A

• AAA (American Automobile Association), 143, 145
• accounts payable, 210
• accounts receivable, 209
• accrued expenses payable, 210
• accumulated retained earnings, 211
• action plan section
  • overview, 21–22
  • sample, 373–375
• addressable market, 75
• Adidas, 97
• Adobe Systems, 138
• advisor leadership style, 327
• affiliate linking, 192
• Airbnb, 273
• Aldi, 153
• Alibaba, 88, 105, 132
• alpha testing, 114–115
• AM General Corporation, 76, 90
• Amazon, 65, 88, 105, 107, 149, 169, 172, 175, 194–196, 243, 273, 278–279
• American Airlines, 69
• American Automobile Association (AAA), 143, 145
• American Express, 143
• American Public University System, 269
• American Red Cross, 55
• Ansoff, Igor, 292
• Ansoff Matrix, 292–293
  • new market, existing product, 293, 296–297
  • new product and new market, 293, 300–302
  • new product, existing market, 293, 297, 299
  • same product and same market, 292, 294–296
• Apple, 57, 88, 115, 149, 243, 275
• Ask For Funding, 36
• Aspen Institute, 48, 260
• asset turnover, 232
• assets, 207–210, 228–229
  • accounts receivable, 209
  • current assets, 207, 209, 228
  • fixed assets, 209–210, 229
  • intangibles, 210
  • inventories, 209
  • liquid, 207
• AT&T, 195

