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Table of ContentsUNIT 1 Big Idea: Developing an Entrepreneurial Mindset Chapter 1Importance of Entrepreneurship 2 Entrepreneurial Investigation: Weathering the Storm 4 1.1Entrepre-What? 4 How Employees and Entrepreneurs Differ 5 Big Business versus Small Business 6 Entrepreneurial Case Study: Opportunity Recognition: Vincent Quigg–TechWorld 7 1.2To Be or Not To Be an Entrepreneur: The Risks and Rewards 8 Rewards of Being an Entrepreneur 8 Risk of Being an Entrepreneur 9 Career Competencies: Analyze Employer Expectations in the Business Environment 10 1.3Entrepreneurship Through the Years 11 The 1800s 11 Early 1900s 12 Mid-to-Late 1900s 13 Today’s Entrepreneurs 13 Chapter 1 Assessment 15 Chapter 2Characteristics of an Entrepreneur 16 Entrepreneurial Investigation 18 2.1Who Are Entrepreneurs? 18 Background of Entrepreneurs 18 Entrepreneurial Case Study: Initiative & Self-Reliance: Mike McGee & Neal Sales-Griffin–The Starter League 20 2.2Assessing Characteristics and Skills 21 Characteristics of Successful Entrepreneurs 21 Attitude 22 Personal Characteristics 22 Skills 24 Business Knowledge 24 Financial Skills 24 Career Exploration 24 Community Awareness 25 Education 25 Relationships 26 Career Competencies: Determine Skills Needed to Enhance Career Progression; Prepare a Resume 26 2.3NFTE Entrepreneurial Mindset 27 NFTE Entrepreneurial Mindset in Action 27 Chapter 2 Assessment 30 Chapter 3Being an Intrapreneur 32 Entrepreneurial Investigation: An Idea That Sticks 34 3.1Why Study Entrepreneurship? 34 Thinking Like an Entrepreneur, Being an Intrapreneur 34 Entrepreneurial Case Study: Future Orientation: Sofia Contreras–Las 5 Americas Restaurant Corp. 36 3.2Career Clusters 38 Analyzing the Career Clusters 38 Exploring the Career Clusters 38 Career Competencies: Utilize Resources That Can Contribute to Professional Development 55 3.3Using an Entrepreneurial Mindset in Career Exploration 56 Chapter 3 Assessment 59 Chapter 4Social Entrepreneurship 60 Entrepreneurial Investigation 62 4.1Doing Well by Doing Good 62 Corporate Social Responsibility 62 Mission and Vision Statement 63 Responsibility to Individuals 64 Employees 64 Customers 65 Suppliers 66 Investors and Creditors 67 Entrepreneurial Case Study: Critical Thinking & Problem Solving: Michael K. Pearson–Union Packaging 68 4.2Taking Responsibility for the Environment 69 Environmentally Friendly Enterprises 70 Energy-Efficient Workplaces 72 Career Competencies: Utilize Job-Search Strategies 74 4.3Supporting the Community 75 Serving the Community 75 Community Outreach 76 Philanthropy 77 Chapter 4 Assessment 79 Chapter 5Managing Risk 82 Entrepreneurial Investigation: Risky Business 84 5.1Managing Entrepreneurial Risks 84 Business Ethics 85 Why Practice Business Ethics? 86 Establishing an Ethical Workplace 87 Creating Transparency 87 Writing a Code of Ethics 88 Entrepreneurial Case Study: Comfort with Risk: Cheri Garcia–Luminous Envy 91 5.2Navigating Ethical Scenarios 92 Intellectual Property 92 Conflict of Interest 94 Confidentiality 95 Career Competencies Write a Letter of Application/Cover Letter 96 5.3Here’s the Plan: Managing Predictable Risks 97 Purpose of a Business Plan 97 Types of Business Plans 98 Entrepreneurial Discovery 99 Chapter 5 Assessment 103 Unit 1 Review & Assessment 104 Information Technology 112 Case Study: Developing an Entrepreneurial Mindset 114 UNIT 2Big Idea: Opportunity Recognition & Market Analysis Chapter 6Idea Generation 118 Entrepreneurial Investigation: Apple’s Innovation 120 6.1Creativity and the Entrepreneurial Process 120 Thinking Creatively 120 Barriers to Creative Thinking 121 Entrepreneurial Case Study: Creativity & Innovation: Melverton Hunter, Jayson