10.1 The Importance of Financial Management in Small Business LEARNING OBJECTIVES Understand the difference between accounting and finance for small businesses. Understand the major activities of finance. Understand how finance can affect the selection of a business form. Understand the various sources that can be used to finance the start-up operations of a business. Understand what factors might affect the extent to which a firm is financed by either debt or… Read More » The Importance of Financial Management in Small Business

Financial Management The Notch Store Source: Used with permission from Frank Salvatore. No small business, or for that matter no large business, becomes a landmark and community-gathering place overnight. It takes time along with some very sharp management skills. In the case of the Notch Store, a local legend in Cheshire, Connecticut, it took ninety years and three generations of family members. The business began in 1921 when Pauline Salvatore… Read More »Financial Management

9.3 Financial Ratio Analysis LEARNING OBJECTIVES Understand why the numbers found on a balance sheet and an income statement may not be enough to properly evaluate the performance of a business. Understand the concept of financial ratios and the different categories of financial ratios. Acquire the ability to calculate financial ratios and interpret their meaning. One can say that figures lie. But figures, when used in financial arguments, seem to have… Read More » Financial Ratio Analysis

9.2 Financial Accounting Statements LEARNING OBJECTIVES Understand what is measured on a balance sheet. Understand the term depreciation. Understand what goes on an income statement. Understand what is measured in a cash-flow statement. Appreciate the importance of forecasting when developing a cash-flow projection statement. It sounds extraordinary, but it’s a fact that balance sheets can make fascinating reading.“Accounting Quotes,” Qfinance, accessed February 14, 2012, www.qfinance.com/finance-and-business-quotes/accounting. Mary, Lady Archer of Weston As discussed in Chapter 5… Read More »Financial Accounting Statements

9.1 Understanding the Need for Accounting Systems LEARNING OBJECTIVES Understand why a basic knowledge of accounting is important for a small business. Understand the importance of selecting an accountant to enhance the overall operation of a business. Define the two major approaches to accounting systems: cash versus accruals. The older I get, the more interesting I find lawyers and accountants.Independent (London), April 21, 2010, quoted in “Accounting Quotes,” Qfinance, accessed February 14, 2012, www.qfinance.com/finance-and-business-quotes/accounting.… Read More »Understanding the Need for Accounting Systems

Chapter 9-Accounting and Cash Flow Simione Consultants LLC Source: Used with permission from Simione Consultants LLC. Health care is the largest single industry in the US economy. Currently, health care represents nearly 17 percent of the gross domestic product, encompassing nearly 600,000 establishments and employing more than 14 million people. The health-care industry covers an extraordinary wide range of businesses and operations. It includes large hospitals, diagnostic laboratories, nursing care… Read More »Accounting and Cash Flow

8.2 The Marketing Plan LEARNING OBJECTIVE Understand the components of a marketing plan. Although there is no universally accepted format for a marketing plan, the requirements can be grouped into the seven sections identified in Figure 8.1 “The Marketing Plan”. The marketing plan can be a stand-alone document or a section of the business plan. If it is part of the business plan, it will duplicate information that is presented in other… Read More »The Marketing Plan

8.1 The Need for a Marketing Plan LEARNING OBJECTIVES Understand why a small business should have a marketing plan. Understand the implications of not having a marketing plan. Let’s face it, as a small business owner, you are really in the business of marketing.John Jantsch, Duct Tape Marketing: The World’s Most Practical Small Business Marketing Guide (Nashville, TN: Thomas Nelson, Inc., 2006), back cover copy. John Jantsch Many small businesses do not have… Read More »The Need for a Marketing Plan

Chapter 8-The Marketing Plan The New Britain Rock Cats Source: Reprinted with permission from the New Britain Rock Cats official website: http://web.minorleaguebaseball.com/index.jsp?sid=t538. The New Britain Rock Cats were founded in 1983 in New Britain, Connecticut. They are the double-A minor league baseball affiliate of the Minnesota Twins major league baseball club, competing in the Eastern League. The 2011 season marked the 29th anniversary of Eastern League Baseball in New Britain. There… Read More »The Marketing Plan

7.8 Marketing Strategy and Promotion LEARNING OBJECTIVES Understand the role of promotion in the marketing mix and its importance to a company. Understand the different ways that a small business can promote its products or services. Explain the differences and similarities in the marketing communications mix of online and onground businesses. Promotion, the fourth P in the marketing mix, is now more commonly referred to as marketing communications. Marketing communications can be… Read More » Marketing Strategy and Promotion