Small-Business Key Terms

Getting started in the small-business world

Starting a small business can be overwhelming. Before you dive into the business world, take the time to understand certain aspects of small businesses that will be important to your success. While the key terms provided below are just a sampling of the information you'll need to know, they will get you moving in the right direction.

Entrepreneur

Entrepreneur is another word for someone who is in business for himself or herself. An entrepreneur has a business idea and runs with it, assuming the risk and responsibility. Entrepreneurs have great leadership, organizational and management skills, as well as a great idea to back them up.

Business plan

A business plan is the outline for the future of a small business. Many lenders require a business plan before they will consider providing a loan to a business. It consists of a description of the company, an analysis of the market for the product or service, a layout of the organization and management of the company, financial information and descriptions of the executives and stockholders involved.

Market research

Market research is the use of customer feedback to determine where there is a need, how well your product or service will do within your industry, and to find a specific target market for your product/service. Market research is especially crucial to small business startups because it will help you determine if your idea will make it.

SBA

SBA stands for Small Business Administration, which is an independent agency of the federal government started in 1953. Its purpose is to promote creativity, be an advocate for small business, get results, empower small businesses and help them be successful. Several programs are in effect with these purposes in mind.
Small Business Administration provides information on its purpose, history, principles,leadership and administration.

Public relations

Public relations, also known as PR, is a means of marketing your business. It encompasses how the public views your business and the product/service you provide, through advertising, media (newspapers, television and other publications) and public engagements. PR is about conveying to the consumer the image and standards that are the foundation of your small business.
Free Management Library provides an explanation of public relations, as well as links to several resources.

Human resources

Human resources, or HR, is the management of employees. In includes everything from hiring and firing, to administering benefits and resolving conflicts. Whether you have an entire human resources department, or one office administrator who oversees everything, HR is one of the most important requirements because it ensures that your business runs smoothly.
Society for Human Resource Management is a good source of information on the best ways to conduct your HR department.

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