Isaac, Karishma Maraj, Jin Ruan, and Alan Tenemaza–SproutEd 123 6.2Creative Thinking Exercises 125 Creative Thinking Techniques 125 Career Competencies: Demonstrate Writing/Publishing Applications 127 6.3Creative Thinking for Idea Generation 128 Brainstorm Potential Ideas 128 Challenge the Usual 129 Draw Idea Maps 129 Chapter 6 Assessment 131 Chapter 7Turning Ideas into Opportunities 132 Entrepreneurial Investigation: Solve a Problem, Make a Million 134 7.1Recognizing Business Opportunities 134 Ideas vs. Opportunities 134 Entrepreneurial Case Study: Opportunity Recognition: Melissa Ruiz-Vera–Vera Natural 136 7.2Sources of Opportunity 137 Internal Sources of Opportunity 137 External Sources of Opportunity 138 Where to Look for Opportunities 139 Career Competencies: Demonstrate Basic Search Skills on the Web 140 7.3Turning Ideas into Opportunities 142 Starting a New Business 142 Buying an Independent Business 142 Buying a Franchise 143 Becoming an Inventor 145 Chapter 7 Assessment 148 Chapter 8Evaluating Opportunities 150 Entrepreneurial Investigation: One Man’s “C” is Another Man’s “Billion Dollar Idea” 152 8.1Critical Thinking and the Entrepreneurial Process 152 Using Critical Thinking 152 Entrepreneurial Case Study: Critical Thinking & Problem Solving: Gregg Kaplan–redbox 154 8.2Tools for Evaluating Opportunities 155 Evaluating an Opportunity 155 Cost/Benefit Analysis 156 Opportunity Cost Analysis 157 SWOT Analysis 157 Career Competencies: Demonstrate Presentation Applications 160 8.3Ongoing Opportunity Evaluation 161 Chapter 8 Assessment 163 Chapter 9Market Research Methods 164 Entrepreneurial Investigation: Paying People to Watch TV? 166 9.1Why Is Market Research Important? 166 Understanding Your Market 166 Avoiding Costly Mistakes 168 Obtaining Finances 168 Entrepreneurial Case Study: Future Orientation: Tina VonderHaar–Brighton Agency 169 9.2Sources of Research Data 171 Market Research Methods 171 Secondary Data Sources 171 Primary Research Techniques 174 Career Competencies: Demonstrate Database Applications 175 9.3Determining Market Research Questions 176 Primary or Secondary Research 176 Creating Survey Questions 177 Chapter 9 Assessment 179 Chapter 10Using Data to Make Business Decisions 180 Entrepreneurial Investigation: Coca-Cola’s Evil Twin: New Coke 182 10.1Evaluating Research Data 182 Business Model Validation 182 Entrepreneurial Case Study Flexibility & Adaptability: Seth Goldman–Honest Tea 184 10.2Market Research Cycle 185 Steps in Researching a Market 185 Career Competencies: Evaluate Credibility of Internet Resources 188 10.3Acting on a Business Plan 189 Putting Your Plan Together 189 Acting Before/While Your Plan 190 Chapter 10 Assessment 192 Unit 2 Review & Assessment 194 Information Technology 202 Case Study: Opportunity Recognition & Market Analysis 204 UNIT 3Big Idea: Competition Chapter 11Entrepreneurship and the Economy 208 Entrepreneurial Investigation: Different Strokes for Different Folks! 210 11.1Economics and Economic Systems 210 What Is an Economic System? 210 Fundamental Questions of Economics 211 Entrepreneurial Case Study: Communication & Collaboration: Koran Bolden–Street Dreamz 212 11.2Types of Economic Systems 213 What Are the Types of Economic Systems? 