Patterns of Entrepreneurship Management
Wiley (Publisher)
5th Edition
Book
Paperback/Softback
348 pages
978-1-119-23905-5 (ISBN)
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Description
Patterns of Entrepreneurship Management is the essential road-map for anyone interested in starting a new business. This text is infused with the authors' experience teaching, writing, and launching successful ventures and challenges students with real situations and examples on which they can practice the broad range of skills required to start and build a company in today's complex world.
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Language
English
Place of publication
United States
ISBN-13
978-1-119-23905-5 (9781119239055)
Schweitzer Classification
Other editions
New editions

Book
11/2020
Wiley
€102.69
Shipment within 15-20 days
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Content
Preface vii
List of cases and profiles xv
PART I GETTING STARTED AS AN ENTREPRENEUR
1 THE ENTREPRENEURIAL PROCESS 2
Introduction, 3
Profile: Wayne Mcvicker-A Typical Entrepreneur, 4
An Entrepreneurial Perspective, 4
Commonly Shared Entrepreneurial Characteristics, 5
Types of Entrepreneurs, 6
The Need to Control, 7
The Spider-web Model, 9
Finding Early Mentors, 10
Managing Stress, 11
The Five-Stage Entrepreneurial Process, 12
The Growth of Entrepreneurial Companies, 15
The Growth Period, 16
Entrepreneurship Roller Coaster, 16
So Why Become an Entrepreneur?, 17
Use the Master-Case to Develop Management Skills, 17
Summary, 18
Study Questions, 18
Exercises, 18
Interactive Learning on the Web, 20
Additional Resources, 20
Additional Cases for Reading, 21
Endnotes, 21
2 THE ART OF INNOVATION 22
Introduction, 23
Profile: Becky Minard and Paal Gisholt-Finding a Point of Pain, 23
Why Innovation is Important, 24
Definition and Types of Innovation, 28
Frameworks for Learning Innovation Skills, 31
Finding and Assessing Ideas, 35
Converting an Idea into an Opportunity, 36
Opportunity: Five Phases to Success, 37
Summary, 46
Study Questions, 46
Exercises, 46
Interactive Learning on the Web, 47
Additional Resources, 47
Appendix: The Bayh-Dole Act (Online), 47
Endnotes, 47
3 IDEAS INTO BUSINESS MODELS 49
Introduction, 50
Profile: Alexander Osterwalder-Inventor of Canvas Model, 51
Definition of Business Models, 51
The Business Model Canvas, 52
Testing Assumptions and Value Proposition, 54
Mini-Case: "tinyUpdates"-Testing Your Idea with Customers, 55
Minimum Viable Product Concept, 57
Examples of Innovative Business Models, 63
Mini-Case: General Fasteners, Locking in Customers, 66
Licensing and Franchising, 67
Mini-Case: ChemStation, 70
Models Built around Social Networks, 72
Corporate Partnering, 72
Summary, 73
Study Questions, 74
Exercises, 74
Interactive Learning on the Web, 75
Additional Resources, 75
Endnotes, 75
4 Customers, Markets, Competitors, in a Digital World 77
Introduction, 78
Profile: Brian Halligan, CEO and Founder, HubSpot, 78
Conducting Marketing Research Using Digital Tools to Start The Venture, 79
Mini-Case: BreatheSimple Web-Based Market Research, 79
Formulating a Successful Marketing Plan, 84
Defining the Market Segmentation, 88
Conducting a Competitive Analysis, 90
Preparing the Pricing and Sales Strategy, 91
Using Digital Channels to Create Demand, 95
Penetrating the Market and Setting up Sales Channels, 96
Summary, 99
Study Questions, 100
