Table of contents for Small business management : an entrepreneur's guidebook / Mary Jane Byrd, Leon C. Megginson.

Bibliographic record and links to related information available from the Library of Congress catalog.

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Contents
The Dynamic Role of Small Business 1
Chapter 1
Starting Your Small Business 2
Profile: LogoLink 3
It?s an Interesting Time to Be Studying Small Business 4
The Number of Small Businesses Is Growing Rapidly 5
The Public Favors Small Business 6
Interest Is Increasing at High Schools, Colleges, and Universities 6
Trend Is toward Self-Employment 6
Entrepreneurship Is Attractive to All Ages 7
Defining Small Business?No Easy Task 8
What Is Small? 8
Distinguishing between Entrepreneurial Ventures and Small Businesses 9
Some Unique Contributions of Small Business 9
Encourage Innovation and Flexibility 10
Maintain Close Relationship with Customers and Community 10
Keep Larger Firms Competitive 11
Provide Employees with Comprehensive Learning Experience 11
Develop Risk Takers 12
Generate New Employment 12
Provide Greater Job Satisfaction 12
Some Current Problems Facing Small Businesses 12
Inadequate Financing 12
Inadequate Management 13
Burdensome Government Regulations and Paperwork 13
Some Current Trends Challenging Small Business Owners 13
Exploding Technology 13
Occupational and Industry Shifts 14
Global Challenges 14
Why People Start Small Businesses 15
Satisfy Personal Objectives 15
Achieve Business Objectives 18
Need to Mesh Objectives 19
Characteristics of Successful Entrepreneurs 19
Desire Independence 20
Have a Strong Sense of Initiative 20
Are Motivated by Personal and Family Considerations 20
Expect Quick and Concrete Results 21
Are Able to React Quickly 21
Are Dedicated to Their Businesses 21
Enter Business as Much by Chance as by Design 21
What Leads to Success in Managing a Small Business? 21
Doing an Introspective Personal Analysis 22
Where are the Opportunities for Small Business? 22
What Are the Fastest-Growing Industries? 22
Factors Affecting the Future of an Industry or a Business 23
Some Practical Ideas for Small Businesses 23
Some Areas of Concern for Small Business Owners 24
Poorly Planned Growth 24
Threat of Failure 25
 Case 1.1:The Big Wash 27
 Case 1.2:Judy Jones?s Try J. Advertising Agency 28
Chapter 2
Family-Owned Businesses 30
Profile: Ferris-Feuerborn Memorial Chapel 31
Role of the Family-Owned Business 33
The Family and the Business 33
Family Interactions 36
Family Limitations 37
Culture and the Family Business 38
Family Resources 39
Preparing the Next Generation 39
Preparing for Management Succession 40
Why Succession Is a Problem 40
An Overlooked Problem 42
Plan Ahead! 42
Sudden Departure 42
Planned Departure 42
Selling to Family Members 44
Selling to Outsiders 44
Making the Transition Easier 45
Tax and Estate Planning 45
Tax Planning 45
Estate Planning 45
Estate Planning to Minimize Taxes 46
Estate Planning Issues 47
Estate Planning Techniques 47
 Case 2.1:The Son-in-Law 49
 Case 2.2:Tire Rack 50
Chapter 3
Forms of Ownership of Small Businesses 52
Profile: SpringHill Kitchens, LLC 53
Selecting the Right Legal Form 55
Factors to Consider 55
Relative Importance of Each Form 55
Why Form a Proprietorship? 57
Why Form a Partnership? 58
How a Partnership Operates 60
Types of Partnerships 60
Rights of Partners 60
Why Form a Corporation? 61
How to Form a Corporation 62
How a Corporation Is Governed 63
The S Corporation 63
Other Forms of Business 64
The Limited-Liability Company (LLC) 64
The Limited Liability Partnership (LLP) 65
The Family Limited Liability Partnership (FLLP) 65
The Professional Service (PS) Corporation 65
Nonprofit Corporations 65
The Cooperative 66
The Joint Venture 66
Fractional Ownership 66
How to Evaluate the Legal Form of Organization 67
 Case 3.1:The Martin Family Grows a Business 68
 Case 3.2:DB Bikes 69
How to Plan and Organize a Business 71
Chapter 4
Becoming the Owner of a Small Business 72
Profile: Arve Henriksen: Million Air 73
How to Go into Business for Yourself 75
Finding Your Niche by Identifying a Needed Product 75
How to Decide on a Product 76
Choosing the Business to Enter 78
Studying the Market for the Product 79
