Entrepreneurship: Successfully Launching New Ventures, Global Edition, 6th Edition

Cover
Title Page
Copyright
Dedication
Brief Contents
Contents
Preface
Part 1: Decision to Become an Entrepreneur
	Chapter 1: Introduction to Entrepreneurship
		Opening Profile—Superjam: The Classic Entrepreneurial Story
		Introduction to Entrepreneurship
		What Is Entrepreneurship and Why Is It Important?
		Why Do People Become Entrepreneurs?
			Be Their Own Boss
			Pursue Their Own Ideas
			Pursue Financial Rewards
		Characteristics of Successful Entrepreneurs
			Passion for the Business
			Product/Customer Focus
			What went Wrong? Prim: How a Lack of Passion and Resolve Can Kill a Business
			Tenacity Despite Failure
			Execution Intelligence
		Common Myths About Entrepreneurs
			Savvy Entrepreneurial Firm: Start-Up Incubators and Accelerators: A Smart Way of Gaining Access to Mentors, Partners, Investors, and Other Critical Start-up Resources
			Myth 1: Entrepreneurs Are Born, Not Made
			Myth 2: Entrepreneurs Are Gamblers
			Myth 3: Entrepreneurs Are Motivated Primarily by Money
			Myth 4: Entrepreneurs Should Be Young and Energetic
			Myth 5: Entrepreneurs Love the Spotlight
		Types of Start-Up Firms
			Partnering for Success: Partnering with College Students via Campus Ambassador and Campus Rep Programs
		Changing Demographics of Entrepreneurs
			Women Entrepreneurs
			Minority Entrepreneurs
			Senior Entrepreneurs
			Millennial Entrepreneurs
		The Positive Effects of Entrepreneurship and Entrepreneurial Firms
			Economic Impact of Entrepreneurial Firms
			Entrepreneurial Firms’ Impact on Society
			Entrepreneurial Firms’ Impact on Larger Firms
		The Entrepreneurial Process
			Decision to Become an Entrepreneur (Chapter 1)
			Developing Successful Business Ideas (Chapters 2–6)
			Moving from an Idea to an Entrepreneurial Firm (Chapters 7–10)
			Managing and Growing an Entrepreneurial Firm (Chapters 11–15)
		Developing Skills for Your Career
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be The VC 1.1 Company: Shyp
		You Be The VC 1.2 Company: Vital Vio
		Case 1.1 SoulCycle: A Classic Entrepreneurial Tale
		Case 1.2 PatientsLikeMe: Allowing People with Serious Diseases to Connect with One Another and Exchange Support and Advice
		Endnotes
Part 2: Developing Successful Business Ideas
	Chapter 2: Recognizing Opportunities and Generating Ideas
		Opening Profile—WIIVV: Solving Foot Pain and Fatigue via Custom Fitted 3D Printed Insoles
		The Differences Between Opportunities and Ideas
		Three Ways to Identify Opportunities
			Observing Trends
			Solving a Problem
			Savvy Entrepreneurial Firm: Careem: Mobilizing a Solution to a Problem
			Finding Gaps in the Marketplace
			What went Wrong? Why a Company That Solved a Problem with a Great Product Went Out of Business
		Personal Characteristics of the Entrepreneur
			Prior Industry Experience
			Cognitive Factors
			Social Networks
			Creativity
		Techniques for Generating Ideas
			Brainstorming
			Focus Groups
			Library and Internet Research
			Partnering for Success: Want Help Converting a Business Idea into a Profitable Company? Find a Mentor
			Other Techniques
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 2.1 Company: PillPack
		You Be the VC 2.2 Company: soleRebels
		Case 2.1 PledgeMusic and Zinepak: Creating New Businesses in the Music Industry by Directly Engaging Fans
		Case 2.2 Rover.com: Don’t Chuckle: This Is One Impressive Business Idea
		Endnotes
	Chapter 3: Feasibility Analysis
		Opening Profile—Owlet Baby Care: The Value of Validating a Business Idea
		Feasibility Analysis
		Product/Service Feasibility Analysis
			Product/Service Desirability
			Product/Service Demand
		Industry/Target Market Feasibility Analysis
			Savvy Entrepreneurial Firm: Prototyping: How to Build What the Customer Wants
			Industry Attractiveness
			Target Market Attractiveness
		Organizational Feasibility Analysis
			Management Prowess
			Resource Sufficiency
			Partnering for Success: Finding the Right Business Partner
		Financial Feasibility Analysis
			Total Start-Up Cash Needed
			Financial Performance of Similar Businesses
			Overall Financial Attractiveness of the Proposed Venture
		A Feasibility Analysis Template
			What went Wrong? How Feasible Was the Keurig At-Home Soda Machine to Begin With?
