1. 2nd “Live” Seminar AB209, Small Business Management

2. Unit 3 Seminar Game Plan Course Check-In Course Website Check-In Course Activities & Assignments Check- In Review Unit 1 & 2 Content Content Review Assignment Review Unit 3 Check-In Look Ahead to the 3rd “Live” Seminar

3. KU Winter Break Game Plan The KU Winter Break: Begins: Friday, 24 December 2010 at 11:59pm ET Wraps-Up: Sunday, 2 January 2011 at 12am ET During the Break: You are not required to log-on and engage in our course For Unit 3, you are not penalized if you do not meet the requirement of three (3) separate DB participation days

4. Course Check-In

5. Unit-By-Unit Workflow Each new unit kicks-off on Wednesdays at 12:01am ET. You will then have until the following Tuesday at 11:59pm ET to complete and/or submit all assignments for that Unit. This gives you one week to complete your readings, Discussion Board postings and other assignments. And, AB209, we will have one-hour seminars in Units 1, 3, 5, 7, & 9 – please note the day/time of these seminars

6. Course Website Review Down the left hand margin of the course website you will find: o Course Home: Syllabus, Instructor Info, “Instructor’s Office” o Unit Folders: Each unit contains the activities and assignments for that unit: o Readings o Discussion Boards o Assignments, Activities, & Reviews o Projects and Business Plan o Seminar Information

7. Course Website Review (cont) Across the top of the course website you will find: o Gradebook: Here, you will find your grades for each assignment in AB209; I update the Gradebook weekly o Email: Here, you can easily email me (the instructor) or classmates o Doc Sharing: Here, you will find important downloadable documents such as our Syllabus, Instructor Information, etc. o Dropbox: Here, you will submit your Assignments, Projects, and Business Plan

8. Assignments Review Discussion Boards: We have graded DBs in Units 1 through 9 (40 points each) Reviews: We have graded Review exercises in Units 1, 2, 5, 7, & 9 (40 points each) Case Studies: We have graded Case Studies in Units 3, 4, 6, & 8 (50 points each) Activity: Financial Planning in Unit 5 (60 points) Final Project - Business Plan: Our graded final project (Business Plan) is due in Unit 9 (140 points) ; please note that in Units 2, 4, 6, & 8 you are encouraged to work on specific sections of this plan WAC Writing Assignment: Written reflection paper due in Unit 10 (40 points each)

9. Discussion Boards Discussion Boards: Graded DBs in Units 1 - 9 Be sure to closely review and understand the Discussion Board Grading Rubric and Online Communication Guidelines in our Syllabus General Guidelines: o Be sure to note the “word count” expectations for your original DB postings. The expectation is 100 words (minimum). o The minimum expectation for DB participation is: 1) Post your original response to each DB question (100 words minimum), 2) Respond to a minimum of two classmate postings, and 3) respond to classmates who answer your original posting. This will create a rich and collaborative DB environment. o Your 1 st posting each unit/week should be made no later than Saturday. o Be aware of our “best practices” of logging-on three to five times (spread throughout the week) to engage in the DB. Many of you had responses to your original postings that went unanswered. o Be sure to note the requirement to use complete sentences, correct spelling and punctuation, and to avoid writing in an “IM” (Instant Messenger) style. Our DBs require a more formal communication style. o No late DB participation accepted

10. Review Exercises Graded Reviews in Units 1, 2, 5, 7, and 9 Our Reviews are available for the entire week/unit in which they are assigned and you can retake them as many times as you wish during the week/unit. Review Topics: o Unit 1 Review: 20 questions, Part 1 content o Unit 2 Review: 20 questions, Part 2 content o Unit 5 Review: 20 questions, Part 3 content o Unit 7 Review: 20 questions, Part 4 content o Unit 9 Review: 20 questions, Part 5 content

11. Case Studies Graded Case Studies in Units 3, 4, 6 & 8 – each Case Study is worth 50 points Case Studies should be completed using the AB209 Case Analysis Template located in Doc Sharing Case Study Topics: o Unit 3: Firewire Surfboards (pages 628 to 629) o Unit 4: Le Travel Store (page 641) o Unit 6: eHarmony (pages 636 to 637) o Unit 8: Diamond Wipes International, Inc. (pages 664 to 665)

12. Activity In preparation for your Final Project in Unit 9, you will start your planning for financing your business in Unit 5. Contents of the Unit 5 Activity: Profit & Loss Projections (Year 1, 2, and 3) Sources of Capital Start-up Expenses Security & Collateral for Loans Submit your responses to this activity in a Word document to the Dropbox by the end of Unit 5. The Unit 5 Activity is worth 60 points

13. Final Project Our graded Final Project (Business Plan) is due no later than the end of Unit 9 To complete our Final Project, please refer to three (3) resources in Doc Sharing: AB209 Final Project Overview AB209 Final Project Template Final Project MS PowerPoint Template In Units 2, 4, 6, & 8, students are encouraged to work on specific elements of the Final Project and, in Unit 5, you will complete Financial Planning Activity Completed Business Plans & MS PowerPoint presentations should be submitted via the DropBox The Final Project is worth 140 points