Exercises, 100
Interactive Learning on the Web, 101
Case Study: Smart Card LLC Marketing Plan 102
Case Study Questions, 103
Appendix: Marketing Research Techniques 104
Additional Resources, 105
Endnotes, 106
5 USING THE CROWD 107
Introduction, 108
Profile: Daniel Gulati, Fashionstake, 109
Closed versus Open Innovation, 110
Motivations to Be a Contributor to a Crowd, 111
Types of Crowdsourcing, 112
Entrepreneurship: Relevant Applications of Crowdsourcing, 116
Intellectual Property Issues, 125
Summary, 126
Study Questions, 126
Exercises, 126
Management Exercise-Neoforma in the age of Crowdsourcing, 127
Interactive Learning on the Web, 127
Additional Resources, 127
Endnotes, 127
6 WRITING THE WINNING BUSINESS PLAN 129
Introduction, 130
Profile: Nikolay Shkolnik-Business Plan Turns a Dream into Reality, 130
The Value of a Business Plan, 131
Setting Goals and Objectives, 132
Starting the Process to Write the Plan: Five Steps, 134
Determining What Type of Business Plan is Best, 136
A Lean and Full Business Plan Format and Content, 138
Understanding Why Business Plans Fail, 143
Summary, 144
Study Questions, 145
Exercises, 145
Case Study: Surfparks LLC (Online), 146
Appendix: The Roadmap Guide for Writing a Business Plan, 147
Interactive Learning on the Web, 150
Additional Resources, 150
Endnotes, 150
7 SETTING UP THE COMPANY 151
Introduction, 152
Profile: Ethan Wendle and Matt Chverchko-When to Convert from an S- to a C-Corporation, 152
Identifying What Form of Ownership is Best, 153
Forms of Doing Business, 153
Sole Proprietorship, 154
C-Corporation, 156
S-Corporation, 162
Partnership, 164
Limited Liability Company, 166
Business Start-Up Checklist, 167
Summary, 171
Study Questions, 171
Exercises for Determining Best Form of Ownership, 172
Interactive Learning on the Web, 173
Endnotes, 173
PART II FUNDING THE VENTURE
8 FUNDING THE VENTURE 176
Introduction to Part A, 178
Profile: James Dyson-Bootstrapping out of Necessity, 180
The "Virtual" Company, 181
Securing Early-Stage Funding, 182
Self-Funding-Example: Benchprep Inc., 183
Moonlighting and Part-Time Consulting, 184
Bootstrapping Methods-Example: Injection
Research Specialists, 186
Family and Friends, 187
Angels, 187
MicroEquity and MicroLoans: A Little Money, a Lot of Help, 188
Bank Loans, Factoring, and Supplier Lines of Credit, 190
Managing Your Personal Credit Rating, 191
Government Sources of Funding, 191
How to qualify, 192
Summary of Part A, 193
Introduction to Part B, 194
Profile: Jason Cong, Vivado-High Level Synthesis, Super-angels, VC, and Corporate Investors, 195
The State of the Venture Capital Industry, 196
Super-Angels, 197
Equity Investment Fundamentals, 198
Using Private Equity for Fundraising, 199
Understanding the Venture Capital Process, 207
Guide to Selecting a Venture Capitalist, 211
Private Placements, 211
Home Runs or Singles?, 213
Corporate Debt, 213
Strategic Partnerships and Corporate Investments, 216
How To Value a Business at the Early Stage, 217
Summary for Part B, 219
Study Questions for Part A of the Chapter, 219
Study Questions for Part B of the Chapter, 220
Exercises for Part A, 220
Exercises for Part B, 221
Appendix: Guidelines for Selecting an Incubation Program, 223
Interactive Learning on the Web, 223
Additional Resources, 223
Web Resources, 224
Networks, 224
Appendix 1: Due Diligence Checklist (Online), 225
Appendix 2: Model Venture Capital Term Sheet-Series A Preferred Stock (Online), 225