213 The Command Economy 213 The Market Economy 214 Career Competencies: Use Communications: Technologies and Systems 215 11.3The Role of Entrepreneurs in the Economy 216 Role of Entrepreneurs in Industry 216 Role of Entrepreneurs in the Local Economy 217 Chapter 11 Assessment 219 Chapter 12Supply and Demand 220 Entrepreneurial Investigation: Gamer Demand 222 12.1Opposing Forces of Supply and Demand 222 The Law of Supply and Demand 222 Entrepreneurial Case Study: Opportunity Recognition: Andrea Dashiell–Honeecakes Bakery 223 12.2Finding Equilibrium 225 Meeting in the Middle 225 Career Competencies: Demonstrate Spreadsheet Applications 226 12.3Visualizing Supply and Demand 227 Supply and Demand Curves 227 Chapter 12 Assessment 230 Chapter 13Direct and Indirect Competition 232 Entrepreneurial Investigation: Beyond the Box Lunch 234 13.1Identifying Your Competition 234 Types of Competition 234 Other Forms of Competition 235 Expand Your SWOT Analysis 236 Entrepreneurial Case Study: Flexibility & Adaptability: Maxine Clark–Build-A-Bear Workshop 237 13.2Market Share 238 Calculating Market Share 238 Career Competencies: Communicate by Computer; Develop Cultural Sensitivity 240 13.3Competition and the Global Economy 241 The Global Economy 241 Entrepreneurs and International Trade 242 Chapter 13 Assessment 245 Chapter 14EOU and Competitive Pricing 246 Entrepreneurial Investigation: Tale of Two Book Sellers 248 14.1Competition Between Suppliers and Consumers 248 Competition in a Market Economy 248 Competition Between Suppliers 249 Competition Between Consumers 250 Entrepreneurial Case Study: Comfort with Risk: Ambar Romero–Styles by Ambar 250 14.2Competition-Based Pricing and Profit Motive 252 Profit Motive 252 Benefits of Profit 253 Career Competencies Explain the Nature of E-commerce; Develop Basic Website 254 14.3Competition and the Economics of One Unit 255 Economics of One Unit 255 Chapter 14 Assessment 258 Chapter 15Establishing a Competitive Advantage 260 Entrepreneurial Investigation: The Roast Off 262 15.1Gather Competitive Intelligence 262 Gathering Competitive Intelligence 262 Entrepreneurial Case Study: Initiative & Self-Reliance: Jesus Fernandez-Ortiz & Toheeb Okenla–T&J Soccer 264 15.2Identify Your Differentiators 265 What Is a Differentiator for a Business? 265 Career Competencies: Write Persuasive Messages 267 15.3Determining Your Competitive Advantage 268 Analyze the Competition 268 Using a Competitive Matrix 268 Anticipate Future Competition 269 Chapter 15 Assessment 270 Unit 3 Review & Assessment 272 Information Technology 279 Case Study: Competition 281 UNIT 4Big Idea: Delivering Value to Customers Chapter 16Identifying a Target Market 286 Entrepreneurial Investigation: Profiled by Facebook 288 16.1Mass Market vs. Target Market 288 Target Market Customer Categories 289 Entrepreneurial Case Study: Critical Thinking & Problem Solving: Deena Kishawi–modestie 290 16.2Market Segments: Breaking Up the Customers 292 Career Competencies: Make Oral Presentations 294 16.3Not All Segments Are for Every Business 295 Niche Market Segment 295 Segmented Market Segment 296 Diversified Market Segment 296 Multi-sided Market Segment 296 Chapter 16 Assessment 298 Chapter 17Understanding the Needs of a Customer Segment 300 Entrepreneurial Investigation: Cleaning Up the Competition 302 17.1What Matters–Benefits vs. Features 302 Entrepreneurial Case Study: Flexibility & Adaptability: Luke Cooper–CEO & Founder, PeachMe 304 17.2Creating Value 305 Career Competencies: Apply Effective Listening Skills 307 17.3Value Is in the Eye of the Beholder 308 Chapter 17 Assessment 310 Chapter 18Delivering Value to a Customer Segment 312 Entrepreneurial Investigation: A Simple Goal 314 18.1Setting Market Goals 314 What Is a Marketing Plan? 314 Acting on Your Goals 316 Entrepreneurial Case Study: Future Orientation: Daymond John–CEO & Founder of FUBU, and Star of ABC’s Emmy Award-Winning Series Shark Tank 316 18.2In the Mix: Where Will You Sell? 318 Where and When Will You Sell? 319 How Will You Transport and Store Products? 