Partl Nature of Entrepreneurship and Small Business 1 Entrepreneurs: The Energizers of Small Business 2 Small Business: Vital Component of the Economy Part2 Seeking Entrepreneurial Opportunities 3 Stortup and Buyout Opportunities 4 Franchising Opportunities 5 Family Business Opportunities Part3 Developing the New Venture Business Plan 6 The Role of a Business Plan for a New Venture 7 Creating a Competitive Advantage 8 Analyzing the Market and Formulating the Marketing Plan 9 Selecting the Management Team and Form of Organization 10 Choosing the Location and Physkal Facilities 11 Accounting Statements and Financial Requirements 12 Finding Sources of Financing Par4 Small Business Marketing 13 Consumer Behavior and Product Strategy 14 Pricing and Credit Strategies 15 Promotion: Personal Selling, Advertising, and Sales Promotion 16 Distribution Channels and Global Markets Part5 Managing Small Business Operations 17 Professional Management in the Growing Firm 18 Managing Human Resources 19 Quality Management and the Operations Process 20 Purchasing and Managing Invenlory 21 Compufer-Based Technology for Small Businesses Part6 Financial Management in the Entrepreneurial Firm 22 Evaluating Financial Performance 23 Working-Capital Management and Capital Budgeting 24 Risk and Insurance Management Part7 Social and Legal Environment 25 Social and Ethical Issues 26 Working Within the Law Cases Appendixes Endnotes Photo Credits Glossary Index WalkThrough xi Preface xxv About the Authors xxxi Port1 Nature of Entrepreneurship and Small Business 1 Entrepreneurs: The Energizers of Small Business Opportunities (or Entrepreneurial "Energizers" Rewards and Drawbacks of Entrepreneurship Charactenstics of Entrepreneurs Readiness for Entrepreneurship Diversily in Entrepreneurship 2 Small Business: Vital Component of the Economy Definition of Small Business Small Business as Producer of Goods and Services Special Contributions of Small Business The Small Business Failure Record Causes of Business Failure Part2 Seeking Entrepreneurial Opportunities 3 Startup and Buyout Opportunities The Stariup: Creating a New Business Buying an Existing Business Increasing the Chances of a Successful Startup: Lessons from High-Growth Firms 4 Franchising Opportunites Understanding the Franchise Option Advantages and Disadvontages of Fronchising Evaluating Franchise Opportunifes Selling a Franchise Understanding the Franchisor/Franchisee Relationship 5 Family Business Opportunities The Famil Business: A Unique Institution The Cubure of a Family Business Fomily Roles and Relationships Special Fealures of Family Firm Management Thc Process of Leadership Succession Transfer of Ownership Part3 Developing the New Venture Business Plan 6 TheRoleof a BusinessPlanforaNewVenture What Is a Business Plan? The Need for a Business Plan How Much Business Plan Is Needed? Preparing a Business Plan Where to Go for More Information The Business Plan 7 Creating a Competitive Advontage Competitive Advantage Market Segmentation Strategies Niche Marketing Customer Service Management The Business Plan 8 Analyzing the Market and Formulating the Marketing Plan Small Business Marketing Marketing Research for the New Venture Estimating Market Potential Components of the Fonnal Marketing Plan The Business Plan 9 Selecting the Management Team and Form of Organization The Management Team Legal Forms of Organization The Board of Directors Federal Income Taxes and the Form of Organization The Business Plan 10 Choosing the Location and Physical Facilities The Location Decision Site Selection Home-Based Dusinesses The Building and Its Layout Equipment and Tools The Business Plan 11 Accounting Statements and Financial Requirements Accounting Statements: Tools (or Determining Financial Needs Assessing Profitability A Firm's Financial Requirements The Business Plan 12 Finding Sources of Financing Debt or Equity Financing? Sources of Financing Individuals as Sources of Funds Business Suppliers and Asset-Based Lenders