9780134324821

Written by an award-winning expert demystifies the process of starting a business by presenting difficult economic, financial and business concepts in a manner easily understood by beginners. This book addresses the demands of integrating workplace relevant activities to meet academic standards. Placing an emphasis on developing business plans, it can be used as a professional resource for anyone looking to start their own business.

Network for Teaching Entrepreneurship

UNIT 1
Big Idea: Developing an Entrepreneurial Mindset

Chapter 1 Importance of Entrepreneurship 2

Entrepreneurial Investigation: Weathering the Storm 4

1.1 Entrepre-What? 4

How Employees and Entrepreneurs Differ 5

Big Business versus Small Business 6

Entrepreneurial Case Study: Opportunity Recognition: Vincent Quigg–TechWorld 7

1.2 To 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

1.3 Entrepreneurship Through the Years 11

The 1800s 11

Early 1900s 12

Mid-to-Late 1900s 13

Today’s Entrepreneurs 13

Chapter 1 Assessment 15

Chapter 2 Characteristics of an Entrepreneur 16

Entrepreneurial Investigation 18

2.1 Who Are Entrepreneurs? 18

Background of Entrepreneurs 18

Entrepreneurial Case Study: Initiative & Self-Reliance: Mike McGee & Neal Sales-Griffin–The Starter League 20

2.2 Assessing 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

2.3 NFTE Entrepreneurial Mindset 27

NFTE Entrepreneurial Mindset in Action 27

Chapter 2 Assessment 30

Chapter 3 Being an Intrapreneur 32

Entrepreneurial Investigation: An Idea That Sticks 34

3.1 Why Study Entrepreneurship? 34

Thinking Like an Entrepreneur, Being an Intrapreneur 34

Entrepreneurial Case Study: Future Orientation: Sofia Contreras–Las 5 Americas Restaurant Corp. 36

3.2 Career Clusters 38

Analyzing the Career Clusters 38

Exploring the Career Clusters 38

Career Competencies: Utilize Resources That Can Contribute to Professional Development 55

3.3 Using an Entrepreneurial Mindset in Career Exploration 56

Chapter 3 Assessment 59

Chapter 4 Social Entrepreneurship 60

Entrepreneurial Investigation 62

4.1 Doing 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

4.2 Taking Responsibility for the Environment 69

Environmentally Friendly Enterprises 70

Energy-Efficient Workplaces 72

Career Competencies: Utilize Job-Search Strategies 74

4.3 Supporting the Community 75

Serving the Community 75

Community Outreach 76

Philanthropy 77

Chapter 4 Assessment 79

Chapter 5 Managing Risk 82

Entrepreneurial Investigation: Risky Business 84

5.1 Managing 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

5.2 Navigating Ethical Scenarios 92

Intellectual Property 92

Conflict of Interest 94

Confidentiality 95

Career Competencies

Write a Letter of Application/Cover Letter 96

5.3 Here’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 2 Big Idea: Opportunity Recognition & Market Analysis

Chapter 6 Idea Generation 118

Entrepreneurial Investigation: Apple’s Innovation 120

6.1 Creativity 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

6.2 Creative Thinking Exercises 125

Creative Thinking Techniques 125

Career Competencies: Demonstrate Writing/Publishing Applications 127

6.3 Creative Thinking for Idea Generation 128

Brainstorm Potential Ideas 128

Challenge the Usual 129

Draw Idea Maps 129

Chapter 6 Assessment 131

Chapter 7 Turning Ideas into Opportunities 132

Entrepreneurial Investigation: Solve a Problem, Make a Million 134

7.1 Recognizing Business Opportunities 134

Ideas vs. Opportunities 134

Entrepreneurial Case Study: Opportunity Recognition: Melissa Ruiz-Vera–Vera Natural 136

7.2 Sources 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

7.3 Turning 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 8 Evaluating Opportunities 150

Entrepreneurial Investigation: One Man’s “C” is Another Man’s “Billion Dollar Idea” 152

8.1 Critical Thinking and the Entrepreneurial Process 152

Using Critical Thinking 152

Entrepreneurial Case Study: Critical Thinking & Problem Solving: Gregg Kaplan–redbox 154

