TY - BOOK AU - Bygrave,William D. AU - Andrew Zacharakis TI - Entrepreneurship: William Bygrave, Babson College, Andrew Zacharakis SN - 91000000047308 AV - HD62.5 B94 2014 PY - 2014/// CY - United States of America PB - John Wiley & Sons, Inc. KW - New business enterprises KW - Local KW - Small business KW - Management KW - Entrepreneurship N1 - Includes index; Contents : Preface vii -- 1 The Power of Enterpreneurship -- Entrepreneurship and Small Business in the United States 2 -- Entrepreneurial Revolution 4 -- Web: Three Revolutions Converge 8 -- Entrepreneurship Revolution Strikes Gold 9 -- Creative Destruction 11 -- Causes of the Entrepreneurial Revolution 12 -- Changes in the Entrepreneurial Framework Conditions 14 -- Churning and Economic Growth 17 -- Global Entrepreneurship Monitor 19 -- Principal Findings from GEM 19 -- Activity 20 -- Necessity- and Opportunity-Driven Entrepreneurs 20 -- Age Distribution 23 -- Gender Differences 23 -- Growth Expectations and Job Creation 24 -- 21st-Century Economies: Anglo-Saxon or Social Models? 26 -- Conclusion 28 -- Your Opportunity Journal 29 -- Web Exercise 29 -- Notes 29 -- CASE: ALISON BARNARD 35 -- 2 The Entrepreneurial Process 47 -- Critical Factors for Starting a New Enterprise 48 -- Personal Attributes 50 -- Environmental Factors 50 -- Other Sociological Factors 52 -- Evaluating Opportunities for New Businesses 54 -- The Opportunity 55 -- The Customer 56 -- The Timing 56 -- The Entrepreneur and the Management Team 58 -- Resources 58 -- Determining Resource Needs and Acquiring Resources 59 -- Startup Capital 61 -- Profit Potential 63 -- Ingredients for a Successful New Business 65 -- Conclusion 67 -- Your Opportunity Journal 67 -- Notes 67 -- CASE: VERA BRADLEY 69 -- 3 Opportunity Recognition, Shaping, and Reshaping 79 -- From Glimmer to Action: How Do I Come Up with a Good Idea? 80 -- Finding Your Passion 80 Idea Multiplication 82 -- Is Your Idea an Opportunity? 86 -- The Customer 86 -- The Competition 97 -- Suppliers and Vendors 100 -- The Government 101 -- The Global Environment 101 -- The Opportunity Checklist 101 -- "I Don't Have an Opportunity" 101 -- Conclusion 103 -- Your Opportunity Journal 104 -- Web Exercise 104 -- Notes 104 -- CASE: JIM POSS 107 -- 4 Understanding Your Business Model and Developing Your Strategy -- The Business Model 121 -- The Revenue Model 122 -- The Cost Model 125 -- The First Mover Myth 127 -- Formulating a Winning Strategy 129 -- The People Are What Matters 130 -- Entry Strategy 132 -- Growth Strategy 135 -- Conclusion 143 -- Your Opportunity Journal 143 -- Web Exercise 143 -- Notes 144 -- CASE: ZUMBA FITNESS 146 -- 5 Entrepreneurial Marketing -- Why Marketing Is Critical for Entrepreneurs 158 -- Entrepreneurs Face Unique Marketing Challenges 158 -- Acquiring Market Information 159 -- Marketing Strategy for Entrepreneurs 161 -- Segmentation, Targeting, and Positioning 161 -- The Marketing Mix 162 -- Guerrilla Marketing 175 -- Marketing Skills for Managing Growth 176 -- Understanding and Listening to the Customer 176 -- Building the Brand 177 -- Conclusion 178 -- Your Opportunity Journal 178 -- Web Exercise 179 -- Appendix : Customer Interview 179 -- General Outline : It Needs to Be Tailored to Meet Your Research Needs 179 -- Notes 180 -- Case : EU Yan Sang International, LTD. 182 -- 6 Building the Founding Team -- Power of the Team 198 -- Where Do You Fit? 199 -- How to Build a Powerful Team 203 -- Bootstrapping: Building the Team Based on Stage of Venture Life 205 -- Compensation 206 -- Equity 206 -- Salary 211 -- Other Compensation Considerations 211 -- External Team Members 212 -- Outside Investors 212 -- Lawyers 212 -- Accountants 213 -- Board of Advisors 214 -- Board of Directors 214 -- Keeping the Team Together 215 -- Burnout 216 -- Family Pressure 217 -- Interpersonal Conflicts 217 -- Conclusion 217 -- Your Opportunity Journal 218 -- Web Exercise 218 -- Notes 218 -- CASE: ZEO, INC. 221 -- 7 The Business Planning Process -- The Planning Process 237 -- The Story Model 239 -- The Business Plan 240 -- The Cover 240 -- Executive Summary 241 -- Table of Contents 241 -- Industry, Customer, and Competitor Analysis 242 -- Company and Product Description 246 -- Marketing Plan 247 -- Operations Plan 251 -- Development Plan 252 -- Team 253 -- Critical Risks 255 -- Offering 257 -- Financial Plan 257 -- Appendices 257 -- Types of Plans 257 -- Style Pointers for the Written Plan and Oral -- Presentation 258 -- Conclusion 259 -- Your Opportunity Journal 260 -- Web Exercise 260 -- Notes 260 -- Case : P'Kolino 261 -- 8 Bulding Your Pro-Forma Financial Statements -- Common Mistakes 306 -- Financial Statement Overview 307 -- Building Your Pro-Forma Financial Statements 308 -- Build-Up Method 308 -- Revenue Projections 309 -- Cost of Goods Sold 311 -- Operating Expenses 312 -- Preliminary Income Statement 314 -- Comparable Method 315 -- Building Integrated Financial Statements 317 -- Income Statement 318 -- Balance Sheet 320 -- Cash Flow Statement 321 -- Putting It All Together 321 -- Conclusion 323 -- Your Opportunity Journal 323 -- Web Exercise 324 -- Notes 324 -- CASE: P'KOLINO FINANCIALS 325 -- 9 Financing Entrepreneurial Ventures Worldwide -- Entrepreneurial Financing for the World's Poorest 338 -- Microfinancing 338 -- Microcredit for the Poorest of the Poor 339 -- Entrepreneurs and Informal Investors 339 -- Amount of Capital Needed to Start a Business 341 -- Characteristics of Informal Investors 344 -- Financial Returns on Informal Investment 344 -- Supply and Demand for Startup Financing 345 -- Venture Capital 346 -- Classic Venture Capital 347 -- Importance of Venture Capital in the U.S. Economy 349 -- Mechanism of Venture Capital Investing 351 -- Financial Returns on Venture Capital 353 -- Venture Capital in Europe 355 -- Factors Affecting Availability of Financing 356 -- Total Entrepreneurial Activity and Informal Investing 356 -- Factors Affecting Informal Investing Capital 356 -- Conclusion 357 -- Your Opportunity Journal 357 -- Web Exercise 358 -- Notes 358 -- CASE: DAYONE 360 -- 10 Raising Money for Starting and Growing Businesses 379 -- Jim Poss, BigBelly Solar 379 -- Bootstrapping New Ventures 380 -- Valuation 381 -- Earnings Capitalization Valuation 381 -- Present Value of Future Cash Flows 382 -- Market-Comparable Valuation (Multiple of Earings) 382 -- Asset-Based Valuation 383 -- Example of Market-Comparable Valuation 383 -- Asset-Based Valuation Example 385 -- Financing a New Venture 386 -- Informal Investors 387 -- Business Angels 389 -- Searching for Business Angels 391 -- Types of Business Angels 391 -- Putting Together a Round of Angel Investment 392 -- Venture Capital 394 -- Candidates for Venture Capital 394 -- Ideal Candidates for Venture Capital 395 -- Actual Venture-Capital Backed Companies 395 -- Dealing with Venture Capitalists 397 -- Negotiating the Deal 398 -- Follow On Rounds of Venture Capital 399 -- Harvesting Investments 400 -- Initial Public Offering 400 -- Pros and Cons of an IPO 401 -- The Process of Going Public 403 -- BFWS Goes Public 405 -- Selling the Company 405 -- A Strategic Acquisition: LowerMyBills.com 405 -- Why Be Acquired? 407 -- Conclusion 408 -- Your Opportunity Journal 409 -- Web Exercise 409 -- Notes 410 -- CASE: METACARTA: GROWING A COMPANY, DO WE TAKE THE VC MONEY? 