small bus ch. 5-8
net realizable value
amount assets will sell/ cost of selling
search engine optimization
approach to site design intended to result in site being displayed toward beginning of search engine's listing
master franchises
require opening multiple stores w/in specified area
industry heuristics
rules of thumb used to establish firm value in relation to some easily observable characteristics of bus
scale
size of mkt. mass/ niche
pitch deck
slide presentation that you create that gives a quick overview of your product and what you're asking for
cannibalizing
taking bus away from employer
effectual reasoning
A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.
Bootstraping
doing more with less
Lean Business Practices
addresses the specifics of new business creation, particularly Internet-based businesses, where rapid experimentation and constant monitoring of viewers' choices are possible.
Exec Summary
1-2 page overview of bus, bus model, mkt, expectations and goals. put at start of bus plac
book, net realizable, replacement
3 asset valuations
home party, door to door, network mkting
3 forms home retail
problem, product, mkt, comp advantage, bus/ team, financial summary
5 key topics exec summary covers
uniform franchise offering circular
A document that outlines the franchiser's responsibility to the franchisee.
trade name
agreement provides to franchisee only rights to use franchisor's trade name/ trademarks
revolving credit
allows borrower to pay all/ part of balance at any time as loan balance being paid off, it becomes available to be borrowed again
affordable loss
The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.
casual/ predictive reasoning
The process of setting a goal and then determining the strategy and resources required to attain the goal.
discounted cash flow
reduces the value of money a business receives in future years. this is done as there is an opportunity cost to money (which loses its value over time)
sponsored link
a form of paid advertising that gets your company's website at the top of a search list
private placement memorandum
a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments
aggrandizing
attempting to make bus/ yourself seem more accomplished/ grander than reality
Asset Valuation
based on assumption bus is worth value of assets
Industry Dynamics
changes in competitors, sales and profits in an industry over time
Supra-strategies
classic benefit combinations which are designed to work where there are many small businesses in an industry, along with a few larger firms
strategic actions
competitive responses requiring a major commitment of resources. entering new mkt, new product intro, changing production capactiy
tactical actions
competitive responses with low resource requirements. price cutting, product/ service enhancements, increase mkt effots
Bricolage
construction or creation from a diverse range of available things
poisoning the well
creating neg impression among employers' customer
blue ocean strategy
creating new product/ service that has no comp
info website
designed to introduce and explain bus to others
retrenchment
firm must find new approaches to improve business and chances for survival
incremental innovation
firm patterns itself on others w/ exception of 1/2 key areas
new entrant bus
firm whose product/ service established elsewhere, but new to this mkt
pioneering bus
firm whose product/ service is new to industry/ creating new industry
shake out
following boom w/ rapid decrease in number of firms in industry
differentiation, cost, focus
generic strategies
scope
geographic range covered by mkt. local/ global
info plan
give potential customers/ supplies info about company and product/ service
screening plan
gives the basic overview of the firm and a detailed look at the financials. Also called a mini-plan
home based business
greatest challenge of zoning/ family
kinds of pt entrepreneur
home based, internet/ info websites, e-comm and ebay, home retail, popup, mobile offices, virtual offices
consider pt entrepreneur
if new to business and need basic experience, lack resources to pursue full time, narrow window of opportunity, uncertain about demands on full time
parallel comp
imitative bus that competes locally w/ others in same industry
rss feed
internet messaging that pushes whatever web material you specify to subscribers to feed
Hybrid entrepreneurship
keeps constant job as employee while working at own business
Offering Circular
legal doc required if seeking funding thru equity crowdfunding platforms
covenant
limitations imposed on individual's property by neighborhood group
reciprocal links
listed, live connection to diff websites which displays similar link to 1st site
reverse price
min acceptable selling price in auction. if bid doesn't exceed price, sale won't go thru
subfranchises
open min number of stores w/in specified time period and development area
comparable sales
other firms in same industry commonly used to est value of bus. problem w/ no 2 bus being alike and no sales to compare
variance
permission from gov to act differently than law states
niche mkt
population likely to share interests/ concerns
bus format
provides complete bus format and trade name, op procedures, mkting and product/ services
conversion
provides org with independent bus to combine resources
product distribution
provides specific brand-name products resold by franchisee in specified territory
replacement value
the cost to acquire an essentially identical asset
book value
the difference between the cost of any depreciable asset and its related accumulated depreciation
Volatility
the frequency of business starts and stops
pure innovation
the process of creating new products or services, which results in a previously unseen product or service
buyout
the purchase of substantially all of an existing business
buy in
the purchase of substantially less than 100 percent of a business
value proposition
the unique value that a product or service provides to its customers and how it is better than and different from those of competitors
multichannel mkting
use of several diff channels to reach cust
operational plan
usually internally for mgmt purposes
moonlighting
working on own part time after regular job