320 Career Competencies: Address People Properly 321 18.3Name Your Price 322 Allowing for Price Adjustments 324 Chapter 18 Assessment 326 Chapter 19Communicating Value to Customers 328 Entrepreneurial Investigation: High Flying Customer Service 330 19.1It’s Personal: Selling Your Business to Your Customers 330 Characteristics of Successful Salespeople 331 Entrepreneurial Case Study: Communication & Collaboration: Sylvester Chisom–Showroom Shine 333 19.2Effective Sales Techniques 334 Finding and Qualifying Sales Leads 335 Making a Sales Call 336 Closing a Sale and Following Up 337 Career Competencies: Demonstrate Negotiation Skills 338 19.3Pitching Your Business 339 Chapter 19 Assessment 341 Chapter 20Attracting and Retaining Customers 342 Entrepreneurial Investigation: A Shoe-in for Success! 344 20.1Promotions: Building Awareness, Making Sales, Keeping Customers 344 Entrepreneurial Case Study: Creativity & Innovation: Mark Cuban–Dallas Mavericks 347 20.2It’s All in the Mix 348 Forms of Advertising 349 Visual Merchandising 351 Public Relations and Publicity 351 Personal Selling and Sales Promotion 352 Social Media 353 Career Competencies: Handle with Care: Dealing with a Difficult Customer 354 20.3What’s the Plan? 355 Creating Campaign Strategies 355 Measuring Promotion Effectiveness 356 Budgeting for Promotion 356 Consider Low-Cost Promotion Strategies 357 Chapter 20 Assessment 360 Unit 4 Review & Assessment 362 Information Technology 369 Case Study: Delivering Value to a Customer 371 UNIT 5Big Idea: Business Model Chapter 21Channels of Distribution 376 Entrepreneurial Investigation: Not a Mom-and-Pop Store 378 21.1What Type of Business Do I Have? 378 Business Model Goals 378 Types of Businesses 379 Trends in Business Startups 382 Entrepreneurial Case Study Opportunity Recognition: Neil Blumenthal & Dave Gilboa–Warby Parker 382 21.2Understanding Distribution and Supply Chain Management 384 Distribution Chains 384 What Channels Will You Use? 384 Determining Markup 385 Career Competencies: Foster Positive Working Relationships 386 21.3Shipping and Handling 387 Distribution Management 387 Transportation 387 Shipping and Receiving 388 Storage and Warehousing 388 Materials Handling 389 Delivery Terms 389 Chapter 21 Assessment 391 Chapter 22Identifying Internal Resources 392 Entrepreneurial Investigation: Finger-Licking Secret 394 22.1Identifying Internal Resources 394 What Are Internal Resources? 394 The Benefits of Intellectual Property Law 395 Entrepreneurial Case Study: Creativity & Innovation: Sean Combs–Combs Enterprises 396 22.2Protecting Intellectual Resources 398 Protecting Your Works 398 Copyright 398 Patents 400 Trademarks and Service Marks 402 Trade Secrets 403 Career Competencies Use Time-Management Principles 404 22.3Human Resources 405 Is It Time to Hire? 405 Advantages of Hiring Employees 406 Disadvantages of Hiring Employees 407 Looking at Yourself 408 Chapter 22 Assessment 410 Chapter 23Determining Operating Activities 412 Entrepreneurial Investigation: Popularity Contest 414 23.1Operating Activities 414 What Are Operating Activities? 414 General Business Policies 415 Hours of Operation 415 Extending Credit to Customers 416 Returns and Rework Requests 416 Delivery Policy 417 Entrepreneurial Case Study: Communication & Collaboration: Teressa Moore Griffin–Spirit of Purpose 418 23.2The Importance of Customer Service 420 Customer Service Policies 420 Career Competencies: Explain the Nature of Business Records 422 23.3Inventory Management 423 Why Manage Inventory? 423 Calculating Inventory Investment 425 Controlling Inventory Level 425 Inventory Systems 426 Warehousing 427 Chapter 23 Assessment 429 Chapter 24Establishing External Partnerships 430 Entrepreneurial Investigation: Missed the Bull’s-Eye 432 24.1Determining External Partnerships 432 Types of Partnerships 432 Vendor Relationships 433 Entrepreneurial Case Study: Comfort with Risk: Alice Niles–A.P. Orleans Risk Management 436 24.2Outsourcing Risk Reduction 437 Reducing Business Risk 437 Securing Physical Property 438 Safeguarding Information 439 Promoting Health and Safety 439 Career Competencies: Obtain Insurance Coverage 441 24.3Why Do I Need Insurance? 