Small Business For Dummies

by Eric Tyson, Jim Schell

Overview

Take control of your future and make the leap from employee to entrepreneur with this enterprising guide. From drafting a business plan to managing costs, you'll profit from expert advice and real-world examples that cover every aspect of building your own business.

Product Details

ISBN-13:	9781394242764
Publisher:	Wiley
Publication date:	04/09/2024
Edition description:	6th ed.
Pages:	464
Sales rank:	1,074,152
Product dimensions:	7.20(w) x 9.10(h) x 1.10(d)

About the Author

Eric Tyson, MBA, has been a personal financial writer, lecturer, and counselor for 25 years. He is the author of the award-winning Personal Finance For Dummies and several otherFor Dummies bestsellers.

Jim Schell has successfully launched and operated several small businesses. He has written other books and numerous columns on entrepreneurship.

Table of Contents

	Introduction	1
	About This Book	1
	Foolish Assumptions	2
	How to Use This Book	3
	For making big decisions	3
	As a road map	4
	As a problem solver and a frame of reference	4
	As a mentor	5
	Icons Used in This Book	5
	The One Common Denominator	6
Part I	Becoming an Entrepreneur	7
Chapter 1	Is Small Business for You?	9
	Getting Clear on the Terminology: What Is a Business?	10
	Taking the Small-Business Owner's Aptitude Test: Do You Have the Right Stuff?	16
	Identifying the Pros and Cons of Owning a Small Business	21
	Watching Out for Monkey Business	24
Chapter 2	Laying Your Personal Financial Foundation	29
	Getting Your Financial Ducks in Order	30
	Creating Your Personal Financial To-Do List	33
	Assessing and Replacing Benefits	39
	Managing Your Personal Finances Post-Launch	44
Chapter 3	Finding Your Niche and Timing Your Start-Up	45
	Why You Don't Need a New Niche or a Great Idea	45
	How to Choose Your Business	47
	Determining the Best Time for Your Start-Up	56
	Recognizing Your Number One Asset--You	57
Chapter 4	Turning Your Ideas into Plans	59
	Your Mission: Impossible If You Fail to Define It	59
	Your Business Plan: Don't Start Up without It	62
	Writing Your Business Plan	64
	Keeping Your Plan Current	78
Chapter 5	Financing, Ownership, and Organizational Options	79
	Determining Your Start-Up Cash Requirements	79
	Using Your Own Resources: Bootstrapping	82
	Outsourcing for Your Capital Needs	86
	Exploring Ownership Options: Going It Alone or Working with Partners and Shareholders	94
	Figuring Out Whether or Not to Incorporate	99
Part II	Buying an Existing Business	109
Chapter 6	Exploring Buying a Small Business	111
	Understanding Why to Buy a Business	111
	Knowing When You Shouldn't Buy	115
	Recognizing Pre-Purchase Prerequisites	118
	Considering a Franchise	126
	Evaluating Multilevel Marketing Companies	129
Chapter 7	Evaluating and Negotiating to Buy	131
	Kicking the Tires	133
	Making an Offer They Can't Refuse	146
	Moving into Your Newly Bought Business	155
Part III	Running a Successful Small Business	159
Chapter 8	Owners Wear Many Hats	161
	Working through the Nitty-Gritty Details of the Start-Up	161
	Outsourcing to Focus on What You Do Best	165
	Simplifying Your Accounting	167
	Controlling Your Expenses	175
	Managing Vendor Relationships	178
	Dealing with Bankers, Lawyers, and Other Outsiders	180
Chapter 9	Marketing 101: Product, Promotion, Sales, Distribution, and Pricing	187
	Product and Service Development	188
	Spreading the Word: Promotion	190
	Publicity	199
	Channeling Products to Customers: Distribution	201
	Pricing: Cost Plus Value	206
	Sales: Where the Rubber Hits the Road	210
Chapter 10	Keeping Your Customers Loyal	217
	Retaining Your Customer Base	218
	Dealing with Dissatisfied (And Difficult) Customers	227
Chapter 11	Tracking Cash Flow, Costs, and Profits	231
	Cash Flow: The Fuel That Drives Your Business	232
	Making Sense of Financial Statements	234
	Turning the Numbers into Action	240
	Managing Your Inventory	245
