MT209 Small Business Management

1. MT209 Small Business Management Unit 1 - Introduction: Entrepreneurship, Integrity, and Ethics

2. Contact Information • Email: mpiva@kaplan.edu • AIM: mpkapfac • Office Hours: Mon & Wed 4 PM ET • Kaplan Technical Support: 1-866-522-7747 • (For all computer related issues)

3. Outline of Our Course Our small business management course will: utilize a small business plan development activity as a structure through which to examine several critical managerial skills required by a small business. While all businesses, large or small, require these skills, it is particularly significant for new small businesses because the entrepreneur/founder must personally ensure that these resources are provided by the founder personally, by the venture’s management team, by outside resources, or some combination of these. Identifying and understanding these requirements is a necessary first step in this process. This is what we seek to do in this study.

4. Outline of Our Course (Continued) Unit 1 - Introduction: Entrepreneurship, Integrity, and Ethics Unit 2 - Getting Started: From Idea to Business Venture Unit 3 - Planning the Business and Its Products or Services Unit 4 - Marketing the Business Unit 5 - The Business as a Global Entity Unit 6 - Operating the Business Unit 7 - Managing and Organizing the Business Unit 8 - Financing and Capitalizing the Business Unit 9 - Managing Business Risk Unit 10 - Reflecting on MT209, Small Business Management

5. The Parallel Business Plan Development Business Description, Vision Statement, and Mission Statement. (Unit 2) Description of Products or Services (Unit 3) Marketing Plan (Unit 4) No Plan Assignment (Globalization Unit 5) Operational Plan (Unit 6) Management and Organization Plan (Unit 7) Financial Plan and Capitalization Plan (Unit 8) Executive Summary (Unit 9)

6. The Parallel Business Plan Development (Continued) Each Unit, you will complete the assigned section(s) of the plan on the Plan Template. You will submit the completed template for grading and instructor feedback in each unit (except Unit 5). Feedback will be provided and the template returned to you for the next assignments. Finally, in Unit 9, you will submit the template containing your incorporation of any instructor feedback plus the Executive Summary section of the plan as your final project.

7. The Parallel Business Plan Development (Continued)A Descriptive Plan The business plan in this class will differ from an actual plan in one significant way. In the Marketing Plan section and the Financial Plan and Capitalization Plan sections, rather than conducting the necessary secondary and primary research to arrive at your pro forma financial estimates, you will instead be required to describe and explain each of these pro forma elements in detail with the goal of gaining an understanding of these elements and their significance to the new business. Actual research necessary to arrive at meaningful pro forma estimates is a time-consuming task that is beyond the constraints of our allocated time. The usefulness of your real plan however, will depend on the accuracy of these pro forma estimates!

8. The Parallel Business Plan Development (Continued)Your Venture Idea! You are strongly encouraged to use a business idea of your own for this plan activity! This may be something you have been dreaming about, something you already know something about, or even something you have already started. It could even be a hobby that you believe could become a business opportunity! Use your imagination! In the unlikely event you cannot select a proposed venture opportunity, you may choose from one of the two business scenarios located in your Doc Sharing area.

9. How to Be Successful in This Study Check class email each day Always check for Class Announcements Always complete all assigned readings each unit week before attempting other work Always complete all assignments and work on each unit’s To Do List Always ensure that all assigned work is completed by the close of each unit Always reach out to your instructor for any help you feel you need without delay Kaplan Unit Weeks begin on Wednesday mornings and extend through the following Tuesday night at midnight. All class work is designed for you to have each unit’s work submitted during this times.

10. Know Your Syllabus! Your course syllabus is your “roadmap” or “GPS” for the course. You should have received a copy prior to class, a copy is contained within the course room and a copy is in your Doc Sharing area. It contains the requirements and expectations for this course. It is your responsibility to read this carefully and to thoroughly understand everything in it. It is a good idea to print a copy for your reference.

11. Key Syllabus Points: The Kaplan School of Business Late Policies Kaplan School of Business Late Policies are designed to help you in the event of life-changing events such as serious illness, death, military duty, etc. It is not designed to assist with computer-related problems, time management issues, etc. In the event you experience an extenuating circumstance, the key is to notify your instructor immediately for help. In the absence of any extenuating circumstances, the following late penalties apply: Up to one week (1-7 calendar days) late 20% deduction in points. After one week (8-14 calendar days) late 30% deduction in points. No work will be accepted more than two (2) weeks after the due date. Late work must be submitted prior to the last day of the course. Final projects will not be accepted after the due date established in the course.

