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ENTREPRENEURSHIP Case 1 Q1 Seems like a lot of work in writing articles and time in chat rooms.

Although it might be a way of getting people to my website with only a small expense, do you think that this approach is worth the investment of time?

A website offers the visitor information about the company the pro ucts! an the services that they brin" to the tab#e$ It "ives a## of this information in an easy to navi"ate metho to the person who is see%in" it$ That is! un#ess the website esi"n is o# er! is not base on to ay&s techno#o"y or has not been up ate in 'uite some time. (hen you teach these visitors somethin" new! you a#so create a )soft se##* mar%etin" opportunity$ (ith a simp#e c#ic% on your UR+! prospects can trave# to your site an fitness pro ucts$ To ay is it increasin"#y important that every business own a website an that your website esi"n be base on the most mo ern techno#o"y avai#ab#e$ It is imperative that the website is at #east brochure #eve# an shou# i ea##y be far more$ ,our website esi"n shou# be c#ean an your content shou# ref#ect the offerin"s of the business an in a ition offer information about other pro ucts in which the visitor may be intereste or artic#es about metho s of use$ ,ou*## be "reat#y rewar e with free PR opportunities that can #ea to imme iate an #on"-term sa#es$ iscover your company*s #ine of

Q !hat are the other benefits of this approach over and above simple a cost saving?
a. Ratin"s! reviews an fee bac% from the website are another thin" that peop#e are see%in" when they

come to your site$ b$ Try as%in" for a #in% to your site or a #in% tra e$ +in%s from sites re#ate to yours provi e another benefit. they boost your site*s position in search en"ines that ran% sites accor in" to /#in% popu#arity$0 If you wou# #i%e fee bac% in a ition to "ettin" free e1posure! try han"in" out in chat rooms$
c. Run a %ey-wor 'uery in search en"ines$ Te## (eb site mana"ers what your company oes an how

your information can he#p their visitors$ ,ou may be offere a #in% or a writin" opportunity$ Q" Are there particular businesses and products more suitable for this approach? I thin% most rea ers wi## more #i%e#y search how to ma%e money! that&s a very popu#ar search term an everyone wants to ma%e money$

Sma## businesses have misconceptions about what socia# me ia mar%etin" success #oo%s #i%e - especia##y when their own resu#ts show they are oin" a fantastic 2ob usin" 3aceboo% to rive customer en"a"ement! fin new customers an "enerate repeat sa#es!4 4En"a"ement isn&t comp#icate ! nor oes it have to be cost#y$ Respon in" to fans! as%in" 'uestions! an )+i%e-"atin"& content or offers are a## "reat ways to boost interaction with your fans$ The best part for time-starve sma## businesses is that oin" these thin"s ta%es 2ust a few minutes a ay$4

CASE 5 Q1 #t is not surprising that a lawyer should say that an entrepreneur needs a lawyer to start a business. # certainly do not have money to burn on unnecessary legal fees. !hich things do # need a lawyer for now, which things need a lawyer but can be delayed and finally which things can # do myself?

