Small Business Management An Entrepreneurial Emphasis (with CD-ROM and InfoTrac)

by Longenecker, Justin G.; Moore, Carlos W.; Petty, J. William; Palich, Leslie E.

Edition:

13th

ISBN13:

9780324226126

ISBN10:

0324226128

Format:

Hardcover

Pub. Date:

1/6/2005

Publisher(s):

Cengage Learning

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Summary

Small Business Management, with its loyal following and great package, is far and away the market leading text in small business and has been for many years. It is a proven text, comprehensive in its approach, with the best fully integrated content, graphics, and resources devoted to business plan development. SBM has always been a step ahead of the competition (first to cover family businesses and first to integrate computer technology for small business) and continues to provide innovative coverage in each new edition. Increasingly adopted in hybrid courses that combine small business management and entrepreneurship and in standalone entrepreneurship courses, SBM shows aspiring business owners not only how to start a business but how to grow one.

Preface

xiv

About the Authors

Part 1 Entrepreneurship: A World of Opportunity

(46)

The Entrepreneurial Life

(22)

In the Video Spotlight: Cafe Pilon

(1)

Entrepreneurial Opportunities

(3)

Three Success Stories

(2)

Evidence of Opportunities

(1)

Entrepreneurship and Small Business

(1)

Who Are the Entrepreneurs?

(1)

What Is Small Business?

(1)

The Payoff of Entrepreneurship

(3)

Make Money (Profit)

(1)

Be Your Own Boss (Independence)

(1)

Escape a Bad Situation (Freedom)

(1)

Living the Dream: Engineers Become Entrepreneurs

(1)

Enjoy a Satisfying Life (Personal Satisfaction)

(1)

Contribute to the Community (Personal Fulfillment)

(1)

The Many Varieties of Entrepreneurship

(3)

Founder Entrepreneurs Versus Other Business Owners and Franchisees

(1)

High-Potential Ventures Versus Attractive Small Firms and Microbusinesses

(1)

Entrepreneurial Teams

(1)

Artisan Versus Opportunistic Entrepreneurs

(1)

Living the Dream: The Guitar Man

(1)

Women Entrepreneurs

(1)

The Winning Hand of Entrepreneurship

(2)

Customer Focus

(1)

Quality Performance

(1)

Living the Dream: A Customer-Oriented Body Shop

(1)

Integrity and Responsibility

(1)

Innovation

(1)

Special Niche

(1)

Getting Started

(2)

Age and Entrepreneurial Opportunity

(1)

Living the Dream: A Teenage Entrepreneur

(1)

Characteristics of Successful Entrepreneurs

(1)

Taking the Plunge

(1)

Growing and Managing the Business

(1)

Success in Business and Success in Life

(7)

Looking Back at an Entrepreneurial Career

(1)

Evaluating Accomplishments

(1)

Winning the Wrong Game

(1)

Crafting a Worthy Legacy

(1)

Beginning with the End in Mind

(5)

Entrepreneurial Integrity: A Gateway to Small Business Opportunity

(23)

In the Video Spotlight: Diversified Chemical

(1)

Integrity and Entrepreneurship

(2)

What Is Integrity?

(2)

Doing the Right Thing

(1)

A Framework for Integrity

(7)

Promoting the Owners' Interests

(1)

Respecting Customers

(1)

Living the Dream: The Best Leader Is a Great Servant

(1)

Valuing Employees

(1)

Social Responsibility and Small Business

(1)

Governmental Laws and Regulations

(1)

The Challenges and Benefits of Acting Ethically

(2)

The Vulnerability of Small Companies

(1)

The Integrity Edge

(1)

Integrity in an Expanding Economy

(2)

Integrity and the Internet

(1)

International Issues of Integrity

(1)

Building a Business with Integrity

(4)

A Strong Foundation

(1)

Living the Dream: A Healthy Diet of VeggieTales

(1)

Leading with Integrity

(1)

A Supportive Organizational Culture

(1)

Better Business Bureaus

(1)

Environmentalism---Cost or Opportunity?

