Starting a Business All-in-One For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Book 1 Moving from Idea to Reality
Chapter 1 Your Business in Context
Getting an Overview of Feasibility Analysis
Executive summary
Business concept
Industry analysis
Market/customer analysis
Genesis or founding team analysis
Product/service development analysis
Financial analysis
Feasibility decision
Timeline to launch
Understanding Your Industry
Using a framework of industry structure
Deciding on an entry strategy
Researching an Industry
Checking out the status of your industry
Competitive intelligence: Checking out the competition
Defining Your Market Niche
Narrowing your market
Developing a niche strategy
Zeroing In on a Brand-New Product
Becoming an inventor
Teaming up with an inventor
Licensing an invention
Chapter 2 Refining and Defining Your Business Idea
Recognizing the Power of a Good Idea
Knowing the difference between passion and profitability
Turning a side gig into a business
Planning ahead: Great ideas take time
Checking out the competition
Brainstorming New Business Ideas
Reimagining your business environment
Inspiring team creativity (with or without donuts or bagels)
Identifying Business Opportunities
Tuning in to what customers have to say
Pursuing changes that open up new opportunities
Narrowing your choices
Putting a Promising Idea to the Test
Doing your first reality check
Anticipating disruptive innovations: Opportunities and cautions
Getting a second opinion
Conducting a self-appraisal
Chapter 3 Creating a Business Model
Identifying Who Needs a Business Model
Assessing Common Aspects of All Business Models
Understanding Business Models in Their Simplest Form
Checking Out Examples of Business Models
Finding Success with a Business Model
Making money with your own secret sauce
Examining different business models in the same industry
Setting yourself apart from the competition
Considering your competitive advantage
Obtaining your competitive advantage
Enhancing your competitive advantage
Chapter 4 Finding Your Target Market
Gauging the Target Market
Determining Industry Attractiveness
Finding the best industry
Working in unserved or underserved markets
Looking for Niche Attractiveness
Know the power of a good niche
Unlimited niches exist
Markets have a habit of splitting
Find unserved or underserved markets
Checking Out Customer Attractiveness
Finding Your Place on the Industry Value Chain
Chapter 5 Considering a Franchise
Understanding What a Franchise Is
Playing by brand standards to create consistency
Setting your sights on success
Recognizing the Importance of Brands in Franchising
Identifying the Three Types of Franchising
Traditional franchising
Business-format franchising
Social franchising
Being Aware of the Roles and Goals of Franchisors and Franchisees
The world through franchisor lenses
The franchisee’s end of the bargain
Reviewing Franchise Relationships
Flying solo: Single-unit franchises
Slow and steady: Growing one franchise at a time
Jumping in from the start: Multi-unit developers
Being in charge: Master franchising
Bringing in the hired gun: Area representatives
Knowing the Nuances of the Franchisor/Franchisee Relationship
Considering the Pros and Cons of Franchising
The advantages
The disadvantages
Book 2 Planning for Your Business
Chapter 1 Writing a Business Plan
Selling Yourself on the Importance of Business Planning
Tallying up the benefits of a business plan
Knowing what can go wrong without a plan
Breaking Down the Pieces of a Business Plan
Business plan contents from beginning to end
Business plan FAQs
Setting Out Your Planning Objectives
Planning for a new business
Planning for a solo business
Planning to address changing conditions
Planning for growth
Identifying Your Business Plan Audiences and Key Messages
Your audience
Your message
Establishing Your Plan’s Time Frame
Setting your schedule
Defining milestones
Preparing for the Real World
Locating informative resources
Seeking expert advice
Chapter 2 Finding the Funding
Starting with a Plan
When you’re financing a traditional business
When you’re financing for e-commerce
Tapping Friends and Family
Finding an Angel
Spotting an angel: The how-to
Dealing with angels: The how-to
Daring to Use Venture Capital
Calculating the real cost of money
Tracking the venture capital process
Selling Stock to the Public: An IPO
Considering the pros and cons of going public
