Entrepreneurial Small Business

Cover
Title
Copyright
Brief Contents
Contents
Part One: Entrepreneurs and Ideas: The Basis of Small Business
CHAPTER 1 Small Business: Its Opportunities and Rewards
Focus on Small Business: Paul Scheiter, Hedgehog Leatherworks
Starting an Entrepreneurial Small Business: Four Key Ideas
Skill Module 1.1 The Small Business Online Scavenger Hunt
Entrepreneurs Are Everywhere
The Many Types of Entrepreneurial Small Businesses
Entrepreneurs and Firm Growth Strategies
Rewards for Starting a Small Business
Myths about Small Businesses
Getting Started Now: Entry Competencies
Skill Module 1.2 BRIE Self-Assessment
Small Business and the Economy
New Jobs
Innovations
New Opportunities
Two Aspects of Global Entrepreneurship
Beyond Small Business: CSI Entrepreneurship
Challenge and the Entrepreneurial Way
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 2 Small Business Entrepreneurs: Characteristics and Competencies
Focus on Small Business: Internet Entrepreneur Laura Tidwell
The Psychology of Entrepreneurs
The Five Ps of Entrepreneurial Behavior
Skill Module 2.1 Entrepreneurial Personality Overview
Entrepreneurial Operational Competencies
Skill Module 2.2 Competency Self- Assessment
The Entrepreneurial Life Cycle
The Sociology of Entrepreneurs
Entrepreneurial Teams
Family Businesses
Women and Minorities in Small Business
Second Career Entrepreneurs
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 3 Small Business Environment: Managing External Relations
Focus on Small Business: Summer Albarcha and the Controversial Skirt
The Environment of Small Business
The Elements of the Small Business Environment
Skill Module 3.1 Finding Your Trade or Professional Association and Related Magazines
Environmental Scanning for Small Businesses
Skill Module 3.2 Finding Out How the Small Business Economy Is Doing
Five Skills for Managing Relations with the Environment
Building Legitimacy
Developing a Social Network
Skill Module 3.3 Asking for Help
Skill Module 3.4 Networking Skills
Handling a Crisis
Achieving Sustainability
Making Ethical Decisions
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 4 Small Business Ideas: Creativity, Opportunity, and Feasibility
Focus on Small Business: Dave Kapell—Poetry in Motion
Ideas, Opportunities, and Businesses
From Ideas to Opportunities through Creativity
Avoid Pitfalls
Screen Ideas
Skill Module 4.1 Checking Ideas on the Web
Make Sure an Idea Is Feasible
The Business Model Canvas Approach
The Classic Feasibility Study
Ways to Keep On Being Creative
Skill Module 4.2 Great Ideas for Making Idea-Prone Companies
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Appendix: A Sample Feasibility Study
Part Two: Small Business Paths and Plans
CHAPTER 5 Small Business Entry: Paths to Part-Time Entrepreneurship
Focus on Small Business: D.J. Haverkamp
Why Part-Time Businesses Are Important
When to Consider Part-Time Entrepreneurship
Key Considerations for Success in Part-Time Entrepreneurship
What Kinds of Part-Time Entrepreneurship Exist?
Home-Based Business
Internet Informational Websites
E-Commerce and eBay Websites
Skill Module 5.1 Checklist for Maximizing Success on eBay
The Next Best Things to a Home-Based Business
Success Factors for Part-Time Businesses
Boundary: Separating and Balancing Business and Home
Exchange: Dealing with Others
Pricing and Costing
What Are the Challenges of Being an Entrepreneur Part Time?
Delegation and Outsourcing
Ethics and Part-Time Small Business
Moving from Part-Time to Full-Time Entrepreneurship
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 6 Small Business Entry: Paths to Full-Time Entrepreneurship
Focus on Small Business: Tom Caldbeck, Contractor
Planning Your Path into Full-Time Business
Making Do as a Way to Success
The Five Paths to Business Ownership
Starting a New Business
Advantages of Start-Ups
Disadvantages of Start-Ups
Creating a New Business
Increasing the Odds of Start-Up Success
If at First You Fail …
Buying an Existing Business
Advantages of Purchasing an Existing Business
Disadvantages of Purchasing an Existing Business
Finding a Business to Buy
Skill Module 6.1 Finding a Business for Sale
Investigating Entrepreneurial Opportunities: Performing Due Diligence
Determining the Value of the Business
Structuring the Deal
Buyouts
Buy-Ins
Key Resource Acquisitions
Takeovers
Franchising a Business
What Is Franchising?