Endnotes, 225
PART III BUILDING AND EXITING
9 MANAGING RESOURCES-MONEY AND PEOPLE 228
Introduction, 229
Profile: Paul Silvis-Conserving Cash While Building an Embracing Culture, 230
Financial Statements, 231
The Value of the Balance Sheet, 231
The Value of an Income Statement, 232
The Value of a Cash Flow Statement, 233
Preparing Financial Projections, 235
Preparing an Annual Budget, 236
Preparing a Cash Flow Forecast, 237
Preparing a Breakeven Analysis, 239
Analyzing an Investment Decision, 241
Taxes and Filing, 242
The Stresses of Managing Money, 243
Managing Human Resources-Introduction, 243
Developing a Strong Corporate Culture, 243
Finding and Hiring the Best People, 245
Dealing with Firing an Employee, 248
Dealing with a Resignation, 249
Conflicts of Interest and Business Ethics, 250
Legal Issues, 251
Setting Up Stock-Option Agreements, 253
Summary, 253
Study Questions, 254
Exercises, 254
Interactive Learning on the Web, 256
Additional Resources, 256
Appendix: Legal Document Templates (Online), 256
Endnotes, 256
10 COMMUNICATING THE OPPORTUNITY 257
Introduction, 258
Profile: Craig Bandes-Matching Presentations to Investors, 259
Locating Investors, 259
Preparing a Teaser, 261
The Elevator Pitch, 265
Note on Confidentiality, 265
After the Presentation, 270
Summary, 273
Study Questions, 274
Exercises, 274
Interactive Learning on the Web, 274
Endnotes, 274
11 EXITING THE VENTURE 276
Introduction, 277
Profile: Alan Trefler: Private to Public Ownership, 277
Why Create an Exit Strategy and Plan, 278
Selling an Equity Stake To a Strategic Partner, 278
Valuing a Later-Stage Company, 279
Implementing the Plan of Action, 282
Selling the Business, 283
Preparing a Selling Memorandum, 284
Merge with Another Business, 288
Using an Employee Stock Ownership Plan (ESOP), 289
Using a Management Buyout (MBO), 289
Consider a Public Offering, 289
Summary, 295
Study Questions, 296
Exercises, 296
Interactive Learning on the Web, 297
Additional Resources, 297
Endnotes, 297
PART IV SPECIAL TOPICS: SOCIAL ENTREPRENEURSHIP TECHNOLOGY ENTREPRENEURSHIP FAMILY BUSINESS
12 SPECIAL TOPIC: SOCIAL ENTREPRENEURSHIP (ONLINE) 2
Introduction, 3
Social Entrepreneurs and Green Initiatives, 4
Profile: Khanjan Mehta-A Social Entrepreneur, 4
To Profit or Not to Profit, 5
Social Entrepreneurship and Tax Issues, 5
Differences Between Business and Social Entrepreneurs, 6
Stakeholder Issues and Challenges, 6
Growth and Management Challenges, 7
Enhanced Revenue Opportunities, 7
Social Entrepreneurship Business Models, 8
Using the Inverse Commons to Build a Social Enterprise, 14
Using Social Media to Grow, 16
Appplying Other Chapters in this Book to Social Entrepreneurship, 18
Summary, 20
Study Questions, 20
Exercises, 20
Interactive Learning on the Web, 21
Additional Resources, 21
Endnotes, 21
13 TECHNOLOGY ENTREPRENEURSHIP (ONLINE) 22
Introduction, 23
Profile: Ian Kibblewhite-An Integrated IP Strategy, 24
Concepts Relevant to Technology-Based Companies, 25
Intellectual Property Management, 32
Summary, 44
Internet IP Source Sites, 45
Study Questions, 45
Exercises, 45
Case Study: Question, 46
Interactive Learning on the Web, 47
Additional Resources, 47
Endnotes, 47
14 FAMILY BUSINESSES: IMPORTANT AND DIFFERENT (ONLINE) 49
Introduction, 50
Profile: Richard Edelman: A Family Business Entrepreneur, 50
What Is a Family Business?, 51
The Three Subsystem Model, 53
