Chap005 - Chapter 05 - Small Business Entry: Paths to...

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Chapter 05 - Small Business Entry: Paths to Part-Time Entrepreneurship CHAPTER 5: SMALL BUSINESS ENTRY: PATHS TO PART- TIME ENTREPRENEURSHIP Chapter Summary This chapter explores part-time entrepreneurship: when to do it, how to do it and how to be successful. Delegation and bootstrapping – while not solely the purview of part-timers – is discussed. Ethical challenges that face part-time entrepreneurs are investigated and advice is given on when and how to move from part-time to full-time entrepreneurship. Learning Objectives After studying this chapter, the student should be able to: 1. Know when and why part-time entrepreneurship makes sense. 2. Learn the four major paths to part-time entrepreneurship. 3. Understand what it takes to be successful in part-time entrepreneurship. 4. Learn how to optimize your delegation within the firm. 5. Learn the benefits of bootstrapping. 6. Learn the ethical challenges of part-time self-employment. 7. Find out about the challenges of moving from part-time to full-time self- employment. Focus on Small Business: Dan Murza A one-time eBay sale of an old football jersey convinced Dan Murza that this was an opportunity to make some extra cash. Using bootstrapping techniques, he acquired and then sold additional football jerseys on eBay and eventually moved his firm from a part- time to a full-time operation. Focus on Small Business: Discussion Questions 1. Would you call Dan’s first foray into small business planned or happenstance? Why? Students can answer this either way. The key is how they defend their opinion. Planned. Dan had already been on eBay, and in fact had been “hooked” according to the case. He saw an opportunity (and that opportunity is the one element of happenstance in the story) when the NY Giants made it to the Super Bowl and Dan knew he had one of their jerseys. He knew the business (eBay) and the market (folks interested in sports memorabilia). He got that through experience on eBay. 5-1
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Chapter 05 - Small Business Entry: Paths to Part-Time Entrepreneurship Happenstance: Dan happened to put together the NY Giants win and his having some of their jerseys, and decided to sell them on eBay because that was the marketplace where he was buying stuff himself. 2. What was the problem Dan faced in getting inventory to sell? How did he handle it? In those early days, Dan lacked the money to keep an inventory of what he might sell on eBay. He handled it by arranging to buy the jerseys at wholesale from a local dealer who knew him, and Dan convinced the dealer to get paid only after Dan himself got paid. 3. How did Dan’s business grow over the years? He expanded from reselling existing jerseys to selling historic jerseys from olden day hockey teams. 4. What are likely to be some of the problems Dan faces as he takes his business full-time?
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Chap005 - Chapter 05 - Small Business Entry: Paths to...

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