(5)

The Burden of Environmentalism

(1)

The Potential of Environmentalism

(1)

Living the Dream: Going Green Can Cost You Greenbacks

(4)

Part 2 Starting from Scratch or Joining an Existing Business

(68)

Getting Started

(24)

In the Spotlight: Recycline, Inc.

(1)

Identifying Startup Ideas

(1)

Creating a New Business from Scratch

(2)

Finding Startup Ideas

(4)

Types of Startup Ideas

(1)

Sources of Startup Ideas

(1)

Living the Dream: Reflective Technology Saves Dog

(3)

Using Internal and External Analyses to Evaluate an Opportunity

(5)

Outside-In Analysis

(3)

Inside-Out Analysis

(1)

Integrating Internal and External Analyses

(1)

Selecting Strategies That Capture Opportunities

(5)

Broad-Based Strategy Options

(1)

Living the Dream: Frenchman Serves Italian Pizza in China

(1)

Focus Strategies

(2)

Living the Dream: A Bad Case of Puppy Love

(1)

Putting It All Together

(6)

Franchises and Buyouts

(22)

In the Video Spotlight: Auntie Anne's

(1)

The Pros and Cons of Franchising

(5)

Advantages of Franchising

(1)

Living the Dream: Got Junk?

(2)

Living the Dream: Are You Ready to Work?

(1)

Limitations of Franchising

(2)

Franchising Options and the Structure of the Franchising Industry

(2)

Franchising Options

(1)

The Structure of the Franchising Industry

(1)

Evaluating Franchise Opportunities

(5)

Selecting a Franchise

(1)

Investigating the Potential Franchise

(1)

Living the Dream: College Brothers Are Smoothies

(1)

Living the Dream: A ``Diamond'' of a Franchise

(3)

Finding Global Franchising Opportunities

(1)

Considering Legal Issues in Franchising

(1)

Buying an Existing Business

(9)

Reasons for Buying an Existing Business

(1)

Finding a Business to Buy

(1)

Investigating and Evaluating Available Businesses

(1)

Valuing the Business

(1)

Nonquantitative Factors In Valuing a Business

(1)

Negotiating and Closing the Deal

(5)

The Family Business

(21)

In the Spotlight: Aquascape Designs Inc.

(1)

The Family Business: A Unique Institution

(4)

What Is a Family Business?

(1)

Family and Business Overlap

(1)

Competition Between Business and Family

(2)

Living the Dream: Family First and Business Second---in a Way That Works

(1)

Advantages of a Family Business

(1)

The Culture of a Family Business

(3)

The Founder's Imprint on the Culture

100

(1)

Cultural Patterns

100

(1)

Culture and Leadership Succession

101

(1)

Family Roles and Relationships

102

(3)

Mom or Dad, the Founder

102

(1)

Husband--Wife Teams

102

(1)

Sons and Daughters

103

(1)

Living the Dream: Kids Will Be Kids---but Not Always Employees

103

(1)

Sibling Cooperation, Sibling Rivalry

104

(1)

In-Laws In and Out of the Business

104

(1)

The Entrepreneur's Spouse

104

(1)

Professional Management of the Family Firm

105

(3)

The Need for Good Management

105

(1)

Nonfamily Employees in a Family Firm

106

(1)

Family Retreats

106

(1)

Family Councils

107

(1)

Family Business Constitutions

107

(1)

The Process of Leadership Succession

108

(7)

Available Family Talent

108

(1)

Living the Dream: A Formal Wear Feud

108

(1)

Stages in the Process of Succession

109

(2)

Reluctant Parents and Ambitious Children

111

(1)

Transfer of Ownership

111

(4)

Part 3 Developing the New Venture Business Plan

115

(170)

The Business Plan: Visualizing the Dream

116

(24)

In the Video Spotlight: Jagged Edge

116

(1)

An Overview of the Business Plan

117

(4)

What Is a Business Plan?

117

(1)

Do You Really Need a Plan?

