Chapter 13

Management, Leadership and Ethics

This chapter discusses managerial style. Since I will not be managing anyone, these wont apply to my business. I will pay myself by commission, the money that I receive from customers will be mine to pay for the product, and needs of the company. The excess will be my personal profit. The chapter also talks about growing your team. Adding more employees to Savvys' Nails To Go, will happen. But not in my current business plan, i am going to start off at the bare minimum.

Chapter 12

Operating for Success

The Production-Distribution Chain has 3 different variations.

Savvys' Nails To Go, would be Factory Direct. A factory direct chain starts with the retailer or manufacturer and goes straight to the consumer. Because my company is more of a service then a product, this is why I would use this variation.

Chapter 11

Addressing Legal Issues and Managing Risk

One thing that I must determine is my business legal structure. Starting my business off, I will mostly be a sole proprietorship. I am going to be the only person doing the pedicures and manicures, so unless my business expands there is no reason to bring anyone else in to the ownership. If my business does well I receive all the profits. The negative of this, is that if the same business does poorly, i will suffer all of the losses. Sole proprietorships are easy to start, it is relatively inexpensive and does not require the paperwork a lot of other partnerships and corporations would.

Chapter 10

Financing Strategy: Debt, Equity or Both?

The story of Anita Roddick who founded the Body Shop was very interesting to me. Within a few months of opening her first store she was ready to open another. No bank would loan her the money and she did not want to be in dept by borrowing. So she sold half of the business to a friend, and used the money to open a second store. Her friends share is now worth $240 million dollars.

This is an inspiring story because I do not really have aspirations to be an entrepreneur but helping with an idea someone else has sounds brilliant to me.

Chapter 9

Cash Flow and Taxes

The income statement does NOT show how much cash you really have. That headline stood out to me, I would think they were one in the same. But as I went on to read, when starting a business you will sometimes notice that even when the income statement says you are making a profit, you have no money. There is often a time lag between making a sale and getting paid.

I found this information extremely important, I am sure new entrepreneurs often mistake money in their income statement as their profit that they might not truly have.

Chapter 8

Using Financial Statements to Guide a Business

This chapter covers what your financial statements show about your business. Income statements, cash flow statement and the balance sheet are the main focus. As an entrepreneur this is one of the areas I would struggle with. Income statements, and managing money around my business would not be one of my strengths. That is why I choosy to start Savvys' Nails To Go which is a very low maintenance company, that would not have as much financial responsibilities as most companies.

Chapter 7

Understanding and Managing Start-Up, Fixed and Variable Costs

This chapter focused a lot of the cost of starting your business.

• The start up cost, which is a one-time expense for my company would include purchasing the nail polishes and supplies, getting licencing and business information.
• The cost of goods sold
• Operating Costs, which would involve me maintaining my supplies, purchasing new products and paying for things a vehicle needs to reach my customers.
• utilities
• salaries
• advertising
• insurance
• interest
• rent
• depreciation

Not all of these factors would need to be evaluated for my business.

Chapter 6

Smart Selling and Effective Customer Service

-Using technology to sell

All the technological concepts used to identify customers through market research can be instrumental to selling to your segment of the market.

For a business such as Savvy's Nails to Go, internet advertising could be essential. College students use social networks for everything, so a page devoted to my business could promote many customers.

Chapter 5

Developing the Right Marketing Mix

Product, Price, Place, Promotion

I am going to focus on promottion for Savvy's Nail's to Go.

Promotion: Advertising + Publicity

The goal of promotion is to get your marketing message out to your customers. A business like SNTG, focuses on a lot of word of mouth advertising. In order to have this, you must have satisfied customers. Flyers also will be circulated in areas where my target market is.

Chapter 4

Exploring Your Market

Market research helps you know your customer.

It is important to know who your potential customers are, where they can be reached, what they want and need, how they behave and what size the potential market is.

My target Market for Savvy's Nails To Go are the Working Woman – Someone who is too busy to attend to minimal things such as nails, but would enjoy having them done if it was convenient, and the limited College Student - Students who might not have access to a vehicle, and would not be able to reach a typical nail shop before closing.

Chapter 3

Creating Business from Opportunity

There are 4 basic types of businesses

1. Manufacturing- Produces a tangible product and sells it either through distributors or directly to end customers.

2. Wholesale- Buys in bulk from manufacturers and sells smaller quantities to retailers.

3. Retail- Sells individual items to consumers.

4. Service- Sells an intangible product to consumers.

My business I am using for my business plan, is "Savvy's Nails To Go." My business is a service, because i am painting others nails. I will not be selling my nail polishes so I do not have a tangible product for my customers.

Chapter 2

The Business Plan: Road Map to Success

Writing a business plan will save you time and money.

I completely understand this statement now that we are writing our own business plan. A business plan is so in depth. Anyone can say "oh I want to start my own nail shop," but you have to think about all the aspects you need to have a profitable nail shop, rather than wasting your time and money. Before you start your own business you need to think about your road map to success, your history and plan for an organization and meeting the needs of various audiences. If your business plan looks like a failure, more than likely your business will not be successful.

Chapter 1: Entrepreneurs Recognize Opportunities

Chapter one in "Entrepreneurship" written by Steve Mariotti and Caroline Glackin explains what entrepreneurs do. While discussing the difference between an entrepreneur providing a product or a service. The first chapter analyzes how free-enterprise economies work and how entrepreneur fit into them. Evaluating when you have an opportunity to start your own business and explains how profit works as a signal to the entrepreneur.

After reading the first chapter the first person I thought of was a family friend. Steve Church started Taco Shop, a fast-food restaurant in Wichita Kansas where I am from. When I read the "Why be an Entrepreneur" section in the chapter I thought all 5 points were exactly the reasons Steve started his business.

1. Control over time

Steve wanted to bring good food to the city of Wichita, but he loves being involved with sports, and a lot of other things so starting his own business gave him the flexibility to do all the things he loved.

2. Fulfillment

Steve Church loves his company, providing youth with jobs, and feeding people at a very affordable price. He sponsors many sports teams which is a great help to the community.

3. Creation/Ownership and 4. Control over Compensation

This goes along with how Steve wanted to be able to afford helping out the less fortunate, a big reason he started his business.

5. Control over Working Conditions

Since Steve supports, helping the community he runs his business that way. Accepting donations, and allowing customers to help out as well.