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 products, and the services that they bring to the table.

 It gives all of this information in an easy to navigate method to the person who is seeking it. That is, unless the website design is older, is not based on today's technology or has not been updated in quite some time.

When you teach these visitors something new, you also create a ‘soft sell’ marketing opportunity.

With a simple click on your URL, prospects can travel to your site and discover your company’s line of

fitness products.

Today is it increasingly important that every business own a website and that your website design be based on the most modern technology available. It is imperative that the website is at least brochure level and should ideally be far more. Your website design should be clean and your content should reflect the offerings of the business and in addition offer information about other products in which the visitor may be interested or articles about methods of use. 

You’ll be greatly rewarded with free PR opportunities that can lead to immediate and long-term sales.

Q2 What are the other benefits of this approach over and above simple a cost saving?

a. Ratings, reviews and feedback from the website are another thing that people are seeking when they come to your site. 

b. Try asking for a link to your site or a link trade. Links from sites related to yours provide another benefit: they boost your site’s position in search engines that rank sites according to “link popularity.” If you would like feedback in addition to getting free exposure, try hanging out in chat rooms.

c. Run a key-word query in search engines. Tell Web site managers what your company does and how your information can help their visitors. You may be offered a link or a writing opportunity.

Q3 Are there particular businesses and products more suitable for this approach?

I think most readers will more likely search how to make money, that's a very popular search term and everyone wants to make money.

Small businesses have misconceptions about what social media marketing success looks like - especially when their own results show they are doing a fantastic job using Facebook to drive customer engagement, find new customers and generate repeat sales,"

"Engagement isn't complicated, nor does it have to be costly. Responding to fans, asking questions, and ‘Like-gating' content or offers are all great ways to boost interaction with your fans. The best part for time-starved small businesses is that doing these things takes just a few minutes a day."

CASE 2

Q1 It is not surprising that a lawyer should say that an entrepreneur needs a lawyer to start a

business. I certainly do not have money to burn on unnecessary legal fees. Which things do I need

a lawyer for now, which things need a lawyer but can be delayed and finally which things can I do

myself?

Actually, many small business owners may not even think about a lawyer until they have an issue that is causing them to lose sleep, such as being faced with a lawsuit and to address following issues related to:

1. Contracts. You will need a lawyer who can understand your business quickly; prepare the standard form contracts you will need with customers, clients and suppliers; and help you respond to contracts that other people will want you to sign.2. Business organizations. You will need a lawyer who can help you decide whether a corporation or limited liability company (LLC) is the better way to organize your business, and prepare the necessary paperwork.3. Real estate. Leases of commercial space--such as offices and retail stores--are highly complex and are always drafted to benefit the landlord. Because they tend to be "printed form" documents, you may be tempted to think they are not negotiable. Not so. Your attorney should have a standard "tenant's addendum," containing provisions that benefit you, that can be added to the printed form lease document.4. Taxes and licenses. Although your accountant will prepare and file your business tax returns each year, your lawyer should know how to register your business for federal and state tax identification numbers, and understand the tax consequences of the more basic business transactions in which your business will engage.5. Intellectual property. If you are in a media, design or other creative-type business, it is certainly a "plus" if your lawyer can help you register your products and services for federal trademark and copyright protection. Generally, though, these tasks are performed by specialists who do nothing but "intellectual property" legal work. If your lawyer says he or she "specializes in small businesses," then he or she should have a close working relationship with one or more intellectual property specialist.

One of the many reasons for forming a business under a particular corporate form is to protect your personal assets. If you don't have assets, you might not need to create a corporate form at all.

Q2 Other than the costs, are there any disadvantages to “bouncing ideas” of a lawyer?