118

(1)

Two Types of Business Plan

119

(1)

Living the Dream: A Lesson from the Internet: Under-Promise and Over-Deliver

119

(1)

Living the Dream: Business Planning on the College Campus

120

(1)

Telling the Story to Others

121

(3)

Attracting Investors

121

(1)

Living the Dream: An Effective Presentation Makes the Difference

122

(1)

Understanding the Investor's Perspective

122

(2)

Preparing a Business Plan

124

(8)

Formatting and Writing a Business Plan

124

(1)

Deciding on the Content of a Business Plan

125

(6)

What Not to Do

131

(1)

Resources for Business Plan Preparation

132

(1)

Computer-Aided Business Planning

132

(1)

Professional Assistance in Business Planning

132

(1)

Keeping the Right Perspective

133

(7)

The Marketing Plan

140

(22)

In the Spotlight: Harvest Ventures

140

(1)

What Is Small Business Marketing?

141

(2)

Marketing Philosophies Make a Difference

142

(1)

A Consumer Orientation---The Right Choice

142

(1)

The Formal Marketing Plan

143

(3)

Market Analysis

143

(1)

The Competition

144

(1)

Marketing Strategy

144

(2)

Living the Dream: Be Flexible

146

(1)

Marketing Research for the New Venture

146

(5)

The Nature of Marketing Research

147

(1)

Living the Dream: Launching Lashpro

147

(1)

Steps in the Marketing Research Process

148

(3)

Understanding Potential Target Markets

151

(3)

Market Segmentation and Its Variables

151

(1)

Marketing Strategies Based on Segmentation Considerations

152

(2)

Living the Dream: Solving the Puzzle

154

(1)

Estimating Market Potential

154

(8)

The Sales Forecast

154

(1)

Limitations to Forecasting

155

(1)

The Forecasting Process

156

(6)

The Human Resource Plan: Managers, Owners, Allies, and Directors

162

(24)

In the Video Spotlight: Tires Plus

162

(1)

Building a Management Team

163

(2)

Living the Dream: Two Heads Are Better Than One

164

(1)

Achieving Balance

165

(1)

Specifying Structure

165

(1)

Choosing a Legal Form of Organization

165

(11)

The Sole Proprietorship Option

165

(1)

The Partnership Option

166

(3)

Living the Dream: When Doing Less Is Worth More

169

(1)

The C Corporation Option

170

(1)

Criteria for Choosing an Organizational Form

171

(1)

Living the Dream: Simplicity Can Be Costly

172

(2)

Specialized Forms of Organization

174

(2)

Forming Strategic Alliances

176

(2)

Strategic Alliances with Larger Companies

176

(1)

Strategic Alliances with Small Companies

176

(1)

Setting Up and Maintaining Successful Strategic Alliances

177

(1)

Living the Dream: Monks Close to Death

177

(1)

Making the Most of the Board of Directors

178

(8)

Contributions of Directors

179

(1)

Selection of Directors

179

(1)

Compensation of Directors

180

(1)

An Alternative: An Advisory Council

180

(6)

The Location Plan

186

(18)

In the Video Spotlight: Nicole Miller Company

186

(1)

Locating the Brick-and-Mortar Startup

187

(5)

The Importance of the Location Decision

187

(1)

Key Factors in Selecting a Good Location

187

(3)

Living the Dream: Staying Home

190

(2)

Living the Dream: From High Tech to Low Tech

192

(1)

Designing and Equipping Physical Facilities

192

(1)

Challenges in Designing the Physical Facilities

192

(1)

Challenges in Equipping the Physical Facilities

192

(1)

Building Image

193

(1)

Locating the Startup in the Entrepreneur's Home

193

(3)

The Attraction of Home-Based Businesses

194

(1)

The Challenges of Home-Based Businesses

195

(1)

Technology and Home-Based Businesses

196

(1)

Locating the Startup on the Internet

196

(8)

What Is E-Commerce?