12. Key Syllabus Points: Grades

13. The Online Environment Just as you would be required to have certain supplies and equipment for traditional college study, there are several requirements for successful online study at Kaplan University and this class: Your computer – This is a critical tool for your online education. It must be correctly configured with the necessary software components to function correctly within the Kaplan learning environment. It is your responsibility to ensure that you have a reliable Internet service provider (ISP) and the necessary software and hardware. Kaplan Technical Support has provided an online computer check and can assist you with any technical issues. They may be reached at: 866-348-1196 (toll free). Microsoft Word – This class requires that all assignments be submitted using MS Word in .doc or .docx format. It is your responsibility to ensure that you have this on your computer.

14. The Online Environment (Continued) Microsoft PowerPoint – This class will utilize MS Power Point and you will need this product. Text book – This class utilizes an e-Text version of the Lonegenecker, Petty, Palich, and Moore (2011) text Small Business Management (15 th ed.). You will find these chapters in your Doc Sharing area. Adobe Acrobat Reader – This software is required to read some of the content in your class room in pdf format. It can be downloaded for free at: http://www.adobe.com/products/acrobat/readstep2.html

15. Unit 1 Outcomes As a result of your work in this unit, you should be able to: Distinguish between entrepreneurial and managerial skill sets. Distinguish among the different types and sources of business ownership options. Describe external and internal analyses that might shape the selection of venture opportunities. Explain broad-based strategy options and focus strategies. Assess the feasibility of a business idea before writing a business plan.

16. Unit 1 To Do List: • Start the Unit: Review the course syllabus Review the key terms • Study: Read Chapter 1 and Chapter 2 in your text. • Prepare: Review the assigned case: Not So Sweet Surrender Read about your Final Project • Graded Assignments: Respond to the Unit 1 Discussion Complete the Unit 1 Assignment Attend the Unit 1 Seminar or complete the Alternative Assignment

17. Key Features: •  The Business Plan will form a progressive assignment on a continuous template throughout the course. Each week in Units 2-9 (except 5) you will complete a section or sections of the mini-business plan in a descriptive format. This will be the same as a regular plan except that it will contain detailed explanations of the pro forma elements instead of numbers. • Each week, the particular section will be graded as a Dropbox assignment and instructor feedback provided. • In Week 9, the Executive Summary will be completed and previous feedback incorporation into previous sections will comprise the Final Project.

18. Unit Outline: • Unit 1 - Introduction: Entrepreneurship, Integrity, and Ethics • Unit 2 - Getting Started: From Idea to Business Venture • Unit 3 - Planning the Business and Its Products or Services • Unit 4 - Marketing the Business • Unit 5 - The Business as a Global Entity • Unit 6 - Operating the Business • Unit 7 - Managing and Organizing the Business • Unit 8 - Financing and Capitalizing the Business • Unit 9 - Managing the Business Risk • Unit 10 - Reflecting on MT209 Small Business Management

19. Weekly Graded Activities:

20. Let’s Examine Each in Detail

21. Any questions?

22. What is Entrepreneurship? First, entrepreneurship requires an entrepreneurial opportunity! This may be thought of as some possibility of a new profitable business venture brought about by change. Second, it involves a careful evaluation of this opportunity before the “window of opportunity” closes or another entrepreneur is alerted to it to determine if it is, in fact, a feasible and profitable venture opportunity. Third, it requires the entrepreneur to take specific steps to enact the opportunity in the form of a new business.

