INSEAD Library

Includes index

Digitized

CONTENTS Smart Women and Small Business Smart Women and Small Business Foreword: Deborah Moore, C.B.I., Sunbelt Business Advisors Network Preface CHAPTER ONE The Business Mind-Set:Your Key to Success Business Orientation 2 Women$Attitudes toward Money 3 Being Realistic about Risk 4 Career Ambition versus Life Ambition 5 Envision Your Future- Find a Female Role Model CHAPTER TWO 7 Business Career Planning: A New Way to Work Smart Career Planning -Then and Now 12 Phase Two Career Goals 13 SMART WOMAN PROFILE: FINDING WHO OUT YOUR FRIENDS ARE 15 Redefine What a Great Career Means 17 Small Business Defi nitions 19 Reasons to Love the Small Business World 20 AUTHOR INSIGHT: A CONSULTING TO FIGURE TAKE GIC OUT IF S A L BIZ LS FOR YOU 2 1 ML About Money 23 24 What You Have Going for You CHAPTER THREE Why Start from Scratch If Someone's Done It for You? Statistical Food for Thought 28 29 Downsides to Starting from Scratch Review Your Goals and Compare Starting to Buying 31 Not Invented Here-How Will This Make You Feel? 32 AUTHOR INSIGHT: YOUAN IDEAWOMAN ARE OR A BUSINESSWOMAN? 34 Assess Your Strengths 36 Great Concept, But Can I Afford to Do It? 37 Valuing Businesses for Sale 39 BUSINESS BUYER PROFILE: REALITY CHECK-CAN I SWING THIS FINANCIALLY? 40 Why Small Businesses Are for Sale 42 Considerations When Beginning Your Search 44 Talk to Other Women Who Have Done It 45 CHAPTER FOUR Finding the Right Business for You BUSINESS BUYER PROFILE: FIRM CRITERIA PLUS RESEARCH LEAD TO THE PURCHASE A STAFFING OF COMPANY 49 Which Business Type Suits You? 51 Where to h o k 59 Working with Business Brokers 62 BUSINESSBROKER INSIGHTS: PROMINENT A FEMALEBROKER SHARES TIPS 63 HER Sample Ads for Businesses on the Block 64 Evaluating the lndustry and the Target Company's Niche 66 The Process of Shopping for a Company 68 Hmm . . . This Still Doesn't Feel Right 74 CHAPTER FIVE Franchises and Direct Selling Companies Franchising Basics 78 Women in Franchising 82 Risk Profiles of Franchisees and Franchisors 84 FRANCHISEE PROFILES: INTERESTED""NOT STORIES WOMEN OF WHOCHANGED THEIR MINDS ABOUT FRANCHISING 86 Researching Franchise Opportunities 88 FRANCHISING SUCCESS STORY: CASH FLOW RELIEF, AND BULK DISCOUNTS, FLEXIBIL~TY 92 Franchise Consultants, Brokers, and Referral Sites 93 Warning Signs 95 Is Franchising Right for You? 98 Direct Selling: Franchising's Poor Cousin 99 Direct Selling Industry Resources 100 Party Plan Sales Model Examples 1OI DIRECT SELLING BUSINESS PROFILE: WHAT DO YOULOVE, AND GETOTHERS DO IT, TOO TO 103 Trunk Shows: Highbrow Direct Sales 105 Final Thoughts on Businesses in a Box 108 CHAPTER SIX A Piece of the Pie-Working for, Consulting for, or Partnering with Existing Business Owners PROFILES JOBS IN SMALLBUSINESS: OF TEMPORARY PI,~CEMENT CAREER; COOLSMALL A COMPANY TURNS r o 1 ?+YEAR w FINDS HUGE DEMAND TEMPORARY FOR POSITION 1 10 113 Common Consulting Opportunities CONSULTANT PROFILE: SETTING A PROFESSIONAL UP PRACTICE TO CONSULT SMALL ENTERPRISES 115 FOR Consulting as a Stepping-stone to Business Ownership 1 17 Buying a 50-50 or Minority Stake in a Business I20 AUTHOR INSIGHT: JUMPING A NEW ROLE AN INTO AT EXISTING COMPANY 122 CHAPTER SEVEN The Family Business Advantage (for the Lucky Few) Luck and Good Management 128 Transitions in Established Family Businesses 130 Newly Established Family Businesses and 132 Husband-Wife Teams Are Family Businesses More Family-Friendly? 133 How to Evaluate Opportunities in Family Businesses 134 Negotiate in a Professional, Arm's-Length Manner 135 Further Resources 136 CHAPTER EIGHT If You're Sure You Want to Start a Business When You Feel a Mandate to Start a Business 141 Confirm That You Want to Work in the Business You Start 142 Work Smarter, Not Harder: Narrow Your Range 143 of Products or Services Reduce the Company's Dependence on Its Founder 146 START-FROM-SCRATCH HADLEY PROFILE: POLLET, AND INC. ITS FOUNDER, HADLEY POLLET 147 The Role of the Owner: Sales, Sales, and More Sales 149 I5 I Professionalize with 0 6 t h ~ - S h e lTechnology f Seek Good Advice, Advisers, and Mentors 153 START-FROM-SCRATCH SMART PROFILE: WOMEN PRODUCTS FIND NICHE A MENTOR 1 54 A AND Get Inspired 155 CHAPTER NINE Smart Financing Strategies for Your Business Why and When to Seek Outside Funding 158 Thinking in Dollar Signs 161 Credit Risk and Personal Guarantees 162 Giving Up Equity 163 ENTREPRENEUR COMPARISON: BIG COMPANY THE VERSUS SMALL COMPANY APPROACH-TWO DIFFERENT PATHS ILLUSTRATE THE VALUE LEVERAGE 164 OF Is Seller Financing in the Cards? 167 Overview of the Bank Loan Process 168 SBA Loans versus Regular Loans 172 Who's Who? Shop Around 173 BUSINESSBORROWERPROFILE:BUYINGAND REV~TALIZING SHEL~TER GARDENS 176 ISLAND SBA Resources for Women 178 Alternate Sources of Financing 180 CHAPTER TEN You're Not Alone: Why Women Consider Business Partners Share the Burden, Share the Spoils 182 Hope for the Best, Plan for the Worst 184 Finding the Perfect Partner 185 PARTNERSHIP MODELS: FOUR STORIES THEIR AND LESSONSLEARNED 186 The Biggest Challenge: Interfiersonal Relations 189 AUTHORINSIGHT: HOW A BUSINESSCRISIS REVEALTHE CAN F R A G I I ,OF A PARTNERSHIP 191 ~ Essential Elements of a Successful Partnership 193 Ownership, Control, and Governance 194 Setting up a Board of Advisers 195 Legal Documents: How Far Can They Take You? 196 Formul Conflict Resolution 199 Women's Natural Talent for Partnerships 200 CHAPTER ELEVEN 181 Don't Get Discouraged, JustGet Started! The Great American Labor Shifl 203 Dimctionally Correct 203 No Regrets 204 APPENDIX A Sample Business Plan-Revitalizing Shelter Island Gardens APPENDIX B Start-up Business Plan Outline 207 APPENDIX C Top 10 Reasons to Contact an Attorney When Starting a Business APPENDIX D Choosing a Legal Business Entity APPENDIX E Business Information Sheet APPENDIX F Sample Business Valuation-Main Street Florist APPENDIX G Sample Term Sheet for 100 Percent Asset Purchase of an Existing Business APPENDIX H Multiple Shareholder Legal Questionnaire APPENDIX 1 The Partnership Charter Process APPENDIX J Books Worth Reading Notes Acknowledgments Index About the Author