196

(1)

Benefits of E-Commerce to Startups

196

(1)

E-Commerce Business Models

197

(2)

Living the Dream: Student Entrepreneur Turns to ``Blogging''

199

(5)

The Financial Plan, Part 1: Projecting Financial Requirements

204

(32)

In the Spotlight: DailyCandy

204

(1)

Understanding Financial Statements

205

(12)

The Income Statement

205

(3)

The Balance Sheet

208

(2)

Living the Dream: Are Your Employee Meetings Like This One?

210

(2)

The Cash Flow Statement

212

(3)

Living the Dream: Want to Succeed? Then Understand Your Financial Statements

215

(1)

Living the Dream: Profits Are Good, but Cash Is Essential

216

(1)

Interpreting the Cash Flow Statement

216

(1)

Financial Forecasting

217

(10)

Forecasting Profitability

218

(1)

Living the Dream: Advice for the Starry-Eyed Entrepreneur: Do Your Homework

218

(1)

Forecasting Asset and Financing Requirements and Cash Flows

219

(3)

Living the Dream: Think About Personal Finances, Too

222

(5)

Good Forecasting Requires Good Judgment

227

(5)

Appendix 10A: Computing Cash Flows for Petri & Associates, Inc.

232

(3)

Appendix 10B: Cash Flow Statements for Cameron Products, Inc.

235

(1)

The Financial Plan, Part 2: Finding Sources of Funds

236

(28)

In the Video Spotlight: We'll Show You the Money

236

(1)

The Nature of a Firm and Its Financing Sources

237

(2)

A Firm's Economic Potential

237

(1)

Company Size and Maturity

237

(1)

Types of Assets

237

(1)

Living the Dream: Can't Get It Done the Traditional Way? Try Bootstrapping

238

(1)

Owner Preferences for Debt or Equity

239

(1)

Debt or Equity Financing?

239

(4)

Potential Profitability

239

(3)

Financial Risk

242

(1)

Voting Control

242

(1)

Living the Dream: Debt or Equity? You Have to Choose

243

(1)

Sources of Financing

243

(21)

Sources Close to Home

244

(1)

Living the Dream: To Raise Money, Invest Money---and Time

245

(2)

Living the Dream: A Risky Source of Financing, but Sometimes Necessary

247

(1)

Bank Financing

247

(1)

Living the Dream: Plastic Can Be Very Expensive

248

(2)

Living the Dream: Buy or Build?

250

(3)

Living the Dream: Beware of Loan Covenants

253

(1)

Business Suppliers and Asset-Based Lenders

253

(1)

Private Equity Investors

254

(2)

The Government

256

(1)

Living the Dream: Mezzanine Financing

256

(2)

Where Else to Look

258

(6)

The Harvest Plan

264

(21)

In the Spotlight: Type A Multimedia Network

264

(1)

The Importance of the Harvest

265

(1)

Methods of Harvesting a Business

266

(7)

Selling the Firm

266

(1)

Living the Dream: Success Means Making a Difference

266

(2)

Living the Dream: A Close Look at an LBO

268

(1)

Releasing the Firm's Cash Flows

269

(1)

Living the Dream: The Employee Learning Curve in an ESOP

269

(1)

Going Public

270

(1)

Living the Dream: Success Means Balancing Work and Family

270

(2)

Using Private Equity

272

(1)

Living the Dream: The Harvest: Easier Said Than Done

272

(1)

Firm Valuation and the Harvest

273

(3)

The Harvest Value

273

(1)

Living the Dream: Success Means Independence

274

(1)

The Method of Payment

275

(1)

Living the Dream: Accepting Stock for Payment Can Be Risky

275

(1)

Developing an Effective Harvest Plan

276

(5)

Manage for the Harvest

276

(1)

Living the Dream: Good Accounting Contributes to a Good Harvest

277

(1)

Expect Conflict---Emotional and Cultural

277

(1)

Living the Dream: Success Means Making Money

278

(1)

Get Good Advice

278

(1)

Understand What You Want

279

(1)

Living the Dream: Harvesting Is About More Than Money

279

(1)

Living the Dream: Success Means Loving Your Work

280

(1)

What's Next?