443 Understanding Insurance 443 Insurance As Risk Management 443 Insurance 443 Types of Business Insurance 444 Chapter 24 Assessment 449 Chapter 25Legal Structures 450 Entrepreneurial Investigation: On the Hook 452 25.1Sole Proprietorships and Partnerships 452 Liability of Business Owners 452 Sole Proprietorship 453 How to Set Up a Sole Proprietorship 453 Partnership 454 Writing a Partnership Agreement 455 Entrepreneurial Case Study: Initiative & Self-Reliance: Jacob Makoulian & Kaleb Smith–Makoulian Smith 456 25.2Corporations and Other Business Structures 457 Corporation 457 Cooperative 459 Career Competencies: Negotiate Contracts with Vendors; Business Contracts 460 25.3Choosing the Best Structure 462 Chapter 25 Assessment 465 Unit 5 Review & Assessment 466 Information Technology 476 Case Study: Business Model 478 UNIT 6Big Idea: Financial & Expense Management Chapter 26The Cost of Doing Business 482 Entrepreneurial Investigation: Not Always a Piece of Cake 484 26.1What Is a Variable Expense? 484 Business Model Goals 484 Variable Expenses 485 Variable or Not Variable? 486 Entrepreneurial Case Study: Critical Thinking & Problem Solving: Ben Kaufman–Quirky 487 26.2The Economics of One Unit of Sale 489 What Is a Unit of Sale? 489 The Economics of One Unit of Sale 490 Economy of Scale 490 Career Competencies: Open an Account with a Financial Institution 491 26.3Calculating Your EOU 493 EOU for a Manufacturing Business 493 EOU for a Wholesale Business 494 EOU for a Retail Business 495 EOU for a Business Selling More Than One Product 495 EOU for a Service Business 497 EOU for Tech-Based Businesses 499 Chapter 26 Assessment 501 Chapter 27Expense Management 502 Entrepreneurial Investigation: Frugal Operations 504 27.1Fixed Expenses 504 What Are Fixed Expenses? 505 Depreciation 506 Entrepreneurial Case Study: Creativity & Innovation: Dagim Girma–The Audible 507 27.2Breaking Even 509 What Is a Break-Even Point? 509 Break-Even Analysis 509 The Burn Rate 511 Career Competencies: Develop Spending Plan; Develop Personal Budget 511 27.3Managing Cash Flow 513 Why Worry About Cash Flow? 513 Reading a Cash Flow Statement 514 Ways to Keep Cash Flowing 516 Chapter 27 Assessment 517 Chapter 28Revenue Streams and Sales Projections 518 Entrepreneurial Investigation: There’s No Business Like Show Business 520 28.1Identifying Sources of Revenue 520 Revenue Streams 520 Non-Traditional Revenue Streams 522 Entrepreneurial Case Study: Future Orientation: Dan Trepanier–The Style Blogger 522 28.2Sales Forecasting 524 Preparing a Sales Forecast 524 Sales Forecasting Techniques 525 Career Competencies: Develop Savings Plan 527 28.3Income Statements 529 When to Prepare an Income Statement 529 Differences in Income Statements 530 Parts of a Typical Income Statement 530 Income Statement for a Manufacturer 532 Income Statement for a Service Business 533 Chapter 28 Assessment 536 Chapter 29Financing the Business 538 Entrepreneurial Investigation: Lending a Helping Dollar 540 29.1How Much Money Will I Need? 540 Start-Up Investment 541 Return on Investment (ROI) 543 Entrepreneurial Case Study: Comfort with Risk: Joe Mansueto–Morningstar 544 29.2Sources of Debt Financing 546 Personal Savings 546 Banks 547 Credit Unions 549 Microloans 549 Relatives and Friends 549 Using Credit Cards 550 Payback 550 Career Competencies: Build Positive Credit History; Improve/Repair Creditworthiness 551 29.3Sources of Equity Financing 553 Relatives and Friends 553 Angels and Venture Capital Companies 554 Partners 555 Customer Financing 555 Barter Financing 556 Chapter 29 Assessment 557 Chapter 30Financial Analysis 558 Entrepreneurial Investigation: Rise and Fall of the Record Megastore 560 30.1What Are Financial Ratios? 