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| Preface | |
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| About the Authors | |
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| Introduction | |
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| New Ventures: The Quiet Giant | |
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| Introduction | |
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| New Ventures: Energizing Economies | |
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| The Global Impact of New Ventures | |
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| Entrepreneurs and New Ventures | |
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| Entrepreneurial Motivation | |
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| Advantages to Starting a New Venture | |
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| Independence | |
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| Financial Opportunities | |
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| Community Service | |
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| Job Security | |
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| Family Employment | |
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| Challenge | |
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| Disadvantages of Starting a New Venture | |
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| Sales Fluctuations | |
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| Competition | |
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| Increased Responsibilities | |
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| Financial Losses | |
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| Employee Relations | |
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| Laws and Regulations | |
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| Risk of Failure | |
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| New Venture Failure | |
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| Specific Causes of Failure | |
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| Failure: A Look at the Record | |
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| The New Venture Survival Rate | |
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| Avoiding New Venture Management Traps | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| New Venture Opportunities | |
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| New or Acquired Ventures: The Pathways | |
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| Introduction | |
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| Approaches to New Venture Creation | |
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| New-New Approach | |
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| New-Old Approach | |
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| Market Analysis | |
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| Gathering of the Facts | |
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| Organization of the Facts | |
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| Analysis of the Facts | |
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| Implementation of an Action Plan | |
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| The Entrepreneur | |
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| The Financial Picture | |
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| Other Key Factors | |
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| Buying an Ongoing Venture | |
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| Advantages of Buying an Ongoing Venture | |
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| Less Fear about Successful Future Operation | |
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| Time and Effort Can Be Reduced | |
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| Buy at a Good Price | |
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| Key Questions to Ask | |
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| Why Is the Business Being Sold? | |
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| What Is the Current Physical Condition of the Business? | |
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| What Is the Condition of the Inventory? | |
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| What Is the State of the Company's Other Assets? | |
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| How Many of the Employees Will Remain? | |
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| What Type of Competition Does the Business Face? | |
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| What Is the Status of the Firm's Financial Picture? | |
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| Determining the Price | |
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| Assessing the Price | |
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| Book Value | |
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| Replacement Value | |
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| Liquidation Value | |
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| Past Earnings | |
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| Cash Flow | |
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| Asset Pricing | |
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| One Acceptable Formula? | |
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| Negotiating the Deal | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Franchising: The Hybrid | |
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| Introduction | |
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| The Nature of Franchising | |
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| Product or Service Franchise | |
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| Business Franchise | |
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| Conversion Franchising | |
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| How a Franchise Works | |
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| The Growth of Franchising | |
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| Advantages of Franchising | |
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| Training and Guidance | |
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| Brand-Name Appeal | |
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| A Proven Track Record | |
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| Financial Assistance | |
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| Disadvantages of Franchising | |
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| Franchise Fees | |
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| Franchisor Control | |
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| Unfulfilled Promises | |
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| Evaluating the Opportunities | |
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| Learn of Opportunities | |
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| Investigate the Franchisor | |
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| Seek Professional Help | |
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| The Decision: It's Up to the Entrepreneur | |
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| Trends in Franchising | |
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| Franchising Your Business | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| New Venture Planning | |
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| Successful Business Plans: The Roadmap | |
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| Introduction | |
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| The Nature of a Business Plan | |
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| Importance of a Business Plan | |
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| What Is a Business Plan? | |
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| The Components of a Business Plan | |
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| Preparing the Business Plan | |
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| Helpful Hints | |
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| Updating Your Business Plan | |
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| Practical Example | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Legal Forms of Ventures: The Structure | |
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| Introduction | |
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| Forms of Business Organization | |
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| Sole Proprietorship | |
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| Advantages of Proprietorships | |
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| Disadvantages of Proprietorships | |
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| The Partnership | |
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| Types of Partnerships | |
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| Advantages of Partnerships | |
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| Disadvantages of Partnerships | |
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| The Corporation | |
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| Organizing the Corporation | |
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| The Corporate Structure | |
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| Advantages of Corporations | |
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| Disadvantages of Corporations | |
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| The S Corporation | |
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| The Limited Liability Company | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| New Venture Marketing | |
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| Market Research: The Niche | |
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| Introduction | |
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| Determining Market Niches | |
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| Relevant Price Range | |
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| Competition | |
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| Examining the Current Market Niche | |
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| Market Niche Analysis: An Example | |
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| Market Niche Danger Signals | |
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| Marketing Research | |
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| How to Conduct Marketing Research | |
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| Secondary Sources | |
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| Primary Sources | |
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| Other Data Collection Methods | |
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| Using Research Data | |
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| Internet Marketing | |
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| Co-Marketing Deals and Banner Ads | |
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| Become a Popular Link | |
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| Sponsor Contests, Specials, and Other Interactive Features | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Strategic Pricing: The Hook | |
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| Introduction | |
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| Pricing Considerations | |
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| The Nature of the Product | |
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| The Competition | |
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| The Marketing Strategy | |
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| The Customer and Value Perceptions | |
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| General Conditions | |
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| Key Pricing Factors | |
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| The Cost of Goods | |
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| Competitive Prices | |
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| Pricing Strategies | |
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| Combination Strategies | |
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| How New Ventures Set Prices | |
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| Wholesalers | |
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| Retailers | |
