Small Business Entrepreneurship

Permanence

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

Leveraging contingencies

The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business.

Chargebacks

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

Pure Innovation

the process of creating new products or services, which results in a previously unseen product or service

Registration

information provided to the government concerning the existence of, name, nature of, and contact information for your business

Variance

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

Lean Business Practice

systematically eliminating waste from a business

Market

business term for the population of costumers for the product or service

Value Proposition

Small business owners' 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.

Maturity Stage

The third life cycle stage, marked by a stabilization of demand, with firms in the industry moving to stabilize or improve profits through cost strategies.

Hybrid Entrepreneurship

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

Causal (predictive) reasoning

the process of setting a goal and then determining the strategy and resources required to attain the goal

Multichannel Marketing

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

Generic Strategies

three widely applicable classic strategies for businesses of all types- differentiation, cost, and focus

Scope

geographic range covered by the market

zoning laws

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

Competitive Advantage

the particular way a firm implements costumer benefits that keeps the firm ahead of other firms in the industry

Point of indifference

the price in which the buyer is indifferent about buying or not buying the business

E-Commerce

the use of the internet to conduct business transactions

Effectual reasoning

A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.

Strategic partnerships

Formal or informal relationships with customers, vendors, or mentors to ensure the success of an entrepreneurial venture.

Minimum viable product

A concept central to lean business practices where you make a minimum product, but one that can be sold. By selling to customers and collecting feedback, an entrepreneur can develop a product at minimum cost.

Perceptual Map

A graphic display which positions products, services, brands, or companies according to their scores of important strategic dimensions.

Decline Stage

A life cycle stage in which sales and profits of the firm begin a falling trend.

Retrenchment

An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival.

Incremental Innovation

an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas

Licensing

documented permission from the government to run your business

Bricolage

refers to the process of analyzing the resources available and creating a product or service from them (making something from whatever you have in hand)

4 times a part time business makes sense

1)gain experience 2) lack resources 3)narrow window of opportunity 4) uncertainty about the demands of a full time business

Workout

A form of business termination in which the firm's legal or financial obligations are not fully met at closing.

Affordable loss

The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.

Revolving credit

a credit agreement that allows the borrower to pay all or part of the balance at any time

Search Engine Optimization (SEO)

a general approach to web design intended to result in the site being displayed toward the beginning of a search engines (google, yahoo) listing for that term

Episodic Business

a temporary, project based, or sporadically operated business

Differentiation Strategy

a type of generic strategy aimed at clarifying how one product is unlike another in a mass market

Boom

a type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time

Discounted Cashflows

cash flows that have been reduced in value because they are to be received in the future

Industry Dynamics

changes in competitors, sales and profits in an industry over time

Benefits

characteristics of a product or service that the target costumer would consider worth while

Asset

something the business owns that is expected to have economic value in the future

Book Value

the difference between the original acquisition cost and the amount of accumulated depreciation

Industry

the general name for the line of product or service being sold, or the firms in that line of business

Strategy

the ideas and actions that explain how a firm will make its profits

Introduction Stage

the life cycle in which the product or service is being invented and initially developed

Covenants

the limitations imposed on your property by your neighborhood group

Cost Strategy

a generic strategy aimed at mass markets in which a firm offers a combination of cost benefits that appeals to the customer

Focus Strategy

a generic strategy that targets a portion of the market, called a segment or niche

Reciprocal Links

a listed, live connection to a different website, which in turn displays a similar link to the first website

Shake-out

a type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry

Networking Marketing

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

Reverse Auction

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

Transfer

an endgame strategy in which ownership is moved from one person or group to another

Parallel Competition

an imitative business that competes locally with others in the same industry

Growth Stage

an industry cycle stage in which costumer purchases increase at a dramatic rate

Supra Strategies

classic benefit combinations which are designed to work where there are many small businesses in an industry, along with a few larger firms