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| Preface | |
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| About the Authors | |
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| Foundations of Entrepreneurship | |
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| Entrepreneurship Today | |
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| Learning Objectives | |
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| Entrepreneurship in the United States | |
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| Industry Structure | |
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| Consequences for the Individual | |
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| The Global Scene | |
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| Entrepreneurship in a Changing Environment | |
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| Changes in Markets | |
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| New Markets | |
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| The Competitive Advantages of Small Business | |
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| Small Business and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| The Entrepreneur | |
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| Learning Objectives | |
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| What Is Entrepreneurship? | |
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| The Entrepreneurial Process | |
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| Factors of Entrepreneurship | |
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| The Individual | |
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| Cultural Factors | |
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| Circumstances in Society | |
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| A Combination of Factors | |
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| Advantages and Disadvantages of Entrepreneurship | |
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| Advantages | |
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| Disadvantages | |
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| The Entrepreneur and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Starting a New Business | |
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| Learning Objectives | |
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| Innovation and Entrepreneurship | |
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| Sources of Ideas | |
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| The Inside-Out Approach | |
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| The Outside-In Approach | |
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| Serendipity | |
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| The Rationale: Why the New Business Is Needed | |
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| The Obstacles: Barriers to Entering an Industry | |
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| The Method: How the New Business Will Be Established | |
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| The People: Who Will Be Involved? | |
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| The New Business and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Buying an Existing Business | |
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| Learning Objectives | |
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| Advantages of Buying a Business | |
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| Less Risk | |
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| Less Time and Effort Required | |
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| The Possibility of Buying at a Bargain Price | |
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| Disadvantages of Buying a Business | |
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| The Environment | |
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| Internal Problems | |
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| Departure of the Current Owner | |
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| Finding the Business | |
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| Businesses on the Market | |
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| Businesses Not on the Market | |
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| Determining the Price of a Business | |
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| The Negotiating Process | |
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| Price Versus Value | |
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| Sources of Power in Negotiations | |
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| Buying a Business and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Franchising and Other Alternatives | |
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| Learning Objectives | |
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| The Popularity of Franchising | |
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| Advantages for the Franchisee | |
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| Start-up Assistance | |
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| Basis for Judging Prospect of Success | |
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| Instant Recognition | |
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| Purchasing Power | |
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| Advertising Scope and Sophistication | |
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| Operational Improvements | |
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| Disadvantages for the Franchisee | |
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| Restrictions | |
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| Costs | |
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| Termination | |
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| Unrealistic Expectations | |
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| Evaluating the Franchise Option | |
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| You As a Franchisee | |
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| The Industry | |
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| The Franchisor | |
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| Franchising and the Law | |
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| Other Entrepreneurial Options | |
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| Business Opportunities | |
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| Manufacturer's Representative | |
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| Franchises and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Women-Owned and Minority-Owned Businesses | |
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| Learning Objectives | |
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| Female Entrepreneurs | |
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| Motivation for Becoming an Entrepreneur | |
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| Company Size | |
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| Breaking the Tradition | |
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| Women Entrepreneurs in Other Countries | |
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| Minority Entrepreneurs | |
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| African American Entrepreneurs | |
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| Asians and Pacific Islanders | |
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| Hispanic | |
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| American Indians and Alaska Natives | |
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| Obstacles and Opportunities | |
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| Women and Minority Entrepreneurs and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Home-Based Businesses | |
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| Learning Objectives | |
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| The Rebirth of Cottage Industries | |
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| Reasons for Growth | |
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| Increasing Use of the Internet | |
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| Recessions and Corporate Downsizing | |
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| Greater Concern for Family Issues | |
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| Improving Image of Home-Based Businesses | |
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| Advantages and Disadvantages of Home-Based Businesses | |
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| Advantages | |
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| Lower Wardrobe Costs | |
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| Flexible Hours | |
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| Disadvantages | |
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| Home-Based Franchises | |
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| Is Your Home-Based Business Legal? | |
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| Utilities, Insurance, and Taxes | |
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| The Growth Decision | |
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| The Home-Based Business in the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Family Businesses | |
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| Learning Objectives | |
