Essentials of Entrepreneurship
and Small Business Management
Thomas W. Zimmerer
St. Leo University
Norman M. Scarborough
with Doug Wilson
University of Oregon
Upper Saddle River, New Jersey 07458
Library of Congress Cataloging-in-Publication Data
Essentials of entrepreneurship and small business management / Thomas W. Zimmerer,
Norman M. Scarborough, Doug Wilson.-- 5th ed.
Includes bibliographical references and index.
1. Small business--Management. 2. New business enterprises--Management.
I. Scarborough, Norman M. II. Wilson, Doug. III. Title.
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10 9 8 7 6 5 4 3 2 1
To Cindy, whose patience is always tested during a writing
project of this magnitude. Your love, support, and
understanding are a vital part of every book.
You are the love of my life.
To Linda, whose unconditional love motivates me
to strive daily to earn her respect. Her commitment
to our life makes all things possible.
To Judy, whose love and support was an essential
part of this work. I am so thankful to be on
life's journey with you.
"May your own dreams be your only boundaries."
--The Reverend Purlie Victorious Judson, in "Purlie,"
Broadway Theater, 1970
SECTION I The Challenge of Entrepreneurship 1
Chapter 1 The Foundations of Entrepreneurship 1
Chapter 2 Inside the Entrepreneurial Mind: From Ideas to Reality 41
SECTION II Building the Business Plan: Beginning
Chapter 3 Designing a Competitive Business Model and Building a
Solid Strategic Plan 83
Chapter 4 Conducting a Feasibility Analysis and Crafting a Winning
Business Plan 122
Chapter 5 Forms of Business Ownership 159
Chapter 6 Franchising and the Entrepreneur 188
Chapter 7 Buying an Existing Business 220
SECTION III Building the Business Plan: Marketing and
Financial Considerations 263
Chapter 8 Building a Powerful Marketing Plan 263
Chapter 9 E-Commerce and the Entrepreneur 310
Chapter 10 Pricing Strategies 355
Chapter 11 Creating a Successful Financial Plan 383
Chapter 12 Managing Cash Flow 424
SECTION IV Putting the Business Plan to Work:
Sources of Funds 462
Chapter 13 Sources of Financing: Debt and Equity 462
Chapter 14 Choosing the Right Location and Layout 514
Chapter 15 Global Aspects111 of Entrepreneurship 559
Chapter 16 Building a New Venture Team and Planning for the
Next Generation 596
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