Entrepreneurship 5th Edition

Cover
Title Page
Copyright
Preface
Contents
Chapter 1 The Power of Entrepreneurship
	Entrepreneurship and Small Business in the United States
		Entrepreneurial Revolution
		Web: Three Revolutions Converge
		Entrepreneurship Revolution Strikes Gold
		Creative Destruction
	Causes of the Entrepreneurial Revolution
		Changes in the Entrepreneurial Framework Conditions
		Churning and Economic Growth
	Global Entrepreneurship Monitor
	Principal Findings from GEM
		Activity
		Necessity, Opportunity, and Gender
		Age Distribution of Early‐Stage Entrepreneurial Activity
		Growth Expectations and Job Creation
	Entrepreneurship Ecosystems and the Importance of Support
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: MightyWell
Chapter 2 The Entrepreneurial Process
	Critical Factors for Starting a New Enterprise
	Evaluating Opportunities for New Businesses
	Determining Resource Needs and Acquiring Resources
	Profit Potential
	Ingredients for a Successful New Business
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Vedavoo
Chapter 3 Opportunity Recognition, Shaping, and Reshaping
	From Glimmer to Action: How Do I Come Up with a Good Idea?
	Is Your Idea an Opportunity?
	The Opportunity Checklist
	“I Don’t Have an Opportunity”
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: ISlide, Inc
Chapter 4 Prototyping Your Ideas
	What Is Prototyping?
	Types of Prototyping
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Balanced Snacking
Chapter 5 The Importance of Business Models
	Introduction
	The Core (Steps 1, 2, and 3)
	The Market (Steps 4, 5, 6, and 7)
	Customer Segments (Step 4)
	Marketing Channels (Step 5)
	Distribution Channels (Step 6)
	Revenue Streams (Step 7)
	Product and Operations (Steps 8, 9, 10, and 11)
		Resources (Step 8)
		Partners (Step 9)
		Key Metrics (Step 10)
		Cost Drivers (Step 11)
	The External Enviroment and Financial Strategy (Steps 12, 13, and 14)
		Competitive Environment (Step 12)
		Industry Attractiveness (Step 13)
		Financial Strategy (Step 14)
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Zumba Fitness
Chapter 6 Entrepreneurial Marketing
	Why Marketing Is Critical for Entrepreneurs
	Entrepreneurs Face Unique Marketing Challenges
	Acquiring Market Information
	Marketing Strategy for Entrepreneurs
		Segmentation, Targeting, and Positioning
		The Marketing Mix
		Value Proposition: Articulating the Entrepreneurial Strategy
	Social Media
	Guerrilla Marketing
	Marketing Skills for Managing Growth
		Understanding and Listening to the Customer
		Building the Brand
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Appendix: Customer Interview
	General Outline: It Needs to Be Tailored to Meet Your Research Needs
	Notes
	Case: Theo Chocolate
	Appendix 1 Background and Explanations of Organic and Fair Trade in the Chocolate Industry
Chapter 7 Building The Founding Team
	Power of the Team
	Where Do You Fit?
	How to Build a Powerful Team
	Bootstrapping: Building the Team Based on Stage-of-Venture Life
	Compensation
		Equity
		Salary
		Other Compensation Considerations
	External Team Members
		Outside Investors
		Lawyers
		Accountants
		Board of Advisors
		Board of Directors
	Keeping the Team Together
		Burnout
		Family Pressure
		Interpersonal Conflicts
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Box, Inc.: Preserving Startup Culture in a Rapidly Growing Company
Chapter 8 The Business Planning Process
	The Planning Process
	The Story Model
	The Business Plan
		The Cover
		Executive Summary
		Table of Contents
		Industry, Customer, and Competitor Analysis
		Company and Product Description
		Marketing Plan
		Operations Plan
		Development Plan
		Team
		Critical Risks
		Offering
		Financial Plan
		Appendices
	Types of Plans
	Style Pointers for the Written Plan and Oral Presentation
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case Gravyty: The Art + Science of Better Nonprofit Fundraising
Chapter 9 Building Your Pro Forma
	Financial Statements
	Common Mistakes
	Financial Statement Overview
	Building Your Pro Forma Financial Statements
		Build-Up Method
		Revenue Projections
		Cost of Goods Sold
		Operating Expenses
		Preliminary Income Statement
	Comparable Method
	Building Integrated Financial Statements
		Income Statement
		Balance Sheet
		Cash-Flow Statement
	Putting It All Together
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Gravyty: Understanding Your Market and Building Realistic Proformas
Chapter 10 Raising Money for Starting and Growing a Business
	Bootstrapping New Ventures
	Informal Investors
		Business Angels
		Searching for Business Angels
		Types of Business Angels
		Putting Together a Round of Angel Investment
		Amount of Capital Needed to Start a Business
		Financial Returns on Informal Investment
	Crowdfunding
	Venture Capital
		Classic Venture Capital
		Mechanism of Venture Capital Investing
		Financial Returns on Venture Capital
		Dealing with Venture Capitalists
		Negotiating the Deal
	Valuation
		Earnings Capitalization Valuation
		Present Value of Future Cash Flows
		Market-Comparable Valuation (Multiple of Earnings)
		Asset-Based Valuation
		Example of Market-Comparable Valuation
		Asset-Based Valuation Example
	Harvesting Investments
		Initial Public Offering
		Pros and Cons of an IPO
		The Process of Going Public
		BFWS Goes Public
		Selling the Company
		Why Be Acquired?
