Pattens of entrepreneurship management/ Kaplan,Jack M.

Preface vii List of Cases and Profiles xv PART ONE: GETTING STARTED AS AN ENTREPRENEUR 1 Chapter 1 The Entrepreneurial Process 3 Introduction 4 Profile: Wayne McVicker A Typical Entrepreneur 4 An Entrepreneurial Perspective 5 Commonly Shared Entrepreneurial Characteristics 5 Types of Entrepreneurs 6 The Need to Control 8 The Spiderweb Model 10 Finding Early Mentors 10 Managing Stress 12 The Five-Stage Entrepreneurial Process 13 The Growth of Entrepreneurial Companies 16 The Growth Period 17 Entrepreneurship Roller Coaster 17 So Why Become an Entrepreneur? 18 Use the Master-Case to Develop Management Skills 18 Summary 19 Study Questions 19 Exercises 19 Interactive Learning on the Web 21 Additional Resources 21 Additional Cases for Reading 22 Endnotes 22 Chapter 2 The Art of Innovation 25 Introduction 25 Profile: Becky Minard and Paal Gisholt Finding a Point of Pain 26 Why Innovation is Important 27 Definition and Types of Innovation 31 Frameworks for Learning Innovation Skills 34 Finding and Assessing Ideas 38 Converting an Idea into an Opportunity 40 Opportunity: Five Phases to Success 40 Summary 49 Study Questions 50 Exercises 50 Interactive Learning on the Web 51 Additional Resources 51 Endnotes 51 Chapter 3 Designing Business Models 55 Introduction 55 Profile: Neal Deangelo Using Data Collection1 56 Definition of Business Models 57 Frameworks for Constructing Business Models 58 Capturing Value in the Supply Chain 60 Using Databases to Create Value 60 Locking- In Customers 62 Example: General Fasteners 62 Licensing and Franchising 63 Outsourcing Resources 68 Models Built around Social Networks 70 Corporate Partnering 71 Summary 72 Study Questions 72 Exercises 73 Interactive Learning on the Web 74 Additional Resources 74 Endnotes 74 Chapter 4 Analyzing the Market, Customers, and Competition 77 Introduction 78 Profile: Donn Rappaport Marketing Visionary1 78 Conducting Marketing Research to Start the Venture 79 Mini-Case: BreatheSimple Smokescreen Market Research2 79 Formulating a Successful Marketing Plan 83 Defining the Market Segmentation 87 Conducting a Competitive Analysis 89 Positioning the Product or Service 90 Preparing the Pricing and Sales Strategy 91 Penetrating the Market and Setting Up Sales Channels 94 Summary 96 Study Questions 97 Exercises 98 Interactive Learning on the Web 99 Case Study: Smart Card LLC Marketing Plan 99 Appendix: Marketing Research Techniques 102 Additional Resources 104 Endnotes 104 Chapter 5 Writing the Winning Business Plan 107 Introduction 107 Profile: Nikolay Shkolnik Business Plan Turns a Dream into Reality1 108 The Value of a Business Plan 109 Setting Goals and Objectives 110 Starting the Process to Write the Plan: Five Steps 111 Determining What Type of Business Plan Is Best 113 A Typical Business Plan Format and Content 114 Understanding Why Business Plans Fail 120 Summary 121 Study Questions 122 Exercises 122 Case Study: Surfparks LLC (Online) 123 Appendix: The Roadmap Guide for Writing A Business Plan 124 Interactive Learning on the Web 128 Additional Resources 128 Endnotes 128 Chapter 6 Setting Up the Company 131 Introduction 131 Profile: Ethan Wendle and Matt Chverchko When to Convert from an S- to a C-Corporation 132 Identifying What Form of Ownership Is Best 133 Forms of Doing Business 133 Sole Proprietorship 133 C-Corporation 136 S-Corporation 142 Partnership 144 Limited Liability Company 146 Business Start-Up Checklist 147 Summary 151 Study Questions 152 Exercises 152 Interactive Learning on the Web 153 Endnotes 154 PART TWO: SPECIAL TOPICS: SOCIAL ENTREPRENEURSHIP TECHNOLOGY ENTREPRENEURSHIP 155 Chapter 7 Special Topic: Social Entrepreneurship 157 Introduction 158 Social Entrepreneurs and Green Initiatives 158 Profile: Khanjan Mehta A Social Entrepreneur 159 To Profit or Not to Profit 159 Social Entrepreneurship and Tax Issues 160 Differences between Business and Social Entrepreneurs 161 Stakeholder Issues and Challenges 161 Growth and Management Challenges 162 Enhanced Revenue Opportunities 162 Social Entrepreneurship Business Models 163 Using the Inverse Commons to Build a Social Enterprise 169 Using Social Media to Grow 173 Appplying Other Chapters in this Book to Social Entrepreneurship 174 Summary 176 Study Questions 