Small Business Management

by Mazzarol, Tim; Reboud, Sophie

• ISBN13: 9780734611062
• ISBN10: 0734611064
• Edition: 2nd
• Format: Paperback
• Copyright: 2012-08-30
• Publisher: Tilde Univ Pr

Summary

The aim of this text is to familiarize students with the theory and practice of small business management and challenge assumptions that may be held about the way small business management can or should adopt the management practices of larger firms. For students interested in establishing and managing their own small firm, this book should help them to focus their thinking on the realities of life as a small business owner-manager '¬ ; both its challenges and its rewards. For postgraduate students that are keen to '¬Ümake a difference'¬", this text should enable them to understand how they might consult to small firms and assist owner-managers to establish and grow their ventures. In addition to students enrolled at universities and colleges, this book should also prove useful to small business owner-managers as a general guide on how they might better manage their operations. Managers in large corporations and financial institutions who deal with small businesses as clients or suppliers, and professionals such as accountants, lawyers and consultants who provide advice and other services to small businesses will also find the book of interest. The text also has relevance to the general reader interested in the significant contribution that the small business sector plays in the national economy of Australia and many other countries around the world.

Author Biography

Tim Mazzarol is a Winthrop Professor within the UWA Business School where he specialises in marketing, strategy, entrepreneurship and innovation. He is a member of the Australian Market and Social Research Society, as well as an affiliate Professor at the Burgundy School of Business (BSB), Groupe ESC Dijon-Bourgogne in France. Sophie Rebound is the Head of Research and a Professor of Strategy and Management of Innovation at the Burgundy School of Business (BSB), Group ESC Dijon-Bourgogne in France. In 2011, Sophie was appointed an Honorary Research Fellow of the University of Western Australian in recognition of her outstanding contribution to research collaboration with UWA. Her research, in the area of strategic management of innovation and technology, is widely published.

