneur.comMIT EntrepreneurshipCenterhttp://entrepreneurship.mit.eduTheConciseEncyclopedia of Economicshttp://www.econlib.org/library/Enc/Entrepreneurship.htmlChapter1 KeyTermsAcquisition22Capital 5Capitalism5Commission9Corporate entrepreneurship 17Cost/benefitanalysis11Dividend9Duediligence22Entrepreneur4Family enterprise 17Franchise22Free-enterprisesystem5Greenentrepreneurship15Lifestylebusiness16Mentor12Microenterprise22Necessity-based entrepreneurship 4Opportunitycost 11Opportunity-based entrepreneurship 4Product 3Profit23Salary9Service3Social business 15Socialentrepreneurship14Trade-off24Unicorns17

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1-7|P a g eVenturePhilanthropy15VoluntaryExchange5Wage9Chapter1 Class Activity Ideas andGroupExercises1.Direct students individuallyorin small groups to brainstorm problems theyseeinsociety,theirneighborhoods, theschool, ortheirown lives. Afterafew minutes,askeachstudent orgroup tochooseoneproblem. Howcould it beturned intoanopportunity—a product orservice—thatmight help solvetheproblem?Havestudents/groupspresent their ideas to theclass.2.Askeach studenttoidentifyoneprofession oroccupation heorsheisconsideringas acareer. Group students based onjobs/businesses thatarein similarinterestgroupings orincomparableindustries:forexample, workingwith numbers(accounting, insurance),orinentertainment(actor, musician),orscientificcareers. Giveeachgroup afew minutes tobrainstorm ways toturn thecareerinto abusiness opportunityso that studentscould workforthemselves. How might theythinkabout theirinterests in terms ofentrepreneurship?Haveeachgroup brieflyshareits ideas.3.Guest SpeakerPanel.Inviteseveral localentrepreneurs to serveas panel membersforadiscussion ofthebenefitsandchallenges ofentrepreneurship.Considerinvitinganentrepreneurfromeachmajortypeofbusiness(manufacturing, wholesale,retail, service).Tryto match thedemographiccharacteristics ofthepanel toyourclass(e.g., women,AfricanAmericans, Hispanics, Asians)and to includeentrepreneursfromdifferentagegroups.Prep thepanel members to beabletogiveabriefoverviewoftheirrespectivebusinesses(product/servicedescription,typeofbusiness, when started,annual sales,etc.)and discuss whytheybecameentrepreneurs, whattheyseeas themain benefits ofentrepreneurship, what theirgreatestchallenges havebeen, what theirgoalsare,etc. Havestudentscomeup withlists ofadditional questions beforethespeakersarrive.4.Invitestudentsvisit http://www.yahoo.comandhttp://www.google.comandconduct acomparativeSWOTanalysis ofthetwo searchenginecompetitors.Which should theclass invest in?Why?5.Havestudents search theInternetfor“casestudies onentrepreneurs.”Havethemfindnoteworthyentrepreneursand writeup what thesepeoplehaveaccomplished.Chapter1 CriticalThinkingExercises1-1.What would bethebest thingabout owningyourown business?What would betheworstfor you? Why?L.O. 1.1Summarize whatentrepreneurship is andwhatentrepreneurs do.AACSBReflectivethinkingAnswerswill varywithstudents.Typically, they will draw upon the itemsonpages8through 11. Best: control over time; fulfillment;independence/autonomy; creation/ownership;financial reward/controlover compensation; control over working conditions; self-esteem, and