Deciding to go for it
Finding Other Ways to Finance Growth
Guarding Your Interests
Contracts
Nondisclosure agreements
Chapter 3 Setting Your Franchise’s Wheels in Motion
Surveying Your Options for Locale
Considering common site options
Dual branding: Sharing your space
Locating Your Franchise’s Habitat
Finding out what constitutes a good site
Using the franchisor as your compass
Crunching data to evaluate a site on your own
Looking at Protected Areas, Exclusive Areas, and Encroachment Policies
Reviewing your franchise agreement
Discovering whether a franchisor has an encroachment policy
Signing the Lease
Meeting Your Franchise’s Requirements
Implementing a franchisor’s designs
Getting approvals, permits, and licenses
Beginning construction
Getting help with the opening
Getting the Goods: Merchandise and Supplies
Using the franchisor as the sole supplier
Working with suppliers approved by the franchisor
Understanding rebates and upcharges
Finding your own suppliers and requesting approval
Receiving Merchandise
Considering key drop delivery
Receiving deliveries at any kind of franchise
Checking the goods after they’re in your location
Verifying invoices
Maintaining Inventory
Back of the house
Front of the house
Getting Good Training for Yourself and Your Management
Undergoing good initial training
Receiving effective ongoing training
Chapter 4 Starting a Home-Based Business
Looking at the Basics of Home-Based Business
Determining the kind of business you want to have
Managing your money
Avoiding problems
Moving ahead
Leaving your full-time job for your part-time business
Examining the Good News and the Bad
Good reasons to start a home-based business
The pitfalls of owning your own home-based business
Taking the Home-Based Business Quiz
Starting Something from Scratch
Doing what you’ve been doing in a job
Doing something new and different
Transitioning into Your Home-Based Business
Knowing what to do before leaving your day job
Understanding what you have to do to start your own home-based business
Chapter 5 Creating an Online Presence for Your Business
Feng Shui-ing Your Website
Creating Content That Attracts Customers
Following the KISS principle: Keep it super simple
Striking the right tone with your text
Making your site easy to navigate
Pointing the way with headings
Leading your readers on with links
Enhancing your text with well-placed images
Making your site searchable
Nip and Tuck: Establishing a Visual Identity
Choosing wallpaper that won’t make you a wallflower
Using web typefaces like a pro
Using clip art is free and fun
A picture is worth a thousand words
Creating a logo
Inviting Comments from Customers
Getting positive email feedback
Web page forms that aren’t off-putting
Blogs that promote discussion
Chit-chat that counts
Moving from Website to Web Presence
Chapter 6 Starting with the Right Legal Structure
Introducing the Legal Business Classifications
Going It Alone: The Sole Proprietorship
Advantages of sole proprietorships
Disadvantages of sole proprietorships
Choosing a Partner: The Partnership
Forming a partnership
Drawing up the partnership agreement
Going for the Gold: The Corporation
Enjoying the benefits of a corporation
Weighing the risks
Deciding where and how to incorporate
Offering Flexibility: The S Corporation, the LLC, and the Nonprofit Corporation
Sizing up the S Corporation
Comparing the S Corporation to the LLC
Making profits in a nonprofit organization
Discovering Your Best Choice
Book 3 Handling Your Finances
Chapter 1 Setting Up the Books
Bookkeepers: The Record Keepers of the Business World
Wading through Basic Bookkeeping Lingo
Accounts for the balance sheet
Accounts for the income statement
Other common terms
Pedaling through the Accounting Cycle
Tackling the Big Decision: Cash-Basis or Accrual Accounting
Waiting for funds with cash-basis accounting
Making the switch to accrual accounting
Recording right away with accrual accounting
Seeing Double with Double-Entry Bookkeeping
Differentiating Debits and Credits
Outlining Your Financial Road Map with a Chart of Accounts
Starting with the Balance Sheet Accounts
Tackling assets
Laying out your liabilities
Eyeing the equity
Tracking the Income Statement Accounts
Recording the money you make
Tracking the Cost of Goods Sold
Acknowledging the money you spend
Setting Up Your Chart of Accounts
Chapter 2 Reporting Profit or Loss in the Income Statement