560 Analysis Based on an Income Statement 560 Income Statement Ratios 562 Entrepreneurial Case Study Comfort with Risk: Eddie C. Brown–Brown Capital Management 564 30.2Balance Sheet 566 What Is a Balance Sheet? 566 Fiscal Year 567 Assets Are Owned 567 Liabilities Are Owed 567 Preparing Balance Sheets 568 Analyzing Balance Sheets 569 Comparative Balance Sheet 570 Same-Size Balance Sheet Analysis 572 Career Competencies: Supervise/Implement Regular Accounting Procedures and Financial Reports 574 30.3Ratios from Balance Sheets 576 Debt Ratio and Debt-to-Equity Ratio 576 Quick Ratio and Current Ratio 577 Chapter 30 Assessment 579 Unit 6 Review & Assessment 580 Information Technology 590 Case Study: Financial and Expense Management 592 UNIT 7Big Idea: Operating the Business Chapter 31Managing the Business 596 Entrepreneurial Investigation: A Happy Company Is a Profitable Company 598 31.1What Is Management? 599 Planning 599 Organizing 600 Directing 601 Controlling 602 Entrepreneurial Case Study: Communication & Collaboration: Kirsten Kelly & Anne de Mare–Spargel Productions 603 31.2Organizational Structures 605 Traditional Structures 605 Trends in Structures 607 Career Competencies Write Informational Messages 608 31.3Maintaining a Healthy Business Environment 610 Chapter 31 Assessment 612 Chapter 32Government Regulations 614 Entrepreneurial Investigation: Government to the Rescue 616 32.1The Role of Regulation for Employees 616 Employee Protection 617 Entrepreneurial Case Study: Flexibility & Adaptability: Mercy Hernandez–EDGE Charitable Foundation 620 32.2Customer and Environmental Protection 622 Labeling 622 Product Safety 622 Fair Competition 623 Licenses and Permits 625 Zoning Laws 625 Environmental Protection 626 Career Competencies: Write Business Letters 626 32.3Help for Small Business 627 Chapter 32 Assessment 629 Chapter 33Recordkeeping 630 Entrepreneurial Investigation: Transparent Clothing 632 33.1Financial Records 633 Savings Accounts 633 Checking Accounts 633 Bank Reconciliation 635 Business Documents 636 Entrepreneurial Case Study: Comfort with Risk: Sam Zell–Equity Group Investments 637 33.2Accounting Principles 639 Chart of Accounts 640 Single-Column, Database Approach 641 Double-Column Approach 641 Duality 643 Basic Process 643 Career Competencies: Demonstrate File-Management Skills 644 33.3Computerized Accounting vs. Human Accountants 645 Using Accountants and Bookkeepers 646 Chapter 33 Assessment 648 Chapter 34Accounting Systems 650 Entrepreneurial Investigation: The Danger of Cooking the Books 652 34.1Using an Accounting Worksheet 652 The Accounting Worksheet 652 Parts of the Accounting Worksheet 653 Entering Transactions 655 Entrepreneurial Case Study: Critical Thinking & Problem Solving: Lang Dobson–Newsies Clothing Co. 656 34.2Using the Accounting Worksheet 658 Career Competencies: Respect the Privacy of Others;Explain Ethical Considerations in Providing Information 661 34.3Creating Financial Statements 662 Balance Sheet 662 Income Statement 665 Statement of Cash Flows 666 Tracking Inventory 668 Using a Computerized Spreadsheet 668 Chapter 34 Assessment 670 Chapter 35Taxes and Your Business 672 Entrepreneurial Investigation: Paying Uncle Sam 674 35.1Why Do Businesses Pay Taxes? 