Dr. Bell Exam 1
BATNA
"Best Alternative to a Negotiated Settlement"
Billboard Principle
"Would I be comfortable having my decision and name posted on a billboard for all to see?"
Minority owned firms represent __% of all US businesses
22%
How much __% of all businesses are owned by women?
29%
What came first for new business
42% Decision to start a business 37% Business idea 21% Idea & decision we simultaneous
Second Career Entrepreneurs face 3 challenges
Adjusting to entrepreneurial life. Loss of confidence. Keeping personal finances out of the business.
First step in handling a crisis is
Admit you're in trouble quickly
Key ideas to success in starting small business
Believe you can do it. Plan and act on it. Get help from others. Do good to others as you do well for the business.
Traditional problems facing new ideas
Can't be made economically into a product. Product works, but doesn't appeal to the masses. Product works and has potential to sell, but you need additional funding or resources to be viable.
Opportunity Recognition
Capture of new ideas that lead to business opportunities, involves creative thinking. Researchers believe its the most important entrepreneurial behavior.
FamB Advantages
Communication more effective, decisions can be made easier & quicker. Strong business culture, members make effective decisions. Family members interact both in and outside the workplace. Children gain early experience to develop skills.
What is SCAMPER?
Creative tool to utilize what sets them apart from the competition or come up with new opportunities.
Attempting to make you or your business seem more accomplished or grander than in reality is called?
Customer Aggrandizing
Delegating & Outsourcing advantages/pitfalls
Delegation gets others to do work, it can help you to get more done. Managing the delegated work & people performing it is a key challenge. Outsourcing is paying experts to take on functional task. Outsource anything but the task that makes your firm unique.
Rapid website prototyping process
Deploy. Listen. Revise. Repeat.
Problems with minorities & women
Discrimination Financing Minority business owners pay higher interest rates
Ownership of a portion of the business is called?
Equity
Feasibility
Extent to which an idea is visible & realistic, and to the extent you are aware of internal &a external forces that could affect your business.
Ways to keep being creative.
Give employees time to think of ideas. Positive reinforcement, avoid automatic no. Look to unlikely sources for ideas. Get a room with a view, vary your perspectives.
Positive outcomes that result along the lines of sustainable entrepreneurship are called?
Green Entrepreneurship
Segment of minority business owners
Hispanics 46% Asians 25% African Americans 24%
Conversion Rate
How many visitors on your website actually make a purchase from you.
5 Pitfalls to avoid when trying to be innovative
Identifying the wrong problem. Judging ideas too quickly Stopping with the first idea Failing to get "Bandits on tthe train" and ask for support Obeying rules that don't exist
Small businesses are characterized as
Imitation (Copies)
Type of innovations small businesses develop
Imitative strategy (Do what others are doing) Incremental strategy (Taking idea, doing it better) Opportunity identification process (Judge if market is traditional environment or changing)
Three universally mentioned rewards for small business owners
Income, Flexibility, and Growth
Most common form of help that entrepreneurs seek from their social network?
Information or Advice
Challenges of moving from part time to full time entrepreneurships
Key challenges are mainly financial. Make business plan to assess your financial situation. Move when support from family & previous employer are at their highest. Increase part time hours, till you're working two full time jobs, then quit to devote your full time to your firm.
Benefits of bootstrapping
Making do with little or no money. Keep cost down, do without, barrow instead of buy, buy used of at a discount. Bootstrap expertise by creating an advisory board.
Action of each person helping another is called?
Mutuality
Truly entrepreneurial businesses are characterized as
Novelty (Being different or new)
Working for yourself for 35 or fewer hours a week, is called?
Part time self employment
Creating a negative impression among your employer(s) is called?
Poisoning the well
Intellectual Property
Property coming from some sort of original thought. (Ex. patents, trade secrets, trademarks, copyrights)
Radical innovation strategy
Rejecting existing ideas and presenting a new way to do things differently.
FamB Challanges
Role conflict (keep fam issues out of business) Time management (list, prioritize, delegate, repeat)
What does SCAMPER stand for?
Substitution (Recording device in trash cans for jokes) Combine (Barns & Nobel is bookstore, coffee, & music) Adapt (Book of/month adapted to beer of/month) Magnify or Modify (Adding features to existing products) Put to other use (New uses beyond its primary purpose) Eliminate (Chances that arrive when getting rid of stuff) Rearrange or Reverse (Stimulants for hyperactive people)
Ethical challenges of part time entrepreneurship
Taking business away from your employer (Cannibalizing). Attempting to make you or your business seem more accomplished (Customer Aggrandizing).
Ethical model that suggests that there is a code of right and wrong that everyone can see and follow
Universalism
When & Why Part time entrepreneurship makes sense
When you need to gain basic experience. When you lack resources for a full-time business. When you face a narrow window of opportunity .
