Welcome to the 2nd edition of Small Business Marketing For Dummies,
updated for faster and easier use by the millions of small businesses
that comprise the vast heart and soul of today’s business world. Since Small Business Marketing For Dummies first hit bookshelves in 2001, I’ve
visited with hundreds of small business owners to learn how they’ve used the
book, what they’ve found most useful, and which marketing issues they con-
tinue to find most pressing.
The number of women entering small business ownership has increased significantly
across the world. These women make a crucial contribution to the economic growth and
development of local, national and global economies. Yet, despite their increasing
numbers, they have received little attention from the academic community and research
into the experiences of women small business owners is confined to a handful of countries.
The work on women entrepreneurs is far more extensive and generally eclipses the
area of small business ownership.
Everyone is talking about small businesses. In 1993, when
it was allowed in Developing countries, more than 90,000
new firms were registered by individuals. Now, less than
three years later, official figures show that only 40,000 of
them still pay their dues and present annual financial
statements. These firms are called "active" - but this is a
misrepresentation. Only a very small fraction really does
business and produces income.
By virtue of having this book in your hands, you are part of the engine that is turning the
Small businesses are the epicenter of worldwide commerce. Sure, global corporations
throw their billions of dollars of weight around, but small businesses—those with somewhere
between 1 and 75 employees—contribute the majority of the capital, the majority of the transactions,
the majority of the jobs that make up the global market.
In my small business consulting experience, I have noticed a similar
attribute that is common in most entrepreneurs and business owners. Most are
“doers” rather than “planners.”
In reality, being a doer is perhaps the ultimate mark of a successful person. It’s
what makes entrepreneurs a rare breed. Rather than thinking or wishing, they
get out there and make something happen.
Over the last 5 years working as an advisor to start-up businesses I’ve met with over 1,000 people to advise them about starting and running a small business. I’ve seen people from all sorts of life, with all sorts of skills and all sorts of reasons for becoming entrepreneurs. I’ve seen businesses start-up and flourish and I’ve seen them stutter and fade away. I’ve watched good business ideas fail to launch and I’ve seen some poor ones (in my opinion!) go on to success. This first hand access to SME successes and failures has allowed me to develop my...
This chapter surveys the world of entrepreneurship and small business. After reading this chapter, you will be able to: Define and examine the advantages and disadvantages of the sole proprietorship form of organization, identify three types of partnership and evaluate the advantages and disadvantages of the partnership form of organization, describe the corporate form of organization and cite the advantages and disadvantages of corporations,...
Chapter 1 - Starting your small business. After studying the material in this chapter, you should be able to: Define what is meant by the term business, name some of the unique contributions of small business, explain some of the current problems small businesses face, discuss some of the current trends challenging entrepreneurs and small business owners, explain why people start small businesses, describe the characteristics of successful entrepreneurs, describe where the opportunities are for small businesses, identify some of the areas of concern for small business owners.
Chapter 3 - Forms of ownership of small business. After studying the material in this chapter, you should be able to: Name the legal forms of ownership a small business can have, explain the reasons for and against forming a proprietorship, explain the reasons for and against forming a partnership, explain the reasons for and against forming a corporation, discuss some other legal forms a business can take.
Chapter 4 - Maintaining good government relations and business ethics. After studying the material in this chapter, you should be able to: Understand the legal system in which small businesses operate, and explain some basic business laws affecting them, discuss the role played by government assistance, describe some burdensome aspects of government regulations and paperwork, explain how to choose a lawyer, describe what is ethical and socially responsible behavior.
Chapter 6 - Planning, organizing, and managing a small business. After studying the material in this chapter, you should be able to: Tell why planning is so important-yet so neglected-in small businesses, explain the role of strategic and operational planning, and give some examples, explain the role of financial planning, and give some examples of it, tell why a business plan is needed and what purpose it should serve, prepare a sample business plan.
Chapter 7 - How to obtain the right financing for your business. After studying the material in this chapter, you should be able to: Explain the importance of proper financing for a small business; tell how to estimate financial needs, and explain some principles to follow in obtaining financing; explain why equity and debt financing are used, and describe the role each plays in the capital structure of a small firm; distinguish the types of equity and debt securities; describe some sources of equity financing; describe some sources of debt financing.
Chapter 8 - Developing marketing strategies. After studying the material in this chapter, you should be able to: Describe the marketing concept and explain how it can be used by a small business, show how marketing research can be used to implement the marketing concept, explain how to develop and implement a marketing strategy, explain how the product life cycle affects marketing strategies, explain how packaging affects marketing, describe how prices are set and administered, show how marketing services differs from marketing goods.
Chapter 10 - How to obtain and manage human resources and diversity in small companies. After studying the material in this chapter, you should be able to: Explain how small business managers plan human resource needs and develop sources from which to recruit employees; name some methods used for recruiting human resources, and describe the steps in the employee selection process; explain the importance of employee development, and discuss some development methods;...
Chapter 11 - How to maintain relationships with your employees and their representatives. After studying the material in this chapter, you should be able to: Explain how managerial assumptions affect human relationships with workers; explain why exercising effective leadership is so important in small business; list some barriers to effective communication, and show some ways to improve communication; explain how to improve employee motivation;...
Chapter 12 - Obtaining and laying out operating facilities. After studying the material in this chapter, you should be able to: Explain what an operating system is and how it functions, discuss how to determine the right location for a small business, describe the important factors involved in choosing a retail location, describe the most important factors involved in choosing a manufacturing site.
Chapter 14 - Basic financial planning. After studying the material in this chapter, you should be able to: Explain the need for profit planning for a small business, discuss what causes changes in the financial position of a company, understand the financial structure of a business, learn how to plan to make a profit in a small business, plan for a profit for an actual small business.
Chapter 15 - Budgeting and controlling operations and taxes. After studying the material in this chapter, you should be able to: Explain how managers exercise control in a small business; tell what a budget is, explain the different types, and tell how they are prepared and used; discuss how information on actual performance can be obtained and used; explain how ratios can be used to evaluate a firm's financial condition.
Chapter 16 - Using computer technology in small businesses. After studying the material in this chapter, you should be able to: explain the importance of information to a small business, and state which information is needed; discuss the need for-and how to choose-management information systems (MISs) for a small business; describe the growing role of technology in business; explain how the microcomputer (PC) has affected small business; explain some of the potential problems with computer technology in small business; understand the basics of e-commerce.