Actua##y! many sma## business owners may not even thin% about a #awyer unti# they have an issue that is causin" them to #ose s#eep! such as bein" face with a #awsuit an to a ress fo##owin" issues re#ate to. 1. $ontracts. ,ou wi## nee a #awyer who can un erstan your business 'uic%#y6 prepare the stan ar form contracts you wi## nee with customers! c#ients an supp#iers6 an he#p you respon to contracts that other peop#e wi## want you to si"n$ . %usiness organi&ations. ,ou wi## nee a #awyer who can he#p you eci e whether a corporation or #imite #iabi#ity company 7++C8 is the better way to or"ani9e your business! an prepare the necessary paperwor%$ ". 'eal estate. +eases of commercia# space--such as offices an retai# stores--are hi"h#y comp#e1 an are a#ways rafte to benefit the #an #or $ :ecause they ten to be 4printe form4 ocuments! you may be tempte to thin% they are not ne"otiab#e$ Not so$ ,our attorney shou# have a stan ar 4tenant&s a en um!4 containin" provisions that benefit you! that can be a e to the printe form #ease ocument$ (. )axes and licenses. A#thou"h your accountant wi## prepare an fi#e your business ta1 returns each year! your #awyer shou# %now how to re"ister your business for fe era# an state ta1 i entification numbers! an un erstan the ta1 conse'uences of the more basic business transactions in which your business wi## en"a"e$ *. #ntellectual property. If you are in a me ia! esi"n or other creative-type business! it is certain#y a 4p#us4 if your #awyer can he#p you re"ister your pro ucts an services for fe era# tra emar% an copyri"ht protection$ ;enera##y! thou"h! these tas%s are performe by specia#ists who o nothin" but 4inte##ectua# property4 #e"a# wor%$ If your #awyer says he or she 4specia#i9es in sma## businesses!4 then he or she shou# have a c#ose wor%in" re#ationship with one or more inte##ectua# property specia#ist$ <ne of the many reasons for formin" a business un er a particu#ar corporate form is to protect your persona# assets$ If you on&t have assets! you mi"ht not nee to create a corporate form at a##$

Q +ther than the costs, are there any disadvantages to ,bouncing ideas- of a lawyer? )hey can offer several disadvantages due to one or more reasons enlisted below. 1$ they on*t communicate c#ear#y or concise#y0 5$ they on*t %eep me informe 0 =$ they are constant#y over-#awyerin"0 >$ they have poor #istenin" s%i##s0 ?$ ine1perience #awyers are oin" most of the wor%0 @$ they spen too much time on insi"nificant issues0 A$ they on*t "enuine#y care about me or my matter0
8. their fees are throu"h the roof0

B$ they are unresponsive0 1C$ They are ea#-%i##ers Q" # certainly don/t want to pay more taxes than # must. !hat the tax implications of the different legal structures for the business? The ta1 imp#ications for ifferent #e"a# structures for the business are. A. )ax #ssues for 0roprietorship 3or the proprietorship the IRS treats the business as the in ivi ua# owner$ A## income is persona# income an the business is not ta1e as a separate entity$ The proprietorship has some ta1 a vanta"es compare to the corporation$ a$ There is no oub#e ta1 on profits$ b$ There is no capita# stoc% ta1 or pena#ty for retaine earnin"s$ %. )ax #ssues for 0artnership. The partnership*s ta1 a vanta"es an isa vanta"es are simi#ar to the proprietorship$ +imite partnerships can provi e uni'ue ta1 a vanta"es$ :oth the partnership an proprietorship have a #e"a# i entity istinct from the partners! but this i entity is on#y for accountin" purposes$ The income is istribute base on the partnership a"reement! an the owners then report their share as persona# income$ $. )ax #ssues for $orporation The corporation has the a vanta"e of bein" ab#e to ta%e many e uctions not otherwise avai#ab#e$ The isa vanta"e is that ivi en s are ta1e twice$ This oub#e ta1ation can be avoi e if the income is istribute as sa#ary$ The corporation ta1 may a#so be #ower than the in ivi ua# rate$ CASE = Q1 A cheaper way of advertising that is more effective at attracting customers 1 is this too good to be true? !hy has the ,simpler is better- approach worked for %reckenridge %rewery? A cheaper way of a vertisin" that is more effective at attractin" customers D is true ue to severa# reasons.
1. It was consistent D

2. 3. 4. 5.

1CCE Authentic D A "reat e1perience D +oo%e after brewery*s reputation Far%etin" the "oo wor about the beer )he ,simpler is better- approach worked for %reckenridge %rewery because of several factors

below
I.

##.