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 3.1 Company: Eat Clean ME
		You Be the VC 3.2 Company: CADI Scientific—SmartSense
		Case 3.1 “Something Borrowed”—How Feasibility Analysis Shaped Rent the Runway into the Business It Is Today
		Case 3.2 Embrace Infant Warmer: Sometimes a Business Start Is a Matter of Life and Death
		Appendix 3.1 Tips for Conducting Feasibility Analysis Interviews
		Appendix 3.2 First Screen
		Appendix 3.3 Internet Resource Table
		Endnotes
	Chapter 4: Developing an Effective Business Model
		Opening Profile—INDIEU: Executing on an Established Business Model and Preparing for the Future
		Business Models and Their Importance
			Savvy Entrepreneurial Firm: CoachUp: How One Company Creates, Delivers, and Captures Value for Its Stakeholders
		General Categories of Business Models
			Standard Business Models
			Disruptive Business Models
			What went Wrong? Peer-to-Peer Business Models: Good for Some, Not So Good for Others
		The Barringer/Ireland Business Model Template
			Core Strategy
			Resources
			Financials
			Operations
			Partnering for Success: Upwork and Guru: Platforms That Facilitate the Forming of Partnerships with Freelancers
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 4.1 Company: DoorDash
		You Be the VC 4.2 Company: Secret Recipe Cakes and Café
		Case 4.1 Etsy: Breaking Down a Business Model
		Case 4.2 TOMS’ One-for-One Business Model: Is it Sustainable for the Future?
		Appendix 1 Barringer/Ireland Business Model Template
		Endnotes
	Chapter 5: Industry and Competitor Analysis
		Opening Profile—WRITELAB: Occupying a Unique Position in a Challenging Industry—and Thriving
		Industry Analysis
			Studying Industry Trends
			Partnering for Success: Three Ts That Are Important for Becoming Active in an Industry: Trade Associations, Trade Shows, and Trade Journals
		The Five Forces Model
			Threat of Substitutes
			Threat of New Entrants
			Rivalry among Existing Firms
			Bargaining Power of Suppliers
			Bargaining Power of Buyers
		The Value of the Five Forces Model
			What went Wrong? SharpScholar: Lessons Learned from a Failed EdTech Start-up
		Industry Types and the Opportunities They Offer
			Emerging Industries
			Fragmented Industries
			Mature Industries
			Declining Industries
			Global Industries
		Competitor Analysis
			Identifying Competitors
			Savvy Entrepreneurial Firm: Thriving in a Crowded Industry by Creating Meaningful Value and Differentiation from Competitors
			Sources of Competitive Intelligence
			Completing a Competitive Analysis Grid
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 5.1 Company: Little Riot
		You Be the VC 5.2 Company: ZUtA Labs
		Case 5.1 Panera Bread: Occupying a Favorable Position in a Highly Competitive Industry
		Case 5.2 How Casper Woke Up the “Sleepy” Mattress Industry
		Endnotes
	Chapter 6: Writing a Business Plan
		Opening Profile—Athletic Propulsion Labs: How Athletic Propulsion Labs Benefited from Writing a Business Plan
		The Business Plan
			Reasons for Writing a Business Plan
		Who Reads the Business Plan—and What Are They Looking For?