Presenting Typical Income Statements
Looking at businesses that sell products
Looking at businesses that sell services
Looking at investment businesses
Taking Care of Housekeeping Details
Being an Active Reader
Deconstructing Profit
Revenue and expense effects on assets and liabilities
Comparing three scenarios of profit
Folding profit into retained earnings
Pinpointing the Assets and Liabilities Used to Record Revenue and Expenses
Making sales
Selling products: Inventory
Prepaying operating costs
Understanding fixed assets
Figuring unpaid expenses
Reporting Unusual Gains and Losses
Watching for Misconceptions and Misleading Reports
Chapter 3 Reporting Financial Condition in the Balance Sheet
Expanding the Accounting Equation
Presenting a Proper Balance Sheet
Doing an initial reading of the balance sheet
Kicking balance sheets out into the real world
Judging Liquidity and Solvency
Current assets and liabilities
Current and quick ratios
Understanding That Transactions Drive the Balance Sheet
Sizing Up Assets and Liabilities
Sales revenue and accounts receivable
Cost of goods sold expense and inventory
Fixed assets and depreciation expense
Operating expenses and their balance sheet accounts
Intangible assets and amortization expense
Debt and interest expense
Income tax expense and income tax payable
Net income and cash dividends (if any)
Financing a Business: Sources of Cash and Capital
Recognizing the Hodgepodge of Values Reported in a Balance Sheet
Chapter 4 Reporting Cash Sources and Uses in the Statement of Cash Flows
Meeting the Statement of Cash Flows
Presenting the direct method
Opting for the indirect method
Explaining the Variance between Cash Flow and Net Income
Accounts receivable change
Inventory change
Prepaid expenses change
Depreciation: Real but noncash expense
Changes in operating liabilities
Putting the cash flow pieces together
Sailing through the Rest of the Statement of Cash Flows
Understanding investing activities
Looking at financing activities
Reading actively
Pinning Down “Free Cash Flow”
Recognizing Limitations of the Statement of Cash Flows
Chapter 5 Controlling Costs and Budgeting
Getting in the Right Frame of Mind
Getting Down to Business
Putting cost control in its proper context
Beginning with sales revenue change
Focusing on cost of goods sold and gross margin
Analyzing employee cost
Analyzing advertising and sales promotion costs
Appreciating depreciation expense
Looking at facilities expense
Looking over or looking into other expenses
Running the numbers on interest expense
Comparing your P&L numbers with your balance sheet
Looking into Cost of Goods Sold Expense
Selecting a cost of goods sold expense method
Dealing with inventory shrinkage and inventory write-downs
Focusing on Profit Centers
Reducing Your Costs
Deciding Where the Budgeting Process Starts
Homing In on Budgeting Tools
CART: Complete, Accurate, Reliable, and Timely
SWOT: Strengths, Weaknesses, Opportunities, and Threats
Flash reports
Preparing an Actual Budget or Forecast
Understanding Internal versus External Budgets
Creating a Living Budget
Using the Budget as a Business-Management Tool
Using Budgets in Other Ways
Chapter 6 Satisfying the Tax Man
Tax Reporting for Sole Proprietors
Filing Tax Forms for Partnerships
Paying Corporate Taxes
Reporting for an S Corporation
Reporting for a C Corporation
Reporting for Limited Liability Companies (LLC)
Taking Care of Sales Taxes Obligations
Keeping Up with and Researching Tax Strategies and Rules
Using IRS publications
Buying software
Accessing Internet tax resources
Paying for Tax Help
Deciding to hire tax help
Finding tax advisors
Interviewing prospective tax advisors
Book 4 Managing Your Business
Chapter 1 Tackling the Hiring Process
Starting with a Clear Job Description
Defining the Characteristics of Desirable Candidates
Finding Good People
Going through traditional recruiting channels
Leveraging the power of the Internet
Becoming a Great Interviewer
Asking the right questions
Following interviewing do’s
Avoiding interviewing don’ts
Evaluating Your Candidates
Checking references
Reviewing your notes
Conducting a second (or third) round
Checking employment eligibility
Hiring the Best (and Leaving the Rest)
Being objective
Trusting your gut
Revisiting the candidate pool
Chapter 2 Setting Goals
Knowing Where You’re Going
Why should you set goals?
What makes goals effective?
