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| Preface | |
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| The Power of Entrepreneurship | |
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| Entrepreneurship and Small Business in the U.S. | |
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| Entrepreneurial Revolution | |
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| Web: Three Revolutions Converge | |
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| Development of the Web | |
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| Entrepreneurship Revolution Strikes Gold | |
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| Causes of the Entrepreneurial Revolution | |
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| Changes in the Entrepreneurial Framework Conditions | |
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| Churning and Economic Growth | |
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| Global Entrepreneurship Monitor | |
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| Principal Findings from GEM | |
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| Age | |
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| Gender | |
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| Education | |
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| Financing | |
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| Job Creation | |
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| Twenty-First Century Economies: Anglo-Saxon or Social Models? | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Malincho | |
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| The Entrepreneurial Process | |
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| Critical Factors for Starting a New Enterprise | |
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| Personal Attributes | |
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| Environmental Factors | |
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| Other Sociological Factors | |
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| Evaluating Opportunities for New Businesses | |
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| The Opportunity | |
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| The Customer | |
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| The Timing | |
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| The Entrepreneur and the Management Team | |
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| Resources | |
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| Determining Resource Needs and Acquiring Resources | |
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| Startup Capital | |
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| Profit Potential | |
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| Ingredients for a Successful New Business | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Notes | |
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| Case: Alison Barnard | |
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| Opportunity Recognition, Shaping, and Reshaping | |
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| From Glimmer to Action: How Do I Come Up with a Good Idea? | |
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| Finding Your Passion | |
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| Idea Multiplication | |
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| Is Your Idea an Opportunity? | |
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| The Customer | |
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| The Competition | |
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| Suppliers and Vendors | |
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| The Government | |
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| The Global Environment | |
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| The Opportunity Checklist | |
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| "I Don't Have an Opportunity" | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Jim Poss | |
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| Understanding Your Business Model and Developing Your Strategy | |
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| The Business Model | |
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| The Revenue Model | |
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| The Cost Model | |
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| The First-Mover Myth | |
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| Formulating a Winning Strategy | |
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| The People Are What Matters | |
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| Entry Strategy | |
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| Growth Strategy | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Adam Aircraft | |
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| Enterpreneurial Marketing | |
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| Why Marketing Is Critical for Entrepreneurs | |
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| Entrepreneurs Face Unique Marketing Challenges | |
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| Acquiring Market Information | |
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| Marketing Strategy for Entrepreneurs | |
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| Segmentation, Targeting, and Positioning | |
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| The Marketing Mix | |
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| Guerrilla Marketing | |
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| Marketing Skills for Managing Growth | |
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| Understanding and Listening to the Customer | |
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| Building the Brand | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Customer Interview | |
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| General Outline: It Needs to be Tailored to Meet your Research Needs | |
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| Notes | |
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| Case: ClearVue | |
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| Building the Founding Team | |
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| Power of the Team | |
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| Where Do You Fit? | |
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| How to Build a Powerful Team | |
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| Bootstrapping: Building the Team Based on Stage-of-Venture Life | |
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| Compensation | |
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| Equity | |
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| Salary | |
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| Other Compensation Considerations | |
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| External Team Members | |
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| Outside Investors | |
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| Lawyers | |
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| Accountants | |
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| Board of Advisors | |
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| Board of Directors | |
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| Keeping the Team Together | |
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| Burnout | |
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| Family Pressure | |
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| Interpersonal Conflicts | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Ajay Bam | |
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| The Business Planning Process | |
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| The Planning Process | |
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| The Story Model | |
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| The Business Plan | |
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| The Cover | |
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| Table of Contents | |
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| Executive Summary | |
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| Industry, Customer, and Competitor Analysis | |
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| Company and Product Description | |
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| Marketing Plan | |
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| Operations Plan | |
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| Development Plan | |
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| Team | |
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| Critical Risks | |
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| Offering | |
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| Financial Plan | |
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| Appendices | |
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| Types of Plans | |
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| Style Pointers for the Written Plan and Oral Presentation | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: P'kolino | |
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| Building Your Pro-Forma Financial Statements | |
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| Common Mistakes | |
