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1、Chapter7:SMALLBUSINESSANDENTREPRENEURSHIPEconomicRocketFuelLAUNCHINGNEWVENTURES:WHAT’SINITFORME?GreaterFinancialSuccessIndependenceFlexibilityChallengeSurvivalOnanygivendayintheUnitedStates,morepeoplearetryingtostartanewbusinessthanaregettingmarriedorhavingchildren.ENT
2、REPRENEURSEntrepreneurs–Peoplewhorisktheirtime,money,andotherresourcestostartandmanageabusiness.THEENTREPRENEUR:ADISTINCTIVEPROFILEOPPORTUNITIESFORSMALLBUSINESSOpportunities:MarketNichesPersonalCustomerServiceLowerOverheadCostTechnologyTHREATSFORSMALLBUSINESSThreats:Hi
3、gherRiskofFailureLackofKnowledgeandExperienceTooLittleMoneyBiggerRegulatoryBurdenHigherHealthInsuranceCostsSMALLBUSINESSFAILUREDOT-COMDEBACLESWebvan:thevalueofthisearlyonlinegrocerpeakedat$1.2billion,butWebvanleft2,000peopleoutofworkwhenitcloseditsdoorsinthemiddleof200
4、1.Pets.com:Shuttingdownonlyninemonthsafterits$82.5millionIPO,Pets.comhawkedpetcareproductsfromdoggietreatstokittylitter,butlackedaworkableplanforhighshippingcosts.iSmell:Theideaistodevelopadigitalscentdevicethatletscustomerssmellthearomasoftheweb(whateverthosemaybe!).H
5、owlongdoyouthinkitwilllast?FAILINGWITHSTYLEWaltDisneywasfiredfromanadagencyfora“singularlackofdrawingability.”RayKroc,McDonald’sfounder,failedatrealestate,hedidn’tdiscovertheMcDonaldbrothers’hamburgerstanduntilhewas52yearsold.SteveJobs,founderofApplecomputer,wasdumpedb
6、yhisboardofdirectors,butreturnedadecadelatertolaunchtheiMacandtheiPod.Yourfailuremaybethefirststepofthenextbigthing.LAUNCHOPTIONSStartingfromscratchBuyinganestablishedbusinessBuyingafranchiseSTARTINGABUSINESSFROMSCRATCHKeyPros:KeyCons:It’sallyou:Yourconcept,yourdecisio
7、ns,yourstructure.Youdon’thavetodealwiththepriorowner’sbaddecisions.It’sallyou.That’salotofpressure.Itcanbehardtogetcredit.LogisticscanbechallengingIttakestime,money,andsheersweattobuildacustomerbase.BUYINGANESTABLISHEDBUSINESSKeyPros:KeyCons:Theconcept,organizationalst
8、ructure,andoperatingpracticesareinplace.Relationshipsareestablished.Obtainingfinancingislesschallenging.Workingwithso