674 Public Services 675 Social Programs 676 Defense 677 Business 677 Entrepreneurial Case Study: Initiative & Self-Reliance: Onyekachi C. Ekeagwu–Solar Powered RC Toys 679 35.2What Taxes Do Businesses Pay? 680 Payroll Taxes 681 Federal Unemployment Tax 681 Consumption Taxes 682 Business Income Tax 683 Property Tax 684 Career Competencies: Read and Interpret a Pay Stub 685 35.3Tax-Saving Strategies 686 Taking Deductions 687 Using Tax Credits 688 Chapter 35 Assessment 690 Unit 7 Review & Assessment 692 Information Technology 700 Case Study: Operating the Business 702 UNIT 8Big Idea: Growing the Business Chapter 36Planning for Business Growth 706 Entrepreneurial Investigation: Growing Pains 708 36.1What Is Business Growth? 708 Deciding When to Grow 709 Product Life Cycles 710 Entrepreneurial Case Study: Creativity & Innovation: Abi Mandelbaum–YouVisit 712 36.2Growth Strategies 714 Intensive Growth Strategies 714 Integrative Growth Strategies 716 Diversification Growth Strategies 716 Career Competencies: Describe Costs Associated with Credit 717 36.3Challenges of Growth 719 Practical Challenges of Growing a Business 720 Can a Business Grow? 720 Chapter 36 Assessment 722 Chapter 37Growing Operations 724 Entrepreneurial Investigation: Whole Lot of Ice Cream 726 37.1Managing and Scaling Operations 727 Site Selection and Layout Planning 727 Entrepreneurial Case Study: Initiative & Self-Reliance: Marcelo Claure–Brightstar 729 37.2Production Management 730 Scheduling 731 Productivity 732 Quality 733 Career Competencies: Handle Telephone Calls in a Businesslike Manner 734 37.3Managing Purchasing 736 Selecting the Right Quality 736 Selecting the Right Quantity 736 Timing Purchases 737 Getting the Right Payment Terms 737 Receiving and Following Up on Purchases 738 The Process of Purchasing 738 Chapter 37 Assessment 741 Chapter 38Recruiting and Training Staff 742 Entrepreneurial Investigation: Good Help Is So Hard to Find 744 38.1Managing and Scaling Operations 745 Staffing 745 Writing a Job Description 745 Determining Compensation 746 Locating Job Candidates 747 Screening Candidates 748 Hiring Outside Professionals 750 Entrepreneurial Case Study: Communication & Collaboration: The Tattoo Team–Henoo 750 38.2Employee Training and Development 752 In-House Programs 753 Training and Development Providers 754 Career Competencies: Interview for a Job 756 38.3Motivating and Evaluating Employees 757 Performance-Based Rewards 758 Flexible Work Arrangements 758 Delegating Responsibility 759 A Positive Environment 760 Evaluating Employees 761 Chapter 38 Assessment 765 Chapter 39Franchising and Licensing 766 Entrepreneurial Investigation: Subway Hits 40,000 768 39.1Franchising a Business 768 Franchising Documents 769 Entrepreneurial Case Study Opportunity Recognition: Kevin Plank–Under Armour 771 39.2Advantages and Disadvantages for Franchisors 773 Advantages for Franchisors 773 Disadvantages for Franchisors 773 Career Competencies: Make Decisions 774 39.3Licensing a Brand 776 Licensing Agreements 777 Advantages and Disadvantages of Licensing 778 Market Saturation 779 Chapter 39 Assessment 781 Chapter 40Exit Strategies 782 Entrepreneurial Investigation: PayPal’s Payout 784 40.1When to Leave a Business 784 How to Value a Business 785 Entrepreneurial Case Study: Future Orientation: Andres Cardona–Elite Basketball Academy 787 40.2Strategies for Leaving the Business 788 Harvesting Value from a Business 789 Career Competencies: Set Personal Goals 790 40.3Building Wealth 792 Importance of Saving 792 Time Value of Money 792 Future Value of Money 793 Risk Factors: Time and Liquidity 793 Tolerating Risk 795 Investing 795 Volatile Investments 796 Diversification 796 What Would You Do with Wealth? 796 Chapter 40 Assessment 799 Unit 8 Review & Assessment 800 Information Technology 809 Case Study: Growing the Business 811 Appendix A Eva’s Edibles–Sample Business Canvas 815 Appendix B Eva’s Edibles–Sample Plan 817 Appendix C Glossary 837 Index 879 Photo Credits 919