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| What Is a Family Business? | |
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| Advantages and Disadvantages | |
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| Entrepreneurial Couples | |
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| Bringing in the Children | |
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| The Succession Plan | |
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| Should the Company Be Sold to an Outsider or Employees? | |
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| How and When Should the Company Be Transferred? | |
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| Active Versus Inactive Family Members | |
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| Low Entry Versus Delayed Entry | |
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| Hiring and Compensation Policy | |
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| Should There Be a Family Council and Advisory Board? | |
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| Choosing a Successor from Active Family Members | |
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| The Family Business and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| New Product Development | |
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| Learning Objectives | |
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| A High-Risk Venture | |
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| Strengths and Weaknesses of Small Companies | |
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| Developing a New Idea | |
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| Key Factors for Success | |
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| Choosing a Distribution Channel | |
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| Factors Influencing the Distribution Decision | |
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| Obstacles to Securing Distribution Channels | |
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| Licensing | |
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| Legal Protection of New Products and Services | |
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| Patents | |
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| Copyrights | |
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| Trademarks | |
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| Trade Secrets | |
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| New Product Development and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Business Growth and the Entrepreneur | |
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| Learning Objectives | |
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| Business Growth and Management Skills | |
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| Personnel Management | |
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| Financial Management | |
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| Marketing | |
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| Matching the Company and the Entrepreneur | |
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| The American Dream/The American Nightmare | |
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| The Challenge of a New Business | |
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| The Loss of the Family Atmosphere | |
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| The Changing Role of the Entrepreneur | |
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| Options for Growth | |
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| Keep the Company Small | |
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| Rediscover the Entrepreneurial Spirit | |
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| Cash In | |
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| Growth and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| Global Business | |
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| Learning Objectives | |
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| Exporting | |
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| The Current Situation | |
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| The Decision to Start Exporting | |
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| Developing an Export Plan | |
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| Getting Established in an International Market | |
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| Getting Paid | |
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| Government Assistance | |
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| Importing | |
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| Finding Products to Import | |
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| Getting the Goods into the Country | |
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| Selling the Goods | |
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| Global Business and the Business Plan | |
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| Summary | |
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| Discussion Questions | |
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| The Business Plan | |
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| The Business Plan | |
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| Introduction | |
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| Learning Objectives | |
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| What Is a Business Plan? | |
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| How Do Plans for Existing Businesses and Start-ups Differ? | |
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| What Is Included in the Business Plan? | |
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| Executive Summary | |
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| Executive Summary, Mission Statement, and the Business Environment | |
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| Mission Statement | |
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| The Business Environment | |
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| Marketing | |
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| Learning Objectives | |
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| What Is Included in the Marketing Section? | |
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| What Is Your Product or Service? | |
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| Who Are Your Competitors? | |
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| Pricing | |
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| What Is Your Pricing Objective? | |
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| What Are Your Pricing Policies? | |
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| How Will You Determine Your Prices? | |
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| Industry Markups | |
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| Shipping Costs | |
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| Credit Terms to Customers | |
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| The Industry and Your Competitors | |
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| The Customers | |
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| The Company's Cash Flow | |
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| Competitive Advantage | |
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| Market Segmentation | |
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| How Will You Segment Your Target Market? | |
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| Common Marketing Mistakes | |
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| Location | |
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| What Is Your Ideal Location? | |
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| Will Your Business Be Home-Based? | |
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| Is Your Business Retail or Service? | |
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| Is Your Business a Manufacturing Firm? | |
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| Is Your Business a Wholesaling Operation? | |
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| Incubators | |
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| Common Location Mistakes | |
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| Promotion and Sales | |
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| What Types of Promotion Will You Use? | |
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| What Are Your Promotional Goals? | |
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| What Is Your Promotional Budget? | |
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| Sales and Direct Marketing | |
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| Sales Promotion | |
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| Advertising | |
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| What Type of Advertising Will You Use? | |
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| Media | |
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| When Will You Advertise? | |
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| Marketing Online | |
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| Public Relations and Publicity | |
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| Will You Sell Your Products Overseas? | |
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| Management and Personnel | |
