Entrepreneurship

Tittle
Contents
PART 1 THE ENTREPRENEURIAL PERSPECTIVE
	1 ENTREPRENEURSHIP AND THE ENTREPRENEURIAL MIND-SET
		Opening Profile: Ewing Marion Kauffman
			Nature and Development of Entrepreneurship
				The Entrepreneurial Process
					Identify and Evaluate the Opportunity
						Develop a Business Plan
							Determine the Resources Required
								Manage the Enterprise
							How Entrepreneurs Think
								Effectuation
								Cognitive Adaptability
							As Seen in Entrepreneur Magazine: What Me Worry? How Smart Entrepreneurs Harness the Power of Paranoia
								Learning from Business Failure
								Recovery and Learning Process
								A Dual Process for Learning from Failure
							Ethics and Social Responsibility of Entrepreneurs
							Ethics: Company’s Code of Ethics
							Role of Entrepreneurship in Economic Development
	2 ENTREPRENEURIAL INTENTIONS AND CORPORATE ENTREPRENEURSHIP
		As Seen in Entrepreneur Magazine: Hot or Not?
		Minority Entrepreneurs
		As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Improving a Business through Certification as a Woman-Owned Business
		Entrepreneurial Intentions within Existing Organizations
			Managerial versus Entrepreneurial Decision Making
				Strategic Orientation and Commitment to Opportunity
				Commitment of Resources and Control of Resources
				Management Structure and Reward Philosophy
				Growth Orientation and Entrepreneurial Culture
				Causes for Interest in Corporate Entrepreneurship
				Establishing a Culture for Corporate Entrepreneurship
				Leadership Characteristics of Corporate Entrepreneurs
			Establishing Corporate Entrepreneurship in the Organization
				Problems and Successful Efforts
		Opening Profile: Robert Mondavi
			The Intention to Act Entrepreneurially
			Entrepreneur Background and Characteristics
				Education
			Ethics: Ethical Conduct of Entrepreneurs versus Managers
				Age
				Work History
			Role Models and Support Systems
				Moral-Support Network
				Professional-Support Network
	3 ENTREPRENEURIAL STRATEGY: GENERATING AND EXPLOITING NEW ENTRIES
		Opening Profile: Justin Parer
			New Entry
			Generation of a New Entry Opportunity
				Resources as a Source of Competitive Advantage
				Creating a Resource Bundle That Is Valuable, Rare, and Inimitable
				Assessing the Attractiveness of a New Entry Opportunity
				Information on a New Entry
			As Seen in Entrepreneur Magazine: Elevator Pitch for Project Alabama
				Comfort with Making a Decision under Uncertainty
				Decision to Exploit or Not to Exploit the New Entry
			Entry Strategy for New Entry Exploitation
				Environmental Instability and First-Mover (Dis)Advantages
				Customers’ Uncertainty and First-Mover (Dis)Advantages
			Ethics: Do the Right Thing
				Lead Time and First-Mover (Dis)Advantages
			As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Being More Innovative
				Risk Reduction Strategies for New Entry Exploitation
					Market Scope Strategies
						Imitation Strategies
						Managing Newness
PART 2 FROM IDEA TO THE OPPORTUNITY
	4 CREATIVITY AND THE BUSINESS IDEA
		Opening Profile: Frederick W. Smith
			Trends
				Green Trend
					Clean-Energy Trend
						Organic-Orientation Trend
							Economic Trend
							Social Trend
							Health Trend
							Web Trend
						Sources of New Ideas
							Consumers
							Existing Products and Services
							Distribution Channels
							Federal Government
							Research and Development
						As Seen in BusinessWeek: The Myth of Creativity
						Methods of Generating Ideas
							Focus Groups
							Brainstorming
							Brainwriting
							Problem Inventory Analysis
						Creative Problem Solving
							Brainstorming
							Reverse Brainstorming
							Gordon Method
