小企业管理第2讲ppt课件

1、Small Business ManagementProfessor HornadayLecture 2Small Business ManagementGETTING THE IDEANeed a Niche1. Identifiable Market Segment2. Can Satisfy the Segment at a Profit3. Can Defend against all CompetitorsUsually Small Firms offer Superior Quality & Service1. Flexible2. Short Decision Time3. Sh

2、ort Production Runs4. Small Inventory Balances5. Personal Contact with CustomersNew-New or New-Old?Small Business ManagementTHE BUSINESS OPPORTUNITYOpen NicheCompetitionAvailability of MaterialsAvailability of PeopleAvailability of LocationAvailability of FundingSpecific Competitive EdgeDesired Grow

3、th PatternSmall Business ManagementMarket Analysis1. Brief Description of the Business Opportunity2. A Detailed Description of the Market Segment3. A Detailed Description of the Market Niche4. Emphasize Price, Unit Sales Estimates,and CompetitionSmall Business ManagementGETTING INTO BUSINESSStart-up

4、?Purchase?Inherit?Franchise?Small Business ManagementSTART-UP PROBLEMSTimingCash Flow EstimatesInitial Capital RequirementsLocationEquipment & Services RequiredLegal Form of OrganizationSmall Business ManagementMARKETINGNature of the MarketWho, What, When, Where, & How?Price, Place, Product, Promoti

5、onEstimate Volume in UnitsDetermine PricingCover CostsMeet Customer Demand CurveMeet CompetitionConsider SeasonalitySpecific Competitive EdgeDesired Growth PatternSmall Business ManagementMANAGING & CONTROLLING OPERATIONSPlanning, Organizing, Staffing, Directing, ControllingSpecific Location and Lay

6、outWork Flow AnalysisWho does What When?Pay and IncentivesControl of Cash, Inventories, and SuppliesInsurance & Security RequirementsSmall Business ManagementFINANCIAL PROJECTIONSFinancial Projections put the Plan into NumbersPro Forma Income StatementsPro Forma Balance SheetsCash Flow ProjectionsWh

7、en do Investors get their Money Back?How & When are Investors Rewarded?How & When are Owners Rewarded?Small Business ManagementAdvantages of Buying1. Continued Success?2. Good Location3. Employees and Suppliers on Hand4. Equipment and Capacity Known5. Inventories and Credit Established6. Hit Ground

8、Running7. Experience of Previous Owner8. Bargain?Small Business ManagementDisadvantages of Buying1. Its a Dog2. Ill Will from Previous Owner3. Unsuitable Employees4. Poor Location5. Obsolete/Unusable Equipment6. Difficult to Change and Innovate7. Outdated Inventory8. Worthless Accounts Receivables9.

9、 Business Overpriced (Good Will)Small Business ManagementFinding a Business1. Advertisements2. Brokers3. Banks, Accountants4. Friends5. Look AroundSmall Business ManagementQuestions before Buying1. Why is Owner Selling?2. Physical Condition of the Business?3. Continued Market for Products/Services?4

10、. Customer Base?5. Competition?Overhead 52Small Business ManagementScreening the DealsPreliminary: Visit, inspect, interview. Quicklook at marketing, finances, and inventory.Second Stage: Examine the value of the investment. Facilities Financial Ratios Ownership - What are you buying? Capital Requir

11、ed Personnel Market NicheFinal Screen: Do a business plan.Small Business ManagementHOW MUCH IS IT WORTH?1. Book Value2. Replacement Value3. Liquidation Value4. Past Earnings5. Cash FlowSmall Business ManagementValuing AssetsIntangiblesImage and reputation with suppliers, customers,and bankers.Any ne

12、gative things to be overcome?Importance of skills and relationships ofowner and/or key employees.Physical AssetsTrue value of equipment and fixtures.True value of inventory.Small Business ManagementLegal Problems1. Legal encumbrances: Mortgages, liens,judgments, zoning, environmental, etc.2. Patent,

13、 trademark, or copyright problems?3. Title to land and buildings?4. Access and parking?5. Existing buy or sell contracts?6. Licenses?7. All debts paid?Small Business ManagementPricing the BusinessAssetsBook, Cost, Market, Replacement?GoodwillEarning PowerMultiple of Revenue or ProfitSmall Business M

14、anagementDETERMINING THE PRICEBook ValueReplacement ValueLiquidation ValuePast EarningsCash FlowSmall Business ManagementASSET PRICINGBuildingInventoryPrepaid ExpensesSupplies & EquipmentAccounts ReceivableGoodwillSmall Business ManagementONE WAY TO ARRIVE AT A PRICENet Market Value of Assets $100,0

15、00Earning Power at 10% $10,000Owner Salary $15,000 $25,000Average Profit $30,000Extra Earning Power $5,000Value of Intangibles $25,000Final Price $125,000Small Business ManagementPricing ExamplesProtected Franchise: 1 years profit plus inventory.Bakery (6-day operation): 10 times weekly gross.Manufa

16、cturing: Appraised value of machinery plusraw materials, packing materials, and inventoryat cost plus 1/2 to 1 years net profit.Restaurant: Replacement value of equipment plusfood inventory plus one-half annual profit.Dry Cleaning Pickup Store: Pay $3500 for each $100weekly net up to $250; $5000 for each $100 weekly netover $250.Ladies Wear: 25-50% cost of fixtures plus inventoryat 50-100%. No goodwill.Small Business ManagementTHE BUSINESS PLANPurpose & NeedThe Business OpportunityGetting into BusinessStart-up ProblemsMarketingManaging & Controlling OperationsFinancial ProjectionsSmall Busin