14. WAC Writing Assignment After reflecting on what you have learned and how you have benefited by taking AB209, write a minimum one page response to the questions below. Make sure to address the critical elements so you will be successful in completing this assignment. This assignment is worth 40 points. Please answer the following questions in your paper: Reflect and describe which key concepts and topics in this course have made you a stronger candidate to enter the business world. Discuss how this course has affected you in your professional development as a student and as a person as well as encouraging you on your academic path. See the Writing Assignment Checklist in Unit 10 This assignment should be a minimum of one page response and should be submitted via the DropBox. Name file: WAC Your Name This assignment is due no later than the end of Unit 10

15. Introduction to Small Business Our exploration of Small Business Management will focus on the five (5) parts: o Entrepreneurship: A World of Opportunity o Unit 1 (Chapters 1 & 2) o Starting From Scratch or Joining an Existing Business o Unit 2 (Chapters 3, 4, & 5) o Developing the New Venture Business Plan o Unit 3 (Chapters 6 & 7) o Unit 4 (Chapters 8 & 9) o Unit 5 (Chapters 10, 11, & 12) o Focusing on the Customer: Marketing Growth Strategies o Unit 6 (Chapters 14 & 15) o Unit 7 (Chapters 16, 17, & 18) o Managing Growth in the Small Business o Unit 8 (Chapters 19 & 20) o Unit 9 (Chapters 21, 22, & 23)

16. Unit 1 Review

17. Unit 1 Information Themes: Course Kick-Off, The Entrepreneurial Life, & Integrity/Ethics Readings: Longenecker – Chapters 1 & 2 (pages xiii to 58) Discussion Board #1: Introductions (not graded) Discussion Board #2: Entrepreneurs (40 points) Review: Chapters 1 & 2 (Part 1 of textbook) (40 points) Seminar: Conducted on Scheduled Day/Time

18. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 1–17 The Contributions of Small Business Small Businesses: Comprise 99.7% of all firms with employees. Employ over 50% of employees in the private sector. Account for 45% of private payrolls. Generated 60 to 80% of net new jobs in past decade. Create more than half of the country’s GDP. Hire 40% of high-tech employees Represent 97.3% of all exporters.

19. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 1–18 Who Are Entrepreneurs? Entrepreneurs are: A person who starts and/or operates a business. Individuals who discover market needs and launch new firms to meet those needs. Risk takers who provide an impetus for change, innovation, and progress. All active owner-managers (founders and/or managers of small businesses).

20. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 1–19 Exhibit 1.2Entrepreneurial Incentives

21. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 2–20 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 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 Conflicts of self-interest

22. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 2–21 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.

23. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 2–22 Kinds of Ethical Issues Ethical Issues in Business Operations Income and expense reporting (tax fraud) “Truth in advertising”—persuasion and deception Bribing customers and rigging bids Direct selling—pyramid schemes, bait-and-switch selling Effects of owners’ ethics on their employees Accurately reporting financial information

24. Unit 2 Review

25. Unit 2 Information Theme: Getting Started, Franchises & Buyouts, & The Family Business Readings: Longenecker – Chapters 3, 4, & 5 (pages 59 to 146) Discussion Board: Graeter’s Ice Cream (page 120) (40 points) Review: Chapters 3, 4, & 5 (Part 2 of our textbook) (40 points) Final Project Activity: Executive Summary (ungraded) Seminar: No Seminar in Unit 2

26. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 3–25 Identifying Startup Ideas Opportunity Recognition Identification of potential new products or services that may lead to promising businesses Entrepreneurial Alertness Readiness to act on existing, but unnoticed, business opportunities Good Investment Qualities Products that serve clear and important needs Products that customers know about Products that customers can afford A good idea is not the same as a good opportunity.

27. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 3–26 Exhibit 3.2Common Sources of Startup Ideas Source: Data developed and provided by the National Federation of Independent Business and sponsored by the American Express Travel Related Services Company, Inc.

28. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 4–27 Franchising A marketing system involving a legal agreement, whereby the franchisee conducts business according to the terms specified by the franchisor. Franchisor Party in franchise contract that specifies methods to be followed and terms to be met by the other party. Franchisee An entrepreneur whose power is limited by a contractual agreement with a franchisor.

29. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 4–28 Exhibit 4.1Economic Impact of Franchising Economic Activity in Franchised Businesses There were 909,253 businesses in franchise systems in the United States in 2005, accounting for 3.3 percent of all U.S. business establishments. These businesses directly provided 11.0 million jobs, an annual payroll of $278.6 billion, and output worth $880.9 billion. Their economic activity accounted for 8.1 percent of all private-sector jobs, 5.3 percent of all private-sector payrolls, and 4.4 percent of all private-sector output. Economic Activity Because of Franchised Businesses The economic significance of franchising is greater than indicated by the activity in franchised businesses alone, for it stimulates still more activity and supports the growth of many nonfranchised businesses. If we include economic results from both inside and outside of franchising, franchised businesses in the United States were the source of 21.0 million jobs, or 15.3 percent of private-sector jobs, $660.9 billion of payroll, or 12.5 percent of private-sector payrolls, and $2.31 trillion of output, or 11.4 percent of private-sector output. Source: PriceWaterhouseCoopers, The Economic Impact of Franchised Businesses, Volume II (Washington, DC: International Franchise Association, 2008).

30. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 4–29 The Pros and Cons of Franchising Advantages Probability of success Proven line of business Pre-qualification of franchisee Training Franchisor-provided Financial assistance Franchisor assistance Operating benefits Franchisor-aided Limitations Franchise costs Initial franchise fee Investment costs Royalty payments Advertising costs Restrictions on business operations Loss of independence Lack of franchisor support

31. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 5–30 What Is a Family Business? Family A group of people bound by a shared history and a commitment to share a future together, while supporting the development and well-being of individual members. Family Business An organization in which either the individuals who established or acquired the firm, or their descendants, significantly influence the strategic decisions and life course of the firm.

32. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 5–31 Family and Business Overlap Family Concerns Care and nurturing of family members Employment and advancement in the firm Loyalty to the family Business Concerns Production and distribution of goods and/or services Need for professional management Effective and efficient operation of the firm

33. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 5–32 Advantages of a Family Business Strength of family relationships during challenging periods of business change Financial sacrifices that family members make for the good of the firm Operation as a family business distinguishes the firm from its competitors Higher levels of concern for its community and non- family employees Capability to plan and prepare for the long haul Emphasis on quality and value

34. © 2010 South-Western, Cengage Learning, Inc. All rights reserved. 5–33 Disadvantages of a Family Business Conflict among family members about: Risk (consequences of failure) to the family in launching a business Nepotism and the differences in competencies and merit of family members involved in the business Family traditions versus the business need to innovate and seize opportunities Unity and cooperation of family versus business need to foster diversity and competition Family loyalty versus the necessity to provide opportunities for non-family employees

35. Unit 2 DB: Graeter’s Ice Cream On page 120 of our textbook, read the “in the spotlight” mini-case study on Graeter’s Ice Cream, and feel free to visit their website for more information on the company: www.graeters.com Then, answer the following questions: www.graeters.com What are the advantages and disadvantages of a family business? What actions did the current Graeter family members take to develop an effective and trusting management team to carry-on the Graeter family business?

36. Final Project Activity: Executive Summary Executive Summary This portion of your mini-business plan should contain a brief overview of your business objectives. This brief overview should contain an explanation of your product/service line, the market you will serve, and a brief summary of your financial goals. Please remember: As a guide to help you develop your mini-business plan, please refer to the content of the Atayne, LLC business plan on pages 675 to 695 of our textbook.

37. Unit 3 Check-In

38. Unit 3 Information Theme: The Business & Marketing Plan Readings: Longenecker – Chapters 6 & 7 (pages 147 to 199) Discussion Board: Stella & Dot Company (page 148) (40 points) Case Study #1: Firewire Surfboards (pages 628 to 629) (50 points) Seminar: Conducted on Scheduled Day/Time

39. Look Ahead to Our 3rd “Live” Seminar (Unit 5)

40. Unit 3 Information Theme: The Business & Marketing Plan Readings: Longenecker – Chapters 6 & 7 (pages 147 to 199) Discussion Board: Stella & Dot Company (page 148) (40 points) Case Study #1: Firewire Surfboards (pages 628 to 629) (50 points) Seminar: Conducted on Scheduled Day/Time

41. Unit 4 Information Theme: The Human Resources & Location Plans Readings: Longenecker – Chapters 8 & 9 (pages 200 to 257) Discussion Board: Biosite, Inc. (page 200) (40 points) Case Study #2: Le Travel Store (page 641) (50 points) Final Project Activity: Management Team & Advisors (ungraded) Seminar: No Seminar in Unit 4

42. Unit 5 Information Theme: The Financial Plan & a Firms Sources of Financing Readings: Longenecker – Chapters 10, 11, & 12 (pages 258 to 337) Discussion Board: BuiltNY (page 286) (40 points) Review: Chapters 6 through 12 (Part 3 of textbook) (40 points) Activity: Financial Planning (60 points) Seminar: Conducted on Scheduled Day/Time

43. KU Winter Break Game Plan The KU Winter Break: Begins: Friday, 24 December 2010 at 11:59pm ET Wraps-Up: Sunday, 2 January 2011 at 12am ET During the Break: You are not required to log-on and engage in our course For Unit 3, you are not penalized if you do not meet the requirement of three (3) separate DB participation days

44. 2nd “Live” Seminar Wrap-Up If you need assistance: o Contact instructor at their KU email address o Post message to “Instructor’s Office” o Meet with instructor during Virtual Office Hours o KU Tech Support: 1-866-522-7747 o Academic Advisor: If you have any challenges that prevent you from succeeding this term or at KU in general o Other KU Resources: Writing Center, etc. Our next “live” seminar: Unit 5 Questions? o Course Website or Content? o Assignments? o Other issues?