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| Financial Statement Overview | |
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| Building Your Pro-Forma Financial Statements | |
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| Build-Up Method | |
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| Revenue Projections | |
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| Cost of Goods Sold | |
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| Operating Expenses | |
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| The Preliminary Income Statement | |
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| Comparable Method | |
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| Building Integrated Financial Statements | |
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| Income Statement | |
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| Balance Sheet | |
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| Cash Flow Statement | |
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| Putting It All Together | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: P'kolino Financials | |
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| Financing Entrepreneurial Ventures Worlwide | |
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| Entrepreneurial Financing for the World's Poorest | |
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| Microfinancing | |
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| Microcredit for the Poorest of the Poor | |
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| Entrepreneurs and Informal Investors | |
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| Amount of Capital Needed to Start a Business | |
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| Characteristics of Informal Investors | |
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| Financial Returns on Informal Investment | |
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| Supply and Demand for Startup Financing | |
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| Venture Capital | |
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| Classic Venture Capital | |
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| Importance of Venture Capital in the U.S. Economy | |
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| Mechanism of Venture Capital Investing | |
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| Financial Returns on Venture Capital | |
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| Venture Capital in Europe | |
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| Factors Affecting Availability of Financing | |
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| Total Entrepreneurial Activity and Informal Investing | |
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| Factors Affecting Informal Investing | |
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| Factors Affecting Classic Venture Capital | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: DayOne | |
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| Raising Money for Starting and Growing Businesess | |
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| Jim Poss, Seahorse Power Company | |
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| Bootstrapping New Ventures | |
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| Valuation | |
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| Earnings Capitalization Valuation | |
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| Present Value of Future Cash Flows | |
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| Market-Comparable Valuation (Multiple of Earnings) | |
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| Asset-Based Valuation | |
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| Example of Market-Comparable Valuation | |
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| Asset-Based Valuation Example | |
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| Financing a New Venture | |
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| Informal Investors | |
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| Business Angels | |
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| Searching for Business Angels | |
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| Types of Business Angels | |
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| Putting Together a Round of Angel Investment | |
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| Venture Capital | |
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| Candidates for Venture Capital | |
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| Ideal Candidates for Venture Capital | |
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| Actual Venture-Capital-Backed Companies | |
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| Dealing with Venture Capitalists | |
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| Negotiating the Deal | |
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| Follow-On Rounds of Venture Capital | |
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| Harvesting Investments | |
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| Initial Public Offering | |
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| Pros and Cons of an IPO | |
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| The Process of Going Public | |
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| BFWS Goes Public | |
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| Selling the Company | |
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| A Strategic Acquisition: LowerMyBills.com | |
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| Why Be Acquired? | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Jon Hirschtick's New Venture | |
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| Debt and Other Forms of Financing | |
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| Getting Access to Funds-Start with Internal Sources | |
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| Start with Credit Cards and Home Equity Lines | |
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| Cash Conversion Cycle | |
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| Working Capital: Getting Cash from Receivables and Inventories | |
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| Using Accounts Receivable as Working Capital | |
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| The Sales Pattern | |
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| Cash Versus Credit Sales | |
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| Credit Policies | |
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| Setting Credit Terms | |
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| Collection Policies | |
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| Setting Credit Limits for Individual Accounts | |
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| Inventory | |
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| Sources of Short-Term Cash: More Payables, Less Receivables | |
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| Cash from Short-Term Bank Loans | |
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| Cash from Trade Credit | |
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| Cash Obtained by Negotiating with Suppliers | |
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| Cash Available Because of Seasonal Business Credit Terms | |
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| Advantages of Trade Credit | |
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| Cash Obtained by Tightening Up Accounts Receivable Collections | |
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| Obtaining Bank Loans Through Accounts Receivable Financing | |
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| Pledging | |
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| Pledging with Notification | |
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| Factoring | |
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| Recourse | |
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| Obtaining Loans Against Inventory | |
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| Chattel Mortgage | |
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| Floating Lien | |
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| Field Warehousing | |
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| Public Warehousing | |
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| Obtaining "Financing" from Customer Prepayments | |
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| Choosing the Right Mix of Short-Term Financing | |
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| Traditional Bank Lending: Short-Term Bank Loans | |
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| Maturity of Loans | |
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| Interest Rates | |
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| Collateral | |
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| Applying for a Bank Loan | |
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| Restrictive Covenants | |
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| General Provisions | |
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| Routine Provisions | |
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| Specific Provisions | |
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| Equipment Financing | |