8.2 Tools 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

8.3 Ongoing Opportunity Evaluation 161

Chapter 8 Assessment 163

Chapter 9 Market Research Methods 164

Entrepreneurial Investigation: Paying People to Watch TV? 166

9.1 Why 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

9.2 Sources of Research Data 171

Market Research Methods 171

Secondary Data Sources 171

Primary Research Techniques 174

Career Competencies: Demonstrate Database Applications 175

9.3 Determining Market Research Questions 176

Primary or Secondary Research 176

Creating Survey Questions 177

Chapter 9 Assessment 179

Chapter 10 Using Data to Make Business Decisions 180

Entrepreneurial Investigation: Coca-Cola’s Evil Twin: New Coke 182

10.1 Evaluating Research Data 182

Business Model Validation 182

Entrepreneurial Case Study

Flexibility & Adaptability: Seth Goldman–Honest Tea 184

10.2 Market Research Cycle 185

Steps in Researching a Market 185

Career Competencies: Evaluate Credibility of Internet Resources 188

10.3 Acting 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 3 Big Idea: Competition

Chapter 11 Entrepreneurship and the Economy 208

Entrepreneurial Investigation: Different Strokes for Different Folks! 210

11.1 Economics 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

11.2 Types 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

11.3 The 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 12 Supply and Demand 220

Entrepreneurial Investigation: Gamer Demand 222

12.1 Opposing Forces of Supply and Demand 222

The Law of Supply and Demand 222

Entrepreneurial Case Study: Opportunity Recognition: Andrea Dashiell–Honeecakes Bakery 223

12.2 Finding Equilibrium 225

Meeting in the Middle 225

Career Competencies: Demonstrate Spreadsheet Applications 226

12.3 Visualizing Supply and Demand 227

Supply and Demand Curves 227

Chapter 12 Assessment 230

Chapter 13 Direct and Indirect Competition 232

Entrepreneurial Investigation: Beyond the Box Lunch 234

13.1 Identifying 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

13.2 Market Share 238

Calculating Market Share 238

Career Competencies: Communicate by Computer; Develop Cultural Sensitivity 240

13.3 Competition and the Global Economy 241

The Global Economy 241

Entrepreneurs and International Trade 242

Chapter 13 Assessment 245

Chapter 14 EOU and Competitive Pricing 246

Entrepreneurial Investigation: Tale of Two Book Sellers 248

14.1 Competition 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

14.2 Competition-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

14.3 Competition and the Economics of One Unit 255

Economics of One Unit 255

Chapter 14 Assessment 258

Chapter 15 Establishing a Competitive Advantage 260

Entrepreneurial Investigation: The Roast Off 262

15.1 Gather Competitive Intelligence 262

Gathering Competitive Intelligence 262

Entrepreneurial Case Study: Initiative & Self-Reliance: Jesus Fernandez-Ortiz & Toheeb Okenla–T&J Soccer 264

15.2 Identify Your Differentiators 265

What Is a Differentiator for a Business? 265

Career Competencies: Write Persuasive Messages 267

15.3 Determining 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 4 Big Idea: Delivering Value to Customers

Chapter 16 Identifying a Target Market 286

Entrepreneurial Investigation: Profiled by Facebook 288

16.1 Mass Market vs. Target Market 288

Target Market Customer Categories 289

Entrepreneurial Case Study: Critical Thinking & Problem Solving: Deena Kishawi–modestie 290

16.2 Market Segments: Breaking Up the Customers 292

Career Competencies: Make Oral Presentations 294

16.3 Not 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 17 Understanding the Needs of a Customer Segment 300

Entrepreneurial Investigation: Cleaning Up the Competition 302

17.1 What Matters–Benefits vs. Features 302

Entrepreneurial Case Study: Flexibility & Adaptability: Luke Cooper–CEO & Founder, PeachMe 304

17.2 Creating Value 305

Career Competencies: Apply Effective Listening Skills 307

17.3 Value Is in the Eye of the Beholder 308

Chapter 17 Assessment 310

Chapter 18 Delivering Value to a Customer Segment 312

Entrepreneurial Investigation: A Simple Goal 314

18.1 Setting 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

18.2 In 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

18.3 Name Your Price 322

Allowing for Price Adjustments 324

Chapter 18 Assessment 326

Chapter 19 Communicating Value to Customers 328

Entrepreneurial Investigation: High Flying Customer Service 330

19.1 It’s Personal: Selling Your Business to Your Customers 330

Characteristics of Successful Salespeople 331

Entrepreneurial Case Study: Communication & Collaboration: Sylvester Chisom–Showroom Shine 333

