Entrepreneurial Small Business

Growth Stage

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

Retrenchment

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

Ethical Delema

a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do

Ethics

a system of values that people consider in determining whether actions are right or wrong

Differentiation Strategy

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

Universalism

an ethical model that suggests that there is a code of right and wrong that everyone can see and follow

Utilitarianism

an ethical model that supports seeking the greatest good for the greatest number of people

Golden Rule

an ethical model which suggests you treat others in the manner you wish to be treated

Parallel Competition

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

Innovative Strategy

an overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing

Imitative Strategy

an overall strategic approach in which the entrepreneur does more or less what others are already doing

Imitative Strategy

an overall strategic approach in which the entrereneur does more or less what others are already doing

Billboard Principle

and ethical model that asks whether someone would be comfortable having his or her decision and name advertised on a billboard for the public to see

Five Skills for Managing Relations with the Environment

1.Building legitimacy 2.Developing a social network 3.Handling a crisis 4.Achieving sustainability 5.Making ethical decisions

Ways of getting Business

1.Start New 2.Buy existing 3.Franchise 4.Inherit 5.Be hired to be proessional manager

Pre-Strategy

1.as owner, what do you expect out of the business? 2.what is your product or service idea (and its industry)? 3.for your product or service, how innovative or imitative will you be? 4.Who do you plan to sell to-everyone or targeted markets? 5.Where do you plan to sell-locally,reginally,nationally,globally,?

BRIE Model

Boundary-Resources-Intention-Exchange

Intangible Resources

Capabilities, organizational processes, information, or knowledge of a firm that are not clearly evident

Social Capital

Characteristics of a business, like trusts, consistency, and networks, that represent potential social obligations which are an assest of the firm or entrepreneur

Caveat Emptor

Latin: let the buyer beware

SCAMPER

Substitute, Combine, Adapt, Magnify or modify, Put to other uses, Eliminate, Rearrange

Introduction Stage

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

Covenants

The limitations imposed on your property by your neighborhood group

Tweet

a 140-character or less message sent using the twitter web service

Spin-off

a business that is created by separating part of an operating business into a seperate entity

Scope

a characteristic of a market that defines the geographic range covered by the market-from local to global

Brainstorming

a group discussion in which criticism is suspended in order to generate the maximum number of ideas

Franchise

a legal agreement that allows a business to be operated using the name and business procedures of another firm

Decline Stage

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

Tangible Resources

assets of a firm that can be easily and concretely identified

Intangibles

assets, such as patents or trademarks, and liabilities, such as accounts payable, that ahve no physical existance

Aggrandizing

attempting to make your business or yourself seem more accomplished or grander than reality

Home-Base Business

businesses that are operated from the owner's home

Novelty

characterized by being different or new

Imitative

characterized by being like or copying something that already exists

Glamorous Sector

consists of firms with high growth and high innovation. these are among the most visible firms in the media

Poisoning the Well

creating a negative impression among your employers customers

ESOP

employee stock option plan: method for employees to purchase the business for which they work

Competencies

forms of business-related expertise

Gross Profit

funds left over after deducting the cost of goods sold

Why have a small business?

gain experience, lack resources for a full-scale business, narrrow window of opportunity

Zoning Laws

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

Social Entrepreneurship

the form of entrepreneurship involving the creation of self-sustaining charitable and civic organizations, or for-profit organizations which invest significant profits in charitable activities

Role Conflict

the kind of problem that arises when people have multiple responsibilities, such as parent and boss, and the different responsibilities make different demands on them

Conversion Rate

the measure of how many visitors to your Web site (or people who click on your online advertisement) actually make a purchase from you

Income Rewards

the money made by owning one's own business

Competitive advantage

the particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry or market

Internal Environment

the people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

Licensee

the person or firm which is obtaining the rights to use a particular piece of intellectual property

Licensor

the person or organization which is offering the rights to use a particular piece of intellectual property

Point of Indifference

the price at which a buyer is indiferent about buying or not buying the business

Succession

the process of intergenerational transfer of a business

Due Diligence

the process of investigating a business to determine its value

Environment

the sum total of forces outside of the entrepreneur and the firm

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

Creative Destruction

the way that newly created goods, services, or firms can hurt existing goods, services, or firms

Bootstrappping

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

Growth Rewards

what people get from facing and beating challenges

Part Time Employment

working for yourself for 35 or fewer hours a week

Moonlighting

working on your own part time after your regular job

Scale

a characteristic of a market that describes the size of the market-a mass market or a niche market

Heuristic

a common-sense rule, a rule-of-thumb

Career

a lifelong series of jobs or occupations

Time to Start

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

Chance Happening/Serrendipity

right place at right time , businesses found as a reslut of the unexpected

Stand Retail

roadside, flea market, farmers market, or craft fair business---is one of the most ancient forms of a small business. Kiosks

Opportunity Competencies

skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business

Incremental Strategy

taking an idea and offering a way to do something slightly better than it is done presently

Cannibalizing

taking business away from your own employer

Entrepreneurial Team

team of two or more co-owners, and the trend is toward even more businesses being developed by teams of entrepreneurs

Flexibility Rewards

the ability of business owners to structure life in the way that suits their needs best

Cost to Start

the amount of money it takes to start a new business

Family Business

a firm in which one family owns a majority stake and is involved in the daily management of the business

Cost Strategy

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

Reserve Price

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

Niche Market

a narrowly defined segment of the population that is likely to share interests or concerns

Heir

a person who becomes an owner through inheriting or being given a stake in a family business

Entrepreneur

a person who owns or starts an organization, such as a business

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

Consumer

a private individual or household that is the end-user of a product or service

Net Profit

the amount of money left after operating expenses are deducted from the business

Legitimacy

the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitiors

Replacement Value

the cost to acquire an essentially identical asset

Book Value

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

Feasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

External Environment

the forces, institutions and people outside the boundary of the firm