Essentials of entrepreneurship and small business management

Cover......Page 1
Title Page......Page 3
Copyright Page......Page 4
Acknowledgments......Page 16
Contents......Page 7
Preface......Page 14
 Chapter 1 The Foundations of Entrepreneurship......Page 19
  The World of the Entrepreneur......Page 20
  What Is an Entrepreneur?......Page 23
  The Benefits of Entrepreneurship......Page 30
  YOU BE THE CONSULTANT: Decoding the DNA of the Entrepreneur......Page 32
  The Potential Drawbacks of Entrepreneurship......Page 36
  Behind the Boom: What’s Feeding the Entrepreneurial Fire......Page 38
  YOU BE THE CONSULTANT: College: The Ideal Place to Launch a Business......Page 42
  The Cultural Diversity of Entrepreneurship......Page 43
  HANDS ON . . . HOW TO: Launch a Successful Business While You Are Still in College......Page 51
  The Power of “Small” Business......Page 52
  Putting Failure into Perspective......Page 53
  How to Avoid the Pitfalls......Page 55
  Chapter Summary by Learning Objective......Page 58
  Discussion Questions......Page 59
  Endnotes......Page 60
 Chapter 2 Ethics and Social Responsibility: Doing the Right Thing......Page 61
  An Ethical Perspective......Page 64
  Why Ethical Lapses Occur......Page 71
  Establishing and Maintaining Ethical Standards......Page 73
  Social Entrepreneurship......Page 76
  YOU BE THE CONSULTANT: Funding Social Ventures Through Franchise Businesses......Page 77
  Social Responsibility......Page 78
  Business’s Responsibility to Employees......Page 80
  HANDS ON . . . HOW TO: How to Avoid Sexual Harassment Charges......Page 88
  Business’s Responsibility to Customers......Page 90
  YOU BE THE CONSULTANT: Think before You Tweet......Page 91
  YOU BE THE CONSULTANT: But Is It Safe?......Page 93
  Business’s Responsibility to the Community......Page 94
  Chapter Summary by Learning Objective......Page 95
  Discussion Questions......Page 96
  Endnotes......Page 97
 Chapter 3 Inside the Entrepreneurial Mind: From Ideas to Reality......Page 98
  Creativity, Innovation, and Entrepreneurship......Page 99
  Creativity—Essential to Survival......Page 102
  Creative Thinking......Page 103
  Barriers to Creativity......Page 106
  YOU BE THE CONSULTANT: 10 Keys to Business Innovation......Page 107
  How to Enhance Creativity......Page 113
  HANDS ON . . . HOW TO: Be a Successful Innovator......Page 124
  The Creative Process......Page 125
  Techniques for Improving the Creative Process......Page 131
  Intellectual Property: Protecting Your Ideas......Page 136
  YOU BE THE CONSULTANT: How Would You Rule in These Intellectual Property Cases?......Page 140
  HANDS ON . . . HOW TO: Protect Your Company’s Intellectual Property—Both at Home and Abroad......Page 143
  Chapter Summary by Learning Objective......Page 145
  Beyond the Classroom . . .......Page 147
  Endnotes......Page 148
 Chapter 4 Conducting a Feasibility Analysis and Designing a Business Model......Page 149
  Idea Assessment......Page 150
  Industry and Market Feasibility......Page 153
  Porter’s Five Forces Model......Page 156
  HANDS ON . . . HOW TO: Forces Shaping Innovation: The Driverless Car......Page 157
  Product or Service Feasibility Analysis: Is There a Market?......Page 161
  HANDS ON . . . HOW TO: Do You Want Fries with Those Crickets?......Page 164
  Financial Feasibility Analysis: Is There Enough Margin?......Page 165
  Entrepreneur Feasibility: Is This Idea Right for Me?......Page 166
  Developing and Testing a Business Model......Page 168
  YOU BE THE CONSULTANT: RendezWoof: Creating a Minimal Viable Product for a Mobile App......Page 173
  Conclusion......Page 174
  YOU BE THE CONSULTANT: When to Call It Quits on a New Business......Page 175
  Chapter Summary by Learning Objective......Page 176
  Beyond the Classroom . . .......Page 177
  Endnotes......Page 178
 Chapter 5 Crafting a Business Plan and Building a Solid Strategic Plan......Page 179
  The Benefits of Creating a Business Plan......Page 180
  The Elements of a Business Plan......Page 182
  What Lenders and Investors Look for in a Business Plan......Page 191
  The Pitch: Making the Business Plan Presentation......Page 192
  YOU BE THE CONSULTANT: The Battle of the Plans......Page 194