19.2 Effective 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

19.3 Pitching Your Business 339

Chapter 19 Assessment 341

Chapter 20 Attracting and Retaining Customers 342

Entrepreneurial Investigation: A Shoe-in for Success! 344

20.1 Promotions: Building Awareness, Making Sales, Keeping Customers 344

Entrepreneurial Case Study: Creativity & Innovation: Mark Cuban–Dallas Mavericks 347

20.2 It’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

20.3 What’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 5 Big Idea: Business Model

Chapter 21 Channels of Distribution 376

Entrepreneurial Investigation: Not a Mom-and-Pop Store 378

21.1 What 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

21.2 Understanding 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

21.3 Shipping 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 22 Identifying Internal Resources 392

Entrepreneurial Investigation: Finger-Licking Secret 394

22.1 Identifying 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

22.2 Protecting 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

22.3 Human 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 23 Determining Operating Activities 412

Entrepreneurial Investigation: Popularity Contest 414

23.1 Operating 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

23.2 The Importance of Customer Service 420

Customer Service Policies 420

Career Competencies: Explain the Nature of Business Records 422

23.3 Inventory Management 423

Why Manage Inventory? 423

Calculating Inventory Investment 425

Controlling Inventory Level 425

Inventory Systems 426

Warehousing 427

Chapter 23 Assessment 429

Chapter 24 Establishing External Partnerships 430

Entrepreneurial Investigation: Missed the Bull’s-Eye 432

24.1 Determining External Partnerships 432

Types of Partnerships 432

Vendor Relationships 433

Entrepreneurial Case Study: Comfort with Risk: Alice Niles–A.P. Orleans Risk Management 436

24.2 Outsourcing 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

24.3 Why 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 25 Legal Structures 450

Entrepreneurial Investigation: On the Hook 452

25.1 Sole 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

25.2 Corporations and Other Business Structures 457

Corporation 457

Cooperative 459

Career Competencies: Negotiate Contracts with Vendors; Business Contracts 460

25.3 Choosing the Best Structure 462

Chapter 25 Assessment 465

Unit 5 Review & Assessment 466

Information Technology 476

Case Study: Business Model 478

UNIT 6 Big Idea: Financial & Expense Management

Chapter 26 The Cost of Doing Business 482

Entrepreneurial Investigation: Not Always a Piece of Cake 484

26.1 What 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

26.2 The 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

26.3 Calculating 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 27 Expense Management 502

Entrepreneurial Investigation: Frugal Operations 504

27.1 Fixed Expenses 504

What Are Fixed Expenses? 505

Depreciation 506

Entrepreneurial Case Study: Creativity & Innovation: Dagim Girma–The Audible 507

27.2 Breaking 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

27.3 Managing 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 28 Revenue Streams and Sales Projections 518

Entrepreneurial Investigation: There’s No Business Like Show Business 520

28.1 Identifying Sources of Revenue 520

Revenue Streams 520

Non-Traditional Revenue Streams 522

Entrepreneurial Case Study: Future Orientation: Dan Trepanier–The Style Blogger 522

28.2 Sales Forecasting 524

Preparing a Sales Forecast 524

Sales Forecasting Techniques 525

Career Competencies: Develop Savings Plan 527

28.3 Income 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 29 Financing the Business 538

Entrepreneurial Investigation: Lending a Helping Dollar 540

29.1 How 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

29.2 Sources 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

29.3 Sources 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 30 Financial Analysis 558

Entrepreneurial Investigation: Rise and Fall of the Record Megastore 560

30.1 What 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

30.2 Balance 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

30.3 Ratios 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 7 Big Idea: Operating the Business

Chapter 31 Managing the Business 596

Entrepreneurial Investigation: A Happy Company Is a Profitable Company 598

31.1 What Is Management? 599

Planning 599

Organizing 600

Directing 601

Controlling 602

Entrepreneurial Case Study: Communication & Collaboration: Kirsten Kelly & Anne de Mare–Spargel Productions 603