	Collecting Your Accounts Receivables	246
	Improving Your Profitability	249
Chapter 12	Learning from Others' Experiences	255
	Find a Mentor	255
	Network with Peers	257
	Form a Board of Advisors	258
	Get a Partner	260
	Join a Trade Association	262
	Find a Business Incubator	263
	Locate Your Local Small Business Development Center	264
	Give SCORE a Try	264
	Soak Up Information Like a Sponge	265
Part IV	Keeping Your Business in Business	267
Chapter 13	Finding and Keeping Superstar Employees	269
	Assembling a Top Team	270
	Training Your Team: It's an Investment	275
	Motivating: Pay and Performance Issues	276
	Working Relationships: Designing a Flexible Organization Chart	288
	Recognizing the Importance of an Employee Manual	289
	Describing a Successful Employer	291
	Looking at Employee Leasing Companies	294
Chapter 14	Providing Employee Benefits	297
	Retirement Plans: The Underappreciated Benefit	298
	Deciding Whether to Share the Equity	304
	Including Insurance and Other Benefits	307
Chapter 15	The Long Arm of the Law: Regulatory and Legal Issues	315
	An Abundance of Small-Business Laws	315
	Suffering through Start-Up Regulations	317
	Laboring through Employee Costs and Laws	329
Chapter 16	Mastering Small-Business Taxes	331
	Getting Smarter About Taxes	332
	Keeping Good Financial Records	336
	Knowing Your Income Tax Bracket	337
	Staying on Top of Employment Taxes	339
	Spending Your Money Tax-Wisely	342
	Selecting an Entity and Tax Implications	343
Chapter 17	Special Considerations for Growing Businesses	345
	Growing in Stages	346
	Handling Human Resources Issues	349
	Addressing Time-Management Issues	351
	Choosing a Management System	353
	Troubleshooting Your Business	357
	Finding Your Role in an Evolving Business	360
Part V	The Part of Tens	365
Chapter 18	Ten Tips for Home-Based Businesses	367
	Recognize That Working from Home Isn't a Free Lunch	368
	Run Your Business Like a Business	369
	Keep Things Legal and Do Them Right the First Time	370
	Put On a Professional Face	371
	Choose the Right Technology	372
	Develop a Marketing Strategy	375
	Manage Your Time Effectively	376
	Motivate Yourself (If You Don't, Who Will?)	377
	Include Your Family	377
	Stay in the Loop	378
Chapter 19	Ten Ways Computers Can Aid Your Small Business	381
	Brainstorming and Researching Business Ideas	382
	Finding a Mentor	383
	Buying a Business or Franchise	383
	Searching for Financing	384
	Marketing Your Business	384
	Maintaining and Analyzing Your Financials	385
	Saving Time and Money	386
	Getting Organized and Integrated with Suites	387
	Filing Your Taxes	387
	Avoiding Attorneys	387
Chapter 20	Ten Tips for Managing Your Growing Business	389
	Focus On What You Do Best	389
	Bend the Rules When Necessary	390
	Hold Your Employees Accountable	390
	Consider the 80-20 Rule	391
	Think Ahead	392
	Sleep On It	393
	Resolve Conflicts	394
	Walk Your Talk	394
	Remember: Cash is King	395
	Follow the Rule of Many Reasons	396
	Index	397

What People are Saying About This

From the Publisher

This comprehensive and practical guide addresses how to find your business niche and time a start-up, figure out approximate costs, identify legal and tax issues, market products or services, and learn bookkeeping basics. Also recommended: Steven D. Peterson and others' Business Plans Kit for Dummies (3d ed. Wiley, May 2010.) (Library Journal, May 1, 2010)

Interviews

Cheat Sheet for Small Business For Dummies

By Eric Tyson and Jim Schell

From managing to marketing and everything in between, the world of small business can be both exciting and overwhelming. It's a place where no two workdays are exactly the same and where unpredictable things happen. If you're thinking about starting (or you already run and manage) your own business, check out the following list of tips to improve your chances of success.
Copyright © 2012 Eric Tyson, Jim Schell. All rights reserved.