Types of Family Business, 54
Considerations and Challenges of Family Businesses, 55
Governing the Family Firm, 63
Family Business Capital and Competitive Advantage, 65
Summary, 68
Study Questions, 68
Exercises, 69
Useful Web Sites: General Background Articles for Further Reading, 70
Articles Highlighting Problems in Family Businesses, 70
Endnotes, 70
Addendum: Three Case Studies Covering The Whole Book (Online)
Glossary of Terms 299
Index 311
List of cases and profiles xv
PART I GETTING STARTED AS AN ENTREPRENEUR
1 THE ENTREPRENEURIAL PROCESS 2
Introduction, 3
Profile: Wayne Mcvicker-A Typical Entrepreneur, 4
An Entrepreneurial Perspective, 4
Commonly Shared Entrepreneurial Characteristics, 5
Types of Entrepreneurs, 6
The Need to Control, 7
The Spider-web Model, 9
Finding Early Mentors, 10
Managing Stress, 11
The Five-Stage Entrepreneurial Process, 12
The Growth of Entrepreneurial Companies, 15
The Growth Period, 16
Entrepreneurship Roller Coaster, 16
So Why Become an Entrepreneur?, 17
Use the Master-Case to Develop Management Skills, 17
Summary, 18
Study Questions, 18
Exercises, 18
Interactive Learning on the Web, 20
Additional Resources, 20
Additional Cases for Reading, 21
Endnotes, 21
2 THE ART OF INNOVATION 22
Introduction, 23
Profile: Becky Minard and Paal Gisholt-Finding a Point of Pain, 23
Why Innovation is Important, 24
Definition and Types of Innovation, 28
Frameworks for Learning Innovation Skills, 31
Finding and Assessing Ideas, 35
Converting an Idea into an Opportunity, 36
Opportunity: Five Phases to Success, 37
Summary, 46
Study Questions, 46
Exercises, 46
Interactive Learning on the Web, 47
Additional Resources, 47
Appendix: The Bayh-Dole Act (Online), 47
Endnotes, 47
3 IDEAS INTO BUSINESS MODELS 49
Introduction, 50
Profile: Alexander Osterwalder-Inventor of Canvas Model, 51
Definition of Business Models, 51
The Business Model Canvas, 52
Testing Assumptions and Value Proposition, 54
Mini-Case: "tinyUpdates"-Testing Your Idea with Customers, 55
Minimum Viable Product Concept, 57
Examples of Innovative Business Models, 63
Mini-Case: General Fasteners, Locking in Customers, 66
Licensing and Franchising, 67
Mini-Case: ChemStation, 70
Models Built around Social Networks, 72
Corporate Partnering, 72
Summary, 73
Study Questions, 74
Exercises, 74
Interactive Learning on the Web, 75
Additional Resources, 75
Endnotes, 75
4 Customers, Markets, Competitors, in a Digital World 77
Introduction, 78
Profile: Brian Halligan, CEO and Founder, HubSpot, 78
Conducting Marketing Research Using Digital Tools to Start The Venture, 79
Mini-Case: BreatheSimple Web-Based Market Research, 79
Formulating a Successful Marketing Plan, 84
Defining the Market Segmentation, 88
Conducting a Competitive Analysis, 90
Preparing the Pricing and Sales Strategy, 91
Using Digital Channels to Create Demand, 95
Penetrating the Market and Setting up Sales Channels, 96
Summary, 99
Study Questions, 100
Exercises, 100
Interactive Learning on the Web, 101
Case Study: Smart Card LLC Marketing Plan 102
Case Study Questions, 103
Appendix: Marketing Research Techniques 104
Additional Resources, 105
Endnotes, 106
5 USING THE CROWD 107
Introduction, 108
Profile: Daniel Gulati, Fashionstake, 109
Closed versus Open Innovation, 110
Motivations to Be a Contributor to a Crowd, 111
Types of Crowdsourcing, 112
Entrepreneurship: Relevant Applications of Crowdsourcing, 116