Sources for business ideas
Work experience (Owners gain valuable experience). Similar business (Maybe you get idea based on what intrigues you). Hobby or personal interest. Chance happening. Family & friends. Education & expertise (Consulting companies). Tech transfer & licensing (Developed tech, free for citizens to exploit via Licensing) .
Govt, specifications for acceptable use of land & buildings in particular areas is called?
Zoning laws
Sponsored Link
a form of paid advertising that gets your company's website @ the top of a search list
ToE Franchise
a prepackaged business you buy or lease
ToE Self-employed
anyone who works for themelves
Reactive Planners
completely passive, waiting on environment to determine what actions to take, focus entirely short term
5 Planning Styles
comprehensive planners critical point planners opportunistic planners reactive planners habit based planners
Internal Enviorment
consist of owners, employees, and any others owners or board members in the company
CSI Entrepreneur
corporate, social, independent forms of entrepreneurship
BRIE Intention
desire to start a business
Licensing
documented permission from the govt. to run your business
Professionalism
extent to which firm meets or exceeds the industry's standard
Family Business
firm in which one family owns majority stake in Represents 39% of American Business Employs 58% of American workforce
Votatility
frequency of business starts and stops
Crowd Funding
funding a business online through the collective involvement of others who provide donations, loans, or investments
The Small Business Administration categorizes a business as small if
has lower than 50 employees
Innovativeness
how important a role new ideas, products, services, processes, or market play in an organization
Registration
info provided to the govt. concerning the existence of name of, nature of, and contact info for your business
ToSB Small & Medium Enterprise
international term for small business
Social Entrepreneurship
involves creation of self-sustaining charitable organizations, or for profit organizations
Covenants
limitations imposed on your property by your neighborhood group
Comprehensive Planners
long term view, long range plans for business, comfortable with planning
Trade Magazines
magazines that target specific industries & professions
Best practice to use when utilizing online social networking sites?
making it easy for people to contact you
Expert Professionalism
most of the business meets or exceeds the industry's standards
BRIE Exchange
moving resources, goods, or services
Creative Destruction
newly created goods, services, or firms can hurt existing goods, services, or firms
Habit based Planners
no planning since their actions are determined by routines
Minimized
none of the business can meet industry standard
Myths about small businesses
not enough financing. cant start one during a recession. to make profits, you need to make money if you fall, you can never try again Some groups don't have the skills to start one
Undercapitalization
not having enough money available to cover shortfalls in sales or profits
High-Growth Ventures (Start small, but intend to grow)
other people's money focus on marketing & effectiveness want to control market grow when possible market response limits growth delegation is essential human resources professionalized
BRIE Model
outlines factors needed to get a firm going
ToSB Independent Small Business
owned by an individual or small group
Small Business (Usually stay small)
owner's own money focus on sales & efficiency want to control firm grow when necessary loss of control limits growth delegation is difficult human resources personalized
Task Enviorment
part of External Environment; made up of those components that the firm deals with directly. Customers, suppliers, consultants, media, interest groups, and the like.
ToE Hires
people who become owners through inheriting or stake in family business
Second Career Entrepreneurs (1/3 of people who return to work are self employed)
people who begin their business after retiring or resigning from work at 50 or later
ToE Serial Entrepreneurs
people who open multiple businesses
ToE Buyers
people who purchase an existing business
ToE Founders
people who start new businesses
Variance
permission from a govt. organization to act differently that the law states
Independent Entrepreneurship
person/group owns their own for profit business
Critical point Planners
plan around most important parts of a business first, act on it, then consider additional plans
BRIE Resources
product/service offered, info resources on markets and running a business, financial records, human resources
ToSB Owner Managed Firms
run by individual who owns it
Social Capital
set of business characteristics; trust, consistency, and networks that represent potential social obligations
Organizational Culture
set of shared beliefs or basic assumptions that demonstrate how things get done
BRIE Boundary
sets a business up as a firm. (buying, selling, or bartering)
Ethical Dilemma
situation that occurs when a person's values are in conflict, making it unclear which decision is right
Entrepreneurial Alertness
special set of observational & thinking skills that help them identify good opportunities.
Opportunistic Planners
start with goal, look for opportunities to achieve it, very short term
Corporate Entrepreneurship
takes place in existing business around new products, services, markets
Crowd Sourcing
techniques often based on internet based services to get opinions or ideas through the involvement of others
Mindshare
the degree of attention your target market pays to your idea/organization
Reasons for such large minority growth
the growth of racial & ethnic groups within the US Hispanics & Asians represent largest segments
Entrepreneurial Teams
two or more co-owners likely to have more money, time, and expertise
E-commerce
use of the internet to conduct business transactions
Bootstrapping
using low cost or free techniques to minimize your cost of doing business
Specialized
when one or two aspects of business meet or exceed industry's standards
