entrepreneurship ch 5

Feasibility of entering into a part-time business

1. want a low cost to start the firm 2. want a short time to start the firm 3. want a firm to appear permanent

Why part-time entrepreneurship makes sense

1. when you need basic gain experience 2. lack the resources for a full-time business 3. when u face a narrow window of opportunity

conflict of interest

a situation in which a person faces two or more competing standards or goals

network marketing

an approach to selling in which the salesperson recruist customers to become distributors of the product or service to others.

reverse auction

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

aggrandizing

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

outsourcing

contracting with people or companies outside your business to do work for your business

poisoning the well

creating a negative impression among your employers customers

licensing

documented permission from the govt to run your business

Delegation

getting others to do your work. it can help an entrepreneur get more done. Managing the work is the key challenge to entrepreneurs

zoning laws

govt. specifications for acceptable use of land and buildings in particular areas

informational websites

internet site designed to introduce and explain a business to others

Issues for stand-based businesses

location, where traffic is high adequate inventory

equity

ownership of a portion of a business

Outsourcing

paying experts to take on the tasks of your business You may outsource to expert anything but the tasks that make your firm unique.

variance

permission from a govt organization to act differently that the laws state.

consumer

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

cannibalizing

taking business away from your employer

cost to start-up

the amount of money it takes to start a new business

covenants

the limitations imposed on your property by your neighborhood group

ecommerce

the use of internet to conduct business transactions

multichannel marketing

use of several different channels to reach your customers, for ex. a website, direct mail, or traditional retailing

part time self employment

working for yourself for 35 or less hours a week

moonlighting

working on your own part time after your regular job

issues to part time entrepreneurship

having a good hostess for shopping parties or a solid technique for closing sales in door-to-door selling

Major Paths to entrepreneurship

home. care for preparation of your home office and family are essential for home based success have an effective website (key) websites can be informational/e-commerce in purpose

time to start-up

how long it takes to start a new business

undercapitalization

not having enough money available to the business to cover shortfalls in sales or profits

intellectual property

property coming from some sort of original thought, for example, patents, trade secrets, trademarks, and copyrights.

Making money without opening a business

using the consignment process through shops or specialized sales agents present product to the right market

Bootstrapping

making do with little or no money. keeps costs down, do without, borrow instead of buy, buy used expertise by using an advisory board

search engine optimization

an approach to website design intended to result in the site being displayed toward the beginning of a search engine's listing for that term.

RSS feed

an internet messaging service that pushes whatever web material you specify to subscribers to that feed

permenance

impression of long-term continuity a business gives others

registration

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

reciprocal links

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

ethical challenges of part time entrepreneurship

moonlighting (can result in cannibalizing sales from your employer or poisoning the well by making your employers customers angry) and aggrandizing (when a parttime firm tries to present itself as full time or bigger than it is

stand based businesses

roadside stands, flea markets, farmers markets, fairs

delegation

the assignment of work to others over whom you have power

volatility

The frequency of business starts and stops. (in the market)

reserve price

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

sponsored link

a form of paid advertising that gets your companys website at the top of a search list

BRIE Model

Boundary (manage your time carefully and keep up with business and home separate) Resources Intention Exchange `

Challenges from moving from part time to full time

financial (SO, you should make a business plan, move when support is strongest, consider increasing part time workers hours until you are working at two full-time jobs then quit to devote full time to your firm