Intellectual Property Issues, 125
Summary, 126
Study Questions, 126
Exercises, 126
Management Exercise-Neoforma in the age of Crowdsourcing, 127
Interactive Learning on the Web, 127
Additional Resources, 127
Endnotes, 127
6 WRITING THE WINNING BUSINESS PLAN 129
Introduction, 130
Profile: Nikolay Shkolnik-Business Plan Turns a Dream into Reality, 130
The Value of a Business Plan, 131
Setting Goals and Objectives, 132
Starting the Process to Write the Plan: Five Steps, 134
Determining What Type of Business Plan is Best, 136
A Lean and Full Business Plan Format and Content, 138
Understanding Why Business Plans Fail, 143
Summary, 144
Study Questions, 145
Exercises, 145
Case Study: Surfparks LLC (Online), 146
Appendix: The Roadmap Guide for Writing a Business Plan, 147
Interactive Learning on the Web, 150
Additional Resources, 150
Endnotes, 150
7 SETTING UP THE COMPANY 151
Introduction, 152
Profile: Ethan Wendle and Matt Chverchko-When to Convert from an S- to a C-Corporation, 152
Identifying What Form of Ownership is Best, 153
Forms of Doing Business, 153
Sole Proprietorship, 154
C-Corporation, 156
S-Corporation, 162
Partnership, 164
Limited Liability Company, 166
Business Start-Up Checklist, 167
Summary, 171
Study Questions, 171
Exercises for Determining Best Form of Ownership, 172
Interactive Learning on the Web, 173
Endnotes, 173
PART II FUNDING THE VENTURE
8 FUNDING THE VENTURE 176
Introduction to Part A, 178
Profile: James Dyson-Bootstrapping out of Necessity, 180
The "Virtual" Company, 181
Securing Early-Stage Funding, 182
Self-Funding-Example: Benchprep Inc., 183
Moonlighting and Part-Time Consulting, 184
Bootstrapping Methods-Example: Injection
Research Specialists, 186
Family and Friends, 187
Angels, 187
MicroEquity and MicroLoans: A Little Money, a Lot of Help, 188
Bank Loans, Factoring, and Supplier Lines of Credit, 190
Managing Your Personal Credit Rating, 191
Government Sources of Funding, 191
How to qualify, 192
Summary of Part A, 193
Introduction to Part B, 194
Profile: Jason Cong, Vivado-High Level Synthesis, Super-angels, VC, and Corporate Investors, 195
The State of the Venture Capital Industry, 196
Super-Angels, 197
Equity Investment Fundamentals, 198
Using Private Equity for Fundraising, 199
Understanding the Venture Capital Process, 207
Guide to Selecting a Venture Capitalist, 211
Private Placements, 211
Home Runs or Singles?, 213
Corporate Debt, 213
Strategic Partnerships and Corporate Investments, 216
How To Value a Business at the Early Stage, 217
Summary for Part B, 219
Study Questions for Part A of the Chapter, 219
Study Questions for Part B of the Chapter, 220
Exercises for Part A, 220
Exercises for Part B, 221
Appendix: Guidelines for Selecting an Incubation Program, 223
Interactive Learning on the Web, 223
Additional Resources, 223
Web Resources, 224
Networks, 224
Appendix 1: Due Diligence Checklist (Online), 225
Appendix 2: Model Venture Capital Term Sheet-Series A Preferred Stock (Online), 225
Endnotes, 225
PART III BUILDING AND EXITING
9 MANAGING RESOURCES-MONEY AND PEOPLE 228
Introduction, 229
Profile: Paul Silvis-Conserving Cash While Building an Embracing Culture, 230
Financial Statements, 231
The Value of the Balance Sheet, 231
The Value of an Income Statement, 232
The Value of a Cash Flow Statement, 233
Preparing Financial Projections, 235
Preparing an Annual Budget, 236
Preparing a Cash Flow Forecast, 237
