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byrd Chap001 fix - 33:382:303 Getting aquainted Me: Deborah...

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Unformatted text preview: 33:382:303 Getting aquainted Me: Deborah Dougherty real professor, PhD MIT teach: PhD, MBA, BS teach: Courses: innovation mgt, strategy, principles, Courses: Org theory, change mgt, methods Org Tons of research, pubs in innovation mgt YOU?? * * * * * * * * * 1-1 Rapid Small Business Growth 23 Million Employment o 75% Of New Jobs o 50% Of Private 50% Employment Employment o 99% Of Employers 97% Of Exporters * * * * * * * * * 1-2 Entrepreneurial Student Organizations Student Association of College Association Entrepreneurs Entrepreneurs University Entrepreneurial University Association Association Students in Free Students Enterprise http://www.sife.org http://www.sife.org * * * * * * * * * 1-3 Self-Employment Trend Increased Investor Increased Interest Interest Executives Taking Executives Early Retirement 55% Want To Be Own 55% Boss Technological Technological Advances Advances Photodisc Collection/Getty Images * * * * * * * * * 1-4 Small Business? Independent Independent Management Management Capital/Ownership = Capital/Ownership Few Individuals Few Operations Are Local Business = Small But Business Competitors = Large Competitors Hisham F. Ibrahim/Getty Images * * * * * * * * * 1-5 SBA Definition “…a small business is small one that is independently owned and operated and is not dominant in its field of operation.” operation.” * * * * * * * * * 1-6 Classification By Size <20 Employees Very Small 20 - 99 Small 100 – 499 Medium 500 Or More Large * * * * * * * * * 1-7 Objectives Venture 1. Profit 2. Growth 3. Quick Quick Sellout Sellout Small/Micro 1. No New Or No Innovative Activities Activities 2. Provide Provide Owner Living Living * * * * * * * * * 1-8 Most Common Home-Based Businesses Sales & Distribution 10% Arts/ Design Creative 13% Personal Svcs. 14% Source: Independent Insurance Agents of America Financial & Real Estate 5% Bldg. Trades 31% Bus. Services 27% * * * * * * * * * 1-9 Unique to Small Business Encourage Innovation & Encourage Flexibility Flexibility Close Relationship With Close Customers/Community Customers/Community Force Large Firms To Be Force Competitive Competitive Provide Employees Provide Learning Experience Learning Develop Risk Takers New Employment Greater Employee Job Greater Satisfaction Satisfaction Royalty-Free/CORBIS * * * * * * * * * 1 - 10 Problems For Small Business Recession/Current Economy Retirement/Transition Capital/Financing Unexpected Growth Succession Inadequate Financing Inadequate Management Government Government Regulations/Paperwork Regulations/Paperwork Royalty-Free/CORBIS * * * * * * * * * 1 - 11 Challenges To Small Business Exploding Technology Occupational/Industry Occupational/Industry Shifts o Reinvention o Reengineered Chad Baker/Ryan McVay/Getty Images o Downsizing/Rightsizing Global * * * * * * * * * 1 - 12 Why Start A Small Business? 8% 10% Independence Control 10% Satisfaction 72% Other * * * * * * * * * 1 - 13 Job Satisfaction 70% 60% Great Britain 50% 40% U.S. 30% 20% 10% 0% Self-Employed Working For Others * * * * * * * * * 1 - 14 Objectives Of Small Business Owners Achieve Independence Additional Income Help Families Ryan McVay/Getty Images Products Not Available * * * * * * * * * 1 - 15 Checklist For Aspiring Entrepreneurs Passion Not Passion Money Money Something Something You Know You Patience Mentor Funding Cash Manager Build Sales Don’t Rush Wary Of Bad Wary Advice/Suppliers Advice/Suppliers * * * * * * * * * 1 - 16 Characteristics Of Successful Owners + Able To React + Desire Able Desire Independence Independence Quickly Quickly + Strong Sense Of + Dedicated To Strong Dedicated Initiative Initiative Business Business + Personal/Family Personal/Family + Enter Business Enter Motivation Motivation By Chance + Quick/Concrete Quick/Concrete And/Or Design And/Or Results Results * * * * * * * * * 1 - 17 Successful Small Business Management Adequate Market Sufficient Capital Recruit Effectively Timely Information Cope With Government Cope Regulations Regulations Expertise Flexible Ryan McVay/Getty Images * * * * * * * * * 1 - 18 Why Study Small Business Why Management? Management? Small businesses create over 50% of the new jobs in the Small US economy – you could wind up working in one US Disillusioned with working for large companies Disillusioned Want to be my own boss Want to start a business doing something interesting and Want want to learn how to do it successfully want 50% of small businesses fail in the first 5 years – want to 50% learn how to avoid this outcome learn Already working in a family business, may need to run it Already someday someday Have a great business idea I would like to develop Need 3 credits in a business elective The course I really wanted to take was closed * * * * * * * * * 1 - 19 Course Objectives This course offers an overview of running a small business including a discussion This overview of: of: Leadership, Leadership, Strategy, Strategy, You will not just learn about these Marketing, Marketing, topics — You will apply these concepts Finance, Finance, by developing plans for your own Small Operations, Operations, Business (real or imaginary) Human Resources, Human Supplier Management, Supplier Facilities, Facilities, Banking, Banking, Legal and Regulatory Considerations. Legal All covered in the context of a small business setting All We ADD: Hi-Tech; and theoretical framing * * * * * * * * * 1 - 20 Growing Venture Activities Risks, uncertainties Defining Your flabby Venture legitimacy Networking, networks Learning, building knowledge New form: Too new to accept? Needed to confer legit, access resources mentors Market Plan Wrong or flabby target market HR and Operations Plan Hire cousin Bernie… Bernie Financial Plan cashflow Why give you Who do you money know How to assure, work well * * * * * * * * * 1 - 21 Grades: Class Participation – Individual 15 points Class Participation – Team 10 Quizzes – (not announced) 10 Business Plans – Individual 40 Business Plan – Team 15 Evaluations of Team Presentations 10 Total 100 points * * * * * * * * * 1 - 22 Ideas For Small Business Career Career Counseling Counseling Catering Computer & Computer Office Machine Repair Repair Day Care Education Financial Financial Planning Planning Home Health Marketing Senior Fitness & Senior Recreation Recreation Specialized Specialized Delivery Delivery * * * * * * * * * 1 - 23 Business Concepts (Examples) – Business Former Students Former Video Gaming Tournaments (college campus sites) Custom hand-made Dolls Ethnic Marketing Agency Year Round Golf Spa Not-for-profit education program for Middle East children Small Business Marketing Agency i-phone app. - maps of shopping malls Chicken farm in Pakistan Laundry/dry cleaning business [Your business concept goes here!] Business plans http://go.galegroup.com/ps/start.do?prodId=GVRL&userGroupName=new674 http://businessplanarchive.org/ http://businessplanarchive.org/ * * * * * * * * * 1 - 24 Next time Syllabus emailed, plus on blackboard Next time: Sept 6 (Tuesday) Get HBS case ahead of time, read it Get carefully, think about the questions: carefully, * * * * * http://cb.hbsp.harvard.edu/cb/access/10190 * * * * 1 - 25 ...
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