What is an Entrepreneur?

Entrepreneur is a big word (that's hard to say and spell)! It means someone that owns a business. An entrepreneur can do just about anything. They can sell items they made, they can sell items other people have made, or they can provide services to others. Entrepreneurs generally take risks going on their own to start a company.

What is a Business Plan?

A business plan is a well thought out plan for how your business will succeed. This will include things like a mission statement (what your business wants to do) and financial statements (how much your business will make). Before you start a business you should sit down and create a business plan to see if your idea will make money. This will also help others understand your business. Business plans are a great tool when asking investors or banks for money (and as a child this might mean asking your parents to help you with some costs to get started).

What are Products and Services?

Products are items you sell. These can be items you make or items other make but you sell them. For example, you might know how to crochet so you make hats and sell them to your friends. Or maybe you paint pictures and your friend pays you to make a custom picture. You might also sell items someone else made. For example, you might have lots of toys that you want to sell to someone. Those toys are products.

Services are things you do for someone else that you charge them for. For example, kids frequently do yard work for other people. You might also babysit or tutor younger kids.

What are Financial Statements?

Financial Statements are formal documents showing how your business is doing (if it is making money or losing money). This generally includes a Profit and Loss Statement which shows your income (money brought in) and expenses (money going out). It also includes a balance sheet. A Balance sheet shows a snapshot of assets, liabilities, and equity or simply put what the business has (money and products).