Small Business
Types of planners: Habit Driven Planners
• entrepreneurs who do not plan, preferring to let all actions be dictated by their routines
Professionalization: Standard Business Practice
A business action that has been widely adopted within an industry or occupation, and it's how successful entrepreneurs usually do one thing better than the average
Scope
A characteristic of a market that defines the geographic range covered by the market from local to global
Scale
A characteristic of a market that describes the size of the market, a mass market or niche market
Family Businesses
A firm in which one family owns a majority stake and is involved in the daily management of the business
Franchise
A legal agreement that allows a business to be operated using the name and business procedures of another firm
Niche Market
A narrowly defined segment of the population that is likely to share interests or concerns
Vision Statement
A very simple 5 to 10 word sentence or tagline that expresses the fundamental idea or goal of the firm
Industry Specific Knowledge
Activities, knowledge, and skills specific to businesses in a particular industry
Informational Website
An Internet site designed to introduce and explain a business to others
Innovative Strategy
An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
Imitative Strategy
An overall strategic approach in which the entrepreneur does more or less what others are already doing
Start up
New business that is started from scratch
Legitimacy
The belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors
Market
The business term for the population of customers for your product or service
Professionalization
The extent to which a firm meets or exceeds the standard business practices fir its industry
External Legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owners family
External Environment
The forces, institutions and people outside the boundary of the firm
Bootstrapping
Using low cost or free techniques to minimize your cost of doing business
Types of planners: Reactive Planners
entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take
Planning Style
there are 5 ways too plan
Reciprocal Links
A listed live connection to a different website, which in turn displays a similar link to the first website
Mission Statement
A paragraph that describes the firm's goals and competitive advantages
General Environment
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector
Task Environment
A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like
Organizational Culture
A set of shared beliefs, basic assumptions, or common, accepted ways of dealing with problems and challenges within a company that demonstrate how things get done
Tagline
Memorable catchphrase that captures the key idea of a business, its service, product, or customer
Expert Professionalization
• A situation that occurs when all the major functions of a firm are conducted according to the standard business practice of its industry
Executive Summary
A 1-2 page overview of the business, its business model, market, expectations, and immediate goals; it is typically put at the start of a business plan and is the most popular summary form for a business plan
NAICS (North American Industry Classification System)
Has six codes and it covers more industries and more of the newer types of industries
Business Plan
Is a document designed to detail the major characteristics of a firm, its product or service, its industry, its market, its manner of operating, and its financial outcomes with an emphasis on the firms present and future
Opportunity Competencies
Skills necessary to identify and exploit elements of the business environment that can lead to a profitable and sustainable business
Internal environment
The people and groups within the boundary of a firm, including the owners, managers, employees and board members of the firm
Multichannel Marketing
The use of several different channels to reach her customers, for example, a website, direct mail, and traditional retailing
Ecommerce
The use of the Internet to conduct business transactions
SIC (Standard Industrial Classification System)
They have four digits, this one is better known
Full Time Employment
Working full time means that the majority of ones time is spent on the business
Part Time Employment
Working part time means the entrepreneur can hold other jobs, go to school, or take care of a family
Promotion/Prevention Focus
promotion is an entrepreneurs attention to maximizing gains and pursuing opportunities that likely lead to gains; prevention is an entrepreneurs attention to minimizing losses, with a bias inward inaction or protective action to prevent loss
Types of Planners: Comprehensive Planners
take a long term view, develop long range plans for all aspects of the business, are comfortable with planning, and act based on plans they developed
Specialized Business Professionalization
• A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or HR
Types of planners: Opportunistic Planners
• entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it
Types of planners: Critical Point Planners
• plan around the most important aspect of the business first, act on it, and then consider if additional plans are needed
Buyout
The purchase of substantially all of an existing business
Minimalized Business Professionalization
• A situation that occurs when the entrepreneur does nearly everything in the simplest way possible
Magic Number
The post tax income the entrepreneur personally seeks from the business
Key business functions
• Activities common to all businesses such as sales, operations, accounting, finance, and HR
Competencies
• All of the aspects of the entrepreneurial personality depend on hard work, but there are other specific types of business-related expertise that appear repeatedly in successful entrepreneurs around the world
Determination Competencies
• Skills identified with the energy and focus needed to bring a business into existence
Resource Competencies
• The ability or skill of the entrepreneur at finding expendable components necessary to the operation of the business such as time, information, location, financing, raw materials, and expertise
Passion
• an intense positive feeling the entrepreneur has toward the business or even the idea behind the business
Perseverance
• best thought of as a type of learned optimism, the ability to stick with some activity even when it takes a long time, and when a successful or unsuccessful outcome is not immediately known