ENTREPRENUERSHIP

WORD OF THE DAY 8-)

1.) ESPRESSO: AN ITALIAN COFFEE-BREWING METHOD THAT HAS BEEN AROUND FOR ABOUT A HUNDRED YEARS.

“ESPRESSO WAS INITIALLY INTRODUCED TO THE UNITED STATES IN THE MID-1950s .”

2.) BUSINESS PLAN: A DOCUMENT THAT DESCRIBES A NEW BUSINESS, EXPLAINING TO LENDERS AND INVESTORS WHY THE NEW BUSINESS DESERVES FINANCIAL SUPPORT.

“BUSINESS PLANS CAN BE INSTRUMENTAL IN SECURING LOANS OR OTHER FUNDING, ATTRACTING BUSINESS PARTNERS, AND DOING GROUND-LEVEL TROUBLESHOOTING.”

3.) COMPETITION: STRIVING FOR THE SAME CUSTOMER MARKET.

“WHEN OPENING A NEW ESPRESSO VENTURE, SOME COMPETITION IS GOOD.”

4.) COMMISSARY: A PLACE WHERE YOU CAN CLEAN AND STORE YOUR CART, WASH UTENSILS, SERVICE EQUIPMENT, AND SANITIZE EVERYTHING.

“THE WORD COMMISSARY ORIGINALLY REFERED TO THE ARMY OFFICER IN CHARGE OF PROVIDING SOLDIERS WITH FOOD AND OTHER SUPPLIES.”

5.) PLAN REVIEW: A WRITTEN DOCUMENT PACKED WITH INFORMATION ABOUT YOUR BUSINESS. WITH A PLAN REVIEW YOU ARE COMMUNICATING TO THE HEALTH DEPARTMENT PRECISELY WHAT YOU HAVE IN MIND FOR YOUR PROPOSED BUSINESS.

“THE PLAN REVIEW FOR AN ESPRESSO CART MIGHT NEED DETAILS ABOUT THE LOCATION AND CAPABILITIES OF THE COMMISSARY.”

6.) VENTURE: A BUSINESS UNDERTAKING INVOLVING RISK.

“WHEN FINANCING YOUR ESPRESSO VENTURE YOU MUST CONSIDER THE COST OF OPERATING BEFORE THE BUSINESS STARTS TO PAY FOR ITSELF.”

7.) CAPITAL: THE BUILDINGS, EQUIPMENT, TOOLS, AND OTHER GOODS NEEDED TO PRODUCE A PRODUCT OR THE MONEY USED TO BUY THESE THINGS.

“ A NEW BUSINESS OWNER IS ABLE TO RETAIN HIS OWN CASH FOR WORKING CAPITAL, AND THE LEASE PAYMENT IS USUALLY TAX DEDUCTIBLE.”

8.) QUALITY CONTROL PROGRAM: A CHECK FOR QUALITY THAT IS BUILT INTO THE PRODUCTION PROCESS TO MAKE SURE PRODUCTS MEET CERTAIN STANDARDS.

“QUALITY CONTROL PROGRAMS ARE AN EXAMPLE OF CORRECTIVE ACTIONS YOU CAN TAKE TO HELP CONROL PERFORMANCE.”

9.) GRANITA: A FROZEN, SLUSH-TYPE DRINK MADE BY COMBINING VARIOUS FLAVORINGS WITH THE FINE GRANITA FLAVOR.

“GRANITA MAY BE JUST THE PERFECT EXTENSION FOR YOUR ESPRESSO BUSINESS, ESPECIALLY IF YOU’RE OPENING AN OUTDOOR CART IN A WARMER CLIMATE.”

10.)SHOT TIMER: THE PURPOSE OF A SHOT TIMER IS TO TIME THE EXTRACTION OF THE POUR, OR PULL OF EACH ESPRESSO SHOT.

“PERIODIC USE OF A SHOT TIMER IS A GOOD WAY TO MONITOR EXTRACTION TIME AND MAKE SURE THE GRIND IS APPROPRIATE FOR OPTIMAL EXTRACTION.”