Preparing a Breakeven Analysis, 239
Analyzing an Investment Decision, 241
Taxes and Filing, 242
The Stresses of Managing Money, 243
Managing Human Resources-Introduction, 243
Developing a Strong Corporate Culture, 243
Finding and Hiring the Best People, 245
Dealing with Firing an Employee, 248
Dealing with a Resignation, 249
Conflicts of Interest and Business Ethics, 250
Legal Issues, 251
Setting Up Stock-Option Agreements, 253
Summary, 253
Study Questions, 254
Exercises, 254
Interactive Learning on the Web, 256
Additional Resources, 256
Appendix: Legal Document Templates (Online), 256
Endnotes, 256
10 COMMUNICATING THE OPPORTUNITY 257
Introduction, 258
Profile: Craig Bandes-Matching Presentations to Investors, 259
Locating Investors, 259
Preparing a Teaser, 261
The Elevator Pitch, 265
Note on Confidentiality, 265
After the Presentation, 270
Summary, 273
Study Questions, 274
Exercises, 274
Interactive Learning on the Web, 274
Endnotes, 274
11 EXITING THE VENTURE 276
Introduction, 277
Profile: Alan Trefler: Private to Public Ownership, 277
Why Create an Exit Strategy and Plan, 278
Selling an Equity Stake To a Strategic Partner, 278
Valuing a Later-Stage Company, 279
Implementing the Plan of Action, 282
Selling the Business, 283
Preparing a Selling Memorandum, 284
Merge with Another Business, 288
Using an Employee Stock Ownership Plan (ESOP), 289
Using a Management Buyout (MBO), 289
Consider a Public Offering, 289
Summary, 295
Study Questions, 296
Exercises, 296
Interactive Learning on the Web, 297
Additional Resources, 297
Endnotes, 297
PART IV SPECIAL TOPICS: SOCIAL ENTREPRENEURSHIP TECHNOLOGY ENTREPRENEURSHIP FAMILY BUSINESS
12 SPECIAL TOPIC: SOCIAL ENTREPRENEURSHIP (ONLINE) 2
Introduction, 3
Social Entrepreneurs and Green Initiatives, 4
Profile: Khanjan Mehta-A Social Entrepreneur, 4
To Profit or Not to Profit, 5
Social Entrepreneurship and Tax Issues, 5
Differences Between Business and Social Entrepreneurs, 6
Stakeholder Issues and Challenges, 6
Growth and Management Challenges, 7
Enhanced Revenue Opportunities, 7
Social Entrepreneurship Business Models, 8
Using the Inverse Commons to Build a Social Enterprise, 14
Using Social Media to Grow, 16
Appplying Other Chapters in this Book to Social Entrepreneurship, 18
Summary, 20
Study Questions, 20
Exercises, 20
Interactive Learning on the Web, 21
Additional Resources, 21
Endnotes, 21
13 TECHNOLOGY ENTREPRENEURSHIP (ONLINE) 22
Introduction, 23
Profile: Ian Kibblewhite-An Integrated IP Strategy, 24
Concepts Relevant to Technology-Based Companies, 25
Intellectual Property Management, 32
Summary, 44
Internet IP Source Sites, 45
Study Questions, 45
Exercises, 45
Case Study: Question, 46
Interactive Learning on the Web, 47
Additional Resources, 47
Endnotes, 47
14 FAMILY BUSINESSES: IMPORTANT AND DIFFERENT (ONLINE) 49
Introduction, 50
Profile: Richard Edelman: A Family Business Entrepreneur, 50
What Is a Family Business?, 51
The Three Subsystem Model, 53
Types of Family Business, 54
Considerations and Challenges of Family Businesses, 55
Governing the Family Firm, 63
Family Business Capital and Competitive Advantage, 65
Summary, 68
Study Questions, 68
Exercises, 69
Useful Web Sites: General Background Articles for Further Reading, 70
Articles Highlighting Problems in Family Businesses, 70
Endnotes, 70
Addendum: Three Case Studies Covering The Whole Book (Online)
Glossary of Terms 299
Index 311