Contents 1
1 Small business today 1
Definitions of small business， using size 3
Organizational definitions of small business 6
Entrepreneurs 14
Intrapreneurs 15
Corporate ventures 16
2 The small business person．why they 18
matter and why they often fail 18
The characteristics of a small business person 18
e top entrepreneurs 23
Self-evaluation for prospective small business owners 28
Why small firms matter 29
Why do people want to start a small business? 35
How do small businesses measure success？ 39
Challenges and problems 40
Why do small firms fail？ 42
3 Forming the business 52
Sole trader 52
Partnerships 55
Limited companies 60
Cooperatives 64
4 Sources of finance 66
Why borrowing is attractive 66
What balance of debt to equity is right 68
What financiers look out for 70
Sources of funds 73
Debt capital 73
Shareholders’funds 80
Other ways to fund a small business 87
5 Start-up strategies 89
The business idea and how a small business can exploit it 89
The ways in 90
Management buy－outs 102
Running the family business 104
6 Franchising 109
Forms of franchising 109
The business sectors covered by franchising 113
Advantages and disadvantages of taking up a franchise 115
A mutual dependence 119
7 Market research 122
Market research topics 123
Developing a prodUCt market strategy 125
Some further product issues 126
DIY market research 127
First steps 128
8 Financial management 132
Winning the cash flow war 132
Understanding the nature of profit 136
Breaking even 140
9 Managing the small business 146
Missions－management starting－point 146
Finding the people to manage 151
improving selection 155
small business management styles 156
How much management does a small business need？ 161
Delegation－the key to the owner－manager’s 163
survival 163
10 The business plan 167
The benefits 171
Writing and editing 176
Focused recipient 177
Oral presentation 179
11 Exit routes 181
Reasons why private company owners sell up 183
Where are the exits？ 184
Who can helP？ 186
Preparing for the sale 188
A guide to further reading 190
Index 191