281

(4)

Part 4 Focusing on the Customer: Marketing Growth Strategies

285

(112)

Customer Relationships: The Key Ingredient

286

(20)

In the Video Spotlight: Texas Jet

286

(1)

What Is Customer Relationship Management?

287

(2)

The Importance of CRM to the Small Firm

288

(1)

Essential Materials for a CRM Program

288

(1)

Creating Transactional Relationships Through Extraordinary Service

289

(5)

Components of Customer Satisfaction

289

(1)

Living the Dream: Gifts Are Good for Business

290

(1)

Evaluating a Firm's Customer Service Health

290

(2)

Handling Customer Complaints

292

(1)

Living the Dream: Outsourcing the Help Desk---Help!

293

(1)

Using Technology to Support Customer Relationship Management

294

(1)

Living the Dream: A Bare-Bones CRM Strategy

294

(1)

Building Customer Profiles for a CRM Program

295

(1)

Customers as Decision Makers

296

(2)

Problem Recognition

297

(1)

Information Search and Evaluation

297

(1)

The Purchase Decision

297

(1)

Post-Purchase Evaluation

297

(1)

Understanding Psychological Influences on Customers

298

(2)

Needs

298

(1)

Perceptions

298

(1)

Living the Dream: A Recipe for Service

299

(1)

Motivations

300

(1)

Attitudes

300

(1)

Understanding Sociological Influences on Customers

300

(6)

Culture

300

(1)

Living the Dream: Customers Love Taco Talk

301

(1)

Social Class

301

(1)

Reference Groups

302

(1)

Opinion Leaders

302

(4)

Product and Supply Chain Management

306

(24)

In the Video Spotlight: Fluker Cricket Farms

306

(1)

To Grow or Not to Grow

307

(1)

Innovation: A Path to Growth

308

(4)

Competitive Advantage and Innovation

308

(2)

Sustainability and Innovation

310

(1)

Living the Dream: Making a Sweet Connection

310

(2)

The Product Life Cycle and New Product Development

312

(2)

The Product Life Cycle

312

(1)

The New Product Development Process

312

(2)

Building the Total Product

314

(4)

Branding

314

(2)

Living the Dream: Developing a Clean Brand

316

(1)

Packaging

316

(1)

Labeling

316

(1)

Living the Dream: Packaging the Right Look

317

(1)

Making Warranties

317

(1)

Product Strategy

318

(4)

Product Marketing Versus Service Marketing

318

(1)

Product Strategy Options

319

(1)

The Legal Environment

320

(2)

Supply Chain Management

322

(8)

Intermediaries

323

(1)

Channels of Distribution

323

(1)

Living the Dream: Boosting a Small Player's Sales with Big Player Distribution

324

(1)

The Scope of Physical Distribution

325

(1)

Living the Dream: Keeping a Promise

325

(5)

Pricing and Credit Decisions

330

(22)

In the Video Spotlight: Calise & Sons Bakery

330

(1)

Setting a Price

331

(3)

Living the Dream: Let's Talk

332

(1)

Cost Determination for Pricing

332

(1)

How Customer Demand Affects Pricing

333

(1)

Applying a Pricing System

334

(3)

Break-Even Analysis

335

(1)

Living the Dream: Pricing by Software

336

(1)

Markup Pricing

336

(1)

Selecting a Pricing Strategy

337

(3)

Penetration Pricing

338

(1)

Skimming Pricing

338

(1)

Follow-the-Leader Pricing

338

(1)

Variable Pricing

338

(1)

Price Lining

339

(1)

What the Market Will Bear

339

(1)

A Final Note on Pricing Strategies

339

(1)

Living the Dream: Value Pricing

339

(1)

Offering Credit

340

(3)

Benefits of Credit

340

(1)

Factors That Affect Selling on Credit

340

(1)

Living the Dream: Give Me Credit

341

(1)

Types of Credit

342

(1)

Managing the Credit Process

343

(9)

Evaluation of Credit Applicants

343

(1)

Living the Dream: It's Collection Time

344

(1)