413 -- 11 Debt and Other Forms of Financing -- Getting Access to Funds-Start with Internal Sources 423 -- Start with Credit Cards and Home Equity -- Cash Conversion Cycle 425 -- Working Capital: Getting Cash from Receivables and Inventories 426 -- Using Accounts Receivable as Working Capital 427 -- The Sales Pattern 428 -- Cash versus Credit Sales 428 -- Credit Policies 428 -- Setting Credit Terms 429 -- Collection Policies 430 -- Setting Credit Limits for Individual Accounts 431 -- Inventory 432 -- Sources of Short Term Cash: More Payables, Less Receivables 433 -- Cash from Short Term Bank Loans 433 -- Cash from Trade Credit 434 -- Cash Obtained by Negotiating with Suppliers 434 -- Cash Available Because of Seasonal Business Credit Terms 434 -- Advantages of Trade Credit 435 -- Cash Obtained by Tightening Up Accounts Receivable Collections 435 -- Obtaining Bank Loans Through Accounts Receivable Financing 436 -- Pledging 436 -- Pledging with Notification 436 -- Factoring 436 -- Recourse 437 -- Obtaining Loans against Inventory 437 -- Obtaining "Financing" from Customer Prepayments 438 -- Choosing the Right Mix of Short Term Financing 438 -- Traditional Bank Lending: Short Term Bank Loans 438 -- Maturity of Loans 439 -- Interest Rates 439 -- Collateral 440 -- Applying for a Bank Loan 441 -- Restrictive Covenants 441 -- General Provisions 442 -- Routine Provisions 442 -- Specific Provisions 443 -- Equipment Financing 443 -- Obtaining Early Financing from External Sources 443 -- SBA Guaranteed Loans 444 -- Applying for an SBA Loan 444 -- Planning Cash Flow and Planning Profits 445 -- Conclusion 446 -- Your Opportunity Journal 447 -- Web Exercise 447 -- Notes 447 -- CASE: FEED RESOURCE RECOVERY 449 -- 12 Legal and Tax Issues, Including Intellectual Property -- Why, When, and How to Choose an Attorney 463 -- Leaving Your Present Position 464 -- Corporate Opportunity 464 -- Recruitment of Fellow Employees 464 -- Noncompetition 465 -- Intellectual Property 466 -- The Basics: What Is Protectable and How Should It Be Protected? 467 -- Patents 467 -- Trade Secrets 472 -- Trademarks 474 -- Copyright 476 -- International Protection for Intellectual Property 477 -- Choice of Legal Form 479 -- Control 480 -- Personal Liability 481 -- Taxation 482 -- Initial Investment of the Founders 483 -- Administrative Obligations 484 -- Choosing a Name 484 -- Stockholders' and Operating Agreements 485 -- Negotiating Employment Terms 485 -- Disposition of Equity Interests 485 -- Legal and Tax Issues in Hiring Employees 488 -- Employees as Agents of the Company 488 -- Employment Discrimination 489 -- Employment Agreements 489 -- Raising Money 489 -- Conclusion 491 -- Your Opportunity Journal 491 -- Web Exercise 492 -- Notes 492 -- Case: Tessera 493 -- 13 Entrepreneurial Growth -- Making the Transition from Startup to Growth 502 -- Looking Forward : The Choice to Grow, or Not, or Sell 502 -- A Model of Driving Forces of Growth 504 -- The Growth Process 505 -- Execution 505 -- Instituting Controls 507 -- Tracking Performance 508 -- Managing the Cash Cycle 510 -- Leveraging the Value Chain 512 -- Maintaining the Entrepreneurial Organization 513 -- Opportunity Domain 513 -- Organizational Resources and Capabilities 516 -- Obtaining Financial Resources for the Growing Company 517 -- Intangible Resources and Capibilities 517 -- Leadership 519 -- Starting the Delegation to Decentralization 521 -- Professional Management and Boards 521 -- Coordinating the Driving Forces 522 -- Leading People; Developing Entrepreneurs 522 -- Conclusion 523 -- Your Opportunity Journal 524 -- WEb Exercise 524 -- Notes 525 -- Case: Lazybones 526 -- 14 Social Entrepreneurship -- Introduction 535 -- The Rise in Social Entrepreneurship 536 -- Social Entrepreneurship Defined 538 -- A Social Entrepreneurship Typology 538 -- 1. Traditional Venture 540 -- 2. Social Consequence 540 -- 3. Social Purpose Venture 540 -- 4. Enterprising Nonprofit 541 -- Hybrid Ventures 542 -- Choosing Your Ventures Type 545 -- Measuring Impact 547 -- Conclusion 548 -- Your Opportunity Journal 549 -- Web Exercise 549 -- Notes 550 -- Case : Year Up: Workforce Training For Urban Youth 552 -- Glossary 569 -- Index 579 -- ER -