176 Exercises 177 Interactive Learning on the Web 177 Additional Resources 177 Endnotes 178 Chapter 8 Technology Entrepreneurship 181 Introduction 181 Profile: Ian Kibblewhite An Integrated IP Strategy 183 Concepts Relevant to Technology-Based Companies 184 Intellectual Property Management 191 Summary 204 Internet IP Source Sites 205 Study Questions 206 Exercises 206 Interactive Learning on the Web 207 Additional Resources 207 Endnotes 208 PART THREE: FUNDING THE VENTURE 209 Chapter 9 Early-Stage Funding 211 Introduction 212 Profile: James Dyson Bootstrapping out of Necessity 213 The Virtual Company Mini-Case, Halare Inc. 216 Securing Early-Stage Funding 217 Self-Funding Example, BenchPrep Inc. 218 Moonlighting and Part-Time Consulting 218 Bootstrapping Methods Example, Injection Research Specialists 220 Family and Friends 221 Angels 222 Micro-Equity and Micro-Loans A Little Money, a Lot of Help 223 Bank Loans, Factoring, and Supplier Lines of Credit 224 Managing Your Personal Credit Rating 226 Government Sources of Funding 226 How to Qualify 227 Summary 228 Study Questions 229 Exercises 229 Interactive Learning on the Web 230 Appendix: Start-Up Entrepreneurs and Business Incubators 230 Web Sites of Leading For-Profit Incubators 233 Additional Resources 233 Using University Outreach Programs 234 Endnotes 236 Chapter 10 Equity Financing 239 Introduction 240 Profile: Jason Cong, AutoESL Inc. Super Angels, VC, and Corporate Investors 241 The State of the Venture Capital Industry 242 Super-Angels 243 Equity Investment Fundamentals 243 Using Private Equity for Fundraising 245 Understanding the Venture Capital Process 253 Guide to Selecting a Venture Capitalist 257 Private Placements and Crowdfunding 258 Home Runs or Singles? 259 Corporate Debt 260 Strategic Partnerships and Corporate Investments 262 How to Value a Business at the Early Stage 264 Summary 266 Study Questions 267 Exercises 267 Case Study: Coretek, Inc. 268 Interactive Learning on the Web 270 Addition al Resources 270 Appendix 1: Due Diligence Checklist (Online) 271 Appendix 2: Model Venture Capital Term Sheet Series A Preferred Stock (Online) 271 Endnotes 271 PART FOUR: BUILDING AND EXITING 273 Chapter 11 Managing Resources Money and People 275 Introduction 276 Profile: Paul Silvis Conserving Cash While Building an Embracing Culture 276 Financial Statements 277 The Value of the Balance Sheet 277 The Value of an Income Statement 279 The Value of a Cash Flow Statement 280 Preparing Financial Projections 281 Preparing an Annual Budget 282 Preparing a Cash Flow Forecast 283 Preparing a Breakeven Analysis 285 Analyzing an Investment Decision 288 Taxes and Filing 289 The Stresses of Managing Money 290 Managing Human Resources Introduction 290 Developing a Strong Corporate Culture 290 Finding and Hiring the Best People 292 Dealing with Firing an Employee 295 Dealing with a Resignation 296 Conflicts of Interest and Business Ethics 297 Legal Issues 299 Setting Up Stock-Option Agreements 300 Summary 301 Study Questions 301 Exercises 302 Interactive Learning on the Web 304 Additional Resources 304 Appendix: Legal Document Templates (Online) 304 Endnotes 304 Chapter 12 Communicating the Opportunity 307 Introduction 307 Profile: Craig Bandes Matching Presentations to Investors 308 Locating Investors 309 Preparing a Teaser 311 The Elevator Pitch 315 Note on Confidentiality 316 After the Presentation 321 Summary 323 Study Questions 324 Exercises 324 Interactive Learning on the Web 324 Endnotes 324 Chapter 13 Exiting the Venture 327 Introduction 328 Profile: Alan Trefler Private to Public Ownership 328 Why Create an Exit Strategy and Plan 329 Selling an Equity Stake to a Strategic Partner 329 Valuing a Later-Stage Company 330 Implementing the Plan of Action 333 Selling the Business 334 Preparing a Selling Memorandum 335 Merge with Another Business 341 Selling the Company to Its Managers, Employees, or Family Members 341 Using an Employee Stock Ownership Plan (ESOP) 341 Using a Management Buy-Out (MBO) 342 Passing on the Company to Family Members 343 Consider a Public Offering 345 Summary 351 Study Questions 352 Exercises 352 Interactive Learning on The Web 353 Additional Resources 353 Endnotes 354 Addendum: Three Case Studies Covering the Whole Book 355 Glossary of Terms 361 Index 367