Sources of Credit Information

345

(1)

Aging of Accounts Receivable

345

(1)

Billing and Collection Procedures

346

(1)

Credit Regulation

347

(1)

Living the Dream: Stick to a Friendly Reminder

347

(5)

Promotional Planning

352

(20)

In the Spotlight: Highland Park Curves

352

(1)

The Communication Process in Promotion

353

(2)

Determining the Promotional Budget

355

(1)

Allocating a Percentage of Sales

355

(1)

Deciding How Much Can Be Spared

355

(1)

Spending as Much as the Competition Does

355

(1)

Determining What It Will Take to Do the Job

355

(1)

Personal Selling in the Small Firm

355

(4)

The Importance of Product Knowledge

356

(1)

The Sales Presentation

356

(1)

Living the Dream: Owner Ties Sales Force to Product

357

(1)

Customer Goodwill and Relationship Selling

358

(1)

Cost Control in Personal Selling

358

(1)

The Compensation Program for Salespeople

358

(1)

Advertising Practices for Small Firms

359

(7)

Advertising Objectives

359

(1)

Types of Advertising

359

(1)

Obtaining Assistance with Advertising

359

(1)

Frequency of Advertising

360

(1)

Where to Advertise

360

(1)

Web Advertising

361

(1)

Living the Dream: The Audience Can Bear to Listen

362

(1)

Living the Dream: You Can't Eat Technology

363

(3)

Sales Promotional Tools

366

(6)

Specialties

367

(1)

Trade Show Exhibits

367

(1)

Living the Dream: If the Shoe Fits, Wear It

367

(1)

Publicity

368

(1)

When to Use Sales Promotion

368

(1)

Strategic Alliances and Sales Promotion

369

(3)

Global Marketing

372

(25)

In the Spotlight: Ice Age Ice

372

(1)

Small Businesses as Global Enterprises

373

(2)

The Forces Driving Global Businesses

375

(7)

Expanding the Market

376

(2)

Living the Dream: Brightstar Shines in the Cell Phone Universe

378

(1)

Gaining Access to Resources

379

(1)

Living the Dream: Opportunity Knocks, but Not Necessarily at Home

380

(1)

Cutting Costs

381

(1)

Capitalizing on Special Features of Location

381

(1)

Strategy Options for Global Firms

382

(4)

Exporting

382

(1)

Importing

383

(1)

Living the Dream: The Internet Can Make a World of Difference

384

(1)

Foreign Licensing

384

(1)

International Franchising

385

(1)

International Strategic Alliances

385

(1)

Locating Facilities Abroad

386

(1)

Challenges to Global Businesses

386

(3)

Political Risk

386

(1)

Economic Risk

387

(1)

Managerial Limitations

388

(1)

Living the Dream: Currencies Can Cut Both Ways

388

(1)

Assistance for Global Enterprises

389

(8)

Analyzing Markets and Planning Strategy

389

(1)

Connecting with International Customers

390

(2)

Financing

392

(5)

Part 5 Managing Growth in the Small Business

397

(82)

Professional Management in the Entrepreneurial Firm

398

(22)

In the Spotlight: Online Business Services, Inc.

398

(1)

Entrepreneurial Leadership

399

(2)

What Is Leadership?

399

(1)

Leadership Qualities of Founders

399

(1)

What Makes an Effective Leader?

400

(1)

Leadership Styles

400

(1)

Distinctive Characteristics of Small Firm Management

401

(3)

Professional-Level Management

401

(1)

Limitations of Founders as Managers

401

(1)

Managerial Weakness in Small Firms

402

(1)

Constraints That Hamper Management

402

(1)

Firm Growth and Managerial Practices

402

(1)

Living the Dream: Finding People Who Can Manage

403

(1)

Managerial Tasks of Entrepreneurs

404

(5)

Planning Activities

404

(1)

Creating an Organizational Structure

405

(1)

Understanding Informal Groups

406

(1)

Delegating Authority

407

(1)

Controlling Operations

407

(1)