Methods of Obtaining Information about the Market 80
Methods Used to Study the Market 80
Deciding Whether to Start a New Business, Buy an Existing One, or Buy a 
Franchise 81
To Start a New Business? 82
To Buy an Existing Business? 83
To Buy a Franchise? 83
Growing Opportunities in Franchising 86
What Is Franchising? 86
Extent of Franchising 86
Types of Franchising Systems 87
Why Franchising Is Growing in Importance 88
Recent Rapid Growth 88
Causes of Rapid Growth 88
How to Tell Whether a Franchise Is Right for You 89
See What the Franchise Can Do for You 89
Investigate the Franchise 89
Obtain Professional Advice 91
Know Your Legal and Ethical Rights 92
The Future of Franchising 93
Expected Areas of Growth 93
Other Areas of Expected Development 94
Global Franchising 96
Turning Your Dream into a Reality 97
 Case 4.1:Tim Lewis Fills a Niche 99
 Case 4.2:La-Van Hawkins: Urban Entrepreneur 100
Chapter 5
Planning, Organizing, and Managing a Small Business 102
Profile: Sam and Teresa Davis Do Their Homework before Launch 103
Why Is Planning So Important to Small Businesses? 104
Why Small Business Owners Need to Plan 104
Why Small Business Owners Neglect Planning 105
The Role of Strategic Planning 106
SWOT Analysis 107
Mission and Objectives 108
Strategies 110
The Role of Operational Planning 110
Setting Up Policies, Methods, Procedures, and Budgets 111
Planning to Operate the Business 111
The Role of Financial Planning 114
Estimating Income and Expenses 114
Estimating Initial Investment 114
Locating Sources of Funds 117
The Role of the Business Plan in Strategic and Operational Planning 118
Purposes of the Plan 118
What the Plan Should Include 118
Preparing the Plan 119
Who Should Prepare the Plan? 120
Developing Action Steps 120
Components of the Plan 120
Cover Sheet 121
Executive Summary 121
Table of Contents 122
History of the (Proposed) Business 122
Description of the Business 123
Definition of the Market 123
Description of the Product(s) 123
Management Structure 124
Objectives and Goals 124
Financial Data 124
Appendixes 124
Presenting the Plan 125
Writing the Plan 125
The Written/Oral Presentation 125
Implementing the Plan 126
Sample Business Plan 126
Appendix: A Sample Business Plan: The Business Center 128
Chapter 6
How to Obtain the Right Financing for Your Business 152
Profile: Roy Morgan?Pioneer in Air Medical Services 153
Estimating Financial Needs 154
Principles to Follow 154
Using Cash Budgets 155
Reasons for Using Equity and Debt Financing 155
Role of Equity Financing 155
Role of Debt Financing 155
Types of Debt and Equity Securities 156
Equity Securities 156
Debt Securities 157
Sources of Equity Financing 158
Self 158
Small Business Investment Companies (SBICs) 158
Venture Capitalists 159
Angel Capitalists 160
Other Sources 160
Sources of Debt Financing 162
Trade Credit 162
Commercial and Other Financial Institutions 162
Small Business Administration (SBA) 164
Small Business Investment Companies (SBICs) 166
U.S. Department of Agriculture (USDA) 166
What Lenders Look For 166
 Case 6.1:Ella Williams: Making It on Her Own 168
 Case 6.2:Karen & Co. 169
How to Market Goods and Services 171
Chapter 7
Developing Marketing Strategies 172
Profile: Advanced Control Solutions 173
The Marketing Concept 175
Meeting Customers? Needs 175
Implementing the Marketing Concept 176
Seeking a Competitive Edge 176
Using Marketing Research to Implement the Marketing Concept 178
How Does Marketing Research Aid Marketing? 179
How to Do Marketing Research 179
Gathering Information on the Web 182
Using Computerized Databases 182
Developing a Marketing Strategy 184
Setting Objectives 184
Choosing Target Markets 184
Developing an Effective Marketing Mix 187
The Product Life Cycle 188
Stages of the Product Life Cycle 188
Need for a Wide Product Mix 189
Packaging 190
Pricing Your Product 190
Establishing Pricing Policies 191
How Prices Are Set by Small Businesses 193
Other Aspects of Pricing 194
Strategy for Marketing Services 195
Nature of Service Businesses 195
How Services Differ 195
Developing Service Marketing Strategies 196
Implementing Your Marketing Strategy 197
The Introductory Stage 197
The Growth Stage 197