A compelling reason 2 The bran proposition is the uni'ue se##in" point 7USP8 that ifferentiates it from its competitors$ It is the compe##in" reason why you nee it an shou# be no more than a sin"#e sentence G shou# be impactfu#$ 3or e1amp#e. /:rewe the way it is because we rin%in" most of it$0 0osition the brand against its competitors 2 In a crow e mar%etp#ace! it is ifficu#t to stan out if you are the best-se##in" bran $ The opportunity is to i entify the attributes that ifferentiate your bran an promote your bran as the #ea er in that cate"ory$ 3or e1amp#e. /the Napa Ha##ey of microbreweries!0 #t wasn/t anonymous2 The bran persona#ity is the bran &s istinctive character inc#u in" communication! behavior an visua# sty#e$ A bran with a stron" persona#ity has a "reater chance of encoura"in" a eeper re#ationship with the consumer$ 3or e1amp#e. consumers can buy promotiona# items such as pint "#asses an T-shirts$

III.

IV.

3mpathised with the community 2 The pro uct was a#i"ne with the community of peop#e with an interest in the bran ! where the fan community associate themse#ves with the bran provi in" a va#uab#e resource for bran owners$ E1amp#e. the brewery poure out its compute-"enerate #o"o an create one as han crafte as its beer! e#iminatin" comp#icate e#ements that were ifficu#t to trans#ate into pac%a"in" an merchan isin"! such as the rop-sha ow effect on the mountain

Q Assume that the $3+ asked you about pricing its pint glasses and )2shirts to maximi&e profit from these items, or should # have a lower price to increase volume and benefit from the promotional impact the purchase these items have on the sales of my beer?<ne of the ifficu#t ecisions is eterminin" the appropriate price for the pro uct$ 3actors such as costs! iscounts! frei"ht! an mar%ups must be consi ere $ Far%etin" research can he#p etermine a reasonab#e price that consumers are wi##in" to pay$ Q".!ould you advise this approach to an entrepreneur whose primary products are highly technological? !hat about an entrepreneur whose products are sold to industrial buyers? In this case! Iistribution of the pro uct wou# be a crucia# factor as the pro uct is bein" so# to in ustria# buyers$ This factor provi es uti#ity or ma%es the pro uct convenient to purchase when it is nee e $ This variab#e must be consistent with other mar%etin" mi1 variab#es$ Type of channe#! number of interme iaries an #ocation of members shou# be escribe $

CASE > Q1.)his whole idea of experimentation seems to make sense, but all those little failures can add up, and if there enough of them, then this could lead to one big failure2the business going down the drain. 4ow can # best get the advantages of experimentation in terms of innovation while also reduction the costs so that # don/t run the risk of losing my business? The entrepreneuria# 2ourney is an opportunity to #earn throu"h e1perimentation$ History has shown that many an estab#ish corporation has #ost touch with its customers an has even cease to e1ist because of a #ac% of e1perimentation an stayin" re#evant$ P#anne e1periments can provi e an entrepreneur with "reat insi"hts into your business$ The %ey thou"h! is to #imit the cost of fai#ure$ :ein" in contro# of your business is an opportunity to e1periment with a new sa#es approach! try new combinations of pro ucts or services! or vary your wor% approach to see the effect it has on your team an overa## business$ (hi#e the ma2ority of e1periments on*t wor% out with the inten e resu#ts! one of your e1periments may create a brea%throu"h you nee to innovate an bui# a competitive a vanta"e$

Q . 5y employees, buyers, and suppliers like working for my company because we have a lot of wins. # am not sure how they will take it when our company begins to have a lot more failures 6even if those failures are small72 it is a psychological thing. 4ow can # handle this trade2off?