Advantages of Franchising
Franchise Opportunities
Legal Considerations
Inheriting a Business
Family Businesses Succession
Developing a Formal Management Structure
Succession Issues for the Founder
Succession Issues for the Successor
Ownership Transfer
Professional Management of Small Business
How to Get Out of Your Business
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 7 Small Business Strategies: Imitation with a Twist
Focus on Small Business: Mindnautilus
Strategy in the Small Business
Goals: The First Step of Strategic Planning
Owner Rewards
Skill Module 7.1 Finding Your Magic Number
Product/Service Idea and Industry
Skill Module 7.2 Finding Your Firm's Industry
Imitation and Innovation
To Whom Will You Sell?
Customers and Benefits: The Second Step of Strategic Planning
Value and Cost Benefits
Skill Module 7.3 Checking Customer Opinions Online
Skill Module 7.4 Building Perceptual Maps
Industry Dynamics and Analysis: The Third Step of Strategic Planning
Tool: Industry Analysis
Skill Module 7.5 Short and Sweet Industry Analysis
Strategy Selection: The Fourth Step in Strategic Planning
Post Start-Up Tactics
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Appendix Five Steps to an Industry Analysis
CHAPTER 8 Business Plans: Seeing Audiences and Your Business Clearly
Focus on Small Business: Tim Hayden and the Missed Home Run
Business Plan Background
The Business Plan Story: Starting Small and Building Up
The Vision Statement
Elevator Pitch
Skill Module 8.1 How to Write Your Elevator Pitch
The Executive Summary
The Business Plan
Cover Letter
Title Page
Table of Contents
Executive Summary
Company, Product/Service and Industry
The Market
The Organization
The Financial Summary
The Appendixes
The Mechanics of a Business Plan
Focusing Your Business Plan
The Most Common Critical Risks in a Plan
Pitching Your Plan
Crafting Your Pitch Deck
Closing Thoughts on Business Plans
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Appendix A: Example Cover Letter and Résumé
Skill Module 8.2 How to Write a Cover Letter
Skill Module 8.3 How to Write a Résumé
Appendix B: ColterDurham Business Plan
Part Three: Marketing in the Small Business
CHAPTER 9 Small Business Marketing: Product and Pricing Strategies
Focus on Small Business: Scott the Seamstress
The Marketing Process
Understanding the Customer
Customer Roles
Initial Customer Profiles
Skill Module 9.1 Interviewing Customers in an Unbiased Way
Target Market
Skill Module 9.2 Creating a Basic Customer Profile
Marketing Research
Primary Research
Skill Module 9.3 How to Conduct a Focus Group
Skill Module 9.4 Open- and Closed-Ended Questions
Secondary Research
The Basics: Crafting Your Value Proposition
Skill Module 9.5 Customer-Focused Value Proposition Design
Skill Module 9.6 Developing a Value Proposition
Skill Module 9.7 Mapping Distinctive Competence and Value Proposition
Planning for Marketing
Product
Goods versus Services
The Total Product Approach
Skill Module 9.8 Facing Intangibility and Perishability
Skill Module 9.9 Learning about the Total Product of You
New Product Development Process
Skill Module 9.10 Creating Your Idea Notebook
Product Life Cycle
Service Life Cycle
Using the Product Life Cycle
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 10 Small Business Promotion: Capturing the Eyes of Your Market
Focus on Small Business: Addie Swartz and Accessories for Girls Who Are "between Toys and Boys"
The Need for Promotion
Segmenting Your Market
Skill Module 10.1 Finding Demographic Information by Zip Code
Segmenting Customers
Skill Module 10.2 Identifying Target Market Segments
Crafting Your Message
Strategizing for Promotion
Brand and Organizational Identity
Skill Module 10.3 Creating Your Brand Promise
Conveying Your Message
Advertising and Public and Press Relations
Skill Module 10.4 Getting Started with Google Analytics
Developing Your Promotion Strategy
The Process of Personal Selling
Skill Module 10.5 The Art of Closing
Customer Retention: Keeping and Growing Customers after the Sale
Handling Postsale Problems
CRM in Two Steps
Growing Customer Sales
Sales Forecasting
Skill Module 10.6 Sales Forecasting from a Fixed Inventory
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 11 Small Business Pricing, Distribution, and Location
Focus on Small Business: Steve Niewulis and Tap It!
