 |
|
|
Key Terms
| Guaranteed Loan |
A debt which a third party agrees to pay if the borrower does not pay. |
| Incentive Program |
A rewards system designed to get employees to do more or better work. |
| Net |
The bottom line profit after expenses. |
| Niche |
A part of a business to which a person is best suited. |
Questions
- How would you describe an entrepreneur?
- Why do some people have negative feelings about entrepreneurs?
- What is a business "niche"?
- When did Joe of Joe's Shoes become an entrepreneur?
- Can you think of another niche that Joe could have used to sell shoes?
- Who can you ask for help in starting your new business?
- When can researching your new business stop?
- Why do some small businesses fail?
- What would be the owner's benefit of a performance incentive bonus for a store manager?
- How might you be able to make more money if you only owned one "average" store?
- When might an entrepreneur consider selling his or her business?
- For what type of entrepreneur is researching important?
Activities
- Pick a business in your town in which you have interest and
spend a few hours observing how that business is equipped and
how it is run.
- Return to the store for a second visit and observe the personal
aspects: the employees, bosses, and who the customers are and
how they are treated.
Questions and Answers on Small Business
I want to open an art gallery, but the real
reason to have an art gallery is so that I can have the opportunity
to build a great art collection for myself, and not just sell
art to other people. Does this make sense?
It certainly does. Many people who are in the collectible
fields make more money from their personal investments in the
field than from sales to customers.
To begin, most dealers offer discounts to other industry
members. Often, these discounts are substantial. Next, you have
the opportunity to talk and research your investments constantly,
as you work your business and constantly upgrade your collection.
You will have first choice to buy interesting works that are
presented to you for sale. You will have the opportunity to represent
new artists with marketing potential.
Your idea of working and investing in the same field
is not just limited to art and antiques. If your passion is real
estate, stamps, old maps, books, or cars, you can have the best
of both worlds.
I know that there is no such business as
being a "wheeler-dealer", but what does wheeling and
dealing mean?
A wheeler-dealer can be a person who makes a living
out of buying and selling businesses and assets. The wheeler-dealer
could be a real estate investor who buys a six-family house and
turns the building into six condominiums. The wheeler-dealer
could be an art promoter who sees an interesting painting and
talks the painter into doing a series of limited edition prints.
The wheeler-dealer could be a beauty shop operator who buys salons,
rehabs them, builds up a clientele, and then sells the businesses
at a premium while financing the transaction.
To be a wheeler-dealer takes extraordinary knowledge
in a specific field, and often a willingness to take extraordinary
risks with the anticipation of receiving extraordinary rewards.
If the average investor is looking for returns of 10% - 15%,
the wheeler-dealer may be hoping for returns of 25% - 40%.
I'm starting a painting company, and my need
for a certain number of employees varies with how many jobs I
get. I'd like to hire more people on a permanent basis, but I
can't afford to do this now. Do you have any suggestions?
If none of your current trusted employees can make
suggestions, you might think about firemen and teachers who have
blocks of time free from their regular jobs and who can be tapped
for temporary employment. You might also try talking to the vocational
education teachers at your local high school or technical school
about solid student prospects. Unemployment counselors may have
ideas and qualified prospects.
Another idea might be to job-share with another local
painting company. Perhaps when you have a big job, the other
company can sub-contract for you, and vice versa.
Books
Valuing Small Businesses and Professional Practices
by Shannon P. Pratt (1998) (887 pages)
The classic bestseller on estimating the value of small businesses and professional practices is
fully updated and enhanced. While continuing to take readers step-by-step through the valuation
process, it now features timely new or significantly revised chapters on valuation for estate
plans, employee stock ownership plans, and corporate partnership dissolutions/buyouts. Along
with case studies, it also offers greatly expanded coverage of data sources and their availability to
small businesses.
What Losing Taught Me About Winning : The Ultimate Guide for Success in Small and
Home-Based Businesses
by Frank Tarkenton (1999) (248 pages)
Drawing on his experience as a top entrepreneur, and displaying the energy and grit that saw him
through dozens of professional ups and downs, Football Hall of Famer Fran Tarkenton presents
field-tested guidelines that anyone starting a business will value. Offering inspiration, insight, and
practical know-how.
Where to Go When the Bank Says No : Alternatives For Financing Your Business
by David R. Evanson (1998) (280 pages)
An extensive resource that shows in detail how to obtain equity capital in the range of $250,000
to $15 million, this guide pinpoints business plan flaws that typically sabotage otherwise
worthy proposals for financing.
Trade Associations
The following trade associations were selected to give an overview of the state of various
areas of the business community relevant to small business. Thus convenience stores,
publishers, retailers and restaurants are included while heavy industry and mining is
excluded.
For example if you are considering going into the restaurant business it is advisable to
seek out the advice and counsel of those who have done what you want to do. These
associations can help you find the people with the experience and know-how you need to
succeed.
- Association of American Publishers. The principal trade association of the book publishing industry. Through advocacy, education and research the association promotes the interests of publishers in the United States.
- Building Owners and Managers Association International. BOMA's mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education and information.
- American Booksellers Association. The ABA is a not-for- profit trade organization devoted to meeting the needs of independently owned bookstores with storefront locations through advocacy, education, and research.
- Coin Laundry Association. Not-for-profit trade association representing the 30,000 coin laundry owners in the United States and around the world.
- Food Marketing Institute. A nonprofit association conducting programs in research, education, industry relations and public affairs on behalf of food retailers and wholesalers.
- Grocery Manufacturers of America. The world's largest association of food, beverage and consumer product companies.
- The General Merchandise Distributors Council serves as the voice of the supermarket general merchandise and health and beauty care industries.
- International Mass Retail Association. The International Mass Retail Association represents discount department stores, home centers, dollar stores, warehouse clubs, deep discount drugstores, off-price stores and their suppliers.
- Information Technology Association of America. ITAA represents computer, software, telecommunications products and services, Internet and online services, systems integration, and professional services companies.
- National Association of Chain Drug Stores. Membership organization representing the interests of chain community pharmacies.
- National Association of Charterboat Operators. Represents the charter fishing, diving, and excursion industries and works to improve the charterboat operator's bottom line and represent his interests in Washington.
- National Association of Convenience Stores. Site posts news impacting the convenience store and petroleum marketing industries.
- National Association of Resale & Thrift Shops. Resources for the resale entrepreneur thinking of starting and operating a resale shop.
- National Ice Cream and Yogurt Retailers Association. Promotes the free and frank exchange of information among members so that all may improve their operations and increase profits. They have helped hundreds of entrepreneurs get started and prosper.
- National Mail Order Association. Membership organization providing education, information, ideas, and connectivity to small and midsize mail marketers around the world.
- The National Roofing Contractors Association. An organization of roofing, roof deck and waterproofing contractors. NRCA strives to help roofing professionals achieve competitive advantages and develops and implements programs to improve members' businesses.
- National Restaurant Association. Membership organization for the restaurant industry. Includes articles from the association's magazine Restaurants USA.
- National Retail Federation. The world's largest retail trade association.
- Shop.org. Trade association to focusing exclusively on Internet retailing. Its members represent all segments of online retailing, including virtual retailers, conventional retailers, catalogers, manufacturers and companies providing products and services for online retailers.
- WorldWide Pet Supply Association, Inc. Membership organization for the pet supplies industry. WWPSA promotes pet ownership and lobbies to protect industry interests.
Go to Lesson Eleven
4 | 5 | 6 | 7 | 8 | 9 | 10 |
11 | 12 | 13 | 14
Index
|
|
