Ch 5 Paths to Part-Time Entrepreneurship

Conflict of interest

A situation in which a person faces two or more competing standards or goals.

chargebacks

This is a fee the service levels on you for any of a variety of problems related to the sale

Success Factors for Part-time Businesses

Time managementUse a to-do listPrioritizeKeep it in its own space (home based)

Financial question

Wait until there is a solid incomeMake use of any transition services offered by the former employerRecognize that initially, you will spend all your time running and marketing the businessMay also be new costs - work on replacing employer-provided health insurance

Sponsored link

a form of paid advertising that gets your company's website at the top of a search list.

informational web sites

an internet site designed to introduce and explain a business to others

RSS feed (Really Simple Syndication)

An Internet messaging service that pushes (sends) whatever Web material you specify to subscribers to that feed.

Reciprocal links

A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site.

pop-up business

A temporary business that offers services or products in a variety of locations for a brief period at a time. What characterizes a pop-up business from any other is its temporary nature.

episodic business

A temporary, project-based, or sporadically operating business.

covenants

the limitations imposed on your property by your neighborhood group

Stand Retail Disadvantages

variable income, the difficultyof making sure your stand and business meet legal requirements such as compliance with registering, licensing, and zoning, the problem of knowing how to price goods; and building up a customer base for your stand

Home Retail - Disadvantages

working "on the road", lack of a base to organize and work, variable income, finding ways for customers to reach you

part-time employment

working for 35 or fewer hours a week

Reserve price

A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.

Maker

A modern term for an inventor, in particular, an inventor who uses modern techniques like 3-D software and 3-D printers or do-it-yourself electronics to create new items.

hybrid entrepreneurship

the process of initiating a business while simultaneously remaining employed for wages or salary

Stand retail

the roadside, flea market, farmers' market, or craft fair businessone of the most ancient forms of businessMentioned in the BibleTend to be semi-permanent Success Factors: location, inventory

Moonlighting

working on your own part-time after your regular job, and it poses particular risksThe major concerns are conflict of interest, cannibalizing sales, and poisoning the well.

boundary

separating and balancing business and home

Reverse auction

an auction in which one buyer, usually an organization in which the low bid gets the bus or wins

Volatility

the frequency of business starts and stops. In and out of self employment.

Home Retail Advantages

ease of setup, low cost of start-up, ability to work away from home and employer

Business-to-consumer (B2C)

Business-to-consumer transactions using e-commerce.

Cannibalizing

Taking business away from your employer.

Biggest change in part-time self-employ in past 5 years

Growth of internet as major method for conducting bus

Stand Retail Advantages

little investment, variety of locations, quickly established, easily ended

Business-to-business (B2B)

Business-to-business transactions using e-commerce.

Taxes and Zoning

Dealing w gov and customers

home-based business

9 mill hom-based 2012. 33% of all firms. Meet 2/3 criteria: inexpensive zoning laws covenants

Blog

A Web page in which entries are posted in reverse chronological order (i.e., the most recent at the top of the page)

part-time business

A business in which the owner either participates fewer than 35 hours per week or operates on a temporary or seasonal basis while maintaining employment elsewhere for wages or salary.

Four situations to take on a part-time bus

Do I understand how the business works Do I have enough resources Do I really want to do this full-time How long will this opportunity last

Registration

Information provided to the government concerning the existence of, name of, nature of, and contact information for your business. Dealing w gov and customers

Government and customers

Key groups outside of bus you have to deal with

payment

Most online transactions use a credit card or an online payment system like PayPal.

Internet Informational Websites

The Internet's power comes from its being a very cost-effective and efficient way to contact your customers. Most small businesses need to have a Web site regardless of whether or not they use it for actual sales. Potential customers will use it to find you. If they've heard about you from something other than the Internet, they will use your site to find out more information about you and to decide if they want to actually contact you.

Delegation

The assignment of work to others over whom you have power

HGV vs part-time

While it is common that most successful entrepreneurs in high-growth ventures are those who learn to get and leverage other people's money(OPM), for entrepreneurs in part-time businesses the key is leveraging other people's time (OPT)

full-time employment

Working more than 35 hours a week.

E-Commerce and eBay Websites

You can sell services through Upwork.com ranging from web design to business plans, accounting to translation, training to CAD projects, in a reverse auction format.

B2B market

invisible. Businesses buy big. In 2013, over 61 percent of all manufacturing sales were handled online as well as almost 47 percent of all wholesale trade between businesses.21 You can see the difference, and the growth of these forms of e-commerce, in Figure 5.2(see previous slide).

Aggrandizing

making your business or yourself seem more accomplished than it isMost typical form: is implying that a firm is a full time one when it is only part-time.

E-Commerce and eBay Websites

Active eBay sellers number between 6.7 and 9.3 million in the United States alone. For part-timer entrepreneurs the online approach makes a highly attractive opportunity because it offers the advantages of a large market, 24/7 availability of your products, and a start-up which is quickly done and potentially inexpensive

Cost to start-up

the amount of money it takes to start a new business

multichannel marketing

the use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing

e-commerce

uses the internet to do business transactions

Issues w Home-based Bus

Work location away from noise, distractions, family traffic Be realistic about the amount of space you'll need for your equipment An office door to keep bus separate from fam and life Try location 1-2 days to check noise, traffic patters, lighting needs, and distractions Don't overload on hours of work, or snacks from refrig down the hall Setup work day to minimize distractions Hire help to handle household or fam chores to free up your time Set the ground rules early and stick w them

the eBay method

you pay a fee for posting your product and a sales fee based on the final bid price when the item sells

Why Part-time Businesses Are Important

Most entrepreneurs start out working part time on their new business The sheer number of part-time businesses makes them a major force in our economy Officially, of the 25.9 million small businesses in the United States in 2012, almost half (10.8 million were part-time businesses)

Variance

Permission obtained from zoning authorities to build a structure or conduct a use that is expressly prohibited by the current zoning laws; an exception from the zoning ordinances. Local lawyers specialized in real estate and zoning can often advise you if variance is possible.

intellectual property

property coming from some sort of original thought, for example, patents, trade secrets, trademarks, and copyrights.

Home retail

entrepreneur arranges a get-together at someone's home where participants can socialize and get acquainted with the entrepreneur and the products or services offered. Pioneered by Avon, Mary Kay

Network marketing

an approach to selling in which the salesperson recruits customers to become distributors of the product or service to others. MLM

Time to start-up

how long it takes to start a new business

Permanence

The impression of long-term continuity a business gives others.

zoning laws

government specifications for acceptable use of land and buildings in particular areas

Search Engine Optimization (SEO)

A general approach to Web site design intended to result in the site being displayed toward the beginning of a search engine's (e.g., Google, Yahoo!, etc.) listing for that term.

Poisoning the well

Creating a negative impression among your employers' customers.

Licensing

Documented permission from the government to run your business. Dealing w gov and customers

Best next thing to home bus

Pop-Up Businesses (venue is temporary)Mobile OfficesVirtual Offices, Executive Offices, and IncubatorsDoing Business without a Business Organization