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Small Business & New Venture Management by Mind Map: Small Business & New Venture
Management
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Small Business & New Venture Management

IP

Trademark,Copyright, Trade secrets, Industrial designs

Law & Patents

Establishing

Who owns the technology?

Is it patentable?

Innovation patent?

Standard patent?

Evaluation

Does it work?

Better than rivals?

Applications?

Often valuable asset - important to keep identified and safeguarded

Starting a new business

Advantages

Shape your own vision

Flexibility

Cheap to start

New lifestyle goals

Finance

Market

Legal

Sole proprietorship, Also known as a sole trader. "A person who wholly owns and operates a business."

Partnership, "A relationship that exists between people carrying on a business in common with a view to making a profit."

Company, "A separate legal entity that has an existence independent of its owners and mangers."

Structure

Questions to ask

Evaluation

5 tests!

Traps to avoid

6 Steps when starting

Market Research

Statuory Requirements

Find resources

Evaluate, Buy an exisisting, Begin trading immediately, Easier to arrange finance, Easier to evaluate performance, Questions to ask, Why being sold?, Includes staff?, Debts/liabilities?, Licenses and permits?, Accurate financial accounts?, Price valuation?, Market based, Asset-based, Cash flow, Start-up, Franchise, Relationship between owner and entrepreneur concerning, Trade name, Product manufacturing & dristribution, Pure, Licensing for permission to sell. Remain independent from parent company, Advantages, Lower failure rate, Easier to raise capital

Financial projections

Business plan

Business plan

What?

A communication tool

A sales tool

A road map

A blueprint

An agreement

A proposition

A research paper

5 tests

Comprehension

Appropriateness

Sustainability

Feasibility

Accountability

Why?

Clear statement of direction and purpose

Encourages goal setting

Holistic perspective

Encourages better research

Used to raise finance

Integrates operations, finance and marketing aspects

Why not?

Not a guarantee of success

Cannot eliminate uncerrtainty

Inaccurate or outdated info - Reliance on a predetermined plan can do damage

For who?

VC

Bankers

Investors

Large customers

Laywers

Suppliers

How to write it

Brief, professional, point of view, self-explanatory

Definition

"Small business: a small-scale, independent firm, which is usually managed, funded and operated by its owners, and whose staff size, financial resources and assets are comparatively limited in scale."

Characteristics

1-2 owners

Financed by the owner

Limited market share

Limited life span

Part-time basis

Low net profit

Entrepreneur

"The process, brought by individuals, of identifying new opportunities and converting them into marketable products and services."

Market

Research

Market led, Macro-environment (that is uncontrollable factors), Industry, Market

Research led, Firm resources, Entrepreneur's knowledge, Social networks

"The function that links the consumer, customer and public to the marketer through information"

Constrains, Cost, Experience & Competence, Reliability, Prejudices of researcher, Uniqueness, Time

Determining attractiveness

Risk of new competitors entering

Threat of substitutes

Bargaining power of buyers

Bargaining power of suppliers

Degree of rivalry from competitors

Finance

Profit & Loss statement

For Financial performance, Depreciation

Assets

Balance sheet

Financing

Debt, The bank, Creditors, Public money, > Risk (Debt holders and sell you up), > Reward (If successful debt is almost always cheaper), Trade credit (buy now pay later), Bank overdraft, Term loan, Secured loan, Current and non current, Leasing and hire purchase

Equity, Equity via partner, Profits (Owners equity), < Risk (E holders are the lowest ranked creditors), < Reward (if successful), To get money, the firm has sold it's upside, Business angels, Venture capital, IPO - Initial Public Offering

Own money (E & D)

Family & Friends (E & D)

Bootstrap finance

GANTT p. 226 in textbook

Ratio analysis

Efficiency

Profitability

Start-up costs

Licenses & Permits

Working capital

Equipment

Success & Failure

Statistics

7.5% of all business exit each year

1/3 after 15 years

1/2 after 10 years

2/3 after 5 years

Factors

Finance

Marketing

Production

Personnel

Personal skills & attributes

External Competition

Changing External environment

Strategic planning

"The business's direction and scope"

Reflects owner-manager priorities

Benefits

Statement of goals & objectives

Efficient use of time

Consider alternatives

Management and staff development

Financial management

Key points to know about SME:s and strategy

Strategy or improvisation

Lack of planned strategy

Strategy constricted by financial constraints

More unplanned / guessed work

Formal planning is rare

Owner manager sees no advantage

Lack of strategic planning but not strategic thinking

Trial & Error learning

Operational Management

"The control of the process by which a firm makes a product"

Three basic steps

Inputs (Stuff and labour)

Transformation (Combining inputs)

Outputs (The end result)

Business premises

Home Based

Serviced Office

Business Incubator

Rented Premises

Purchased Site

Location

Geographic

Public transport

Environmental aspects

Competitors

Context

Workflow

Straight line, L, U, S shape

Floor plan

Grid Layout

Open-plan

Botique

Manufacturing

Labyrinth

Inventory and Supply

Economic Order Quantity (EOQ)

Environment

Just-in-time

Operation Equipment

Phased Purchase Stategy

Hire & Lease

Buy new or second-hand

Evaluating, Improving & Securing

Set standards

Measure

Compare measured with standards

Make corrections

GANTT, PERT, CPM

Assessing & Controlling

Scheduling mechanisms

Inspection regimes

Productivity indicators

Timing of evaluation

Procedural systems

Quality assurance (QA), ISO12001 (environment stuff), ISO9001 (quality and procedure stuff), Six Sigma (for production > highest standards)

Risk management

Contingency plan

Risk number

Security

Insurance

Business advisors

Accountants

Lawyers

Management consultants

Bank managers

Financial planners

Publicly funded small business agencies

How to pick one

Qualifications

Conflicts of interest

Price

Service provided

Experience and industry knowledge

Friendliness /personal rapport

Networking