11.)BARISTA: AN ESPRESSO BARTENDER.

“ JOE PLANS TO MAKE A CAREER AS A BARISTA AT A LOCAL ESPRESSO STAND.”

12.) OPERATIONS MANUAL: GIVES THE EMPLOYEES THE INFORMATION THEY NEED TO DO THINGS PRECISELY THE WAY YOU’D LIKE THEM TO BE DONE.

“AN OPERATIONS MANUAL FUNCTIONS SOMEWHAT LIKE A GUIDE BOOK FOR YOUR EMPLOYEES.”

13.) RISTRETTO: A “RESTRICTED” SHOT OF ESPRESSO – ABOUT 3/4 OF A FULL OUNCE, THE FIRST SWEET BURST OF ESPRESSO.

“NOT KNOWING WHAT TO ORDER, THE COLLEGE STUDENT ORDERED A BREVE RISTRETTO AND WAS PLEASANTLY SURPRISED BY ITS SWEETNESS.”

14.) PUBLIC RELATIONS: A MEANS FOR USING ANY FORM OF MEDIA – PRINT, RADIO, OR TELEVISION – TO GAIN POSITIVE RECOGNITION FOR A PERSON, PLACE OR THING.

“WHEN YOU SMILE AT YOUR CUSTOMER AS YOU HAND THEM A LATTE, YOU ARE DOING GOOD PUBLIC RELATIONS.”

15.) BACKFLUSHING: THE ACT OF FORCING WATER BACK UP THROUGH THE SCREENS AND GROUP HEADS, AND CLEANS PLACES YOU CAN’T REACH ANY OTHER WAY.

“WE RECOMMEND BACKFLUSHING SEVERAL TIMES A DAY WITHOUT CLEANER, AND ONCE A WEEK WITH IT.”

16.) GRINDER BURRS: THE SHARP STEEL PLATES WITHIN THE GRINDER THAT CUT OR MILL COFFEE BEANS.

“THE GRINDER BURRS HAVE TO BE SET AT THE PERFECT SPOT WHERE THE DISTANCE BETWEEN THEM CREATES A FINE, BUT NOT TOO FINE GROUND.”

17.) PORTAFILTER: THE COFFEE HANDLE, OR FILTER HANDLE, OF THE ESPRESSO MACHINE; CONTAINS FILTER INSERT AND IS TWISTED UP INTO A GROUP FOR BREWING.

“WHEN YOU DOSE GRINDS INTO THE PROTAFILTER, BESURE TO TAMP THE GROUNDS AT 45 PSI.”

18.) CLEANING ROUTINE: A SYSTEM OF CLEANING CONSISTING OF MACHINE WIPE DOWN; BACKFLUSHING; DRAIN TRAY, PORTAFILTER, AND STEAM WAND CLEANING; HOPPER AND DOSER CLEANING; AND WATER TREATMENT.

“BARISTAS SHOULD BE WIPING DOWN THE MACHINE, CLEANING AND CLEARING THE STEAM WANDS AFTER EACH USE, AND RINSING THEIR PORTAFILTERS ON AN ONGOING BASIS.”

19.) UNDER-EXTRACTION: DESCRIBES INSUFFICIENT WATER OR EXTRACTION TIME DURING THE BREWING PROCESS.

“UNDER-EXTRACTION YEILDS A WATERY ESPRESSO WITH GROSSLY UNDERDEVELOPED FLAVORS, DON’T USE THEM.”

20.) TAMP: THE PROCESS OF PRESSING GROUND COFFEE INTO THE FILTER INSERT JUST PRIOR TO BREWING.

“WHEN YOU DOSE GRINDS INTO THE PORTAFILTER, BE SURE TO TAMP THE GROUNDS AT 45 PSI.”

21.) WET: DESCRIBES AN ESPRESSO BEVERAGE MADE WITH A LESS-THAN-USUAL PROPORTION OF FOAM, MOST OFTEN USED TO DESCRIBE A CUSTOMIZED CAPPUCCINO.