They can offer several disadvantages due to one or more reasons enlisted below:

1. they don’t communicate clearly or concisely”

2. they don’t keep me informed”

3. they are constantly over-lawyering”

4. they have poor listening skills”

5. inexperienced lawyers are doing most of the work”

6. they spend too much time on insignificant issues”

7. they don’t genuinely care about me or my matter”

8. their fees are through the roof” 

9. they are unresponsive”

10. They are deal-killers

Q3 I certainly don’t want to pay more taxes than I must. What the tax implications of the different

legal structures for the business?

The tax implications for different legal structures for the business are:

A. Tax Issues for ProprietorshipFor the proprietorship the IRS treats the business as the individual owner. All income is personal income and the business is not taxed as a separate entity. The proprietorship has some tax advantages compared to the corporation.a. There is no double tax on profits.b. There is no capital stock tax or penalty for retained earnings.

B. Tax Issues for Partnership.The partnership’s tax advantages and disadvantages are similar to the proprietorship. Limited partnerships can provide unique tax advantages. Both the partnership and proprietorship have a legal identity distinct from the partners, but this identity is only for accounting purposes. The income is distributed based on the partnership agreement, and the owners then report their share as personal income.

C. Tax Issues for CorporationThe corporation has the advantage of being able to take many deductions not otherwise available. The disadvantage is that dividends are taxed twice. This double taxation can be avoided if the income is distributed as salary. The corporation tax may also be lower than the individual rate.

CASE 3

Q1 A cheaper way of advertising that is more effective at attracting customers – is this too good to be

true? Why has the “simpler is better” approach worked for Breckenridge Brewery?

A cheaper way of advertising that is more effective at attracting customers – is true due to several reasons:

1. It was consistent –

2. 100% Authentic –3. A great experience –4. Looked after brewery’s reputation5. Marketing the good word about the beer

The “simpler is better” approach worked for Breckenridge Brewery because of several factors below

I. A compelling reason - The brand proposition is the unique selling point (USP) that differentiates it from its competitors. It is the compelling reason why you need it and should be no more than a single sentence & should be impactful. For example: “Brewed the way it is because we drinking most of it.”

II. Position the brand against its competitors -

In a crowded marketplace, it is difficult to stand out if you are the best-selling brand. The opportunity is to identify the attributes that differentiate your brand and promote your brand as the leader in that category. For example: “the Napa Valley of microbreweries,”

III. It wasn’t anonymous-

The brand personality is the brand's distinctive character including communication, behavior and visual style.  A brand with a strong personality has a greater chance of encouraging a deeper relationship with the consumer. For example: consumers can buy promotional items such as pint glasses and T-shirts.

IV. Empathised with the community -

The product was aligned with the community of people with an interest in the brand, where the fan community associated themselves with the brand providing a valuable resource for brand owners. Example: the brewery poured out its compute-generated logo and created one as handcrafted as its beer, eliminating complicated elements that were difficult to translate into packaging and merchandising, such as the drop-shadow effect on the mountain

Q2 Assume that the CEO asked you about pricing its pint glasses and T-shirts to maximize profit from these items, or should I have a lower price to increase volume and benefit from the promotional impact the purchase these items have on the sales of my beer?”

One of the difficult decisions is determining the appropriate price for the product. Factors such as costs, discounts, freight, and markups must be considered. Marketing research can help determine a reasonable price that consumers are willing to pay.

Q3.Would you advise this approach to an entrepreneur whose primary products are highly technological? What about an entrepreneur whose products are sold to industrial buyers?

In this case, Distribution of the product would be a crucial factor as the product is being sold to industrial buyers. This factor provides utility or makes the product convenient to purchase when it is needed. This variable must be consistent with other marketing mix variables. Type of channel, number of intermediaries and location of members should be described.

CASE 4

Q1.This 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 failure-the business going down the drain. How can

I best get the advantages of experimentation in terms of innovation while also reduction the costs so that I

don’t run the risk of losing my business?