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| Obtaining Early Financing from External Sources | |
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| SBA-Guaranteed Loans | |
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| Applying for an SBA Loan | |
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| Planning Cash Flow and Planning Profits | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: BetterLiving Patio Rooms | |
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| Legal and Tax Issues | |
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| Leaving Your Present Position | |
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| Corporate Opportunity | |
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| Recruitment of Fellow Employees | |
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| Proprietary Information | |
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| Noncompetition | |
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| Choosing an Attorney and an Accountant | |
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| Choice of Legal Form | |
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| Control | |
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| Personal Liability | |
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| Taxation | |
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| Initial Investment of the Founders | |
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| Administrative Obligations | |
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| Choosing a Name | |
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| Stockholder and Operating Agreements | |
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| Negotiating Employment Terms | |
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| Disposition of Equity Interests | |
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| Distributions of Company Profits | |
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| Redemption Provisions | |
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| Legal and Tax Issues in Hiring Employees | |
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| Employees as Agents of the Company | |
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| Employment Discrimination | |
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| Other Employment Statutes | |
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| Employment Agreements | |
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| Equity Sharing | |
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| Insurance | |
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| Property Insurance | |
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| Liability Insurance | |
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| Key Person Life Insurance | |
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| Business Interruption Insurance | |
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| Group Life, Disability, and Health Insurance for Employees | |
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| Raising Money | |
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| Legal Issues in the Sale of Securities to Investors | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Cadence Design Systems and Avant! (A) | |
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| Intellectual Property | |
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| The Basics: What is Protectable and How Should It Be Protected? | |
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| Patents | |
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| Obtaining a Utility Patent | |
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| Criteria for Obtaining a Utility Patent | |
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| Drafting the Patent Claims | |
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| Provisional Patent Applications | |
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| Design Patents | |
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| Managing Patent Costs | |
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| Trade Secrets | |
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| Trademarks | |
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| Registering a Mark | |
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| Ownership of a Mark | |
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| Copyright | |
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| Summing Up | |
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| International Protection for Intellectual Property | |
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| Patent Filing Deadlines | |
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| How to Extend Patent Filing Deadlines | |
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| Licensing and Technology Transfer | |
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| Common Concerns and Clauses | |
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| Defining the Property Being Licensed | |
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| Limitations on Licenses | |
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| Assigning Value to a License | |
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| Royalty Rates | |
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| Negotiating License Agreements | |
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| Foreign Licenses | |
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| Software Protection | |
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| Patents for Software | |
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| Software Copyrights | |
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| Software Trade Secret Protection | |
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| The Internet | |
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| IP Agreements | |
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| Preparing Employment Contracts | |
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| Transfer of Employee Rights to Company Innovations | |
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| How Employee Moonlighting Might Compromise Confidentiality | |
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| Noncompetition Clauses | |
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| Preventing Employee Raiding | |
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| Employee Ownership of Copyright | |
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| Rights of Prior Employees | |
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| Consultant Contracts | |
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| Confidential Disclosure Agreements | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Cadence Design Systems and Avant! (B) | |
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| Entrepreneurial Growth | |
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| Making the Transition from Startup to Growth | |
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| Looking Forward: The Choice to Grow, or Not,...or Sell | |
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| A Model of Driving Forces of Growth | |
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| The Growth Process | |
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| Execution | |
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| Instituting Controls | |
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| Tracking Performance | |
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| Managing the Cash Cycle | |
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| Leveraging the Value Chain | |
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| Maintaining the Entrepreneurial Organization | |
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| Opportunity Domain | |
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| Organizational Resources and Capabilities | |
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| Obtaining Financial Resources for the Growing Company | |
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| Intangible Resources and Capabilities | |
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| Leadership | |
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| Starting the Delegation Process | |
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| First-Level Management | |
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| From Delegation to Decentralization | |
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| Professional Management and Boards | |
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| Coordinating the Driving Forces | |
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| Leading People; Developing Entrepreneurs | |
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| Conclusion | |
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| Your Opportunity Journal | |
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| Web Exercise | |
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| Notes | |
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| Case: Nancy's Coffee | |
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| Glossary | |
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| Company Index | |
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| Name Index | |
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| Subject Index | |