  Building a Strategic Plan......Page 195
  Building a Competitive Advantage......Page 197
  The Strategic Management Process......Page 199
  HANDS ON . . . HOW TO: Beat the Big Guys......Page 205
  YOU BE THE CONSULTANT: Digital Franchise Seeks to Expand Nationwide......Page 210
  YOU BE THE CONSULTANT: Finding a Niche with a Subscription Business Model......Page 213
  Sample Business Plan Outline......Page 225
  Chapter Summary by Learning Objective......Page 228
  Beyond the Classroom . . .......Page 230
  Endnotes......Page 231
 Chapter 6 Forms of Business Ownership and Buying an Existing Business......Page 232
  HANDS ON . . . HOW TO: Come Up with the Perfect Moniker for Your Business......Page 235
  Sole Proprietorships and Partnerships......Page 237
  YOU BE THE CONSULTANT: Making a Partnership Work......Page 244
  Corporations......Page 245
  The Limited Liability Company......Page 249
  How to Create a Legal Business Entity......Page 250
  Buying an Existing Business......Page 251
  The Steps in Acquiring a Business......Page 257
  HANDS ON . . . HOW TO: Become a Successful Negotiator......Page 262
  Chapter Summary by Learning Objective......Page 263
  Discussion Questions......Page 264
  Endnotes......Page 265
 Chapter 7 Franchising and the Entrepreneur......Page 266
  Types of Franchising......Page 269
  The Benefits of Buying a Franchise......Page 270
  YOU BE THE CONSULTANT: Would You Buy This Franchise?......Page 278
  The Drawbacks of Buying a Franchise......Page 279
  Franchising and the Law......Page 283
  The Right Way to Buy a Franchise......Page 286
  Trends Shaping Franchising......Page 293
  HANDS ON . . . HOW TO: Select the Ideal Franchise—For You!......Page 295
  YOU BE THE CONSULTANT: Franchising in Africa: Potential Abounds but So Do Challenges......Page 297
  Chapter Summary by Learning Objective......Page 300
  Discussion Questions......Page 301
  Appendix A. A Franchise Evaluation Checklist......Page 302
 Chapter 8 Building a Powerful Bootstrap Marketing Plan......Page 304
  Building a Bootstrap Marketing Plan......Page 305
  Pinpointing the Target Market......Page 307
  Determining Customer Needs and Wants through Market Research......Page 309
  YOU BE THE CONSULTANT: .CO Internet S.A.S.......Page 310
  Plotting a Bootstrap Marketing Strategy: How to Build a Competitive Edge......Page 315
  YOU BE THE CONSULTANT: Auto Repair Goes Social......Page 323
  HANDS ON . . . HOW TO: Make Social Media Work for Your Business......Page 325
  YOU BE THE CONSULTANT: A Company with Soul......Page 333
  Chapter Summary by Learning Objective......Page 339
  Beyond the Classroom . . .......Page 340
  Endnotes......Page 341
 Chapter 9 E-Commerce and the Entrepreneur......Page 342
  Factors to Consider before Launching into E-Commerce......Page 346
  Ten Myths of E-Commerce......Page 347
  Strategies for E-Success......Page 356
  HANDS ON . . . HOW TO: Use a Mobile-First, Responsive Web Design to Increase Online Sales......Page 364
  Designing a Killer Web Site......Page 369
  YOU BE THE CONSULTANT A: Total Makeover......Page 370
  Tracking Web Results......Page 378
  Ensuring Web Privacy and Security......Page 380
  HANDS ON . . . HOW TO: Build a Web Site That Lands Customers and Creates Conversions......Page 381
  Chapter Summary by Learning Objective......Page 384
  Discussion Questions......Page 385
  Endnotes......Page 386
 Chapter 10 Pricing and Credit Strategies......Page 387
  Three Potent Forces: Image, Competition, and Value......Page 390
  Pricing Strategies and Tactics......Page 399
  YOU BE THE CONSULTANT: What’s the Right Price?......Page 400
  ETHICS AND ENTREPRENEURSHIP: The Ethics of Dynamic Pricing......Page 404
  Pricing Strategies and Methods for Retailers......Page 408
  Pricing Concepts for Manufacturers......Page 410
  HANDS ON . . . HOW TO: Calculate Your Company’s Pocket Price Band......Page 414
  The Impact of Credit on Pricing......Page 416
  Chapter Summary by Learning Objective......Page 420
  Discussion Questions......Page 421
  Endnotes......Page 422
 Chapter 11 Creating a Successful Financial Plan......Page 423
  Basic Financial Statements......Page 424
  Creating Projected Financial Statements......Page 429
  Ratio Analysis......Page 433
