Chapter 5 - Small Business Entry: Paths to Part-Time Entrepreneurship
Reserve price
A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.
Maker
A modern term for an inventor, in particular, an inventor who uses modern techniques like 3-D software and 3-D printers or do-it-yourself electronics to create new items.
Conflict of interest
A situation in which a person faces two or more competing standards or goals.
Pop-up business
A temporary business that offers services or products in a variety of locations for a brief period at a time.
Episodic businesses
A temporary, project-based, or sporadically operating business.
Internet Informational Websites
The Internet's power comes from its being a very cost-effective and efficient way to contact your customers. Most small businesses need to have a Web site regardless of whether or not they use it for actual sales. Potential customers will use it to find you. If they've heard about you from something other than the Internet, they will use your site to find out more information about you and to decide if they want to actually contact you.
Cost to start-up
The amount of money it takes to start a new business.
What Are the Challenges of Being an Entrepreneur Part Time? - Delegation
The assignment of work to others over whom you have power.
Permanence
The impression of long-term continuity a business gives others.
Covenants
The limitations imposed on your property by your neighborhood group.
Hybrid entrepreneurship
The process of initiating a business while simultaneously remaining employed for wages or salary.
Stand retail
The roadside, flea market, farmers' market, or craft fair business one of the most ancient forms of business Mentioned in the Bible Tend to be semi-permanent Success Factors: location, inventory
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.
Blog
A Web page in which entries are posted in reverse chronological order (i.e., the most recent at the top of the page)
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.
Sponsored link
A form of paid advertising that gets your company's website at the top of a search list.
Reciprocal links
A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site.
RSS feed
An Internet messaging service that pushes (sends) whatever Web material you specify to subscribers to that feed.
Informational Web sites
An Internet site designed to introduce and explain a business to others.
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.
Business-to-business (B2B)
Business-to-business transactions using e- commerce.
Business-to-consumer (B2C)
Business-to-consumer transactions using e- commerce.
Cannibalizing
Cannibalizing
Outsourcing
Contracting with people or companies outside your business to do work for your business.
Ethics and Part-time Small Business - Poisoning the well
Creating a negative impression among your employers' customers.
Volatility
Frequency of business starts and stops
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.
Registration
Information provided to the government concerning the existence of, name of, nature of, and contact information for your business.
Variance
Permission from a government organization to act differently that the laws state.
The Next Best Things to a Home-Based Business
Pop-Up Businesses Mobile Offices Virtual Offices, Executive Offices, and Incubators Doing Business without a Business Organization
Stand retail - Disadvantages
Variable income, Legal requirements
Moving from Part-time to Full-time - A Key Question
Wait until there is a solid income. Make use of any transition services offered by the former employer. Recognize that initially, you will spend all your time running and marketing the business.
Home Retail - Disadvantages
Working "on the road", Lack of a base to organize and work, Variable income, Finding ways for customers to reach you
Part-time employment
Working for 35 or fewer hours a week
Full-time employment
Working more than 35 hours a week.
Moonlighting
Working on your own part-time after your regular job
Issues Important to Running a Home-based Business
Choose a work location inside your home that is away from noise, distractions, and family traffic. Be realistic about the amount of space you'll need for your equipment. An office door can keep business separate from family and the rest of life. Try your location out for a day or two to check out noise, traffic patterns, lighting needs, and distractions. Don't overload on hours of work, or on snacks from the refrigerator down the hall. Setup your work day to minimize distractions from household or family chores Consider hiring help to handle household or family chores to free up your time. Set the ground rules early and stick with them.
Licensing
Documented permission from the government to run your business.
Home Retail - Advantages
Ease of setup, Low cost of start-up, Ability to work away from home and employer
The Next Best Things to a Home-Based Business - Home retail
Entrepreneur arranges a get-together at someone's home where participants can socialize and get acquainted with the entrepreneur and the products or services offered. Pioneered by Avon, Mary Kay
Ethics and Part-time Small Business - Aggrandizing
Making your business or yourself seem more accomplished than it is
Why Part-time Businesses Are Important
Most entrepreneurs start out working part time on their new business The sheer number of part-time businesses makes them a major force in our economy Officially, of the 25.9 million small businesses in the United States in 2012, almost half (10.8 million) were part-time businesses
Payment
Most online transactions use a credit card or an online payment system like PayPal.
Intellectual property (IP)
Property coming from some sort of original thought, for example, patents, trade secrets, trademarks, and copyrights.
Boundary
Separating and balancing business and home Time management Use a to-do list Prioritize Keep it in its own space (home based)
Home-based Business
There were about 9.0 million home-based businesses in the United States in 2012, and they represented 33 percent of all firms. Home-based business meets at least two of the three criteria for start-up. It is inexpensive, since you are already living somewhere and you can get your business going where you live.
Chargebacks
This is a fee the service levels on you for any of a variety of problems related to the sale
Stand retail - Advantages
little investment, variety of locations, quickly established, easily ended
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 (e.g., Google, Yahoo!, etc.) listing for that term.
E-Commerce and eBay Websites
Active eBay sellers number between 6.7 and 9.3 million in the United States alone. For part-timer entrepreneurs the online approach makes a highly attractive opportunity because it offers the advantages of a large market, 24/7 availability of your products, and a start-up which is quickly done and potentially inexpensive.