Living the Dream: Delegating Difficulty

407

(1)

Communicating

408

(1)

Negotiating

409

(1)

Personal Time Management

409

(2)

The Problem of Time Pressure

409

(1)

Time Savers for Busy Managers

410

(1)

Outside Management Assistance

411

(9)

The Need for Outside Assistance

411

(1)

Sources of Management Assistance

411

(3)

Living the Dream: Networking and Incubators

414

(6)

Managing Human Resources

420

(18)

In the Video Spotlight: Orange Tree Imports

420

(1)

Recruiting Personnel

421

(4)

The Need for Quality Employees

421

(1)

The Lure of Entrepreneurial Firms

422

(1)

Sources of Employees

422

(1)

Living the Dream: Luring Employees to an Entrepreneurial Firm

422

(2)

Living the Dream: Searching for Seasonal Applicants

424

(1)

Diversity in the Workforce

424

(1)

Job Descriptions

424

(1)

Evaluating Prospects and Selecting Employees

425

(2)

Step 1: Using Application Forms

425

(1)

Step 2: Interviewing the Applicant

425

(1)

Step 3: Checking References and Other Background Information

426

(1)

Step 4: Testing the Applicant

426

(1)

Living the Dream: Testing a Promising Candidate

426

(1)

Step 5: Requiring Physical Examinations

427

(1)

Training and Developing Employees

427

(3)

Purposes of Training and Development

427

(1)

Orientation for New Personnel

427

(1)

Training to Improve Quality

428

(1)

Training of Nonmanagerial Employees

428

(1)

Development of Managerial and Professional Employees

428

(2)

Compensation and Incentives for Employees

430

(2)

Wage and Salary Levels

430

(1)

Financial Incentives

430

(1)

Living the Dream: More Than Minimal Wages

430

(1)

Fringe Benefits

431

(1)

Employee Stock Ownership Plans

432

(1)

Special Issues in Human Resource Management

432

(6)

Employee Leasing

432

(1)

Legal Protection of Employees

432

(1)

Labor Unions

433

(1)

Formalizing of Employer-Employee Relationships

433

(1)

The Need for a Human Resource Manager

434

(1)

Living the Dream: Using Employee Committees

434

(4)

Managing Operations

438

(24)

In the Video Spotlight: Wahoo's Fish Taco

438

(1)

Quality Goals of Operations Management

439

(6)

Quality as a Competitive Tool

439

(1)

The Customer Focus of Quality Management

440

(1)

Living the Dream: Great Quality Leads to Cult Status

441

(1)

Organizational Culture and Total Quality Management

442

(1)

Tools and Techniques of Total Quality Management

442

(2)

International Certification for Quality Management

444

(1)

Living the Dream: Quality and Social Responsibility

444

(1)

Quality Management in Service Businesses

445

(1)

The Operations Process

445

(4)

The Nature of the Operations Process

445

(1)

Managing Operations in a Service Business

445

(2)

Living the Dream: Getting the Details Right Makes for Happy Customers

447

(1)

Types of Manufacturing Operations

447

(1)

Operations Planning and Scheduling

448

(1)

Plant Maintenance

448

(1)

Competitive Strength Through Improved Productivity

449

(2)

The Importance of Improving Productivity

449

(1)

Reengineering for Improved Productivity

449

(1)

Upgrading Information Systems

450

(1)

Operations Analysis

450

(1)

Living the Dream: Improved Productivity in Trucking

450

(1)

Purchasing Policies and Practices

451

(4)

The Importance of Purchasing

451

(1)

Purchasing Practices and Profitability

451

(2)

Living the Dream: Outsourcing the Production Process

453

(1)

Relationships with Suppliers

454

(1)

Inventory Management and Operations

455

(7)

Objectives of Inventory Management

455

(1)

Inventory Cost Control

456

(1)

Inventory Record-Keeping Systems

457

(5)

Managing Risk

462

(17)

In the Spotlight: RD Systems

462

(1)

What Is Risk?