			A Firm’s Employees
			Investors and Other External Stakeholders
		Guidelines for Writing a Business Plan
			Structure of the Business Plan
			Content of the Business Plan
		Outline of the Business Plan
			Exploring Each Section of the Plan
			Savvy Entrepreneurial Firm: Know When to Hold Them, Know When to Fold Them
			What went Wrong? What Move Loot Learned the Hard Way about the Economics of a Business
		Presenting the Business Plan to Investors
			Partnering for Success: Establishing a Community of True Believers and Early Evangelists
			The Oral Presentation of a Business Plan
			Questions and Feedback to Expect from Investors
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 6.1 Company: Beyond Meat
		You Be the VC 6.2 Company: Go-Jek
		Case 6.1 Birchbox: Leveraging the College Experience to Write a Business Plan and Launch a Growing Start-up
		Case 6.2 d.light: How Bringing Its Business Plan to Life Helped a Social Enterprise Get Off to a Strong Start
		Endnotes
Part 3: Moving from an Idea to an Entrepreneurial Firm
	Chapter 7: Preparing the Proper Ethical and Legal Foundation
		Opening Profile—Billy Goat Ice Cream: Proceeding on a Firm Legal Foundation
		Establishing a Strong Ethical Culture for a Firm
			Lead by Example
			Establish a Code of Conduct
			Implement an Ethics Training Program
		Dealing Effectively with Legal Issues
			Choosing an Attorney for a Firm
			Savvy Entrepreneurial Firm: Don’t Hesitate to Say “We’re Sorry”
			Drafting a Founders’ Agreement
			Avoiding Legal Disputes
			Partnering for Success: Vesting Ownership in Company Stock: A Sound Strategy for Start-Ups
		Obtaining Business Licenses and Permits
			Federal Licenses and Permits
			State Licenses and Permits
			Local Licenses and Permits
			What went Wrong? How Flytenow Got Grounded by Government Regulations
		Choosing a Form of Business Organization
			Sole Proprietorship
			Partnerships
			Corporations
			Limited Liability Company
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 7.1 Company: Vélib’
		You Be the VC 7.2 Company: DipJar
		Case 7.1 Preparing a Proper Legal Foundation: A Start-Up Fable
		Case 7.2 Peloton Cycle and DonorsChoose: How For-Profit and Nonprofit Start-Ups Build Credibility and Trust
		Appendix 7.1 What’s In a Business Name? A Lot of Trouble If You Aren’t Careful
		Endnotes
	Chapter 8: Assessing a New Venture’s Financial Strength and Viability
		Opening Profile—Essentium Materials: Managing Finances Prudently
		Introduction to Financial Management
		Financial Objectives of a Firm
		The Process of Financial Management
			Partnering for Success: Organizing Buying Groups to Cuts Costs and Maintain Competitiveness
		Financial Statements
		Historical Financial Statements
			Savvy Entrepreneurial Firm: Know the Facts Behind the Numbers
		Forecasts
			Sales Forecast
			Forecast of Costs of Sales and Other Items
		Pro Forma Financial Statements
			Pro Forma Income Statement
			What went Wrong? Be Careful What You Wish for: How Growing too Quickly Overwhelmed One Company’s Cash Flow
			Pro Forma Balance Sheet
			Pro Forma Statement of Cash Flows
			Ratio Analysis
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 8.1 Company: Goonhilly Satellite Earth Station
		You Be the VC 8.2 Company: Amber
		Case 8.1 Mary Lynn Schroeder: Building a Successful Business with Limited Money and Limited Business Experience
		Case 8.2 Fundbox: Designed to Help Small Businesses Minimize Cash Flow Shortfalls
		Endnotes
	Chapter 9: Building a New-Venture Team
		Opening Profile—Wild Friends Foods: Hitting the Ground Running
		Liability of Newness as a Challenge
		Creating a New-Venture Team
			The Founder or Founders of a Venture
			What went Wrong? Devver: How Miscues in Regard to the Composition and Management of a New-Venture Team Can Kill a Start-Up
			The Management Team and Key Employees
			Savvy Entrepreneurial Firm: Overcoming a Lack of Business Experience in Malaysia
			Partnering for Success: Collaborative Software: Helping New Venture Team Members Achieve Their Goals
			The Roles of the Board of Directors
		Rounding Out the Team: The Role of Professional Advisors
			Board of Advisors
			Lenders and Investors
		Other Professionals
			Consultants
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 9.1 Company: Giraffe