Pricing
The Fundamentals of Pricing: Margin Pricing and Elasticity
The Fundamentals of Pricing: Value
The Fundamentals of Pricing: Contextual Factors
The Pricing Toolbox
Skill Module 11.1 Pricing Psychology
Pricing in Practice
Sales Promotions
Distribution
Direct Marketing
Skill Module 11.2 Building a Mailing List
Skill Module 11.3 Making Mail Order Ads Work
Distribution Issues for Direct Marketing
Nondirect Distribution
International Strategies
Location
Service Firms
Manufacturers
Site Selection
Leasing
Build, Buy, or Lease
Layout
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Part Four: Cash, Accounting, and Finance in the Small Business
CHAPTER 12 Small Business Accounting: Projecting and Evaluating Performance
Focus on Small Business: Debbie Dusenberry and the Curious Sofa
Why Accounting Matters to Small Business
Basic Accounting Concepts
Business Entity Concept
Does It Belong to the Business, or Is It Mine?
Going Concern Concept
The Accounting Equation
Costs, Revenues, and Expenses
Why Do Accounting?
Skill Module 12.1 Why Does Accounting Matter?
Accounting Systems for Small Business
Setting Up an Accounting System
Financial Reports
Income Statement
… but Is It Right?
Balance Sheet
Skill Module 12.2 Applying for a Loan
Cash Flow Statement
Uses of Financial Accounting
Reporting to Outsiders
Record Keeping
Taxation
Control of Receivables
Analysis of Business Operations
Uses of Managerial Accounting
Cost-Volume-Profit Analysis
Skill Module 12.3 Breakeven with More Than One Product
The Business Plan and the Budget Process
Planning/Budgeting
Completing a Master Budget
Sales Budget
Purchases Budget
Labor Budget
Selling, General, and Administrative Expense Budget
Overhead Budget
Budgeted Income Statement
Completing a Comprehensive Budget
Skill Module 12.4 Preparing a Master Budget
Controlling
Decision Making
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 13 Cash: Lifeblood of the Business
Focus on Small Business: Maren Kate Donovan of Zirtual, Inc.
Money as the Key Idea
Cash and Cash Equivalents
The Importance of Money Management
Money In/Money Out—Just How Important Is It?
Managing Cash Flow
Company and Bank Cash Balances
Reconciling Bank Balances with Company Book Balances
Planning Cash Needs
Sales Budget: Forecasting Sales Receipts
Cash Receipts Budget
Forecasting Cash Disbursements
The Comprehensive Budget—the Pro Forma Cash Flow Statement
Skill Module 13.1 A Comprehensive Budget
Preventing Cash Flow Problems
Protecting Cash from Being Stolen
Techniques to Increase Cash Inflows
Techniques to Decrease Cash Outflows
Controlling Cash Shortages
In Review
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 14 Small Business Finance: Using Equity, Debt, and Gifts
Focus on Small Business: Mary Lynn Schroeder's In Blue Handmade
Sources of Financing for Small Businesses
Understanding the Three Types of Capital Funding
Financing with Equity
Skill Module 14.1 Determining Personal Net Worth
Financing with Debt
Financing with Gifts
Financing with Equity: Getting Others to Invest in Your Business
Equity Capital from the Investors' View
Methods to Obtain Equity Capital
Angel Investors
Equity Capital from the Owner's View
Why Use Equity Capital?
Financing with Debt: Getting a Loan for Your Business
Skill Module 14.2 Obtaining Your Credit Report
Customer Funding of Your Business
Financing with Gifts: Winning Grants for Your Business
Institutional Gifts
Skill Module 14.3 Finding SBIR Grants
Personal Gifts
Gifts via Crowdfunding
What Type of Financing Is Right for Your Business?