The entrepreneurial journey is an opportunity to learn through experimentation. History has shown that many an establish corporation has lost touch with its customers and has even ceased to exist because of a lack of experimentation and staying relevant.Planned experiments can provide an entrepreneur with great insights into your business.The key though, is to limit the cost of failure. Being in control of your business is an opportunity to experiment with a new sales approach, try new combinations of products or services, or vary your work approach to see the effect it has on your team and overall business.

While the majority of experiments don’t work out with the intended results, one of your experiments may create a breakthrough you need to innovate and build a competitive advantage.

Q2. My employees, buyers, and suppliers like working for my company because we have a lot of wins. I am not sure how they will take it when our company begins to have a lot more failures (even if those failures are small)- it is a psychological thing. How can I handle this trade-off?

In a bad economy, you have fires to put out every day, and you think it's the time you can afford least to step back and look at the big picture. I think that's the best time to do it."

Rule number one: Don't panic

One particularly unfortunate response to a downturn is to cut everything -- budgets, inventory, personnel, and prices. Retailers have to be judicious about trimming inventory, "If you cut your inventory to the bone, everybody will notice. People will wonder if you're going to be around. It's like a self-fulfilling prophecy."

Serving your customers (employees, buyers & suppliers)

Paying attention to customers -- a key strategy for any business in a down turn -- means focusing on services, "By providing the best services you can to your customers, you enhance the likelihood you'll be able to keep them," 

Communicating problems and solutions

A down turn takes a toll not only on the bottom line but also on the psyche. Business owners cannot help but be affected emotionally as they watch hard earned gains being wiped out by forces beyond their control.

But despite these pressures, small business owners and managers need to put up a brave front. Closeting yourself in your office or walking around with your head down, will only spread the gloom to employees and everyone else you deal with

Bottom Line:

1. In a down turn, small businesses need to step back and assess their long-term strategies. This often means resisting impulses to slash jobs, inventories, and marketing.

2. Focusing on providing high quality services is an important strategy for small businesses in a down turn. Good services can separate a business from its competitors and help it to retain customers.

3. Small business owners and managers must stay visible and positive in a down turn. Keeping communications open with employees, suppliers, lenders, and customers builds the trust and cooperation needed to overcome challenges.

4. Down turns can present opportunities for small businesses. Some firms will vacate markets when hard times hit, and these openings can be filled by other companies. Also, small businesses can hire talented people who have lost their jobs at larger firms.

Q3 Even if everyone else accepts it, I am not sure how I will cope. When projects fail it hits me pretty

hard emotionally. Is it just that I am not cut out for this type of approach?

One of the most important things you can do to reduce the stress you may be feeling due to the current financial downturn is to moderate your exposure to the doom and gloom forecasts in the media. Yes, these are difficult times. No one knows how long they will last. What we can be certain of is that things will get better eventually. Find a healthy balance so that you can stay informed without allowing all the bad news to create a state of constant stress. We are going through a significant shift. It isn't the end of the world. 

It is also very important to accept that there are some things you simply can't change. If you find yourself worrying about something that is clearly out of your control, practice some deep diaphragmatic breathing for a few minutes, or get outside and exercise. Even listening to uplifting music can refocus your mind. Positive thoughts and intentions are the key to keeping yourself healthy and chasing your worries away. 

Another thing you can do to ease your stress about an uncertain future is to be prepared for the challenges ahead. One of the best ways to prepare for a possible economic crisis is to honestly evaluate your financial situation. Very few people enjoy taking a hard look at their finances, but it is the best place to start. Make a list of all your income sources and all the expenses you currently have. Take your time and really understand where your money is going. Once you've done that, be reasonable and figure out what you can cut back on or cut out. As soon as you have the complete picture, make the cuts and bank your savings. You may not be able to prevent a crisis but you will put yourself in a much better position to deal with one. 

Don't forget to take care of yourself. Bolster your optimism by spending time doing things you like. Make sure you include some money in your budget for things that support your family, well-being like exercise, eating right, getting energy work. Keeping yourself healthy will not only help you perform better at work, but it will put you in a great position to handle any crisis that might come along.