 Case 7.1:Parkview Drug Store: Adding the ?Personal Touch? 199
 Case 7.2:Buying Diamonds Online 201
Chapter 8
Promoting and Distributing 202
Profile: Springdale Travel, Inc. 203
Advertising 206
Types of Advertising 206
Developing the Advertising Program 206
Setting the Budget 206
Selecting Advertising Media 207
Developing the Message 209
When and How to Use an Advertising Agency 209
Measuring the Results of Advertising 209
Merchandising, Sales Promotion, and Publicity 209
Merchandising 210
Sales Promotion 210
Publicity 211
Considering Ethnic Differences 211
Opportunities for Small Firms in Global Marketing 212
Importing by Small Firms 212
Exporting by Small Firms 213
Distribution 217
Storing 217
Order Processing 217
Transportation 218
Choosing a Distribution Channel 219
Factors to Consider in Choosing a Distribution Channel 219
Distribution Channels for Consumer Goods 220
Distribution Channels for Industrial Goods 221
Selling through Intermediaries 221
Brokers 222
Agents 222
Wholesalers 222
Retailers 222
Selling with Your Own Sales Force 223
Need for Personal Selling 224
Steps in the Creative Selling Process 224
Attributes of a Creative Salesperson 227
 Case 8.1:Taking Your Store to Your Customers 229
 Case 8.2:Clark Copy International Corporation?s China Experience 230
How to Organize, Manage, and Operate the Business 233
Chapter 9
How to Obtain and Manage Human Resources and Diversity in Small Companies 234
Profile: Mary H. Partridge and Michael Levy: Even Small Companies Merge! 235
Planning for Human Resource Needs 236
Determining Types of Employees Needed 236
Developing Sources from Which to Recruit Potential Employees 237
Recruiting and Selecting Employees 240
Methods of Recruiting Employees 240
Methods of Selecting the Right Person for the Job 241
Training and Developing Employees 246
Ways of Training Nonmanagerial Employees 246
Outside Help with Training 248
Selecting and Developing Managers 248
Selecting Managers 249
Developing Managers 249
Complying with Equal Employment Opportunity (EEO) Laws 250
Laws Providing for Equal Employment Opportunity 250
Enforcing EEO Laws 251
Compensating Employees 252
Legal Influences 252
Setting Rates of Pay 254
Using Money to Motivate 254
Compensating Managerial and Professional Personnel 256
Providing Employee Benefits 256
Legally Required Benefits 256
Some Other Popular Benefits 258
Flexible Approach to Benefits 259
Protecting Employees? Health and Safety 259
Factors Influencing Workers? Health and Safety 260
The Role of the Occupational Safety and Health Act 261
Environmental Protection 262
 Case 9.1:Supreme Plumbing and Heating Company: Where Are the Workers? 264
 Case 9.2:The Case of Sam Sawyer 265
Chapter 10
How to Maintain Relationships with Your Employees and Their Representatives 266
Profile: Cathy Anderson-Giles: Master Motivator 267
Setting Up the Organizational Structure 268
Some Basic Organizational Concepts 268
Some Organizational Problems in Small Firms 269
Some Ways of Organizing a Small Business 270
Preparing an Organization Chart 272
Using Team Management to Improve Performance 272
Good Human Relations Is Needed in Small Firms 273
Exercising Effective Leadership 274
Communicating with Employees and Others 275
What Happens When You Communicate? 275
Barriers to Effective Communication 275
How to Improve Communication 276
Motivating Employees 277
What Is Motivation? 278
Why Motivate Employees? 278
How to Motivate Employees 279
Some Practical Ways to Improve Motivation 280
Does Money Motivate? 281
Motivation Is More than Mere Technique 281
Appraising and Evaluating Employees? Performance 282
Counseling Troubled Employees 284
Job-Related Areas Needing Counseling 285
Personal Problems Needing Counseling 285
Handling Employee Complaints 286
Imposing Discipline 286
Encouraging Self-Discipline 286
Using Positive Discipline 287
How to Discipline Employees Legally 287
Dealing with Unions 288
Laws Governing Union?Management Relations 288
What Happens When the Union Enters 289
Negotiating the Agreement 290
Living with the Agreement 290
Terminating Employees 291
 Case 10.1:Personnel Policies Help Intermatic Grow 293
 Case 10.2:Visiting Angels 293
Chapter 11
Obtaining and Laying Out Operating Facilities 296