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| Learning Objectives | |
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| What Are Your Qualifications to Operate This Business? | |
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| Have You Completed Job Descriptions? | |
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| Have You Established the Employees' Wage Rates? | |
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| What Benefits Will You Provide to Your Employees? | |
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| Have You Completed a Typical Work Schedule? | |
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| Have You Completed an Organizational Chart? | |
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| What Other Laws Will Affect Your Personnel Decisions? | |
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| Occupational Safety and Health Act | |
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| Title VII of the Civil Rights Act and the Age Discrimination in Employment Act | |
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| Americans with Disabilities Act | |
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| Immigration Laws | |
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| Family and Medical Leave Act | |
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| National Labor Relations Act and Taft-Hartley Act | |
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| Workers' Compensation | |
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| State Laws | |
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| Do You Have Employees or Subcontractors? | |
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| Start-Up Costs and Financing | |
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| Learning Objectives | |
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| How Will the Business Be Financed? | |
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| Debt Financing | |
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| Equity Financing | |
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| The Cost of Financing | |
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| Projected Financial Statements | |
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| Learning Objectives | |
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| Accounting Methods | |
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| Cash Basis | |
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| Accrual Basis | |
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| Completed-Contract Method | |
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| Balance Sheet | |
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| Assets | |
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| Liabilities | |
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| Equity | |
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| Opening-Day Balance Sheet | |
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| Projected Income Statement | |
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| Cash Flow | |
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| Case Study: The Travel School | |
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| Break-Even Point | |
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| What Is Your Break-Even Point? | |
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| Have You Identified Fixed and Variable Expenses? | |
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| What Is Your Contribution Margin? | |
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| Calculating the Break-Even Point | |
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| How Many Customers Are Needed to Break Even? | |
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| The Legal Section | |
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| Learning Objectives | |
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| What Form of Organization Will You Choose? | |
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| Sole Proprietorship | |
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| Partnership | |
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| Corporation | |
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| Limited Liability Company | |
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| Joint Venture | |
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| What Taxes Will Be Due? | |
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| Federal Taxes | |
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| State Taxes | |
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| Organizational Form and Income Tax | |
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| Sole Proprietorships | |
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| Partnerships | |
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| Corporations | |
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| What Other Legal Issues Need to Be Addressed? | |
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| Insurance | |
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| Learning Objectives | |
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| What Insurance Will You Need? | |
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| Workers' Compensation Insurance | |
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| Property Insurance | |
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| Liability Insurance | |
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| Earnings Insurance | |
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| Health, Disability, and Life Insurance | |
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| Suppliers | |
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| Learning Objectives | |
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| Who Will Be Your Suppliers? | |
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| Risks, Assumptions, and Conclusion's | |
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| Learning Objectives | |
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| What Are Your Uncontrollable Risks? | |
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| What Are Your Assumptions and Conclusions? | |
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| Case Studies in Entrepreneurship | |
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| Case Studies | |
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| Online Auto Sales | |
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| Chasing Dreams That Can Become Reality | |
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| The Body Shop | |
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| Boston Chicken/Boston Market | |
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| A Family Affair | |
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| Ed's Auto Parts | |
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| Entrepreneurs in the Beverage Industry | |
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| Entrepreneurs in Space | |
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| Opportunities and Threats | |
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| Business Plan for One Hand Clapping Records | |
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| Business Plan for Fashion Footwear | |
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| Business Plan for The Noiz Vodka Bar | |
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| Summary of Business Plan Checklists | |
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| Using the Checklists | |
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| The Executive Summary | |
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| The Mission Statement | |
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| Analyze the Business Environment | |
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| Describe Your Product or Service | |
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| Analyze the Competition | |
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| Describe Your Pricing Strategies | |
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| Describe Your Credit Policy | |
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| Describe Your Competitive Advantage | |
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| Describe the Market Segmentation Method You Will Use | |
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| Describe Your Location | |
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| If Your Business Is Retail or Service | |
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| If Your Business Is a Manufacturing Plant | |
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| If Your Business Is a Wholesale Firm | |
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| Describe Your Promotional Plan | |
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| Identify Your Management and Personnel | |
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| Complete the Financial Section | |
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| Start-up Costs and Financing | |
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| Discuss Legal Considerations | |
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| Identify Insurance Requirements | |
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| Identify Suppliers | |
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| List Your Uncontrollable Risks | |
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| State Your Conclusion | |