Financial Management for the Life of Your Business
Tools for Financial Management
Financial Management for Start-Up
Financial Management for Growth
Financial Management for Operations
Financial Management for Business Exit
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 15 Assets: Inventory and Operations Management
Focus on Small Business: Curtis Graf and the Nightmare on Construction Street
Managing Short-Term Assets
Accounts Receivable
The Pros and Cons of Offering Credit to Customers
Manage Your Accounts Receivable for Benefit to Your Business
Use Your Accounts Receivable as a Source of Financing
Skill Module 15.1 Using Receivables to Raise Immediate Cash
Managing Inventory
Determining the Appropriate Level of Inventory
Scheduling Ordering and Receipt of Inventory
Just-in-Time Inventory Systems
Other Approaches to Inventory Control
Value of Assets in Your Business
Determining the Value of Your Operating Assets
Determining the Value of Inventory
Property, Plant, and Equipment
Skill Module 15.2 Understanding Whole of Life Costs for Capital Budgeting
The Capital Budgeting Decision
Payback Period
Rate of Return on Investment
Net Present Value
Rent or Buy
Financing with Leases
Fractional Ownership and Other Forms of Joint Ventures
Managing Operations
Inputs into Your Business
Business Operations Comprise Converting Time and Materials into Services and Products
Business Outputs
Feedback
Measuring and Improving Productivity
Outsourcing to Improve Productivity
Operations Management Challenges for Product-Based Firms
Skill Module 15.3 Finding an Outsourcing Partner
Operations Management Challenges for Service Firms
Documenting the Operations of Your Business
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Appendix A: Economic Order Quantity
Appendix B: Time Value of Money and Discounted Cash Flow Analysis
CHAPTER 16 Small Business Protection: Risk Management and Insurance
Focus on Small Business: The Massachusetts Chimney Sweep Guild
Risk in Small Business
Thinking about Risk
Risks Associated with Specific Business Operations
Property of the Business
Events Related to Personnel
Events Related to Customers and Others
Managing Risks
Managing Risk to Tangible Property
Managing Risk to Buildings and Land
Managing Risk to Computers and Data
Managing Risk to Intangible Property
Protecting Your Business from Theft
Managing Risk Resulting from Events Involving Personnel
Managing Risk from Violations of Tax Regulations
Managing Risk from Employee Violation of Government Regulations
Using an Internal Audit as a Tool to Manage Risk
Insuring against Risks
Using Insurance to Manage Risks
Developing a Comprehensive Insurance Program
Insuring the Property of the Business
Sharing Risk
Joint Ventures
Industry Groups for Insurance Coverage
Government Funding of Risky Ventures
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Part Five: Management and Organization in the Small Business
CHAPTER 17 Legal Issues: Recognizing Your Small Business Needs
Focus on Small Business: Brian "B-Money" Hughes
You and the Law
You Need a Good Attorney
Can I Do This for Free?
Skill Module 17.1 Getting Started on Legal Issues Online
Small-Claims Court
Choosing a Business Name
Choosing a Business Form
Taxation Issues
Nonprofits and Social Benefit Organizations
Everything Is Negotiable, and Negotiation Is Everything
Legal Liabilities
Torts: Responsibility for Your Actions and the Actions of Employees
The Independent Contractor Argument
The Scope of Authority Argument
SOX and Dealing with Big Businesses
What Is the Right Level of Paranoia?
Litigation versus Arbitration versus Mediation
Commonsense Ways to Avoid Torts
Contracting
Subcontracting
Internet Issues in Contracting
Intellectual Property
Patents and Trade Secrets
Copyright
Trademarks
Skill Module 17.2 Checking Out Trademarks Online
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
CHAPTER 18 Human Resource Management: Small Business Considerations
Focus on Small Business: Chris Perkett and PerkettPR, Inc.
The Bigger Small Business: Hiring Employees
Attracting Employees
Matching the Worker to the Work
Writing a Job Description
Evaluating Job Prospects
Skill Module 18.1 Crafting a Job Description
Selecting the Right Person
Training Your Employees
Initial and Ongoing Training Methods
Skill Module 18.2 Writing Instructions and Procedures
Three Guidelines for Training
Rewarding Employees
Compensation, Benefits, and Perks
Skill Module 18.3 Finding Local Salaries and Benefits Information Online
Bonuses and Long-Term Incentives
Health Insurance
Retirement Plans
Perks
HRM at the Founder's Level
Entrepreneurial Leadership
Selecting Advisers
Selecting Partners
Human Resource Issues in the Family Business
Nepotism, Meritocracy, and the Family Business
Managing Privilege
Good Human Resource Practices for All Businesses
Dividing Up Ownership and Dividends
Chapter Summary
Key Terms
Discussion Questions
Experiential Exercises
Mini-Case
Personal Net Worth Calculation Template
Glossary
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Endnotes
Indexes
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