23. Entrepreneurship versus Management • While specific entrepreneurial skills are required to identify, evaluate, and exploit or enact an entrepreneurial opportunity, a somewhat different set of managerial skills are required to sustain and grow the new business venture. This often poses a challenge for entrepreneurs. • Let’s begin by listing common traits you think of when you hear the word “entrepreneur.” • Take a moment and list some for me now

24. Entrepreneurship versus Management • Now, I want you to think about those skills and traits you associate with managing a business! Do these reflect discipline, narrow focus, specific repetitive things that must be done on a regular basis? • Take a moment and list some for me now

25. Entrepreneurship versus Management • As you can quickly see, most of us think of the entrepreneur as a fearless risk taker, creative, taking a broad view of the environment around him or her. We often think of the entrepreneur as “larger than life,” self-assured, independent thinker, etc. • Conversely, we often view a business manager as narrowly focused on the needs of the business, its customers, and employees. We would perhaps agree that a good manager must trust others to make necessary contributions to the success of the business. A good business leader/manager, we might all agree, possesses the abilities to trust and lead others while paying close attention to the immediate needs of the business. • How do these two skills sets differ?

26. Key Managerial Skills Areas • Business Description, Vision Statement, and Mission Statement – Defining the future of the business and articulating the mission, goals, and purpose of the business. “What the business will be” (Unit 2) • Description of Products or Services – Defining specifically the products or services the new business seeks to provide its customers. “What the business will do” (Unit 3) • Marketing Plan – Defining the target markets and customers for the proposed business and approaches to be used to successfully create value for its customers and how the business will fit into the existing market. “Where the business will do it” (Unit 4)

27. Key Managerial Skills Areas Continued • Operational Plan - Specific details about how products or services will be developed, and produced. “How the business will do it”(Unit 6) • Management and Organization Plan – Details about who will form the key management team, their skills and qualifications; and the form of organizational structure. “Who will do it?” (Unit 7) • Financial Plan and Capitalization Plan – Details the estimates of startup costs, projected revenue and expenses (Financial Plan) and the sources and amounts of the startup capital (Capitalization Plan). “How much will it cost and how will it be funded?” (Unit 8) • Executive Summary – The two-page summary of the entire business plan designed to present the reader with an interesting and compelling rationale for your business venture. “The sales pitch for your business.” (Unit 9)

28. Any questions?

29. Unit 1 - Introduction: Entrepreneurship, Integrity, and Ethics What do I have to do in this unit? • Start the Unit:Review the course syllabus Review the key terms • Study: Read Chapter 1 and Chapter 2 in your text. • Prepare: Review the assigned case: Not So Sweet Surrender Read about your Final Project . • Graded Assignments: Respond to the Unit 1 Discussion Complete the Unit 1 Assignment Attend the Unit 1 Seminar or complete the Alternative Assignment

30. Unit 1 - Introduction: Entrepreneurship, Integrity, and Ethics What do I have to do in this unit? • Start the Unit:Review the course syllabus Review the key terms • Study: Read Chapter 1 and Chapter 2 in your text. • Prepare: Review the assigned case: Not So Sweet Surrender Read about your Final Project . • Graded Assignments: Respond to the Unit 1 Discussion Complete the Unit 1 Assignment Attend the Unit 1 Seminar or complete the Alternative Assignment

31. Integrity and Entrepreneurship • What Is Integrity? • An uncompromising adherence to doing what is right and proper • Honesty, reliability, and fairness in business practices • An essential element of successful business relationships • It is as much about what to do as it is who to be. • Doing the Right Thing • Ethical issues—questions of right and wrong • Legal and ethical considerations- are they the same? • Conflicts of self-interest

32. Exhibit 2.1 Difficult Ethical Issues Facing Small Firms • Relationships with customers, clients, and competitors(relationships with outside parties in the marketplace) • Human resource decisions(decisions relating to employment and promotion) • Employee obligations to employer(employee responsibilities and actions that in some way conflict with the best interests of the employer) • Management processes and relationships(superior–subordinate relationships) • Governmental obligations and relationships(compliance with governmental requirements and reporting to government agencies) • Relationships with suppliers(practices and deceptions that tend to defraud suppliers) • Environmental and social responsibilities(business obligations to the environment and society) Source: Leslie E. Palich, Justin G. Longenecker, Carlos W. Moore, and J. William Petty, “Integrity and Small Business: A Framework and Empirical Analysis,” proceedings of the forty-ninth World Conference of the International Council for Small Business, Johannesburg, South Africa, June 2004.

33. See you next week! Remember, our Class Seminars will always be held at the same hour and the same day each week! After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

34. Thank you for joining me today! I look forward to joining you next week!