as Sources of Funds Commefcial Banks as Sources of Funds Govemment-Sponsored Agencies as Sources of Funds Other Sounces ot Funds Keeping the Right Perspective The Business Plon part 4 Small Business Marketing 13 ConsumerBehaviorandProductSlrategy Underslonding the Customer Product Management Product StratogyAltBmativesforSmaHBusinesses Building thelbotol ProductOffering 14 Pridng and Credit Strategies Setting a Price Using Break-Even Andysis tor Pricing Seleding o Pridng Stratogy OfferingCredit Manoging the Credit Process 15 rroinotion: Personal Selling, AdVertising, and Soles PromolionI Promotion and tne Communication ProcSS Delermining Profnotional ExpenditurBs Persond Selling Techniques for Smoll Firms Advertising Considerations tor Small Firms Sales Promolion Options for Small Finns 16 DistributionChannels andGlobalMorkets The Role of Distribution Activities in Marlketing Struduring a Distribution System Global Marketing Challenges Initial Preparations for Global Marketing Sources of Trade and Financing Assistance Part5 Managing Small Business Operations 17 Professional Management in the Growing Firm Distinctive Features of Small Finn Management The Nature of Managerial Work Time Management Outside Management Assistance 18 Managing Human Resources Recrniting Personnel Evaluating Prospects and Selecting Employees Training and Development Compensation and Incentives for Small Business Employees Special Issues in Human Resources Manogement 19 Quallily Management and the Operations Process Tbtal Quality Managemenl The Operotions Process Improving Productivrity 20 Purchasing and Managing Inventory Purchasing Processes and Policles Relationships with Suppliers Objectives of Inventory Management Controlling Inventory Costs 21 Computer-Based Technology for Small Businesses Overview of Available Technology Computer Systems: Hardware and Soflware Communication Among Computers Office and Production Technology Purchasing and Managing Technology Trends in Computer-Based Technology Part6 Financial Management in the Entrepreneurial Firm 22 Evaluating Financial Performance Accounting Activities in Small Finns Assessing a Firm's Financial Performance 23 Working-Capital Management and Capital Budgeting Ttie Working-Capital Cycle Managing Cash Flow Managing Accounts Receivable Managing Inventory Managing Accounts Poyable Capital Budgeting Appendix 23A Time Value of Money: Finding the Present Value of a Dollar Appendix 23B: Discounted Cash-Flow lechniques: Computing a Projects Net Present Value and Intemal Rate of Retum 24 Risk and Insurance Management Defining and Classifyinq Risk Risk Management Insurance for the Small Business Part7 Social and Legal Environment 25 Social and Ethkal Issues Social Responsibilities and Small Business The Special Challenges of Environmentalism and Consumerism The Small Business Context for Ethical Decisions Putting Ethical Precepts into Practice 26 Working Wilhin the Law Government Regulation and Small Business Opportunily Govemment Regulation and Protection of the Marketplace Business Agreements and the Law The Challenge of Taxation Case 1 King's Beauty Supply Case 2 Construction Equipment Dealership Case 3 Stitch Craft Case 4 Operating a Kiosk Franchise Case 5 The Brown Family Business Case 6 Robinson Associates, Inc.c Case 7 The Fantastic Catalogue Company Case8 ScrubaDub Auto Wash Case9 VMGProducts Case 10 Logan Beach Case 11 WJP Partners Case 12 Walker Machine Works Case 13 SilverUning Case 14 The Jordan Construction Account Case 15 UtterRidder Case 16 NovaSoft Systems Inc. Case 17 Central Engineering Case 18 Gibson Mortuary Case 19 Douglas Electrical Supply, Inc. Case 20 Mather's Heating and Air Conditioning Case21 Franklin Motors Case 22 The Style Shop Case 23 Barton Sales and Service Case24 Fox Manufacturing Case 25 The Martin Company Case 26 Diaper Dan Appendix A Sample Business Plan Appendix B Present Value of $ 1 Appendix C Present Value of an Annuity of $1 for n Periods Endnotes Photo Credits Glossary Index
