RNS Ch. 5
Advantages of Stand Retail
little investment, variety of locations, quickly established, easily ended
Aggrandizing
making your business or yourself seem more accomplished than it is
Undercapitalization
not having enough money available to the business to cover shortfalls in sales or profits
Most entrepreneurs start out working
part time on their new business
Boundary
separating and balancing business and home
Stand Retail
the roadside, flea market, farmers' market, or craft fair business; one of the most ancient forms of business (mentioned in the bible, tends to be semi-permanent)
Home-based businesses meets at least
two of the three criteria for start-up
Bootstrapping
using low-cost or free techniques to minimize your cost of doing business
Disadvantages of Stand Retail
variable income, legal requirements
Most small businesses need to have a
web site
Disadvantages of Home Retail
working "on the road", lack of a base to organize and work, variable income, finding ways for customers to reach you
Part-time self-employment
working for yourself for 35 or fewer hours a week
Moonlighting
working on your own part-time after your regular job
Sponsored link
A form of paid advertising that gets your company's website at the top of a search list.
Search engine optimization
A general approach to Web site design intended to result in the site being displayed toward the beginning of a search engine's listing for that term
Reciprocal links
A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site.
Reverse Price
A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through
Blog
A web page in which entries are posted in reverse chronological order
RSS feed
An Internet messaging service that pushes (sends) whatever Web material you specify to subscribers to that feed
Network Marketing
An approach to selling in which the salesperson recruits 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
Informational Web sites
An internet site designed to introduce and explain a business to others
Covenants
The limitations imposed on your property by your neighborhood group
Multichannel marketing
The use of several different channels to reach your customers, for example, a web site, direct mail and traditional retailing
E-commerce
The use of the internet to conduct business transactions
Chargebacks
This is a fee the service levels on you for any of a variety of problems related to the sale
Success Factors for PT businesses
Time management, use a to-do list, prioritize, keep it in its own space
The internet's power comes from its being a very
cost-effective and efficient way to contact your customers
Advantages of Home Retail
ease of setup, low cost of start-up, ability to work away from home and employer
Volatility
frequency of business starts and stops
Success Factors
hosts with good contacts, matching product to community, closing the sale
Key Considerations for Success in PT Entrepreneurship
1. Cost to start-up 2. Time to start-up 3. Permanence
In moving from PT to FT, the key question is usually financial
1. Wait until there is a solid income 2. Make use of any transition services offered by the former employer 3. Recognize that initially, you will spend all your time running and marketing the business
When to consider part-time entrepreneurship:
1. You want to gain experience 2. There is a narrow window of opportunity 3. You lack resources for a full-scale business
Full-time self-employment
35 or more hours per week
Business-to-business (B2B)
Business-to-business transactions using e-commerce
Business-to-consumer (B2C)
Business-to-consumer transactions using e-commerce
Zoning Laws
Gov. specifications for acceptable use of land and buildings in particular areas.
Time to start-up
How long it takes to start a new business
Payment
Most online transactions use a credit card or an online payment system like PayPal
Home Retail
Parties and door-to-door (Avon, Mary Kay)
Variance
Permission from a government organization to act differently that the laws state
Intellectual Property
Property coming from some sort of original thought, for example, patents, trade secrets, trademarks, and copyrights
Cost to start-up
The amount of money it takes to start a new business
Permanence
The impression of long-term continuity a business gives others