Profile: Koi and Lilies 297
Developing Operating Systems 298
What Are Operating Systems? 299
How Operating Systems Work 299
How to Begin Operations 300
Choosing the Right Location 301
Why Choosing the Right Location Is So Important 301
Some Important Factors Affecting Location Choice 301
Locating Retail Stores 304
Types of Stores 304
Types of Locations 305
Locating Manufacturing Plants 307
Planning Physical Facilities 307
Determine Product to Be Produced 308
Identify Operations and Activities to Be Performed 308
Determine Space Requirements 308
How Telecommuting Affects Physical Facility Needs 308
Decide on the Best Layout 310
Implement Your Plans 313
How to Improve Operations 313
State the Problem 313
Collect and Record Information 314
Develop and Analyze Alternatives 314
Select, Install, and Follow Up on New Methods 314
Setting and Using Performance Standards 314
 Case 11.1:Telecommuting in the Rockies 316
 Case 11.2:Nell Hill?s: An Adventure in Shopping 316
Chapter 12
Purchasing, Inventory, and Quality Control 318
Profile: Anders Book Stores: Dealing with Hundreds of Suppliers 319
The Importance of Purchasing 320
What Purchasing Involves 320
Why Purchasing Is So Important 321
Assign Responsibility for Purchasing to One Person 322
Selecting the Right Supplier 323
Types of Suppliers 323
Use Few or Many Suppliers? 323
Investigating Potential Suppliers 323
Evaluating Supplier Performance 324
Establishing an Effective Purchasing Procedure 324
Requisitioning Goods or Services 324
Making and Placing the Purchase Order 325
Paying a Satisfactory Price 326
Receiving the Items 326
Using Computers to Aid Purchasing and Inventory Control 327
Controlling Inventory 327
The Role Played by Inventory 327
Types of Inventory 328
Inventory Mix 329
Costs of Carrying Inventory 329
Determining When to Place an Order 329
Determining How Much to Order 330
Operations Planning and Control 330
Handling Variations in Demand 330
Scheduling Operations 331
Controlling Operations 331
Quality and Its Control 331
What Is Quality? 331
Improving and Controlling Quality 332
 Case 12.1:Universal Fleet Services Inc. (UFS): Selling a Unique Service 337
 Case 12.2:Eddie & Company: Exceeding the Relevant Range 339
Basic Financial Planning and Control 341
Chapter 13
Profit Planning 342
Profile: What Is Profit? 343
What Is Profit Planning? 344
How a Business?s Financial Position Changes 345
Tracing Changes in a Company?s FinancialPosition 345
Importance of Accounting 346
What Is the Financial Structure of a Business? 347
Assets 347
Liabilities 349
Owners? Equity 349
Profit-Making Activities of a Business 350
Revenue and Expenses 350
Profit 351
How to Plan for Profit in a Small Business 351
Need for Profit Planning 351
Steps in Profit Planning 351
Need for Realism in Profit Planning 352
Profit Planning Applied in a Typical Small Business 352
Step 1: Establish the Profit Goal 352
Step 2: Determine the Planned Sales Volume 353
Step 3: Estimate Expenses for Planned Sales Volume 353
Step 4: Determine the Estimated Profit 355
Step 5: Compare Estimated Profit with Profit Goal 355
Step 6: List Possible Alternatives to Improve Profits 356
Step 7: Determine How Expenses Vary with Changes in Sales Volume 356
Step 8: Determine How Profits Vary with Changes in Sales Volume 357
Step 9: Analyze Alternatives from a Profit Standpoint 358
Step 10: Select and Implement the Plan 358
 Case 13.1:Eillen Dorsey and Walter Hill, Jr., Use Financial Planning 360
 Case 13.2:The Need for a Cash Budget 360
Chapter 14
Budgeting and Controlling Operations and Taxes 362
Profile: Allen Smith: eGo 363
What Is Involved in Control? 364
The Role of Control 364
Steps in Control 364
Setting Performance Standards 364
Characteristics of Effective Control Systems 365
Using Budgets to Communicate Standards 365
Types of Budgets 365
Preparing the Operating Budget 365
Preparing the Cash Flow Budget 366
Procedure for Planning Cash Needs 366
Using Budgetary Control 368
Controlling Credit, Collections, and Accounts Receivable 368
Other Types of Budgetary Control 368
Using Audits to Control the Budget 369
Obtaining and Using Performance Information for Control Purposes 369
Obtaining the Information 369
Comparing Actual Performance with Performance Standards 370