B

• B2B (business-to-business), 100, 109, 134–138
• B2C (business-to-consumer), 99–100, 134, 137
• Baby Boomers, 120, 157
• backward integration, 150
• bad customers, 122–123
  • behavior of, 122
  • handling, 123
  • reforming, 122
• balance sheets, 21, 206–211
  • assets, 207–210
    • accounts receivable, 209
    • current assets, 207, 209
    • fixed assets, 209–210
    • intangibles, 210
    • inventories, 209
    • liquid, 207
  • defined, 206–207
  • estimated balance sheets, 228–230
  • liabilities, 207, 210–211
    • accounts payable, 210
    • accrued expenses payable, 210
    • current liabilities, 210
    • long-term liabilities, 211
  • owners’ equity, 210–211
    • accumulated retained earnings, 211
    • invested capital, 211
• Barnard, Chester, 60
• BCG (Boston Consulting Group), 305
• Bell, Alexander Graham, 195
• Benioff, Marc, 44
• Berkshire Hathaway, 302
• beta testing, 115
• Bezos, Jeff, 74, 196
• Biden, Joe, 246
• Big Five Personality Test, 328–329
• Blockbuster Video, 191, 243
• Bloomberg BusinessWeek, 260
• BMW, 56, 300
• Booking.com, 144
• Booz Allen Hamilton, 48
• boss leadership style, 327
• Boston Consulting Group (BCG), 305
• bottom-of-the-pyramid opportunities, 91
• Boulevard of Broken Seams, 88
• BRIC countries (Brazil, Russia, India, and China), 130–131
• bridge financing, 32
• British Library, 13
• budgets, 221, 233–238
  • creating, 234–238
    • bottom-up approach, 237–238
    • starting point, 236
    • top-down approach, 236–237
  • importance of, 234
  • as incentive, 238
  • master budget, 234
  • mistaking budget for plan, 351
• business customers
  • decision-making process, 136
  • derived demand, 135
  • forces to be reckoned with, 136–137
  • questions to consider, 137
  • unique forces, 138
• business environment, 69–93
  • critical success factors, 85–88
    • adopting new technologies, procedures, and policies, 86
    • business drivers, 86–87
    • company name, 88
    • defined, 85
    • distribution, 87
    • government regulation, 88
    • importance of, 88
    • location, 87
    • marketing, 87–88
    • priorities, 86
    • specificity, 85
  • industry analysis, 71–84
    • finances, 80–82
    • markets, 75–78
    • questionnaire, 71–72
    • relationships, 78–80
    • structure, 73–75
    • supporting data, 82–84
  • SWOT analysis, 89–93
    • defined, 89
    • opportunities, 89–91
    • threats, 92–93
  • understanding underlying forces that shape, 70
• business environment section
  • how industry operates, 19
  • opportunities and threats, 19
  • overview, 19
  • sample, 357–361
• business model, 190–197
  • competitive advantage, 194–195
  • core competence, 195–196
  • making money from plan, 191
  • sustained competitive advantage, 196–197
  • timing, 193
• business plans
  • art and science, 28–29
  • assumptions, 25
  • budgets, 221, 233–238
    • creating, 234–238
    • importance of, 234
    • master budget, 234
  • business environment, 69–93
    • critical success factors, 85–88
    • industry analysis, 71–84
    • SWOT analysis, 89–93
    • understanding underlying forces that shape, 70
  • change, 241–263
    • anticipating, 259–261
    • dangers of ignoring, 242–243
    • dimensions of, 243–259
    • preparing for, 261–263
  • collecting ideas, 27–28
  • company culture, 329–332
  • competition, 139–160
    • competing against, 158–160
    • identifying, 142–151
    • predicting, 155–158
    • tracking, 151–154
    • value of competitors, 140–142
  • constituencies, 27
  • customers, 117–138
    • behavior, 124–127
    • big picture, 118–119
    • business customers, 134–138
    • categorizing, 119–124
    • decision-making process, 128–129
    • global customers, 130–131
    • market segmentation, 96–113
    • serving better, 132–134
  • detailed view of future, 25
  • financial statements, 201–220
    • balance sheets, 21, 206–211
    • cash-flow statements, 21, 211–214
    • financial ratios, 214–220
    • income statements, 21, 203–206
    • overview, 201–202
  • forecasts, 221–233
    • assumptions, 222–223
    • DuPont formula, 231–233
    • estimated balance sheets, 228–230
    • flawed numbers, 223
    • pro-forma income statements, 224–228
    • projected cash-flow statements, 230
  • format
    • hard copy vs. soft copy, 17
    • length of, 17
  • function of, 1–2
  • goals and objectives lists, 57–66
    • creating business goals, 61
    • creating business objectives, 62
    • efficiency vs. effectiveness, 60
    • goals, defined, 58–59
    • GOWN acronym, 59
    • importance of, 57–58
    • keeping mission on track through goals, 64–65
    • matching to mission, 62–63
    • objectives, defined, 59
    • SMART approach, 58
    • time frame for reaching, 63, 65–66
  • good ideas vs. investment, 24
  • growth, 285–311
    • benefits of, 309–310
    • expanding, 292–302
    • managing, 310–311
    • product life cycle, 286–292
    • product portfolio management, 302–308
  • importance for small companies, 26
  • importance of, 23–37
  • leadership, 325–329
    • from front vs. from back, 326
    • personality traits, 328–329
    • skills, 329
    • styles of, 327–328
  • lending resources, 33–37
  • market strategies, 95–115
    • market segmentation, 96–113
    • test marketing, 113–115
  • mission statements, 51–66
    • creating, 54
    • effective, 52
    • examples of, 55–56
    • keeping on track through goals, 64–65
    • length of, 52
    • matching goals and objectives to, 62–63
    • mission creep, 54
    • origin of, 52
    • overview, 51
    • preparing for, 53–54
    • product categories, 56
    • tangible image of company, 55
    • understanding business, 53
    • understanding customer, 53
  • mistakes, 349–353
    • allowing one person to dominate plan, 352
    • avoiding reasonable risk, 351
    • failure to plan, 349
    • faking plans, 353
    • fear of change, 352
    • ignoring strengths, 351
    • lack of motivation and reward, 352
    • lack of values, 350
    • lack of vision, 350
    • mistaking budget for plan, 351
    • second-guessing customers, 350
    • underestimating competition, 350
  • ongoing process, 30
  • organizational structure, 315–323
    • basic design, 317
    • choosing, 321
    • divisional format, 318–319
    • dynamic capabilities model, 322–323
    • form follows function, 315–317
    • functional model, 318
    • management levels, 320–321
    • matrix format, 319–320
  • past performance, 26
  • planning process, 24–25
  • prediction vs. process, 1, 8
  • preparing to create, 77–1
    • assembling planning team, 14–16
    • format, 17
    • identifying planning resources, 8–14
  • questions to consider, 343–347
    • conciseness of plan, 347
    • goals and mission in sync, 343
    • knowing customers, 344–345
    • knowing strengths and weaknesses, 345
    • pointing to major opportunities, 344
    • preparation for threats, 344
    • readiness for change, 346–347
    • standing behind numbers, 346
    • strategy makes sense, 346
    • tracking competitors, 345
    • up-to-date plan, 347
    • worst that could happen, 347
  • revenue and profit growth, 29
  • sample, 355–380
  • sections of, 17–22, 355–380
    • action plan, 21–22, 373–375
    • business environment, 19, 357–361
    • company description, 19–20, 362–365
    • company overview, 18–19, 356–357
    • company strategy, 20, 365–369
    • executive summary, 17–18, 356
    • financial review, 20–21, 369–372
  • self-assessment, 163–181
    • overview, 163–164
    • SWOT analysis, 164–180
    • SWOT grid, 180–181
  • signs that plan needs refreshing, 337–341
    • competition heats up, 339
    • costs increase, 340
    • failure to meet milestones, 338
    • goals change abruptly, 338
    • growth occurs too quickly, 341
    • important customers defect, 339
    • morale slumps, 340
    • new technology, 338
    • product demand falls, 339
    • projections don’t pan out, 340
    • revenues fall, 340
    • unwanted surprises, 341
  • stakeholders, 30–31
  • strategic thinking, 28–30
  • strategy, 265–284
    • creating, 284
    • evolution of new models, 279–280
    • generic strategies, 265–278
    • market leaders and the market followers, 281–283
    • outsourcing and offshoring, 280
  • value chain, 183–199
    • business model, 190–197
    • defined, 184
    • developing, 187–189
    • earmarking resources, 197–199
    • links in, 184–186
    • summarizing key business activities, 184
    • value equation, 183
    • value proposition, 189–190
  • values statements, 39–48
    • black-or-white philosophy, 41
    • creating, 46–48
    • crises, 43–44
    • defined, 42, 44
    • ethics and legal issues, 42–43
    • following through, 48
    • imagining response to difficult dilemmas, 46
    • importance of, 39–41, 44–45
    • promoting during annual employee performance reviews, 48
    • stakeholders, 46
    • terms to avoid, 48
    • utilitarianism, 41–42
  • venture capital, 31–33
  • vision statements, 48–50
    • changing, 49–50
    • creating, 49
    • defined, 48
    • following through, 332
• business-to-business (B2B), 100, 109, 134–138
• business-to-consumer (B2C), 99–100, 134, 137

