Starting a new business / 4th ed.

Part1 Selecting a Form of Business Ownership1 Sole Proprietorship 7Characteristics of Successful Sole Proprietors 8Advantages of a Sole Proprietorship 8Disadvantages of a Sole Proprietorship 8Decision Making: Deciding on the Sole Proprietor Form of Business 92 Partnership loAdvantages of a Partnership 10Disadvantages of a Partnership 11S-Corporations 11Limited Liability Company (LLC) 11Decision Making: Deciding on the Partnership Form of Business 123 Corporation 12How Stockholders Earn a Return 13Private versus Public Corporations 13Advantages of a Corporation 14Disadvantages of a Corporation 15Comparing Forms of Business Ownership 18How Business Ownership Can Change 18Decision Making: Deciding on the Corporation Form of Business 194 How Ownership Can Affect Return and Risk 20Impact of Ownership on the Return on Investment 20Impact of Ownership on Risk 21Cross Functional Teamwork: Sources of Risk across Business Functions 22Decision Making: Deciding Whether to Add Partners to Reduce Risk 235 Obtaining Ownership of an Existing Business 23Assuming Ownership of a Family Business 23Purchasing an Existing Business 23Franchising 24Self Scoring Exercise: Do You Have the Skills Necessary to Succeed in Business? 25Decision Making: Deciding Whether to Establish Franchises 27Global Business: Ownership of Foreign Businesses 27College Health Club: Business Ownership at CHC 28Summary 29Key Terms 3oReview & Critical Thinking Questions 31Discussion Questions 31It's Your Decision: Ownership at CHC 31Investing in a Business 32Case: Deciding the Type of Business Ownership 32Video Case: Organization of Annie s Homegrown BusinessInternet Applications 33Dell's Secret to Success 33In-Text Study Guide 34Part2 Entrepreneurship and Business Planning6 Creating a New BusinessOnline Resources for Creating a Business 41Pros and Cons of Being an Entrepreneur 41Entrepreneurial Profile 42Decision Making: Deciding Whether to Create a New Business 437 Assessing Market ConditionsDemand 44Competition 45Small Business Survey: Competition 46Global Business: Assessing a Market from a Gtobal Perspective 47Labor Conditions 48Regulatory, Conditions 48Small Business Survey: Impact of Regulations on Small Businesses 49Summary of Market Conditions 49Decision Making: How to Capitalize on Market Conditions 508 Developing a Competitive Advantage 5oKey Advantages 50Small Business Survey: Quality as a Competitive Advantage 52Using the Internet to Create a Competitive Advantage 52Expenses of a Web-Based Business 54Using SWOT Analysis to Develop a Competitive Advantage 54Small Business Survey: Technology as a Competitive Advantage 55Decision Making: Developing a Competitive Advantage 559 Developing the Business Plan 55Assessment of the Business Environment 56Management Plan 57Marketing Plan 59Financial Plan 60Online Resources for Developing a Business Plan 62Summary of a Business Plan 62Cross Functional Teamwork: Industry Effects across Business Functions 65Assessing a Business Plan 65Small Business Survey: What Are the Major Concerns of Small Businesses? 66Decision Making: Deciding on a Business P/an 6610 Risk Management by Entrepreneurs 67Reliance on One Customer 68Reliance on One Supplier 68Reliance on a Key Employee 68Small Business Survey: What Is the Cost of Employee Injuries? 70Exposure to E-risk 70Decision Making: How to Manage Risk 71College Health Club: Developing a Business Plan 71Summary 74Key Terms 75Review & Critical Thinking Questions 75Discussion Questions 76It's Your Decision: Industry Exposure and Business Planning at CHC 77Investing in a Business 77Case: Planning a Business 78Video Case: Caribou Coffee 78Internet Applications 79Dell's Secret to Success 79In-Text Study Guide 80Part 3 Creating and Pricing Products11 Background on Products 86Product Line 86Product Mix 86Small Business Survey: Product Choices as a Competitive Advantage 87Improving the Convenience of the Product 89Product Lift Cycle 90Decision Making: Deciding the Product Line and Mix 9112 Identifying a Target Market 92Factors That Affect the Size of a Target Market 92Small Business Survey: Identifing the Target Market 92GLobaL Business: Targeting Foreign Countries 95The Use of E-Marketing to Expand the Target Market 95Decision Making: Deciding on the Target Market 9613 Creating New Products 96Use of Marketing Research to Create New Products 97Small Business Survey: New Products as a Competitive Advantage 98Small Business Survey: What Are the Keys to Creating Successful Products? 99Use of Research and Development to Create Products 99Steps Necessary to Create a New Product 100Cross FunctionaL Teamwork: Interaction among Product Dedsions and Other Business Decisions 103Decision Making: Creating a New Product 10414 Product DifferentiationUnique Product Design 105UniquePackaging 105Unique Branding 106Summary of Methods Used to Differentiate Products 108Decision Making: Differentiating the Product 108Pricing Strategies 108Pricing According to the Cost of Production 109Pricing According to the Supply of Inventory 109Pricing According to Competitors Prices 109Small Business Survey: Pricing as a Competitive Advantage 111Example of Setting a Product's Price 111Break-Even Point 113Cross Functional Teamwork: ReLationship between Pricing and Production Strategies 114Pricing Technology-Based Products 114Decision Making: Pricing a Product 11515 Additional Pricing Decisions 115Discounting 115Sales Prices 116Credit Terms 116Decision Making: Offering Sales Prices 117College Health Club: CHC's Product Differentiation, Discounting, and Credit DecisionsSummary 118Key Terms 119Review & Critical Thinking Questions 120Discussion Questions 120It's Your Decision: Pricing Decisions at CHC 121Investing in a Business 122Case: Marketing T-Shirts 122Video Case: Marketing at Burton Snowboards 123Internet Applications 123DeU's Secret to Success 123In-Text Study Guide 124Answers to In-Text Study Guide 128Glossary 129