  YOU BE THE CONSULTANT: The Challenges of Debt......Page 438
  Interpreting Business Ratios......Page 445
  YOU BE THE CONSULTANT: All Is Not Paradise in Eden’s Garden: Part 1......Page 446
  YOU BE THE CONSULTANT: All Is Not Paradise in Eden’s Garden: Part 2......Page 452
  YOU BE THE CONSULTANT: Where Do We Break Even?......Page 457
  Chapter Summary by Learning Objective......Page 458
  Endnotes......Page 459
 Chapter 12 Managing Cash Flow......Page 460
  Cash Management......Page 461
  Cash and Profits Are Not the Same......Page 465
  The Cash Budget......Page 466
  HANDS ON . . . HOW TO: Manage Cash Flow in a Highly Seasonal Business......Page 472
  The “Big Three” of Cash Management......Page 476
  YOU BE THE CONSULTANT: In Search of a Cash Flow Forecast......Page 477
  HANDS ON . . . HOW TO: Avoid Losses from Accounts Receivable......Page 485
  Avoiding the Cash Crunch......Page 489
  YOU BE THE CONSULTANT: Controlling Employee Theft......Page 495
  Conclusion......Page 496
  Discussion Questions......Page 497
  Endnotes......Page 498
 Chapter 13 Sources of Financing: Equity and Debt......Page 499
  Sources of Equity Financing......Page 502
  HANDS ON . . . HOW TO: Structure Family and Friendship Financing Deals......Page 505
  HANDS ON . . . HOW TO: Crowdfunding......Page 507
  Public Stock Sale (“Going Public”)......Page 515
  Sources of Debt Financing......Page 519
  HANDS ON . . . HOW TO: Get a Bank to Say “Yes” to Your Loan Application......Page 522
  The Small Business Administration (SBA) Loan Guarantee Programs......Page 524
  YOU BE THE CONSULTANT: The Never-Ending Hunt for Financing......Page 525
  Other Federal and State Programs......Page 532
  Other Methods of Financing......Page 535
  Chapter Summary by Learning Objective......Page 538
  Discussion Questions......Page 539
  Beyond the Classroom . . .......Page 540
  Endnotes......Page 541
 Chapter 14 Choosing the Right Location and Layout......Page 542
  Location: A Source of Competitive Advantage......Page 543
  ETHICS AND ENTREPRENEURSHIP: “Wait, You Can’t Take Our Location . . . Can You?”......Page 558
  Location Criteria for Retail and Service Businesses......Page 560
  YOU BE THE CONSULTANT: “Pop” Goes the Store......Page 561
  Location Options for Retail and Service Businesses......Page 565
  The Location Decision for Manufacturers......Page 572
  Layout and Design Considerations......Page 574
  Layout: Maximizing Revenues, Increasing Efficiency, or Reducing Costs......Page 581
  HANDS ON . . . HOW TO: Create the Ideal Layout......Page 582
  Chapter Summary by Learning Objective......Page 588
  Beyond the Classroom . . .......Page 589
  Endnotes......Page 590
 Chapter 15 Global Aspects of Entrepreneurship......Page 591
  Why Go Global?......Page 592
  Strategies for Going Global......Page 594
  YOU BE THE CONSULTANT: Going Global from the Outset......Page 596
  YOU BE THE CONSULTANT: Selling a Simple Product to a Global Market......Page 603
  Barriers to International Trade......Page 612
  YOU BE THE CONSULTANT: Expat Entrepreneurs Find Opportunity in Argentina......Page 613
  HANDS ON . . . HOW TO Build a Successful Global Company......Page 616
  International Trade Agreements......Page 621
  Conclusion......Page 622
  Chapter Summary by Learning Objective......Page 623
  Discussion Questions......Page 624
  Endnotes......Page 625
 Chapter 16 Building a New Venture Team and Planning for the Next Generation......Page 626
  Leadership: An Essential Part of an Entrepreneur’s Job......Page 627
  Building an Entrepreneurial Team: Hiring the Right Employees......Page 633
  YOU BE THE CONSULTANT: Avoid These Hiring Mistakes......Page 640
  ETHICS AND ENTREPRENEURSHIP: Honesty in Job Descriptions......Page 643
  Creating an Organizational Culture That Encourages Employee Motivation and Retention......Page 647
  Management Succession: Passing the Torch of Leadership......Page 657
  HANDS ON . . . HOW TO: Make Your Small Business a Great Place to Work......Page 658
  Exit Strategies......Page 666
  Discussion Questions......Page 668
  Endnotes......Page 669
Appendix: The Daily Perc Business Plan......Page 670
Cases......Page 692
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