Blog 1 (ENT 650)
Right now we are going through huge changes due to the COVID-19. What kind of businesses could we start during these stressful times?
According to Entrepreneurial Finance by Steven Rogers, Microsoft and FedEx were started during a recession. I believe that’s really important to remember it’s worth the risk because sometimes you never know.
An intrapreneur is a corporate entrepreneur that is gainfully employed at a Fortune 500 company and professionally engaged in entrepreneurial activities.
4 types of Intrapraneurs:
1. Corporation- Low Risk. Guaranteed a job for life. Examples include IBM, McKinsey & Co., and General Motors.
2. Franchise- Medium Low Risk. Examples include Dunkin’ Donuts, McDonald’s, and Ace Hardware.
3. Acquisition- Somewhat risky. Examples include Microsoft, Radio One, and Blockbuster.
4. Start-up-High Risk. Examples include Amazon.com, Dell, Apple, Google, and Facebook. Start-up is the most difficult and risky way to be a successful entrepreneur. Two great examples of success stories with start-ups include Steve Wozniak, who was a college dropout, and Steve jobs of apple computer. With only 1300$ of his own money, Wozniak and Steve Jobs launched Apple computer from his parent’s garage.
Something else I want to cover is in Chapter two, showing results of a recent study of business owners. Their weakest skill in the study showed it was the area of financial management. We must realize that financial management is not as difficult as it seems. It is one of the key factors for entrepreneurial success.
Financial statements are important because they provide valuable information that is typically used by business managers and investors.
All 3 of these things describe a company’s financial health.
1) The income statement- Describe company’s profitability. It’s the measurement of the company’s financial performance over time.
2) The balance sheet- Describes the financial condition of a company at a particular time.
3) The statement of cash flows- Uses information from the 2 other financial statements, (the balance sheet, and income statement), to develop a statement that explains changes in cash flows