							Checklist Method
							Free Association
							Forced Relationships
							Collective Notebook Method
						As Seen in BusinessWeek: How to Produce Big Ideas on Demand
							Attribute Listing
							Big-Dream Approach
							Parameter Analysis
						Innovation
							Types of Innovation
							Defining a New Innovation (Product or Service)
							Classification of New Products
				Opportunity Recognition
				Product Planning and Development Process
					Establishing Evaluation Criteria
				Ethics: Leadership Is about Doing, Not Saying
					Idea Stage
					Concept Stage
					Product Development Stage
					Test Marketing Stage
				E-Commerce and Business Start-Up
					Using E-Commerce Creatively
					Web Sites
					Tracking Customer Information
					Doing E-Commerce as an Entrepreneurial Company
	5 IDENTIFYING AND ANALYZING DOMESTIC AND INTERNATIONAL OPPORTUNITIES
		Opening Profile: A. Malachi Mixon III
			Introduction
			Opportunity Recognition and the Opportunity Assessment Plan
			Information Sources
				General Information
				Industry and Market Information
				Competitive Company and Product Information
				Government Sources
			As Seen in BusinessWeek: Mom-and-Pop Multinationals
				Search Engines
				Trade Associations
				Trade Publications
			The Nature of International Entrepreneurship
			The Importance of International Business to the Firm
			International versus Domestic Entrepreneurship
				Economics
				Stage of Economic Development
				Current Account
				Type of Economic System
				Political–Legal Environment
				Language
			Technological Environment
			Ethics: Ethics Must Be Global Not Local
			Culture
				Social Structure
				Religion
				Political Philosophy
				Economics and Economic Philosophy
				Education
				Manners and Customs
					Available Distribution Systems
					Motivations to Go Global
					Strategic Effects of Going Global
					Foreign Market Selection
					As Seen in BusinessWeek: Stranger in a Strange Land
					Entrepreneurial Entry Strategies
						Exporting
						Nonequity Arrangements
						Direct Foreign Investment
					Entrepreneurial Partnering
					Barriers to International Trade
						General Agreement on Tariffs and Trade (GATT)
						Increasing Protectionist Attitudes
						Trade Blocs and Free Trade Areas
						Entrepreneur’s Strategy and Trade Barriers
					Implications for the Global Entrepreneur
					Appendix 5A: Example Outline of an International Business Plan
	6 PROTECTING THE IDEA AND OTHER LEGAL ISSUES FOR THE ENTREPRENEUR
		Opening Profile: Steve Lipscomb
			What Is Intellectual Property?
			Need for a Lawyer
			How to Select a Lawyer
			As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Intellectual Property Protection
			Legal Issues in Setting Up the Organization
				Patents
				International Patents
				The Provisional Application
				The Patent Application
				Patent Infringement
			Business Method Patents
			Start-Up without a Patent
			As Seen in BusinessWeek: Provide Advice to an Entrepreneur Inventor about How to Make Patents Pay
			Trademarks
				Registering the Trademark
			Copyrights
			Ethics: How Much Responsibility Should Our Youth Have for Illegal Downloading?
			Trade Secrets
			Licensing
			Product Safety and Liability
			Insurance
			Sarbanes-Oxley Act
			Contracts
PART 3 FROM THE OPPORTUNITY TO THE BUSINESS PLAN
	7 THE BUSINESS PLAN: CREATING AND STARTING THE VENTURE
		Opening Profile: Belinda Guadarrama
			Planning as Part of the Business Operation
				What Is the Business Plan?
					Who Should Write the Plan?
						Scope and Value of the Business Plan—Who Reads the Plan?
					As Seen in BusinessWeek: Don't Expect a Fee for Making an Introduction
					How Do Potential Lenders and Investors Evaluate the Plan?