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: MetaCarta: Growing a Company, Do We Take the VC Money?
Chapter 11 Debt and Other Forms of Financing
	Getting Access to Funds—Start with Internal Sources
		Start with Credit Cards and Home Equity Lines
	Cash Conversion Cycle
	Working Capital: Getting Cash from Receivables and Inventories
	Using Accounts Receivable as Working Capital
		The Sales Pattern
		Cash versus Credit Sales
		Credit Policies
		Setting Credit Terms
		Collection Policies
		Setting Credit Limits for Individual Accounts
		Inventory
	Sources of Short-Term Cash: More Payables, Less Receivables
		Cash from Short-Term Bank Loans
		Cash from Trade Credit
		Cash Obtained by Negotiating with Suppliers
		Cash Available Because of Seasonal Business Credit Terms
		Advantages of Trade Credit
		Cash Obtained by Tightening Up Accounts Receivable Collections
	Obtaining Bank Loans Through Accounts Receivable Financing
		Pledging
		Pledging with Notification
		Factoring
		Recourse
	Obtaining Loans against Inventory
	Obtaining “Financing” from Customer Prepayments
	Choosing the Right Mix of Short-Term Financing
	Traditional Bank Lending: Short-Term Bank Loans
		Maturity of Loans
		Interest Rates
		Collateral
		Applying for a Bank Loan
		Restrictive Covenants
		General Provisions
		Routine Provisions
		Specific Provisions
	Equipment Financing
	Obtaining Early Financing from External Sources
		SBA-Guaranteed Loans
		Applying for an SBA Loan
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: FEED Resource Recovery
Chapter 12 Legal and Tax Issues, Including Intellectual Property
	Why, When, and How to Choose an Attorney
	Leaving Your Present Position
		Corporate Opportunity
		Recruitment of Fellow Employees
		Noncompetition
	Intellectual Property
		The Basics: What Is Protectable and How Should It Be Protected?
		Patents
		Trade Secrets
		Trademarks
		Copyright
		International Protection for Intellectual Property
	Choice of Legal Form
		Control
		Personal Liability
		Taxation
		Initial Investment of the Founders
		Administrative Obligations
	Choosing a Name
		Stockholders’ and Operating Agreements
		Negotiating Employment Terms
		Disposition of Equity Interests
	Legal and Tax Issues in Hiring Employees
		Employees as Agents of the Company
		Employment Discrimination
		Employment Agreements
	Raising Money
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Wefunder: Leading the Growth of a New Industry
Chapter 13 Entrepreneurial Growth
	Making the Transition from Start-up to Growth
		Looking Forward: The Choice to Grow, or Not,… or Sell
	A Model of Driving Forces of Growth
	The Growth Process
	Execution
		Instituting Controls
		Tracking Performance
		Managing the Cash Cycle
		Leveraging the Value Chain
		Maintaining the Entrepreneurial Organization
	Opportunity Domain
	Organizational Resources and Capabilities
		Obtaining Financial Resources for the Growing Company
		Intangible Resources and Capabilities
	Leadership
		Starting the Delegation Process
		First-Level Management
		From Delegation to Decentralization
		Professional Management and Boards
		Coordinating the Driving Forces
		Leading People; Developing Entrepreneurs
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: Esporte Interativo
Chapter 14 Social Entrepreneurship
	Introduction
	The Rise in Social Entrepreneurship
	Social Entrepreneurship Defined
	A Social Entrepreneurship Typology
		Hybrid Ventures
		Choosing Your Venture Type
	Measuring Impact
	Conclusion
	Your Opportunity Journal
	Web Exercise
	Notes
	Case: InnerCity Weightlifting
Glossary
Index
EULA