		You Be the VC 9.2 Company: Eatsee
		Case 9.1 Basecamp: Implementing Novel Work Design and Human Resource Management Practices
		Case 9.2 Zappos: Making Human Resources the Key to Customer Service
		Endnotes
	Chapter 10: Getting Financing or Funding
		Opening Profile—Kinvolved: Raising Money Carefully and Deliberately
		The Importance of Getting Financing or Funding
		Why Most New Ventures Need Funding
			Cash Flow Challenges
			Capital Investments
			Lengthy Product Development Cycles
			Partnering for Success: Startup Weekend: A Fertile Place to Meet Business Cofounders
		Sources of Personal Financing
			Personal Funds
			Friends and Family
			Bootstrapping
		Preparing to Raise Debt or Equity Financing
		Sources of Equity Funding
			Business Angels
			Venture Capital
			Initial Public Offering
			What went Wrong? How One Start-Up Caught the Attention of VCs, Gained 25,000 Daily Users, and Still Failed
		Sources of Debt Financing
			Commercial Banks
			SBA Guaranteed Loans
			Other Sources of Debt Financing
		Creative Sources of Financing and Funding
			Crowdfunding
			Leasing
			SBIR and STTR Grant Programs
			Other Grant Programs
			Strategic Partners
			Savvy Entrepreneurial Firm: Working Together: How Biotech Firms and Large Drug Companies Bring Pharmaceutical Products to Market
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 10.1 Company: Keza
		You Be the VC 10.2 Company: Lumo Bodytech
		Case 10.1 Revolights: Using Multiple Sources of Funding to Bring Its Innovative Bicycle Lighting System to Life
		Case 10.2 Kickstarter: An Increasingly Important Forum for Raising Seed Capital
		Endnotes
Part 4: Managing and Growing an Entrepreneurial Firm
	Chapter 11: Unique Marketing Issues
		Opening Profile—Real Time Cases: Creating a New Brand in Business Cases via Guerilla Marketing Techniques
		Selecting a Market and Establishing a Position
			Segmenting the Market
			Selecting a Target Market
			Crafting a Unique Market Position
		Branding
			Savvy Entrepreneurial Firm: How Retail Start- ups Compete Against Walmart and Other Big Box Retailers
			Partnering for Success: Two Examples of Successful Co-Branding Partnerships
		The 4Ps of Marketing for New Ventures
			Product
			Price
			What went Wrong? What Start-Ups Can Learn about Marketing from Missteps at JCPenney
			Promotion
			Place (or Distribution)
		Sales Process and Related Issues
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 11.1 Company: Barnana
		You Be the VC 11.2 Company: Open Farm Community
		Case 11.1 Nest Labs
		Case 11.2 Proactiv: How Three Critical Marketing Decisions Shaped a New Venture’s Future
		Endnotes
	Chapter 12 :The Importance of Intellectual Property
		Opening Profile—3Derm Systems: The Key Role of Intellectual Property Early in a Firm’s Life and Its Ongoing Success
		The Importance of Intellectual Property
			Determining What Intellectual Property to Legally Protect
			The Four Key Forms of Intellectual Property
		Patents
			Types of Patents
			Who Can Apply for a Patent?
			The Process of Obtaining a Patent
			Savvy Entrepreneurial Firm: Knowing the Ins and Outs of Filing a Provisional Patent Application
			Patent Infringement
		Trademarks
			Partnering for Success: How the Maker Movement is Bringing Individual Inventors and Large Firms Together
			The Four Types of Trademarks
			What Is Protected Under Trademark Law?
			Exclusions from Trademark Protection
			The Process of Obtaining a Trademark
			Trademark Infringement
			What went Wrong? David Conquers Goliath in Three Trademark Disputes
		Copyrights
			What Is Protected by a Copyright?
			Exclusions from Copyright Protection
			How to Obtain a Copyright
			Copyright Infringement
			Copyright and the Internet
		Trade Secrets
			What Qualifies for Trade Secret Protection?
			Trade Secret Disputes
			Trade Secret Protection Methods
		Conducting an Intellectual Property Audit
			Why Conduct an Intellectual Property Audit?
			The Process of Conducting an Intellectual Property Audit
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 12.1 Company: Flatiron School
		You Be the VC 12.2 Company: Wakoopa
		Case 12.1 GoldieBlox vs. Beastie Boys: The Type of Fight That No Start-up Wants to Be a Part Of
		Case 12.2 You Make the Call: Can a Company Patent How It Makes a Peanut Butter and Jelly Sandwich?
