The Entrepreneur assignment is designed to inspire you to think about whether to work for a company, work for yourself, employ others or purchase an existing company.
Apply Financial management concepts to demonstrate understanding of financial principals, supply/demand, irregular cash flows, present and future value of money, business start-up, expansion and succession planning, opportunity cost and risk/reward relationships.
- Who is the entrepreneur you admire? Why?
- Which panelist most impressed you from the STORY OF THE START? How did (s)he get started in business? Why did they become an entrepreneur instead of working a traditional W2 job? Describe sacrifices made ( opportunity costs ). How does this individual compare ( similarities and differences ) with your admired entrepreneur?
Go to www.bankrate.com (or similar resource) and prepare a loan amortization schedule to describe how someone could start a business while managing a positive cash flow ( feel free to make necessary, logical assumptions ) and incorporate the financial description into your paper. Note is will not be the actual financial accounting of the person's business ( although it could be). The purpose is to simulate a start-up loan.
Assume the entrepreneur invested $ in the start up and expansion of their business. Explain the opportunity cost vs. saving/investing that same amount of money. Many self-employed people defer personal gratification while starting and growing their businesses. For example, If I put $1,000 into my business to purchase equipment, then I missed an opportunity to put that same $1,000 into my ROTH IRA. Assume the ROTH IRA would have earned 10% per year for 30 years... what is the future value of the $1,000 in the ROTH ( assuming no additional contributions ) at the end of the 30 year time period?
• How does your entrepreneur protect their intellectual property? ( Patents, Licensing, etc. )
• Beginning with the end in mind... how would your entrepreneur get out of the business at time of retirement? sell it ( to whom )?
Job = work for someone else
Practice = self employed but you need to do all the work
Business = self employed with employees who do the work
Firm (Legacy) 3rd, 4th, 5th etc generation of leadership, management ( like an Endowment Fund for a charity, for example )
Within your paper, use key terms from your textbook and include properly formatted references. I'll be looking for a minimum of six (6) vocabulary terms and/or content
• Last, but not least... IF YOU WERE INDEPENDENTLY WEALTHY and did not need to work for income... What God-given talent would you like to further develop?
For citing sources use easybib or similar resource. Use legit, academically recognized sources.... www.google.com does not count!