In a ba economy! you have fires to put out every ay! an you thin% it&s the time you can affor #east to step bac% an #oo% at the bi" picture$ I thin% that&s the best time to o it$4 'ule number one. 8on9t panic <ne particu#ar#y unfortunate response to a ownturn is to cut everythin" -- bu "ets! inventory! personne#! an prices$ Retai#ers have to be 2u icious about trimmin" inventory! 4If you cut your inventory to the bone! everybo y wi## notice$ Peop#e wi## won er if you&re "oin" to be aroun $ It&s #i%e a se#f-fu#fi##in" prophecy$4 Serving your customers 6employees, buyers : suppliers7 Payin" attention to customers -- a %ey strate"y for any business in a own turn -- means focusin" on services! 4:y provi in" the best services you can to your customers! you enhance the #i%e#ihoo you&## be ab#e to %eep them!4 $ommunicating problems and solutions A own turn ta%es a to## not on#y on the bottom #ine but a#so on the psyche$ :usiness owners cannot he#p but be affecte emotiona##y as they watch har earne "ains bein" wipe out by forces beyon their contro#$ :ut espite these pressures! sma## business owners an mana"ers nee to put up a brave front$ C#osetin" yourse#f in your office or wa#%in" aroun with your hea own! wi## on#y sprea the "#oom to emp#oyees an everyone e#se you ea# with

%ottom ;ine. In a own turn! sma## businesses nee to step bac% an assess their #on"-term strate"ies$ This often means resistin" impu#ses to s#ash 2obs! inventories! an mar%etin"$ 2. 3ocusin" on provi in" hi"h 'ua#ity services is an important strate"y for sma## businesses in a own turn$ ;oo services can separate a business from its competitors an he#p it to retain customers$ 3. Sma## business owners an mana"ers must stay visib#e an positive in a own turn$ Jeepin" communications open with emp#oyees! supp#iers! #en ers! an customers bui# s the trust an cooperation nee e to overcome cha##en"es$ 4. Iown turns can present opportunities for sma## businesses$ Some firms wi## vacate mar%ets when har times hit! an these openin"s can be fi##e by other companies$ A#so! sma## businesses can hire ta#ente peop#e who have #ost their 2obs at #ar"er firms$
1.

Q" 3ven if everyone else accepts it, # am not sure how # will cope. !hen pro<ects fail it hits me pretty hard emotionally. #s it <ust that # am not cut out for this type of approach?

<ne of the most important thin"s you can o to re uce the stress you may be fee#in" ue to the current financia# ownturn is to mo erate your e1posure to the oom an "#oom forecasts in the me ia$ ,es! these are ifficu#t times$ No one %nows how #on" they wi## #ast$ (hat we can be certain of is that thin"s wi## "et better eventua##y$ 3in a hea#thy ba#ance so that you can stay informe without a##owin" a## the ba news to create a state of constant stress$ (e are "oin" throu"h a si"nificant shift$ It isn&t the en of the wor# $ It is a#so very important to accept that there are some thin"s you simp#y can&t chan"e$ If you fin yourse#f worryin" about somethin" that is c#ear#y out of your contro#! practice some eep iaphra"matic breathin" for a few minutes! or "et outsi e an e1ercise$ Even #istenin" to up#iftin" music can refocus your min $ Positive thou"hts an intentions are the %ey to %eepin" yourse#f hea#thy an chasin" your worries away$ Another thin" you can o to ease your stress about an uncertain future is to be prepare for the cha##en"es ahea $ <ne of the best ways to prepare for a possib#e economic crisis is to honest#y eva#uate your financia# situation$ Hery few peop#e en2oy ta%in" a har #oo% at their finances! but it is the best p#ace to start$ Fa%e a #ist of a## your income sources an a## the e1penses you current#y have$ Ta%e your time an rea##y un erstan where your money is "oin"$ <nce you&ve one that! be reasonab#e an fi"ure out what you can cut bac% on or cut out$ As soon as you have the comp#ete picture! ma%e the cuts an ban% your savin"s$ ,ou may not be ab#e to prevent a crisis but you wi## put yourse#f in a much better position to ea# with one$ Ion&t for"et to ta%e care of yourse#f$ :o#ster your optimism by spen in" time oin" thin"s you #i%e$ Fa%e sure you inc#u e some money in your bu "et for thin"s that support your fami#y! we##-bein" #i%e e1ercise! eatin" ri"ht! "ettin" ener"y wor%$ Jeepin" yourse#f hea#thy wi## not on#y he#p you perform better at wor%! but it wi## put you in a "reat position to han #e any crisis that mi"ht come a#on"$