31.2 Organizational Structures 605

Traditional Structures 605

Trends in Structures 607

Career Competencies

Write Informational Messages 608

31.3 Maintaining a Healthy Business Environment 610

Chapter 31 Assessment 612

Chapter 32 Government Regulations 614

Entrepreneurial Investigation: Government to the Rescue 616

32.1 The Role of Regulation for Employees 616

Employee Protection 617

Entrepreneurial Case Study: Flexibility & Adaptability: Mercy Hernandez–EDGE Charitable Foundation 620

32.2 Customer 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

32.3 Help for Small Business 627

Chapter 32 Assessment 629

Chapter 33 Recordkeeping 630

Entrepreneurial Investigation: Transparent Clothing 632

33.1 Financial 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

33.2 Accounting 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

33.3 Computerized Accounting vs. Human Accountants 645

Using Accountants and Bookkeepers 646

Chapter 33 Assessment 648

Chapter 34 Accounting Systems 650

Entrepreneurial Investigation: The Danger of Cooking the Books 652

34.1 Using 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

34.2 Using the Accounting Worksheet 658

Career Competencies: Respect the Privacy of Others;Explain Ethical Considerations in Providing Information 661

34.3 Creating 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 35 Taxes and Your Business 672

Entrepreneurial Investigation: Paying Uncle Sam 674

35.1 Why 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

35.2 What 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

35.3 Tax-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 8 Big Idea: Growing the Business

Chapter 36 Planning for Business Growth 706

Entrepreneurial Investigation: Growing Pains 708

36.1 What Is Business Growth? 708

Deciding When to Grow 709

Product Life Cycles 710

Entrepreneurial Case Study: Creativity & Innovation: Abi Mandelbaum–YouVisit 712

36.2 Growth Strategies 714

Intensive Growth Strategies 714

Integrative Growth Strategies 716

Diversification Growth Strategies 716

Career Competencies: Describe Costs Associated with Credit 717

36.3 Challenges of Growth 719

Practical Challenges of Growing a Business 720

Can a Business Grow? 720

Chapter 36 Assessment 722

Chapter 37 Growing Operations 724

Entrepreneurial Investigation: Whole Lot of Ice Cream 726

37.1 Managing and Scaling Operations 727

Site Selection and Layout Planning 727

Entrepreneurial Case Study: Initiative & Self-Reliance: Marcelo Claure–Brightstar 729

37.2 Production Management 730

Scheduling 731

Productivity 732

Quality 733

Career Competencies: Handle Telephone Calls in a Businesslike Manner 734

37.3 Managing 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 38 Recruiting and Training Staff 742

Entrepreneurial Investigation: Good Help Is So Hard to Find 744

38.1 Managing 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

38.2 Employee Training and Development 752

In-House Programs 753

Training and Development Providers 754

Career Competencies: Interview for a Job 756

38.3 Motivating 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 39 Franchising and Licensing 766

Entrepreneurial Investigation: Subway Hits 40,000 768

39.1 Franchising a Business 768

Franchising Documents 769

Entrepreneurial Case Study

Opportunity Recognition: Kevin Plank–Under Armour 771

39.2 Advantages and Disadvantages for Franchisors 773

Advantages for Franchisors 773

Disadvantages for Franchisors 773

Career Competencies: Make Decisions 774

39.3 Licensing a Brand 776

Licensing Agreements 777

Advantages and Disadvantages of Licensing 778

Market Saturation 779

Chapter 39 Assessment 781

Chapter 40 Exit Strategies 782

Entrepreneurial Investigation: PayPal’s Payout 784

40.1 When to Leave a Business 784

How to Value a Business 785

Entrepreneurial Case Study: Future Orientation: Andres Cardona–Elite Basketball Academy 787

40.2 Strategies for Leaving the Business 788

Harvesting Value from a Business 789

Career Competencies: Set Personal Goals 790

40.3 Building 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

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Entrepreneurship Owning Your Future, High School Version

Entrepreneurship Owning Your Future, High School Version

013432482X

Summary

Author Biography

Table of Contents

Supplemental Materials