463

(1)

Risk Management

464

(2)

The Process of Risk Management

464

(1)

Risk Management and the Small Firm

465

(1)

Classifying Business Risks

466

(4)

Property Risks

466

(1)

Liability Risks

467

(1)

Living the Dream: A Quick Reaction to a Catastrophic Event

467

(2)

Personnel Risks

469

(1)

Insurance for the Small Business

470

(9)

Living the Dream: Working Without Coverage

471

(1)

Basic Principles of a Sound Insurance Program

471

(1)

Common Types of Business Insurance

472

(7)

Part 6 Understanding the Numbers

479

(122)

Managing Assets

480

(24)

In the Spotlight: House and Garden Party, Ltd.

480

(1)

The Working-Capital Cycle

481

(6)

The Timing and Size of Working-Capital Investments

482

(1)

Examples of Working-Capital Management

483

(4)

Managing Cash Flows

487

(3)

The Nature of Cash Flows Revisited

487

(1)

The Cash Budget

487

(1)

Living the Dream: Batten Down the Hatches

488

(2)

Managing Accounts Receivable

490

(3)

How Accounts Receivable Affect Cash

490

(1)

The Life Cycle of Accounts Receivable

491

(1)

Living the Dream: How to Collect from Anyone (Even Enron)

491

(1)

Accounts Receivable Financing

492

(1)

Living the Dream: Factoring Can Make the Difference

492

(1)

Managing Inventories

493

(1)

Reducing Inventory to Free Cash

493

(1)

Monitoring Inventory

493

(1)

Controlling Stockpiles

493

(1)

Managing Accounts Payable

493

(2)

Negotiation

493

(1)

Living the Dream: Just-In-Time Inventory: Good for Small Firms, Too

494

(1)

Timing

494

(1)

Capital Budgeting

495

(9)

Capital Budgeting Techniques

496

(2)

Capital Budgeting Analysis in Small Firms

498

(6)

Evaluating Financial Performance

504

(97)

In the Spotlight: Zingerman's Delicatessen

504

(1)

Accounting Activities in Small Firms

505

(4)

Basic Requirements for Accounting Systems

506

(1)

Alternative Accounting Options

507

(1)

Internal Accounting Controls

508

(1)

Evaluating the Firm's Financial Performance

509

(17)

Living the Dream: Using Internal Controls to Avoid a Costly Lesson

509

(2)

Living the Dream: A Cheap CEO

511

(1)

Can You Pay Your Bills?

511

(2)

Are You Making a Good Return on Your Assets?

513

(1)

Living the Dream: Facing the Music to Stay Profitable

513

(4)

How Much Debt Are You Using?

517

(1)

Living the Dream: Managing by the Numbers

517

(1)

Are You Getting a Good Rate of Return on Your Investment?

518

(8)

Cases

Boston Duck Tours

526

(2)

Diversified Chemical Technologies

528

(2)

Biolife LLC

530

(1)

Auntie Anne's

531

(1)

The Brown Family Business

532

(2)

AdGrove.com, Inc.

534

(2)

Specialty Cheese

536

(1)

Silver Zephyr Restaurant

537

(3)

The Chocolate Farm

540

(1)

Stegmart

541

(2)

Calvert Toyota

543

(5)

Tires Plus

548

(2)

Every Customer Counts

550

(2)

Lotus Chips' Recipe for Success

552

(2)

Waco Composites I, Ltd.

554

(1)

Solid Gold Health Products for Pets

555

(2)

Sunny Designs, Inc.

557

(2)

Douglas Electrical Supply, Inc.

559

(2)

Gibson Mortuary

561

(2)

Texas Nameplate Company

563

(2)

Fox Manufacturing Inc.

565

(2)

Barton Sales and Service

567

(3)

Artho, Inc.

570

(3)

Appendixes

A Sample Business Plan

573

(16)

B Valuing a Business

589

(4)

C Useful URLs

593

(8)

Endnotes

601

(10)

Glossary

611

(10)

Index

621

Small Business Management An Entrepreneurial Emphasis (with CD-ROM and InfoTrac)

9780324226126

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