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| Service Enterprises | |
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| Manufacturers | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| New Venture Financing | |
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| Start-Up Capital: The Injection | |
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| Introduction | |
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| Basic Types of Capital | |
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| Debt Capital | |
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| Equity Capital | |
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| Sources of Capital | |
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| Personal Savings | |
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| Friends and Relatives | |
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| Venture Capitalists | |
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| Informal Investors | |
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| Internal Funds | |
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| Trade Credit | |
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| Banks | |
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| Other Private Sources of Capital | |
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| Small Business Administration | |
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| State and Local Development Companies | |
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| Small Business Investment Companies | |
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| Small Business Innovation Research Program | |
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| Minority Business Development Agency | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Financial Statements: The Scorecard | |
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| Introduction | |
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| Financial Statements | |
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| The Balance Sheet | |
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| Understanding the Balance Sheet | |
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| Why the Balance Sheet Always Balances | |
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| The Income Statement | |
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| Understanding the Income Statement | |
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| Keeping Proper Records | |
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| Sales and Cash Receipts Journal | |
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| Cash Disbursement, Purchases, and Expense Journal | |
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| Managing the Books | |
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| Computers, Software, and Financial Preparation | |
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| Early Warning Signs of Financial Trouble | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Financial Analysis: The Gauges | |
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| Introduction | |
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| Balance Sheet Analysis | |
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| Current-Position Ratios | |
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| Long-Run-Position Ratios | |
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| Income Statement Analysis | |
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| Income Statement Ratios | |
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| Combination Ratios | |
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| Limitations of Financial Statement Analysis | |
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| Financial Budgeting | |
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| Sales Budget | |
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| Cash Budget | |
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| Other Budgetary Considerations | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| New Venture Growth Management | |
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| Human Resources: The People | |
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| Introduction | |
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| The Challenge of Managing Human Resources | |
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| Increasing Regulatory Concerns | |
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| Staffing | |
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| Assessing Staffing Needs | |
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| Human Resource Recruiting | |
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| Screening Potential Employees | |
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| Selecting and Orienting Employees | |
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| Principles of Effective Staffing | |
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| Performance Management | |
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| Training | |
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| Performance Appraisal | |
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| Management by Objectives | |
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| Compensation | |
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| Employee Discipline and Counseling | |
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| The Employee Handbook: A Key Tool for Employee Accountability | |
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| The Current State of Human Resource Management Practices | |
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| Critical Issues for the Future | |
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| Employee Morale | |
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| Improving Employee Performance | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Growing Ventures: The Future | |
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| Introduction | |
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| Unique Challenges of Growing Ventures | |
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| The Distinction of Smaller Size | |
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| The One-Person-Band Syndrome | |
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| Time Management | |
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| Community Obligations | |
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| Continuing Management Education | |
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| Other Issues in the Formative Years | |
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| Key Elements of Growth | |
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| Control | |
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| Responsibility | |
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| Effective Delegation | |
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| Tolerance of Failure | |
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| Change | |
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| Flexibility | |
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| The Transition from Entrepreneur to Manager | |
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| Balancing the Focus (Entrepreneur and Manager) | |
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| Outside Managerial Assistance | |
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| The Challenge of Ethical Practices in Growing Ventures | |
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| Ethical Codes of Conduct | |
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| Ethical Leadership by Entrepreneurs | |
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| The Quality Movement | |
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| Involve Top Management | |
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| Focus on Customer Needs | |
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| Train Employees | |
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| Empower Employees and Generate New Ideas | |
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| Recognize Employees | |
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| Conquer Fear | |
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| The Continuous-Improvement Challenge | |
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| Teamwork | |
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| The Challenges of Global Expansion | |
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| Why Globalize for Growth? | |
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| Researching the Global Market | |
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| Globalizing Your Product: Adaptation | |
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| Global Threats and Risks | |
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| Summary | |
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| Review and Discussion Questions | |
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| Endnotes | |
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| Green Fuel Alternatives | |
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| Executive Summary | |
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| Potential | |
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| Funding Need | |
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| Management | |
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| Business Description | |
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| General Description of Business | |
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| Industry Background | |
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| Competition Analysis | |
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| Products and Services | |
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| Strategy to Differentiate | |
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| Key Dynamics | |
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| Marketing | |
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| Economics | |
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| Market Analysis | |
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| Barriers to Entry | |
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| Product | |
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| Customers | |
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| Competition | |
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| Niche | |
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| Marketing Strategy | |
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| Management Segment | |
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| Legal Structure | |
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| Ownership | |
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| Management Team | |
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| Company Advisors | |
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| Operations | |
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| Plant Operations | |
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| Facilities and Equipment | |
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| Organizational Plan | |
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| Critical Risks | |
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| Soybean Oil Demand | |
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| Soybean Rust Fungus | |
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| Biodiesel Problems | |
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| Marketer Influence | |
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| Exit Strategies | |
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| Financial Segment | |
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| Start-Up Proposal | |
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| Financing Plan | |
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| Financial Assumptions | |
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| Start-Up Budgeting | |
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| Financial Appendix | |
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| Endnotes | |
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| Name Index | |
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| Subject Index | |