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1-8|P a g econtribution to society.Worst: business failure; obstacles;loneliness/isolation; financial insecurity; long hours/hard work, strain onpersonal relationships.Encouragestudentstowritecompletesentencesanduseparagraphstoclearlyconvey andorganizetheirthoughts.1-2.Choosethreenon-financial benefits ofentrepreneurship that might beimportant toyou.Writeaparagraphabouteachand why it would be important.L.O.1.2 Examine how free-enterprise economies work and how entrepreneurs fit intothem.AACSB Application of knowledgeAnswerswill varywithstudents. Non-financialbenefitsmightincludeself-esteem, satisfaction,excitement,and the like.Much like previous question,but explicitly excludes financial rewards.1-3.Ifyou wereto start abusinessfive years fromnow, what wouldyou expectopportunitycostto be?In otherwords, whatwould bethenext-best useofyourtime?How muchmoneycouldyoumakeworkingas an employee, instead?Theanswerto this questionwillgiveyou arough ideaofhowto valueyour timewhenyou start abusinessandfigureout how much to payyourself.L.O.1.6Identify and evaluate opportunities to start your own business.AACSB Analytical thinkingMy opportunitycostwouldbethecostofotheractivitiesthatIcouldpursueduringthattime.Mytimeisworthapproximately $perhour.1-4.Select and describean ideathatyou havefor a business.Summarizehow itcouldsatisfyaconsumer need.What problem is it solving? For whom?L.O.1.6Identify and evaluate opportunities to start your own business.AACSB Analytical thinkingExample:Iplanto startabusinesscalled“OldiesbutGoodies DJService.”Customerswillhiremeto DJ atspecialevents includingfamilyreunions,retirementparties,birthdays, andanniversarycelebrations. OldiesbutGoodies will specializeinplayingMotown-eramusicfromthe1960 and70s.Mybusinesswillcaterto older customerswhoenjoythisperiodandstyle. IwilldelivermyDJ servicesdirectlytomyclients. WhenI amhiredtoplay ataparty, Iwilltransportall ofmyequipment andmusictotheevent.Many DJsfocus onplayingthelatest,mostcutting-edgetracks,butoldercustomersdonotvaluethisfeature. Iwillbesatisfyingmycustomers’needtohearthemusictheyenjoymost. OldiesbutGoodieswillofferitscustomers afun-filled,nostalgicmusicalexperiencethattheycansharewiththeirfriends

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1-9|P a g eandrelatives.1-5.Provideanexampleofachangethat has occurredorisabout to occurinyourarea/neighborhood. Discussat least threebusiness opportunities thischangemightcreate.L.O.1.6Identify and evaluate opportunities to start your own business.AACSB Analytical thinkingStudent’sexamples shouldstemfromachangeinlaws,situations, ortrends.Example:I liveinahipandtrendyneighborhoodofyoungpeople.Lately, I’venoticedthatmanypeopleinmyneighborhoodarestartingfamilies.Business opportunitiescreatedbythischangemightincludeday-careandbabysitting services,diaper-delivery services, andmother’shelperservices.1-6.Identify and listfivebusiness opportunities inyourenvironmentand theneed(s)eachwould satisfy.Indicatewhethereach opportunityyoudescribeislikely to be a lifestylebusiness, microenterprise, small business, unicorn or some other type of business.L.O.1.6Identify and evaluate opportunities to start your own business.AACSB Analytical thinkingand application of knowledgeBusiness OpportunityandType:Need(s)Satisfied:1.(Example)acafe/bookstore1. aplacewhereteenagerscanhang out(lifestyle business)becauseitdoesn’tservealcohol2.2.3.3.4.4.

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1-10|P a g e5.5.__________________________1-7.How have you worked to develop the critical skills discussed in the chapter? Which skillsare your strongest? How might you build those that need improvement?L.O.1.10Develop skills for a future career–employment or entrepreneurship.AACSB Reflective thinking and application of knowledge.Students will provide a range of areas. For example: I have done many things todevelop the critical skills discussed in this chapter. I have taken courses thatinvolve developing and using the skills. I have read books, watchedvideos, andlistened to podcasts onseveralthe skills. I practice the skills as much as I can.My strongest skills include: critical thinking, teamwork, and leadership. I maybe able to improve upon my information technology skills by taking additionalcourses or using tutorials to learn skills and projects to practice them.Chapter1KeyConceptQuestions1-8.Definesmall businessaccording to the U.S. Small Business Administration terms.How, ifat all, does this differ from what you expectedthe definition to be?L.O.1.3 Describe small business.AACSB Application of knowledge andreflectivethinkingAsmallbusinesshasfewerthan500employeesandhas lessthan$5millionin annual sales.Students often envision small business as being25 or fewer employees and lower than $1 million in annual sales. Theyare surprised to learn how many businesses are considered small.1-9.Explain how profit worksas asignal to theentrepreneur.L.O.1.9Explainsuccesssignals forentrepreneurs.AACSB Analytical thinkingWhenabusinessearns aprofit, ittellstheentrepreneurthatheorshehasmade gooddecisions abouthowtousescarceresourcestomeetconsumerneeds.1-10.It will probablytakeabout threeto18monthsforyourbusiness to startearningaprofit. Do you agree or disagree?Why?Ifyou disagree, how longdoyouexpect it totake? What are the three most importantfactors in determining the time frame?