		Endnotes
	Chapter 13: Preparing for and Evaluating the Challenges of Growth
		Opening Profile—Mati Energy: Growing in a Fast- Paced, Yet Conscientious Manner
		Preparing for Growth
			Appreciating the Nature of Business Growth
			Staying Committed to a Core Strategy
			Planning for Growth
		Reasons for Growth
			Capturing Economies of Scale
			What went Wrong? Dishero: How Mediocre Success Can Lead to Difficult Decisions
			Capturing Economies of Scope
			Market Leadership
			Influence, Power, and Survivability
			Need to Accommodate the Growth of Key Customers
			Ability to Attract and Retain Talented Employees
		Managing Growth
			Knowing and Managing the Stages of Growth
			Savvy Entrepreneurial Firm: Salesforce.com Crosses the Chasm
		Challenges of Growth
			Managerial Capacity
			Day-to-Day Challenges of Growing a Firm
			Partnering for Success: Three Choices for Fulfilling Orders for an Online Company
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 13.1 Company: Eureka Robotics
		You Be the VC 13.2 Company: Eliport
		Case 13.1 Sir Kensington’s: Pursuing a Measured, Yet Promising Path to Growth
		Case 13.2 Airbnb: Passing through the Stage of Growth in an Exemplary Manner
		Endnotes
	Chapter 14: Strategies for Firm Growth
		Opening Profile—Filtereasy: Employing Both Internal and External Strategies for Growth
		Internal Growth Strategies
			New Product Development
		Additional Internal Product-Growth Strategies
			Improving an Existing Product or Service
			Increasing the Market Penetration of an Existing Product or Service
			Extending Product Lines
			Geographic Expansion
		International Expansion
			What went Wrong? Lessons for Growth-Minded Start-Ups from Crumbs Bake Shop’s Failure
			Assessing a Firm’s Suitability for Growth through International Markets
			Foreign Market Entry Strategies
			Selling Overseas
		External Growth Strategies
			Mergers and Acquisitions
			Licensing
			Strategic Alliances and Joint Ventures
			Savvy Entrepreneurial Firm: Fetchr: Growing Through Acquisitions and Alliances
			Partnering for Success: Three Steps to Alliance Success
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 14.1 Company: Farmers Business Network
		You Be the VC 14.2 Company: Made.com
		Case 14.1 Warby Parker: Pursuing an Omni-Channel Strategy for Firm Growth
		Case 14.2 Justin’s Nut Butter: Why do Large Companies Acquire Start-Ups and Why do Start-Ups Agree to be Acquired?
		Endnotes
	Chapter 15: Franchising
		Opening Profile—Uptown Cheapskate: Franchising as a Form of Business Ownership and Growth
		What Is Franchising and How Does It Work?
			What Is Franchising?
			How Does Franchising Work?
		Establishing a Franchise System
			When to Franchise
			Steps to Franchising a Business
			Savvy Entrepreneurial Firm: Wahoo’s Fish Taco: A Moderate-Growth Yet Highly Successful Franchise Organization
			Selecting and Developing Effective Franchisees
		Advantages and Disadvantages of Establishing a Franchise System
		Buying a Franchise
			Is Franchising Right for You?
			What went Wrong? Slowing Down Growth: Why Did Just Falafel Become JF Street Food?
			The Cost of a Franchise
			Finding a Franchise
			Advantages and Disadvantages of Buying a Franchise
		Steps in Purchasing a Franchise
			Watch Out! Common Misconceptions About Franchising
		Legal Aspects of the Franchise Relationship
			Federal Rules and Regulations
			State Rules and Regulations
		More about Franchising
			Franchise Ethics
			International Franchising
			The Future of Franchising
			Partnering for Success: Franchises Partner with Nonprofits to Give Back
		Chapter Summary
		Key Terms
		Review Questions
		Application Questions
		You Be the VC 15.1 Company: Privilee
		You Be the VC 15.2 Company: Copper Branch
		Case 15.1 Quiznos: Will It Regain a Leadership Position in the Sandwich and Sub Shop Franchise Industry?
		Case 15.2 School of Rock: Filling a Gap in Music Education and Growing via Franchising
		Endnotes
Glossary
Name Index
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