					Ethics: Protecting Your Business Idea
					Presenting the Plan
					Information Needs
						Market Information
						Operations Information Needs
					Financial Information Needs
					Using the Internet as a Resource Tool
					Writing the Business Plan
						Introductory Page
						Executive Summary
						Environmental and Industry Analysis
						Description of Venture
						Production Plan
						Operations Plan
						Marketing Plan
						Organizational Plan
						Assessment of Risk
						Financial Plan
					As Seen in BusinessWeek: Elevator Pitch for Perfect Dinner
						Appendix
					Using and Implementing the Business Plan
						Measuring Plan Progress
						Updating the Plan
					Why Some Business Plans Fail
					Appendix 7A: Sample Business Plan—Gopher It
	8 THE MARKETING PLAN
		Opening Profile: Warren G. Jackson
			Industry Analysis
				Competitor Analysis
			Marketing Research for the New Venture
				Step One: Defining the Purpose or Objectives
				Step Two: Gathering Data from Secondary Sources
			As Seen in BusinessWeek: How to Expand Your Customer Base
				Step Three: Gathering Information from Primary Sources
				Step Four: Analyzing and Interpreting the Results
			Understanding the Marketing Plan
			Characteristics of a Marketing Plan
			Ethics: Devil's Advocate
			The Marketing Mix
			Steps in Preparing the Marketing Plan
				Defining the Business Situation
				Defining the Target Market: Opportunities and Threats
				Considering Strengths and Weaknesses
				Establishing Goals and Objectives
				Defining Marketing Strategy and Action Programs
				Marketing Strategy: Consumer versus Business-to- Business Markets
			As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Web Sites
				Budgeting the Marketing Strategy
				Implementation of the Market Plan
				Monitoring the Progress of Marketing Actions
			Appendix 8A: Marketing Plan Outlines
	9 THE ORGANIZATIONAL PLAN
		The Limited Liability Company versus the S Corporation
			S Corporation
				Advantages of an S Corporation
				Disadvantages of an S Corporation
			Opening Profile: Jim Sinegal
				Developing the Management Team
				As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Some Legal Aspects of Starting a Business
				Legal Forms of Business
					Ownership
					Liability of Owners
					Costs of Starting a Business
					Continuity of Business
					Transferability of Interest
					Capital Requirements
					Management Control
					Distribution of Profits and Losses
					Attractiveness for Raising Capital
			Tax Attributes of Forms of Business
				Tax Issues for Proprietorship
				Tax Issues for Partnership
				Tax Issues for Corporation
			Ethics: Lawyers Explain the Steps to Take If Your Business Partner Violates His or Her Obligations to the Business
				The Limited Liability Company
					Advantages of an LLC
			Designing the Organization
				Building the Management Team and a Successful Organization Culture
			As Seen in BusinessWeek: Elevator Pitch for 20x200 Web Site
			The Role of a Board of Directors
			The Board of Advisors
			The Organization and Use of Advisors
	10 THE FINANCIAL PLAN
		Opening Profile: Tony Hsieh
			Operating and Capital Budgets
				Ethics: Are You a Good Leader?
				Pro Forma Income Statements
				Pro Forma Cash Flow
				As Seen in BusinessWeek: Provide Advice to an Entrepreneur about Solving Their Cash-Flow Problem to Stay in Business
				Pro Forma Balance Sheet
				Break-Even Analysis
				Pro Forma Sources and Applications of Funds
				As Seen in BusinessWeek: Elevator Pitch for Beer Chips
				Software Packages
PART 4 FROM THE BUSINESS PLAN TO FUNDING THE VENTURE
	11 SOURCES OF CAPITAL
		Opening Profile: Scott Walker
			An Overview
				Debt or Equity Financing
					Internal or External Funds
						Personal Funds
							As Seen in BusinessWeek: Show Me the Moneymen
							Family and Friends
							Commercial Banks
								Types of Bank Loans
								Cash Flow Financing
								Bank Lending Decisions
							Role of the SBA in Small-Business Financing
							Ethics: We Need an Ethics Czar
							Research and Development Limited Partnerships
								Major Elements
								Procedure
								Benefits and Costs
								Examples
							Government Grants
							As Seen in BusinessWeek: From 401(k) Nest Egg to Seed Money
								Procedure
								Other Government Grants
							Private Placement
								Types of Investors
								Private Offerings
								Regulation D
							Bootstrap Financing
	12 INFORMAL RISK CAPITAL, VENTURE CAPITAL, AND GOING PUBLIC
		Opening Profile: Mark Zuckerberg
			Financing the Business
				Informal Risk-Capital Market
				As Seen in BusinessWeek: Old Banks, New Lending Tricks
				Venture Capital
					Nature of Venture Capital
				As Seen in BusinessWeek: She’s an Angel
					Overview of the Venture-Capital Industry