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1-11|P a g eL.O. 1.9 Explain success signals for entrepreneurs.AACSBAnalytical thinkingThis will generally have “disagree” as the answer, as most businesses takemore than three months to generate profits. The length of time they providewill likely be between 12 and 24 months. They should be able to explain theanswer. Most important factors include: revenues, startup costs, cost ofgoods sold, andfixed costs.1-11.Summarizethreefactsaboutcapitalism.L.O.1.2 Examine how free-enterprise economies work and how entrepreneurs fit intothem.AACSBApplication of knowledgeCapitalismis aneconomicsysteminwhichanyoneisfreeto startabusiness.Inacapitalisticsociety,thegovernmentdoesnotsetpricesformostgoodsandservices.Capitalismisbasedonvoluntaryexchange.1-12.Compare and contrast themeaning of a business opportunity and a business idea.L.O.1.6Identify and evaluate opportunities to start your own business.AACSBAnalytical thinkingBusiness OpportunityBusiness IdeaCustomer segment tested and realCustomer segment untestedProduct or service defined sufficiently to testProduct or service can be wholly “imaginary”Sufficient customers who will pay sufficientprices frequently enough to generateprofitability in the foreseeable futureBecause thesegment is untested, it is notclear that the business can become profitableIt is attractive to customers because it createsor adds value for its customersUnknownIt will work in the business environmentUnknownIt can be executed in a defined windowofopportunityUnknownIt can be implemented with the right team tomake it durableUnknown1-13.Visit theU.S.SmallBusinessAdministrationWebsite(http://www.sba.gov).Read anarticle on starting a business and writea summaryof the key information (200words or fewer). Remember to create a proper citation for the article.L.O.1.1and 1.6Summarize whatentrepreneurship is andentrepreneurs do,andidentify

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1-12|P a g eand evaluate opportunities to start your own business.AACSBWritten and oral communication & information technologyStudent answers will vary widely. They all should be well written and containat least one citation in the requisite format.Chapter1 ApplicationExercises1-14.Haveaconversation with afriend orrelative.Discuss things he or shefindsfrustratinginhis or herarea/neighborhood.a .Writedown thesecomments.b.Generateat leastthreebusiness opportunitiesfrom thisconversation.c.Usethechecklist below toevaluateyourthreebusiness ideasasopportunities.d.Choosethebest ofthebusiness opportunitiesanddevelopaSWOTanalysisforit.e.Createacost/benefitanalysisforstartingthis business. Usetheanalysis toexplainwhyyou would orwould notactuallystart it.L.O.1.6Identify and evaluate opportunities to start your own business.AACSBAnalytical thinkingStudents shouldfilloutchecklistsforthreebusiness opportunitiestheygeneratebytalkingwithafriendorrelativeandthensupply acost/benefitanalysisforeach. TheSWOTanalysis can be in paragraph form or as a tableand should include internalstrengths and weaknesses and externalopportunitiesand threats.BusinessIdeaCriticalEvaluationWould it beattractiveto potentialcustomers?YesWould it work inyourbusinessenvironment?YesIs thereawindow ofopportunity?YesDoyouhavetheskillsandresources tocreatethisbusiness?YesIfyou do not havetheskillsandresources tocreatethisbusiness, doyou knowsomeonewho doesand might wanttocreatethis business withyou?Yes___NoNoNoNoNo___

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