20 Tips for Small-Business Success
1) Realize that not everyone is cut out to be a small-business owner. Take the time to explore whether you're compatible with running your own business. Some people are happier (and better off financially) on the other end of a paycheck.
2) Get your personal finances in order. Before you jump into the entrepreneurial fray, get your own money matters squared away.
3) Pick your niche. Take stock of your skills, interests, and employment history to select the business best suited to you. Choosing a niche that you can be passionate about will help improve your chances of succeeding. Remember: Many small-business owners succeed in businesses that are hardly unique or innovative.
4) Benefit from your business plan. The exercise of creating your business plan pays dividends. Answer the tough questions now, before the meter is running.
5) Don't think you need bankers and investors at the outset. The vast majority of small-business start-ups are bootstrapped (self-financed). Consider your own savings, investments, and salable assets and then talk to your friends and family before you look to outside sources.
6) Know which hats you wear best. In the early months and years of your business, you'll have to acquire many skills. Gain the background you need to oversee all the facets of your business, but also determine what tasks you should outsource or hire employees to manage.
7) Remember that nothing happens until a sale is made. How many good products go nowhere because they don't reach the shelves? Sales are what drive your business. You need a crackerjack marketing plan that details how you intend to package, promote, distribute, price, and sell your product or service.
8) Pay attention to your customers. After all, you have to see a customer to know one. No matter how busy you are, especially in the early years of your business, be sure to spend at least 25 percent of your time with customers. You can't make the right business decisions without understanding the customer's viewpoint.
9) Solve your customers' problems. The best way to satisfy your customers is not by selling them products or services but by providing solutions to their problems. Understand the difference and market your products and services accordingly.
10) Keep in mind that quality takes only moments to lose and years to regain. Quality isn't a destination but rather a never-ending journey. After you've strayed from quality's path, your journey may be sidetracked forever.
11) Put profitability first and rewards second. Beware of the small business that treats itself to hefty salaries, high-priced consultants, and waterfalls in the lobby. In small business, profitability must come first. To understand profitability, you must first measure your cash flow and understand your key financial ratios.
12) Hire superstars. If you intend to create a growing business, your number one duty is to assemble a team of superstar employees in your game-breaker positions. Game-breaker positions are key positions, such as the president/CEO (that's you), the financial person, the sales manager, the marketing manager, the production manager, the office manager, the purchasing agent, the art director, and so on, that will make or break your company.
13) Don't go it alone. Tap into resources, such as small-business peers, mentors, and trade associations, that can help take some of the energy-draining trial and error out of starting and running your business.
14) Remember that vendors are partners, too. A good vendor is as important to your business as a good customer. Treat your vendors like customers and watch the partnerships grow.
15) Make use of benefits. The most valuable long-term benefit you can offer yourself and your employees is a retirement savings plan. In addition, find out how to provide insurance and other benefits and reduce your tax bill at the same time.
16) Pay attention to all small-business-related regulatory issues. Federal, state, and local government agencies require an array of licenses, registrations, and permits. Obey them or face stiff penalties, including possible closure of your business.
17) Know the tax laws. Invest in understanding tax issues that affect your small business. You can avoid trouble and, at the same time, legally slice thousands of dollars off your tax bill if you know the ins and outs of small-business tax law.
18) Keep your focus on the people. Whatever happens to a small business happens at the hands of the people who work for it.
19) Fast, good, or cheap — pick any two. Serious trouble awaits those business owners who attempt to be all things to the marketplace. Focus on what you do best.
20) Develop a passion for learning. As your business changes and grows, you need to change and grow along with it — particularly as you transition to manager. The one common denominator you find in all successful business owners is a passion for learning.

Editorial Reviews

This comprehensive and practical guide addresses how to find your business niche and time a start-up, figure out approximate costs, identify legal and tax issues, market products or services, and learn bookkeeping basics. Also recommended: Steven D. Peterson and others' Business Plans Kit for Dummies (3d ed. Wiley, May 2010.) (Library Journal, May 1, 2010)

From the Publisher