“WHEN A CUSTOMER ORDERS A CAPPUCCINO AT THE PANTHER PITSTOP, IT MAY BE A GOOD IDEA TO ASK THEM IF THEY WOULD LIKE IT WET.”

22.) ENTREPRENUER: A PERSON WHO ORGANIZES, OPERATES, AND ASSUMES THE RISK FOR A BUSINESS VENTURE.

“AN ENTREPRENUER ACCEPTS THE RISKS AND RESPONSIBILITIES TO GAIN PROFITS AND PERSONAL SATISIFACTION.”

23.) ECONOMICS: THE STUDY OF THE DECISIONS OR CHOICES THAT GO INTO MAKING, DISTRIBUTING, AND CONSUMING PRODUCTS.

“TO REALLY UNDERSTAND HOW ENTREPRENEURS AND CUSTOMERS INTERACT, YOU NEED TO START WITH ECONOMICS.”

24.) FREE ENTERPRISE SYSTEM: THE RIGHT TO MAKE ECONOMIC CHOICES IS MOST IMPORTANT.

“MOST DEMOCRATIC NATIONS HAVE A FREE ENTERPRISE SYSTEM ALSO CALLED CAPITALISM OR A MARKET ECONOMY.”

25.) DIMINISHING MARGINAL UTILITY: ESTABLISHES THAT PRICE ALONE DOES NOT DETERMINE DEMAND.

“THE PRINCIPLE OF DIMINISHING MARGINAL UTILITY STATES THAT CONSUMERS WILL NOT BUY MORE THAN THEY WILL REASONABLY USE.”

26.) PATENT: A GRANT TO AN INVENTOR THAT GIVES HIM OR HER THE EXCLUSIVE RIGHT TO PRODUCE AND SELL AN INVENTION.

“IN THE GAME RISKY BUSINESS YOU HAVE TO PATENT AT LEAST 2 LINES OF PRODUCT BEFORE YOU CAN MOVE ON.”

27.) CONTINGENCY FUNDS: EXTRA FUNDS THAT ARE CALCULATED INTO THE START-UP NEEDS, AND CAN BE USED TO COVER UNFORESEEN BUSINESS EXPENSES.

“LIKE A BACKUP PLAN, CONTINGENCY FUNDS CAN HELP BAIL YOU OUT OF FINANCIAL TROUBLES THAT MAY OCCUR WHEN FIRST STARTING YOUR BUSINESS.”

28.) BUSINESS BROKER: SOMEONE WHOSE JOB IS TO BRING BUYERS AND SELLERS TOGETHER.

“FOR THEIR FINAL ACQUISITION OF MERIT CORP. THE TEAM BROUGHT IN A BUSINESS BROKER TO COMPLETE THE TRANSACTION.”

29.) ANGELS: COINED TERM FOR NONPROFESSIONAL INVESTORS WHO TEND TO PUT THEIR MONEY INTO LOCAL BUSINESSES.

“ANGELS IN OUR COMMUNITY GIVE HELP TO NEW BUSINESSES AS WELL AS STRUGGLING BUSINESSES.”

30.)SHRINKAGE COSTS: MONEY LOST WHEN INVENTORY ITEMS ARE LOST BROKEN, DAMAGED, SPOILED, OR STOLEN.

“THE SHRINKAGE COSTS BECOME SIGNIFICANT WHEN EMPLOYEE STEAL SMALL ITEMS LIKE PAPER CLIPS AND INK PENS ON A LARGE SCALE.”

31.)DEMOGRAPHICS: PERSONAL CHARACTERISTICS THAT DESCRIBE A POPULATION BY AGE, GENDER, INCOME, ETHNIC BACKGROUND, EDUCATION, AND OCCUPATION AMONG OTHERS.

“ONE DEMOGRAPHIC TREND THAT AFFECTS ENTREPRENEURSHIP IS THE INCREASING DIVERSITY OF THE AMERICAN PEOPLE.”

32.) COMMISSION: A FEE FOR SERVICES RENDERED BASED ON A PERCENTAGE OF AN AMOUNT SOLD.

