Chapter 5: Small Business Entry: Paths to Part-Time Entrepreneurship

Business-to-business

business-to-business transactions using e-commerce

advantages of home retail

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

boundary

separating and balancing business and home

covenants

the limitations imposed on your property by your neighborhood group

stand retail

the roadside, flea market, farmers' market, or craft fair business

multichannel marketing

the use of several different channels to reach your customers, ex: a web site, direct mail, and traditional retailing

Zoning laws

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

success factors

hosts w good contacts, matching product to community closingthe sale

advantages of stand retail

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

Aggrandizing

making your business or yourself seem more accomplished than it is

payment

most online transactions use a credit card or an online payment system like paypal

undercapitalization

not having enough money available to the business to cover short faills in sales or profits

home retail

parties and door-to-door

variance

permission from a govt organization to act differently that the laws state

Intellectual Property

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

E-commerce

the use of the internet to conduct business transactions

chargebacks

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

bootstrapping

using low-cost or free techniques to minimize your cost of doing business

disadvantages of stand retail

variable income, legal reqs

Part-time self-employment

working for yourself for 35 or fewer hours a week

disadvantages of home retail

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

Moonlightingg

working on your own part-time after your regular job

network marketing

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

reverse auction

an auction in which the low bid gets the business or wins

Business-to-consumer

Business-to-consumer transaction using e-commerce

RSS feed

an internet messaging service that pushes whatever web material you specify to subscribers to that feed

Informational Web sites

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

Key considerations for Success in a Part-Time Entrepreneurship

- Cost to start-up -Time to start-up - Permanence: impression of long-term continuity a business gives to others

Why Part-time businesses are important:

- most entrepreneurs start out working part time on their new business - the sheer number of part-time self employeds makes them a major force in our economy - around half of the 27.2 million small businesses in the US in 2007 were part-time small businesses -volatility: frequency of starts and stops

Home-based Business

-14.4 mil in 2007 - inexpensive - meets two criteria for start-up

Full-time self-employment

35+ hours a week

sponsored link

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

search engine optimizaiton

a general approach to web site design intended to result in the site being displayerd toward the beginning of a search engine's listing for that term

reciprocal links

a listed, live connection to a different web site which in turn displays a similar link to the first web sties

reserve price

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

Blog

a web page in which entries are posted in reverse chronological order