Small Business Leadership
What is Leadership?
Involves pointing the way: creating and communicating the entrepreneurs vision
of the firm.
Varies in a business as it grows larger and more mature.
Leadership Qualities of Founders
A tolerance for ambigui
What Is a Family?
A group of people bound by a shared history and a commitment to share a future
together, while supporting the development and well-being of individual
What Is a Family Business?
An organization in which
MGMT 4311 (Section 90) Entrepreneurship
M/W 3:35-4:50 p.m. T152 Spring Semester 2014 CRN 21681
Leon Prieto, MBA, PhD, SPHR
Class Hours: 10a.m. 10:50a.m.
Class Location: College of Business, T 152
Office Hours: Mondays and Wednesdays @ 9-10am, &
An Overview of the Business Plan
A document that sets out the basic idea underlying a business and related startup
The Purpose of a Business Plan
Identifies the nature and context of the business opportunity
Presents the e
Locating the Brick-and-Mortar Startup
The traditional physical store from which businesses have historically operated.
The Importance of the Location Decision
High cost of constructing a physical location.
Effect of poor locatio
The Contributions of Small Business
Represent 99.7% of all firms with employees.
Employ over 50% of employees in the private sector.
Account for 45% of private payrolls.
Generated 60 to 80% of net new jobs in past decade.
This template is designed to help you to write a business plan. For many,
this is a formidable task.
Place your logo here
YOUR COMPANYS NAME
City, State, Zip
Table of Con
Competing with Operations
The processes used to create and deliver a good or service (value) to customers.
The planning and control of a conversion process that includes turning inputs into
outputs (products and/or serv
The Need for Quality Employees
Employee performance directly or indirectly affects the capability of the firm to
service customer needs.
Employee performance affects profitability.
Payroll costs affect firms bottom line.
Integrity and Entrepreneurship
What Is Integrity?
An uncompromising adherence to doing what is right and proper
Honesty, reliability, and fairness in business practices
An essential element of successful business relationships
Is as much about what t
Debt or Equity Financing?
Return on Assets
Rate of return earned on a firms total assets invested
Computed as operating income total assets
Return on Equity
Rate of return earned on the owners equity investment
Computed as net income
owners equity i
Coming Up with Startup Ideas
Identification of potential new products or services that may lead to promising
Readiness to act on existing, but unnoticed, business opportunities
The Working-Capital Cycle
The management of current assets and current liabilities
Net Working Capital
The sum of a firms current assets (cash, account receivable, and inventories) less
current liabilities (short-term notes,
What is Business Risk?
The possibility of suffering harm or loss.
The possibility of losses associated with the assets and the earnings potential of a
The uncertainty (gain or loss) associated with an investment de
The Communication Process in Promotion
Communication Process Components
Sourcethe message sender
Channelthe path the message travels
Receiverthe recipient of the message
Forms of Promotional Communication
To Grow or Not to Grow
Growth sufficient to maintain the status quo is a goal of some entrepreneurs.
Growing a business too quickly can be stressful for the small firm.
A growth trap may occur when a firms growth soaks up cash faster than it can be
Building a Management Team
Managers and other key persons who give a company its general direction
Characteristics of a Strong Management Team
Capable of securing the resources needed to make business a success
Reassures investors abou
Understanding Financial Statements
Financial Statements (Accounting Statements)
Reports of a firms financial performance and resources
Helps determine a startups financial requirements
Assesses the financial implications
of a business plan
What is Small Business Marketing?
Small Business Marketing
Business activities that direct the creation, development, and delivery of a bundle
of satisfaction from the creator to the targeted user and that satisfy the targeted
Small Business Marke
Setting a Price
A specification of what a seller requires in exchange for transferring ownership or
use of a product or service.
Prices set too low, loss in revenue
Price set too high, loss in revenue
Price and demand are related for many goods
The Importance of the Harvest
Harvesting (or Exiting)
The process used by entrepreneurs and investors to reap the value of a business
when they get out of it.
The process involves:
Capturing value (cash value)
Creating future options
The Purpose and Need for
Pro Forma Financial Statements
Project a firms financial performance and condition
Purposes of pro forma statements:
How profitable can the firm be expected to be, given the projected sales
levels and the
What is Customer Relationship
Customer Relationship Management (CRM)
A company-wide business strategy designed to optimize profitability and
customer satisfaction by focusing on highly defined and precise customer groups.
Focus of CRM:
Small Businesses as Global Enterprises
The expansion of international business:
Converging market preferences
Falling trade barriers
Integration of national economies.
Small companies launched with
Steps to Forming a Business in Georgia (Sole Proprietorship, Partnership, and LLC)
In Georgia, a sole proprietor may use his or her own given name or may use an assumed name or trade name. It is
1. Compared to large corporations, small businesses
play just as important if not a larger part in the economy
2. A firm that provides substantial profits to its owner is called a(n):
attractive small firm
3. Francesca convinced her aunt to invest in her