Mc Graw Hill Education

Transcription

1 entrepreneurship THE ART, SCIENCE, AND PROCESS FOR SUCCESS second edition Charles E. Bamford University of Notre Dame Garry D. Bruton Texas Christian University Mc Graw Hill Education

2 table of Contents Prefa ce vii PART 1 Laying the Groundwork for Small Business chapter 1 THE TWENTY-FIRST-CENTURY ENTREPRENEUR 2 Why Start a Business? 4 A Brief History of Entrepreneurial Businesses in the United States 6 Who Are Entrepreneurial Business Owners Today? 8 How Does Society Benefit? 8 Entrepreneurship Around the World 11 What Is an Entrepreneurial Business? n Summary 16 Key Terms 16 Review Questions 16 Individual Exercises 16 Group Exercises 16 Endnotes 16 Credits 17 chapter 2 INDIVIDUAL LEADERSHIP AND ENTREPRENEURIAL START-UPS is Founders Are the Reason Why Entrepreneurial Businesses Work So Well 22 Evaluating Your Entrepreneurial Orientation 23 Triggers for Starting a Business 27 Supports 29 Form a Business Döing What You Like 33 Summary 34 Key Terms 34 Review Questions 34 Business Plan Development Questions 34 Individual Exercises 35 Group Exercises 35 Endnotes 35 Credits 35 chapter 3 BUSINESS IDEA GENERATION AND INITIAL EVALUATION 36 Generating Business Ideas 39 Opportunity Identification 44 Choosing a Business 46 Summary 54 Key Terms 54 Review Questions 54 Business Plan Development Questions 54 Individual Exercises 54 Group Exercises 55 Endnotes 55 Credits 55 PART 2 Due Diligence on the Business Idea chapter 4 EXTERNAL ANALYSIS 56 Defining Your Industry 58 Defining Your Customers 60 Developing the Information for the External Analysis of Competitors 62 Developing a Competitive Map 65 Additional Issues for External Analysis 68 Competitive Advantage 70 Summary 73 Key Terms 73 Review Questions 74 Business Plan Development Questions 74 Individual Exercises 74 Group Exercises 74 Endnotes 74 Credits 75 xxi

3 chapter 5 BUSINESS MISSION AND STRATEGY 76 Mission Statements 78 Sustainable Competitive Advantage 84 Step 1: Develop a List of Your Business's Assets and Capabilities 85 Step 2: Split the List into Standard and Unique Assets 85 Step 3: Evaluate Competitiveness of Unique Resources or Capabilities 87 Strategy 89 Summary 93 Key Terms 94 Review Questions 94 Business Plan Development Questions 94 Individual Exercises 94 Group Exercises 94 Endnotes 95 Credits 95 PART 3 Establishing a Financial Foundation chapter 6 ANALYZING CASH FLOW AND OTHER FINANCIAL INFORMATION 96 Importance of Cash Flow Analysis 98 Developing Cash Flow Statements and Budgets 106 Other Financial Tools 111 Summary 116 Key Terms 116 Review Questions 116 Business Plan Development Questions 117 Individual Exercises 117 Group Exercises 117 Endnotes 117 Credits 117 chapter 7 FINANCING AND ACCOUNTING na Key Financial Issues Involved with Starting a Business 120 Basics of Funding a Business 122 Importance of Proper Accounting When Starting a Business 129 Summary 134 Key Terms 134 Review Questions 134 Business Plan Development Questions 134 Individual Exercises 135 Group Exercises 135 Endnotes 135 Credits 135 chapter 8 FINANCIAL ANALYSIS 136 Importance of a Solid Financial Foundation in an Entrepreneurial Business 138 Techniques for Measuring Performance 138 Ratio Analysis 141 Deviation Analysis 148 Sensitivity Analysis 149 Use of Short Surveys in Business 150 Importance of Having a Measurement Focus 153 Summary 154 Key Terms 154 Review Questions 154 Business Plan Development Questions 155 Individual Exercises 155 Group Exercises 155 Endnotes 155 Credits 155 PART 4 Building the Business chapter 9 ESTABLISHING THE LEGAL FOUNDATION 156 Various Legal Forms of Business to Determine the Best Design for a Proposed New Business l6o Basics of Contracts 166 Role of Leases in the Legal Formation of the New Business 167 How Laws, Rules, and Regulations Benefit New Businesses 169 Importance of Copyrights, Trademarks, and Patents to a New Business 171 Role That Insurance Plays in the Risk Portfolio of the New Business 172 How to Develop an Effective Board of Advisors and Board of Directors 173 xxii table of Contents

4 Summary 174 Key Terms 174 Review Questions 174 Business Plan Development Questions 175 Individual Exercises 175 Group Exercises 175 Endnotes 175 Credits 175 chapterlo HUMAN RESOURCES MANAGEMENT 176 The Elements of Human Resources 179 The Process of Hiring Employees 179 The Means for Retaining Employees 185 The Pertinent Aspects of Employee Probation and Firing 190 Broad Coverage Regulations and Laws 190 The Unique Aspects of Human Resources Within a Family Business 192 Summary 193 Key Terms 194 Review Questions 194 Business Plan Development Questions 194 Individual Exercises 194 Group Exercises 194 Endnotes 195 Credits 195 chapter 11 MARKETING 196 Basics of a Marketing Plan 198 How to Develop a Pricing Model 202 The Various Types of Promotion Available to a New Business 204 The Methods for Sales Management 207 Summary 212 Key Terms 212 Review Questions 212 Business Plan Development Questions 212 Individual Exercises 213 Group Exercises 213 Endnotes 213 Credits 213 chapter12 ESTABLISHING OPERATIONS 214 The Use of a Critical Path Chart 218 How Location Can Be Used as a Competitive Advantage 221 The Important Issues in the Financing Considerations of New Firms 223 The Various Methods with Which a New Firm Establishes Legitimacy in the Market 224 The Importance of Production Management in Start-Up Ventures 226 How Production Charting Is Accomplished 226 The Importance of Quality as a Competitive Tool 228 The Type and Condition of Equipment Needed at Start-Up 229 How Timing Is a Competitive Advantage 231 The Issues Related to Time Management in the Starting of a New Business 231 Summary 232 Key Terms 232 Review Questions 232 Business Plan Development Questions 233 Individual Exercises 233 Group Exercises 233 Endnotes 233 Credits 233 PART 5 Important Issues for Entrepreneurs chapter13 EXIT/HARVEST/TURNAROUND 234 Need for Developing an Exit or Harvest Plan and Ideal Timing for That Plan 236 Steps for Selling a Business 238 Turnaround and Business in Decline 249 Implications and Issues Involved in Closing a Business 251 Summary 252 Key Terms 252 Review Questions 253 Business Plan Development Questions 253 Individual Exercises 253 Group Exercises 253 Endnotes 253 Credits 253 table of contents xxiii

5 chapter 14 FRANCHISING AND PURCHASING AN EXISTING BUSINESS 254 The Elements of Franchising 257 The Process of Buying a Franchise 259 The Process for Buying an Existing Business 265 Summary 268 Key Terms 268 Review Questions 269 Individual Exercises 269 Group Exercises 269 Endnotes 269 Credits 269 PART 6 MiniCases Appendix 300 Glossary 315 Case Index 319 Subject Index 320 xxiv table of Contents