Identifying SMART Goals
Breaking down the meaning of SMART
Developing SMART goals
Setting Goals: Less Is More
Communicating Your Vision and Goals to Your Team
Announcing your vision
Communicating goals
Juggling Priorities: Keeping Your Eye on the Ball
Falling into the activity trap
Getting out of the activity trap
Using Your Power for Good: Making Your Goals Reality
Chapter 3 Embracing Corporate Social Responsibility
Understanding Socially Responsible Practices
Figuring out how you can employ CSR
Enjoying the net benefits of socially responsible practices
Developing a CSR Strategy for Implementation
Doing the Right Thing: Ethics and You
Defining ethics on the job
Creating a code of ethics
Making ethical choices every day
Chapter 4 Managing with Technology
Weighing the Benefits and Drawbacks of Workplace Technology
Making advances, thanks to automation
Improving efficiency and productivity
Taking steps to neutralize the negatives
Using Technology to Your Advantage
Know your business
Create a technology-competitive advantage
Develop a plan
Get some help
Chapter 5 Delegating to Get Things Done
Delegating: The Manager’s Best Tool
Debunking Myths about Delegation
You can’t trust your employees to be responsible
You’ll lose control of a task and its outcome
You’re the only one with all the answers
You can do the work faster by yourself
Delegation dilutes your authority
You relinquish the credit for doing a good job
Delegation decreases your flexibility
Taking the Six Steps to Delegate
Sorting Out What to Delegate and What to Do Yourself
Pointing out appropriate tasks for delegation
Knowing what tasks should stay with you
Book 5 Marketing and Promotion
Chapter 1 Optimizing Your Marketing Program
Knowing Yourself, Knowing Your Customer
Asking the right question
Filling the awareness gap
Focusing on your target customer
Identifying and playing up your strengths
Discovering the best way to find customers
Finding Your Marketing Formula
Analyzing your four Ps
Refining your list of possibilities
Avoiding the pricing trap
Controlling Your Marketing Program
Refining Your Marketing Expectations
Projecting improvements above base sales
Preparing for (ultimately successful) failures
Revealing More Ways to Maximize Your Marketing Impact
Chapter 2 Laying a Foundation for Growth
Measuring the Growth Rate of Your Market
Responding to a Flat or Shrinking Market
Finding Your Best Growth Strategies
Going to market
Expanding what you have for higher profitability
Growing a Market Segmentation Strategy
Customer segments
Niche marketing
Developing a Market Share Strategy
Defining your metrics
Establishing a benchmark
Doing the math
Designing a Positioning Strategy
Envisioning your position: An exercise in observation and creativity
Aligning your positioning strategy with growth initiatives
Growth Hacking to Build Leads and Market Share
Using search strategies
Building links
Fishing for emails
Trying tripwires
Hiring a growth hacker
Selling Innovative Products
Chapter 3 Taking Stock of Your Business Image
Making First Impressions
Encountering your business through online searches
Arriving at your website
Managing email impressions
Arriving by telephone
Approaching your business in person
Auditing the Impressions Your Business Makes
Surveying your marketing materials and communications
Creating an impression inventory
Improving the impressions you’re making
Chapter 4 Forging Your Brand
Recognizing What Brands Are and What They Do
Unlocking the power and value of a brand
Tipping the balance online
Building a Powerful Brand
Being consistent to power your brand
Taking six brand-management steps
Understanding Your Market Position: The Birthplace of Your Brand
Seeing how positioning happens
Determining your positioning strategy
Conveying Your Position and Brand through Taglines
Balancing Personal and Business Brands
Maintaining and Protecting Your Brand
Staying consistent with your brand message and creative strategy
Controlling your brand presentation
Chapter 5 Creating Marketing Communications That Work
Starting with Good Objectives
Defining what you want to accomplish
Putting creative directions in writing
Developing Effective Marketing Communications
Steering the creative process toward a “big idea”
Brainstorming ideas
Following simple advertising rules
Making Media Selections
Selecting from the media menu
Deciding which media vehicles to use and when
Building a Mass Media Schedule
Balancing reach and frequency
Timing your ads
Evaluating Your Efforts
Chapter 6 Social Marketing: Facebook, Twitter, Instagram, LinkedIn, and Pinterest
Using Facebook for Engagement That Builds Sales
Developing a successful Facebook plan
Creating content that gets a response, dialogue, and leads
Advertising on Facebook
Building Your Twitter Presence
Igniting Your Social Presence on Instagram
Expanding Your Network through LinkedIn
Groups
Engagement
Promoting Your Brand with Pinterest
Book 6 Staying in Business
Chapter 1 Developing Employees through Coaching and Mentoring
Understanding Why Employee Development Is Important
Getting Down to Employee Development
Taking a step-by-step approach
Creating career development plans
Coaching Employees to Career Growth and Success
Serving as both manager and coach
Identifying a coach’s tools
Teaching through show-and-tell coaching
Making turning points big successes
Incorporating coaching into your day-to-day interactions
Finding a Mentor, Being a Mentor
Chapter 2 Keeping Your Customers Loyal
Retaining Your Customer Base
Getting it right the first time
Continuing to offer more value
Knowing that company policy is meant to be bent
Taking away lessons from customer defections
Recognizing and practicing customer service
Showing that you care — the old-fashioned way
Dealing with Dissatisfied Customers
Listen, listen, listen
Develop a solution
Chapter 3 Cultivating a Growing Business
Recognizing Growth Stages
The start-up years
The growth years
The transition stage
Resolving Human Resources Issues
Identifying important HR concerns
Dealing with HR issues in three stages
Addressing Time-Management Issues
Choosing Your Management Tools
Management by objective
Participatory management
Employee ownership
Quality circles
Open-book management
Troubleshooting Your Business Challenges
Filling out a troubleshooting checklist
Taking the five-minute appearance test
Redefining Your Role in an Evolving Business
Making the transition to manager
Implementing strategic changes
Index
EULA