Determining Causes of Poor Performance 370
Evaluating the Firm?s Financial Condition 371
Some Important Ratios and Their Meanings 371
Are Profits Satisfactory? 371
Are Assets Productive? 371
Can the Business Pay Its Debts? 372
How Good Are the Business?s Assets? 373
Is Your Equity in the Business Satisfactory? 373
Ratios Are Interrelated 373
The U.S. Tax System 374
Who Pays the Taxes? 374
How Taxes Affect Small Businesses 374
Get Professional Help! 375
Types of Taxes 376
Taxes Imposed on the Business 376
Taxes and Fees Paid to Operate the Business 376
Excise and Intangible Property Taxes 376
State and Local Sales and Use Taxes 377
Federal, State, and Local Income Taxes 377
How the Form of a Business Affects Its Taxes 377
Treatment of Federal Corporate Income Taxes 378
Employment-Related Taxes 380
Income Tax Withholding 380
Social Security/Medicare Taxes 381
Unemployment Compensation Insurance 381
Workers? Compensation 381
Personal Taxes Paid by Owners 381
Taxes on Amounts Withdrawn from the Business 381
Taxes on Amounts Received from Sale of the Business 382
Recordkeeping and Tax Reporting 382
Maintaining Tax Records 382
Reporting Your Taxes 384
Credit Management 384
Methods of Payment 384
Setting Credit Policies 385
Carrying Out Credit Policies 386
Classifying Credit Risks 386
Investigating Customers? Creditworthiness 386
Establishing Collection Procedures 386
 Case 14.1:Theme Restaurants 388
 Case 14.2:How to Deal with Cash Flow Problems 389
Chapter 15
Using Computer Technology in Small Businesses 390
Profile: Gayle M. Ross: Wordsmith and Publisher 391
The Role of Information in Small Business 393
Elements of a Management Information System (MIS) 393
What Information Is Needed? 394
Timing of Information Flow(s) 396
Choosing an MIS 397
The Role of Computers in Business 397
The Laptop and Other Electronic Devices 397
Strengths and Weaknesses of Computers for Small Firms 399
The Internet 400
Some Potential Problems with Computer Technology 401
Computers Require Added Security 401
Business to Business (B2B) 402
Reluctance of Some Owners to Use Computer Technology 403
Choosing Software, Hardware, and Employee Training 404
Small Business and E-Commerce 405
Internet Marketing 407
Web Design 407
The Seven Design Elements of the Customer Interface 408
 Case 15.1:Herman Valentine: Customizing Computers for Military Use 411
 Case 15.2:Tom Williams Is Off to a Heady Start in Computers 413
Chapter 16
Risk Management, Insurance, and Crime Prevention 416
Profile: Dr. Jeffrey F. Van Petten: A Unique Entrepreneur 417
Risk and Its Management 418
Types of Risk 418
Ways of Coping with Risk 419
Using Insurance to Minimize Loss Due to Risk 420
Types of Insurance Coverage 420
Guides to Choosing an Insurer 425
Crime Prevention to Protect People and Assets 426
Armed Robbery 427
Theft 428
White-Collar Crime 431
Document Security 433
Safeguarding Employees with Preventive Measures 433
 Case 16.1:Beware of ?Softlifting? 435
 Case 16.2:When Inventory and Sales Don?t Balance 436
Chapter 17
Maintaining Good Government Relations and Business Ethics 438
Profile: BSI: Thirty Years and Still Going 439
Understanding the Legal Environment 440
Some Basic Laws Affecting Small Business 440
The Uniform Commercial Code 441
Torts 441
Bankruptcy 441
Government Help for Small Businesses 442
Small Business Administration (SBA) 442
U.S. Department of Commerce 442
Other Government Agencies 442
Handling Government Regulations and Paperwork 443
Dealing with Regulatory Agencies 443
Some Benefits of Government Regulation 444
Some Problems with Government Regulation 445
How Owners of Small Firms Can Cope with Government Regulations 446
Dealing with Private Regulators 447
Choosing and Using a Lawyer 447
Choosing the Lawyer 447
Maintaining Relationships with Lawyers 448
Socially and Ethically Responsible Behavior 448
Social Responsibility 449
Business Ethics 451
 Case 17.1:?Hannadowns? 455
 Case 17.2:What to Do? 456
workbook for developing a successful business plan 457
glossary 484
endnotes 493
photo credits 505
index 507

Library of Congress Subject Headings for this publication:

Small business -- Management.
Small business -- Management -- Case studies.