Table of Contents

Preface	p. i
Acknowledgements	p. ii
The Role of the Small Business within the Economy and Government Policy	p. 1
Introduction	p. 2
Defining the small firm	p. 2
Small firms in an international context	p. 4
Small business contribution to employment	p. 7
The nature of small business in Australia	p. 10
The working lives of small business owners	p. 13
Problems facing small businesses	p. 15
Myths about small firms	p. 17
The growth cycle of small firms	p. 19
The dynamics of a healthy SME sector	p. 21
Causes of small business failure	p. 23
Small business versus large business	p. 25
Enhancing the capacity of small business	p. 25
Developing small business policies	p. 26
Chapter review	p. 28
Quiz questions	p. 29
Essay questions	p. 30
Class assignment activity	p. 31
References	p. 31
Entrepreneurs Versus Owner-Managers; Theories of New Venture Creation	p. 35
Introduction	p. 36
The enterprise environment	p. 36
Enterprise, entrepreneurship and small business management	p. 41
Characteristics and myths of the entrepreneur	p. 43
The entrepreneurial implementation process	p. 48
Entrepreneurs versus owner-managers	p. 50
Models of new venture creation	p. 52
The stages of small business start-up	p. 56
Success and failure in small business start-ups	p. 58
Barriers and triggers to business start-up	p. 60
Case studies of small business starters and non-starters	p. 62
Chapter review	p. 66
Quiz questions	p. 67
Essay questions	p. 68
Class assignment activity	p. 68
Case studies	p. 69
References	p. 71
Surviving the Early Years: Screening the Business Opportunity	p. 75
Introduction	p. 76
Assessing opportunities	p. 76
Causes of small business success or failure	p. 84
Opportunity screening for new ventures	p. 86
Start-up check list	p. 89
Chapter review	p. 103
Quiz questions	p. 104
Class assignment activity	p. 105
Case study	p. 105
References	p. 109
The Process of Planning and Strategy in the Small Firm	p. 113
Introduction	p. 114
Strategic vision not strategic planning	p. 114
The benefits of planning	p. 118
The major types of business plan	p. 120
Key issues in business planning	p. 123
Strategy as a continuous process	p. 124
Environmental scanning and market assessment	p. 131
Knowing the rules of the game	p. 133
Analysis of industry structure	p. 135
Conducting a SWOT analysis	p. 143
Finding your competitive advantage	p. 144
Building on distinctive competencies	p. 147
Strategic planning responses	p. 148
Chapter review	p. 154
Quiz questions	p. 155
Case study	p. 156
References	p. 160
Creating Customers	p. 164
Introduction	p. 165
Marketing the small business	p. 165
Small business marketing success factors	p. 166
Everyone is responsible for marketing	p. 168
Creating customers via 'customerising'	p. 168
A marketing framework	p. 173
Identifying customers' needs and wants	p. 174
Assessing your market performance	p. 180
Developing a sales strategy	p. 183
The marketing mix	p. 191
The building blocks of increased business	p. 199
Chapter review	p. 201
Quiz questions	p. 202
Class assignment activity	p. 203
Case study	p. 203
References	p. 207
Financing the Small Firm Part 1: Debt Versus Equity	p. 211
Introduction	p. 212
Sources of entrepreneurial capital	p. 212
The benefits of bootstrap financing	p. 215
Understanding cash and profit	p. 216
Nature and role of debt financing	p. 219
Types of debt financing	p. 220
Bank financing	p. 225
Equity financing	p. 232
The nature of venture capital	p. 238
The 'finance gap' for small firms	p. 242
Chapter review	p. 242
Quiz questions	p. 243
Class assignment activity	p. 244
Case study	p. 245
References	p. 247
Financing the Small Firm Part 2: Cash Flows, Profit and Working Capital	p. 251
Introduction	p. 252
Basic financial reports	p. 252
The working capital cycle	p. 263
Assessing financial performance	p. 266
Dynamic accounting principles	p. 275
Profitability and break-even	p. 279
The power of gross margins	p. 282
Financial control and funding requirements	p. 287
Determining funding requirements	p. 288
Financial DOC analysis	p. 290
A dynamic balance sheet	p. 293
Graphic displays	p. 295
Chapter review	p. 299
Quiz questions	p. 299
Activity - Financial analysis	p. 301
References	p. 304
The Process of Growth in the Small Firm	p. 306
Introduction	p. 307
The growth of small firms	p. 307
Owner-manager's influence on growth	p. 316
Models of small business growth management	p. 319
Key considerations for growth	p. 329
Factors associated with small firm growth	p. 334
Chapter review	p. 339
Quiz questions	p. 340
Case study	p. 341
References	p. 348
Small Firms and Human Resources: Coaching and Building Teams	p. 353
Introduction	p. 354
Human resource management and small firms	p. 354
Comparisons of HRM in small and large firms	p. 355
A model of HRM in small firms	p. 358
Learning to let go - the risks of micro management	p. 360
Delegation and team building	p. 362
Performance reviews	p. 364
Management and situational leadership	p. 370
The importance of coaching	p. 372
Mapping social styles	p. 377
The principles of holistic, ethical management	p. 379
Industrial relations and the small business	p. 381
Job design and recruitment in small firms	p. 382
Employment contracts	p. 387
Conditions of employment	p. 389
Chapter review	p. 393
Quiz questions	p. 394
Case study analysis	p. 395
References	p. 395
Franchising and Legal Issues for Small Business	p. 400
Introduction	p. 401
Franchising	p. 401
Types of franchising systems	p. 402
Selecting your legal structure	p. 420
Other legal issues facing small firms	p. 428
Protecting intellectual property	p. 434
Automatically granted IP rights	p. 443
Chapter review	p. 448
Quiz questions	p. 449
Class assignment activity	p. 451
References	p. 451
Small Firms and Family Business	p. 454
Introduction	p. 455
What is a family business?	p. 456
Differences between family and non-family firms	p. 457
Managing the family firm	p. 459
Creation of a board of directors	p. 465
Succession planning for family and non-family business	p. 466
Barriers to succession planning in family-owned business	p. 467
Chapter review	p. 475
Quiz questions	p. 476
Essay questions	p. 476
Class assignment activity	p. 477
Case study	p. 477
References	p. 481
The Owner-Manager and the Troubled company	p. 484
Introduction	p. 485
The nature and causes of small bussiness failure	p. 485
Common causes of failure in small firms	p. 489
Good management is the key to avoiding trouble	p. 494
Causes and danger signals of impending trouble	p. 497
Features of successful and unsuccessful firms	p. 502
Key considerations with business survival	p. 503
When a crisis takes hold	p. 504
Principles of reengineering	p. 508
Principles of turnaround strategy	p. 509
Turnaround strategies for small firms	p. 510
An integrated problem-solving approach	p. 513
Chapter review	p. 516
Quiz questions	p. 517
Class assignment activity	p. 518
Case study	p. 518
References	p. 524
Buying, Selling and Valuing the Business	p. 526
Introduction	p. 527
Buying an established business vs starting from scratch	p. 527
Finding the business	p. 529
Negotiating the price	p. 536
Negotiating the deal	p. 538
Can you manage the business?	p. 538
Location, location, location	p. 539
Packaging for sale	p. 541
Valuing the business	p. 546
Problems in small business valuation	p. 552
The goodwill factor	p. 554
A holistic approach to valuation	p. 557
Chapter review	p. 559
Quiz questions	p. 560
Essay questions	p. 560
Case study	p. 561
References	p. 563
Appendix - Useful websites	p. 566
Index	p. 569
Table of Contents provided by Ingram. All Rights Reserved.