					Venture-Capital Process
					Locating Venture Capitalists
					Approaching a Venture Capitalist
				Valuing Your Company
					Factors in Valuation
					Ratio Analysis
					Liquidity Ratios
					Activity Ratios
					Leverage Ratios
					Profitability Ratios
			General Valuation Approaches
			General Valuation Method
			Evaluation of an Internet Company
		Deal Structure
		Going Public
		Ethics: Financial Transparency a Must
			Advantages
			Disadvantages
		Timing of Going Public and Underwriter Selection
			Timing
			Underwriter Selection
		Registration Statement and Timetable
			The Prospectus
			The Registration Statement
			Procedure
		Legal Issues and Blue-Sky Qualifications
			Legal Issues
			Blue-Sky Qualifications
		After Going Public
		As Seen in BusinessWeek: Where Venture Capital Never Ventured Before
			Aftermarket Support
			Relationship with the Financial Community
			Reporting Requirements
PART 5 FROM FUNDING THE VENTURE TO LAUNCHING, GROWING, AND ENDING THE NEW VENTURE
	13 STRATEGIES FOR GROWTH AND MANAGING THE IMPLICATIONS OF GROWTH
		Opening Profile: Brian and Jennifer Maxwell
		Growth Strategies: Where to Look for Growth Opportunities
		Penetration Strategies
			Market Development Strategies
				Product Development Strategies
				Diversification Strategies
			As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Growing into New Markets Using the Internet
				Example of Growth Strategies
			Economic Implications of Growth
			Implications of Growth for the Firm
				Pressures on Existing Financial Resources
				Pressures on Human Resources
					Pressures on the Management of Employees
						Pressures on the Entrepreneur’s Time
					Overcoming Pressures on Existing Financial Resources
					Financial Control
					Ethics: Lessons from Enron
						Managing Cash Flow
						Managing Inventory
						Managing Fixed Assets
						Managing Costs and Profits
						Taxes
						Record Keeping
					Overcoming Pressures on Existing Human Resources
					Overcoming Pressures on the Management of Employees
					As Seen in Entrepreneur Magazine: Elevator Pitch for eVest
					Overcoming Pressures on Entrepreneurs’ Time
						Basic Principles of Time Management
					Implications of Firm Growth for the Entrepreneur
						A Categorization of Entrepreneurs and Their Firms’ Growth
	14 ACCESSING RESOURCES FOR GROWTH FROM EXTERNAL SOURCES
		Opening Profile: Bill Gross
			Using External Parties to Help Grow a Business
				Franchising
					Advantages of Franchising—to the Franchisee
					Advantages of Franchising—to the Franchisor
				As Seen in BusinessWeek: Venture Capital’s Favorite Startups
					Disadvantages of Franchising
					Types of Franchises
				Investing in a Franchise
				Ethics: Fair Enough
				Joint Ventures
					Types of Joint Ventures
					Factors in Joint Venture Success
				Acquisitions
					Advantages of an Acquisition
					Disadvantages of an Acquisition
					Synergy
					Structuring the Deal
				As Seen in Entrepreneur Magazine: Provide Advice to an Entrepreneur about Entering into Agreements
					Locating Acquisition Candidates
		Mergers
		Leveraged Buyouts
		Overcoming Constraints by Negotiating for More Resources
	15 SUCCESSION PLANNING AND STRATEGIES FOR HARVESTING AND ENDING THE VENTURE
		Opening Profile: Teresa Cascioli
			As Seen in BusinessWeek: Provide Advice to an Entrepreneur on How to Beat Failure and Be the Boss Again
				Exit Strategy
				Succession of Business
					Transfer to Family Members
					Transfer to Nonfamily Members
				Options for Selling the Business
					Direct Sale
					Employee Stock Option Plan
					Management Buyout
				Ethics: Involving Employees, Bankers, and Business Associates in the Problem
				Bankruptcy—An Overview
				Chapter 11—Reorganization
					Surviving Bankruptcy
				As Seen in BusinessWeek: Elevator Pitch for nPower Personal Energy Generator
				Chapter 13—Extended Time Payment Plans
				Chapter 7—Liquidation
				Strategy during Reorganization
				Keeping the Venture Going
				Warning Signs of Bankruptcy
				Starting Over
				The Reality of Failure
				Business Turnarounds
				As Seen in BusinessWeek: Provide Advice to an Entrepreneur On How to Beat Failure and Be the Boss Again
				As Seen in BusinessWeek: Elevator Pitch for nPower Personal Energy Generator
PART 6 CASES
	Case 1 Turner Test Prep Co.
	Case 2 Jim Boothe, Inventor
	Case 3 A. Monroe Lock and Security Systems
	Case 4 Beijing Sammies
	Case 5 “Mamma Mia!” The Little Show That Could!
	Case 6 The Beach Carrier
	Case 7 Gourmet to Go
	Case 8 Intervela d.o.o. Koper—Victory Sailmakers
	Case 9 The Gril-Kleen Corporation
	Case 10 The Winslow Clock Company
	Case 11 NeoMed Technologies
	Case 12 Rug Bug Corporation
	Case 13 Nature Bros. Ltd.
	Case 14 Amy’s Bread
	Case 15 Oklahoma National Bank
	Case 16 Datavantage Corporation
	Case 17 Dual Pane Company
INDEX