“SALESPEOPLE TYPICALLY WORK ON A COMMISSION BASIS WHICH HELPS SALES IN THAT IT IS INCENTIVE BASED, MEANING THE MORE YOU SELL THE MORE YOU MAKE.”

33.) MARKET SEGMENTATION: THE PROCESS OF GROUPING A MARKET INTO SMALLER SUBGROUPS DEFINED BY SPECIFIC CHARACTERISTICS.

“WHEN YOU STUDY THE CHARACTERISTICS OF THE TOTAL MARKET, YOU CAN IDENTIFY MARKET SEGMENTS”

34.) PUBLIC RELATIONS: ACTIVITIES DESIGNED TO CREATE GOODWILL TOWARD A BUSINESS OFTEN REPORTED BY THE MEDIA.

“NEWS ABOUT AN ACCIDENT OR UNSAFE PRODUCT CLAIM CAN HURT A COMPANYS IMAGE AND NEED A QUICK RESPONSE BY PUBLIC RELATIONS.”

35.) QUALITY CIRCLE: A SMALL GROUP OF EMPLOYEES WHO DO SIMILAR JOBS AND MEET REGULARLY TO IDENTIFY WAYS TO IMPROVE THE QUALITY OF WHAT THEY DO.

“FORD MOTOR COMPANY USES A QUALTY CIRCLE TO IMPORVE QUALITY BECAUSE THEY REQUIRE EMPLOYEES TO BE RESPONSIBLE FOR THEIR WORK.”

36.) SAFETY STOCK – A CUSHION OF PRODUCTS OR MATERIALS THAT PREVENTS A BUSINESS FORM RUNNING OUT OF INVENTORY WHILE WAITING FOR AN ORDER.

“THE SAFETY STOCK OF A BUSINESS CAN BE CRUCIAL IN TIMES OF UNPLANNED OR UNEXPECTED EMERGENCIES.”

37.) SOLE PROPRIETORSHIP – THE PRINCIPLE THAT COMPANIES SHOULD CONTRIBUTE TO THE WELFARE OF SOCIETY AND NOT BE SOLELY DEVOTED TO MAXIMIZING PROFITS.

“IN THE STRUCTURE OF BUSINESS THERE ARE THREE: SOLE PROPRIETORSHIP, PARTNERSHIP, AND CORPORATION.”

38.) SWOT ANALYSIS – A STRATEGIC PLANNING TECHNIQUE THAT ANALYZES A COMPANY’S STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS IN THE EXTERNAL SALES ENVIRONMENT.

“AS PART OF A START UP PLAN, YOU SHOULD CONSIDER A SWAT ANALYSIS ALONG WITH A COMPTEITVE GRID AND INCLUDE BOTH IN YOUR BUSINESS PLAN.”

39.) QUALITY CONTROL PROGRAM – A SET OF MEASURES BUILT INTO THE PRODUCTION PROCESS TO MAKE SURE THAT PRODUCTS OR SERVICES MEET CERTAIN STANDARDS AND PERFORMANCE REQUIREMENTS.

“IN ORDER TO COMPARE YOUR PLANS WITH WHAT IS ACTUALLY HAPPENING YOU CAN USE BUDGETS, PERSONAL OBSERVATIONS, AND QUALITY CONTROL PROGRAMS.”

40.)PSYCHOLOGICAL PRICING – A PRICING TECHNIQUE, MOST OFTEN USED BY RETAIL BUSNESSES, THAT IS BASED ON THE BELIEF THAT CUSTOMERS’ PRECEPTIONS OF A PRODUCT ARE STRONGLY INFLUENCED BY PRICE; IT INCLUDES PRESTIGE PRICING, MULTIPLE – UNIT PRIING, AND BUNDLE PRICING.

“ONCE YOU HAVE INTRODUCED YOU NEW PRODUCT YOU NEED TO ADJUST YOUR PRICES SO THEY ARE ATTRACTIVE TO BUYERS USING PSYCHOLOGICAL PRICING.