Small Business Management
Growth rewards
what people get from facing and beating challenges
self-employed
working for yourself
Crowdsourcing
Techniques often based on internet-based services to get opinions or ideas through the collective involvement of others
permanence
The impression of long-term continuity a business gives others.
freemium
an approach to pricing to pricing, and a business model, that connects free and premium products or services. typically a free version is offered and users have the option to pay to move up to premium features.
reverse auction
an auction in which the low bid gets the business or wins
Informational Website
an internet site designed to introduce and explain a business to others
firm
an organization that sells to or trades with others
Imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
radical innovation strategy
rejecting existing ideas, and presenting a way to do things differently
determination competencies
skills identified with the energy and focus needed to bring a business into existence
opportunity competencies
skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
value proposition
small business owner's unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition
SCAMPER
substitute, combine, adapt, magnify or modify, put to other uses, eliminate, rearrange
Cannibalizing
taking business away from your employer
customer segment
A group or subgroup of potential purchasers that can be approached in a coherent manner.
reverse price
A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.
factor-driven economy
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
main street businesses
A popular term for small businesses reflecting the idea that these are the kinds of firms you would expect to find on the main street of a typical American city, and are the opposite of big businesses or "Wall Street" businesses.
pilot test
A preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have.
entrepreneurial alertness
A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities.
A/B testing
A way to check customer reaction to websites describing your product or service. Two versions (version "A" and version "B") of the site are posted and are served up randomly to prospective customers. The version of the website that gets the most commitments from customers is the one kept and the less attractive site is revised and the two versions tested until one revision gets consistently superior customer reactions.
set-asides
Government contracting funds which are earmarked for particular kinds of firms, such as small businesses, minority-owned firms, women-owned firms, and the like.
pg 30 5 ps of entrepreneurial behanior
essay
the entrepreneurial process
feel -> check -> plan -> do
incremental strategy
taking an idea and offering a way to do something slightly better than it is done presently
When to consider a part-time business (essay)
1) Do I understand how the business works? 2) How long will this opportunity last? 3) Do I really want to do this full-time? 4) Do I have enough resources?
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.
Traditional small business
A firm intended to provide a living income to the owner, and operating in a manner and on a schedule consistent with other firms in the industry and market.
RSS feed
An internet messaging service that pushes (sends) whatever web material you specify to subscribers to that feed
Business-to-business (B2B)
Business-to-business transactions using e-commerce.
Business-to-consumer (B2C)
Business-to-consumer transactions using e-commerce.
variance
Permission from a government organization to act differently than the law state
overall growth strategy
One of four general ways to position a business based on the rate and level of growth entrepreneurs anticipate for their firm.
Intellectual Property (IP)
Property coming from some sort of original thought, for example, patents, trade secrets, trademarks, and copyrights.
opportunity recognition
Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.
corridor principle
a theory in entrepreneurship and occupational theory that says that as you start pursing one of the line of work or opportunity (which is like going down a corridor) you will encounter other opportunities
Four elements needed to get your business started (BRIE)
Your Small Business: - Boundary: Creating a place for your business-in location and in people's minds - Resources: The money, product, knowledge, etc., that make up the business - Intention: The desire to start a business - Exchange: Moving resources/products/services in exchange for money
independent small business
a business owned by an individual or small group
Owner-managed firm
a business run by the individual who owns it
High-performing small business
a firm intended to provide the owner with a high income through sales or profits superior to those of the traditional small business
high-growth venture
a firm started with the intent of eventually going public, following the pattern of growth and operations of a big business
maker
a modern term for an inventor, in particular, an inventor who uses modern techniques like 3-D printers or do-it-yourself electronics to create new items
Efficiency-driven economy
a nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity is a major goal
Innovation-driven economy
a nation where the major forces for jobs, revenues, and taxes come from high-value added production based on new ideas and technologies and from professional services based on higher education
small business administration (SBA)
a part of the united states government that provides support and advocacy for small businesses
serial entrepreneur
a person who opens multiple businesses throughout his or her career
self-efficacy
a person's belief in his or her ability to achieve a goal
Franchise
a prepackaged business bought, rented, or leased from a company called franchisor
conflict of interest
a situation in which a person faces two or more competing standards or goals
Innovativeness
refers to how important a role new ideas, products, services, processes, or markets play in an organization
aggrandizing
attempting to make your business or yourself seem more accomplished or grander than reality
business models
business models are a way to identify and organize key information on a business and how it achieves its goals. business models can be analytic tools (like a business model canvas) or a way to do business (like the "razor and blade" business model).
gain
can be any sort of out come (a product, service, outcome, or situation) customers would like to encounter to be able to depend on. it is 1 of 2 driving forces creating new products or services, with the other driving force being pain
pain
can be any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face. it is 1 of 2 driving forces of creating new products or services, with the other driving force being pain.
novelty
characterized by being different or new
imitative
characterized by being like or copying something that already exists
Necessity-driven entrepreneurship
creating a firm as an alternative to unemployment
Opportunity-driven entrepreneurship
creating a firm to improve one's income or a product or service
poisoning the well
creating a negative impression among your employers' customers
Crowdfunding
funding a business online through the collective involvement of others who provide donations, loans, or investments
zoning laws
government specifications for acceptable use of land and buildings in particular areas
Time to start up
how long it takes to start a new business
small business
involves 1-50 people and has its owner managing the business on a day-to-day basis
founders
people who create or start new businesses
flexibility rewards
the ability of business owners to structure life in the way that suits their needs best
resource competencies
the ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise
Cost to start up
the amount of money it takes to start a new business
feasibility
the extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business
Volatility
the frequency of business starts and stops
Small and medium-sized enterprise (SME)
the international term for small businesses
Covenant
the limitations imposed on an individual's property by the neighborhood group
conversion rate
the measure of how many visitors to your website (or people who click on your online advertisement) are actually willing to make a commitment to the product or service promoted on the site
Income rewards
the money made by owning one's own business
unicorn
the most successful high-growth ventures, those with a valuation of $1 billion or more
goods or services
the tangible things (goods) or intangible commodities (services) created for sale
occupation
the type of activity a person does regularly for pay
e-commerce
the use of the internet to conduct business transactions
Bootstrapping
using low-cost or free techniques to minimize your cost of doing business
moonlighting
working on your own part time after your regular job