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Contents

Preface

ix

Part one

 

The Decision To Start A Business

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Chapter 1

The Role of Entrepreneurship and Small Business in Canada Chapter

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Small Business Profile The Entrepreneurial Increases in the Number of Business

Establishments

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Increases in Government Interest and Increases in the Number of Small-

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Business-Related Courses at Colleges

 

and Universities

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in Large Businesses

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Increases in the Political Power of

Small Business

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. Improvement in the Image of Small

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What Is Small Business?

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Comparison and Evaluation Government

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Lending Programs

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Current State of Small Business in Canada

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Young

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Senior Entrepreneurs

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Female Entrepreneurs

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Immigrant

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Entrepreneurial Activity by

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Entrepreneurial Activity by Region Contributions of Small Business

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. Innovations and Inventions

Labour Intensity

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Productivity and Profitability

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Flexibility

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Canadian Ownership

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Small Business Health as a Link to Economic Growth

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Social Contributions Small Business and the

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Change.

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Technology

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Consumer Demographics and Buying

 

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Competitive Aspects of Markets

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The Economy The Political

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The Social Climate

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Summary

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Chapter Problems and

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. Suggested Readings

Exercise .

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Chapter 2

The Small Business Decision

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Chapter Objectives

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Small Business Profile The Small Business Decision:

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Personal

 

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Advantages of Small Business Ownership

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Disadvantages of Small Business Ownership

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Demographic Characteristics of Entrepreneurs Personality Characteristics Required by

 

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Successful Entrepreneurs

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Organizational

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Small Business Successes

 

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Entrepreneurial Success in Large Businesses

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Small Business Failures Entrepreneurship and Small Business

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Management

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Entrepreneurial Skills

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Managerial Skills.

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Summary

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Chapter Problems and

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. Appendix 2A: Entrepreneur Suitability

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Suggested Readings

 

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Comprehensive Case—Sid Stevens: Part 1

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Contents

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Chapter 3

Evaluation of a Business Opportunity

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Chapter Objectives

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Small Business Profile Non-quantitative Assessment of

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Business Opportunities

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Idea Generation

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Evaluating How to Break Into the

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Developing a Strategic Competitive Advantage

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Collecting Sources of Information

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Secondary Data .

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Primary Data .

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Quantitative Assessment of Business

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Preparing the Feasibility

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Step 1: Calculate Market Potential

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Step 2: Calculate Market Share Step 3: Calculate Net Income and

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Cash

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Summary

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Chapter Problems and

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Web Exercises

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Appendix 3A: Small Business Reference Books and Sources of Information

Small Business

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Suggested Periodicals for Small

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Online Sources of Assistance for

Organizations and Trade Associations that Assist Entrepreneurs

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Suggested Readings

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Comprehensive Case—Sid Stevens: Part 2

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VIDEO CASES FOR PART

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Java Nook

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Bright Lights, Deep

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CASES FOR PART 1

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Petite Shop (A)

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Petite Shop (B)

Big D’s Painting Company

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Katie’s Custom Engraving Logos

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Part two

Preparing for Small Business Ownership

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Chapter 4

Organizing a Business—The Business Plan

 

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Chapter

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Small Business Profile

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Getting Started: Establishing the Business

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Advantages of Organizing a Small Business from Scratch

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Disadvantages of Organizing a Small Business from Scratch

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The Small Business Plan

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Components of the Plan

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Prepare a Table of Contents

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Prepare a Synopsis of the Plan in an Executive Summary and Background

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Describe the Management

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Establish Business Objectives

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Plan the Marketing Approach

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Describe the Selection of the Location

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Determine the Physical Facilities

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Plan the Financing

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Plan the Personnel

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Investigate the Legal Requirements

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Summary

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109

Chapter Problems and

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Appendix 4A: Checklist for a Small

 

Business

Plan.

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Business Plan 1—Retail Stocking Store,

The Sock Hop

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112

. Business Plan 2—Quality Cuts

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Suggested Readings

 

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Chapter 5

Buying a Business

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Chapter

 

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Small Business Profile

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Purchasing an Existing Business

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Advantages of Purchasing

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Disadvantages of

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Sources of Businesses for Sale

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vi

Contents

Evaluating a Business for

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Industry

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The Previous Owner

Financial Condition of the Business

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Condition of the Assets

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Quality of Personnel

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External Relationships of the Business

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Condition of the

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Determining the Price or Value of a Business

 

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Market

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Asset

Value .

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. Combination Methods

Earnings Value

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The Purchase Transaction

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Negotiating the Deal

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Summary

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152

Chapter Problems and

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. Appendix 5A: Checklist of Considerations in Purchasing a Business

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153

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Suggested Readings

155

Comprehensive Case—Sid Stevens: Part 3

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Chapter 6

Franchising

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Chapter

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Small Business Profile

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History and Background of Franchising

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What Is Franchising?

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Advantages of Franchising Potential Disadvantages of

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Evaluation of a Franchise Opportunity

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. Industry Associations

Franchisor

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. Other Franchisees

Professionals

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Government Agencies

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Additional Areas to

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The Entrepreneur as Franchisor

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What Businesses Can Be

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How Does One Become a Franchisor?

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Franchising in the Future

172

. Chapter Problems and

Summary

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Web Exercise .

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Appendix 6A: A Sampling of Franchises Operating in Canada

 

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Appendix 6B: A Checklist for the Potential Franchisee: Questions to Answer Affirmatively before Going into

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Suggested Readings

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Chapter 7

Financing the Small Business

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Chapter

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Small Business Profile

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Small Business Financing

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Determining the Amount of Funds Needed

 

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. Ongoing Operating Costs

Start-up Costs

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182

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The Owner’s Net Worth

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Determining Types of Financing

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Equity

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184

Debt Financing

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. Determining the Term of Financing

. Preparing a Proposal to Obtain Financing

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193

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Criteria Used in the Loan Decision

 

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Lender

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. Chapter Problems and

Summary

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198

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199

Appendix 7A: Provincial Equity

Capital

Programs .

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199

200

Appendix 7C: Provincial and Territorial Government Financial Assistance Programs

 

202

and Agencies for Small Business Appendix 7D: Venture Capital Firms In Canada

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Suggested Readings

206

Comprehensive Case—Sid Stevens: Part 4

207

VIDEO CASES FOR PART

208

Beer Mitts

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208

Cottage Cheesecake Industry

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Bulldog Interactive Fitness

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Easy

Wash .

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209

209

Clark’s Sporting Goods

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Jensen Roofing

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210

Conrad’s Photographer’s Supplies

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Kelly’s Grill.

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