Entrepreneurial Small Business

Description

Entrepreneurial Small Business (ESB) provides students with a clear vision of small business as it is today. ESB focuses on the distinctive nature of small businesses that students might actually start versus high growth firms. The authors of ESB incorporate the latest findings and best practices from academic and consulting arenas, and recognize the distinction between entrepreneurs who aim to start the successor to Amazon.com or the pizza place around the corner. Entrepreneurial Small Business focuses on the small businesses students might actually start. 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 A B C D E F G H I J K L M N O P Q R S T U V W Z Endnotes Indexes Name Index A B C D E F G H J K L M N O P R S T V W Z Company Index A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Subject Index A B C D E F G H I J K L M N O P Q R S T U V W Y Z