RNS Ch. 5

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

Undercapitalization

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

Most entrepreneurs start out working

part time on their new business

Boundary

separating and balancing business and home

Stand Retail

the roadside, flea market, farmers' market, or craft fair business; one of the most ancient forms of business (mentioned in the bible, tends to be semi-permanent)

Home-based businesses meets at least

two of the three criteria for start-up

Bootstrapping

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

Disadvantages of Stand Retail

variable income, legal requirements

Most small businesses need to have a

web site

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

Part-time self-employment

working for yourself for 35 or fewer hours a week

Moonlighting

working on your own part-time after your regular job

Sponsored link

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

Search engine optimization

A general approach to Web site design intended to result in the site being displayed 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 site.

Reverse 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

RSS feed

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

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

Informational Web sites

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

Covenants

The limitations imposed on your property by your neighborhood group

Multichannel marketing

The use of several different channels to reach your customers, for example, a web site, direct mail and traditional retailing

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

Success Factors for PT businesses

Time management, use a to-do list, prioritize, keep it in its own space

The internet's power comes from its being a very

cost-effective and efficient way to contact your customers

Advantages of Home Retail

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

Volatility

frequency of business starts and stops

Success Factors

hosts with good contacts, matching product to community, closing the sale

Key Considerations for Success in PT Entrepreneurship

1. Cost to start-up 2. Time to start-up 3. Permanence

In moving from PT to FT, the key question is usually financial

1. Wait until there is a solid income 2. Make use of any transition services offered by the former employer 3. Recognize that initially, you will spend all your time running and marketing the business

When to consider part-time entrepreneurship:

1. You want to gain experience 2. There is a narrow window of opportunity 3. You lack resources for a full-scale business

Full-time self-employment

35 or more hours per week

Business-to-business (B2B)

Business-to-business transactions using e-commerce

Business-to-consumer (B2C)

Business-to-consumer transactions using e-commerce

Zoning Laws

Gov. specifications for acceptable use of land and buildings in particular areas.

Time to start-up

How long it takes to start a new business

Payment

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

Home Retail

Parties and door-to-door (Avon, Mary Kay)

Variance

Permission from a government 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

Cost to start-up

The amount of money it takes to start a new business

Permanence

The impression of long-term continuity a business gives others