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