Small Business

Types of planners: Habit Driven Planners

• entrepreneurs who do not plan, preferring to let all actions be dictated by their routines

Professionalization: Standard Business Practice

A business action that has been widely adopted within an industry or occupation, and it's how successful entrepreneurs usually do one thing better than the average

Scope

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

Scale

A characteristic of a market that describes the size of the market, a mass market or niche market

Family Businesses

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

Franchise

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

Niche Market

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

Vision Statement

A very simple 5 to 10 word sentence or tagline that expresses the fundamental idea or goal of the firm

Industry Specific Knowledge

Activities, knowledge, and skills specific to businesses in a particular industry

Informational Website

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

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

Start up

New business that is started from scratch

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 competitors

Market

The business term for the population of customers for your product or service

Professionalization

The extent to which a firm meets or exceeds the standard business practices fir its industry

External Legitimacy

The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owners family

External Environment

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

Bootstrapping

Using low cost or free techniques to minimize your cost of doing business

Types of planners: Reactive Planners

entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take

Planning Style

there are 5 ways too plan

Reciprocal Links

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

Mission Statement

A paragraph that describes the firm's goals and competitive advantages

General Environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Task Environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like

Organizational Culture

A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done

Tagline

Memorable catchphrase that captures the key idea of a business, its service, product, or customer

Expert Professionalization

• A situation that occurs when all the major functions of a firm are conducted according to the standard business practice of its industry

Executive Summary

A 1-2 page overview of the business, its business model, market, expectations, and immediate goals; it is typically put at the start of a business plan and is the most popular summary form for a business plan

NAICS (North American Industry Classification System)

Has six codes and it covers more industries and more of the newer types of industries

Business Plan

Is a document designed to detail the major characteristics of a firm, its product or service, its industry, its market, its manner of operating, and its financial outcomes with an emphasis on the firms present and future

Opportunity Competencies

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

Internal environment

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

Multichannel Marketing

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

Ecommerce

The use of the Internet to conduct business transactions

SIC (Standard Industrial Classification System)

They have four digits, this one is better known

Full Time Employment

Working full time means that the majority of ones time is spent on the business

Part Time Employment

Working part time means the entrepreneur can hold other jobs, go to school, or take care of a family

Promotion/Prevention Focus

promotion is an entrepreneurs attention to maximizing gains and pursuing opportunities that likely lead to gains; prevention is an entrepreneurs attention to minimizing losses, with a bias inward inaction or protective action to prevent loss

Types of Planners: Comprehensive Planners

take a long term view, develop long range plans for all aspects of the business, are comfortable with planning, and act based on plans they developed

Specialized Business Professionalization

• A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or HR

Types of planners: Opportunistic Planners

• entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it

Types of planners: Critical Point Planners

• plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed

Buyout

The purchase of substantially all of an existing business

Minimalized Business Professionalization

• A situation that occurs when the entrepreneur does nearly everything in the simplest way possible

Magic Number

The post tax income the entrepreneur personally seeks from the business

Key business functions

• Activities common to all businesses such as sales, operations, accounting, finance, and HR

Competencies

• All of the aspects of the entrepreneurial personality depend on hard work, but there are other specific types of business-related expertise that appear repeatedly in successful entrepreneurs around the world

Determination Competencies

• Skills identified with the energy and focus needed to bring a business into existence

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

Passion

• an intense positive feeling the entrepreneur has toward the business or even the idea behind the business

Perseverance

• best thought of as a type of learned optimism, the ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known