C

• California State Association of Counties, 83–84
• calls to action (CTAs), 129
• Campbell Soup, 301
• Canon, 259
• Capterra, 113, 202
• Carnegie, Andrew, 186
• Carvana, 105
• cash-flow statements, 21, 211–214
  • buildings, equipment, machinery, 214
  • cost of goods produced, 213
  • defined, 211
  • dividend distribution to owners, 214
  • dividend income, 213
  • gross receipts on sales, 213
  • interest expense and taxes, 214
  • interest income, 213
  • invested capital, 213
  • long-term debt reduction, 214
  • projected cash-flow statements, 230
  • sales, general, and administration expense, 213
• Census Bureau, 83
• centralized finance (Ce-Fi) lenders, 36
• Certified Development Company (CDC/504) program, 34
• Chamber of Commerce, 13
• Chandler, A.D., Jr., 316
• change, 241–263
  • anticipating, 259–261
  • dangers of ignoring, 242–243
    • examples of, 242–243
    • excuses, 242
  • dimensions of, 243–259
    • cultural trends, 253–255
    • economic trends, 248–253
    • governmental trends, 244–248
    • technological trends, 255–259
  • fear of, 352
  • preparing for, 261–263
  • readiness for, 346–347
  • size of company and, 252
  • skill in dealing with, 329
• Churchill, Winston, 327
• Cisco Systems, 64–65, 294
• CLV (customer lifetime value), 132–133
• Coca-Cola, 57, 150, 293–294
• COGS (cost of goods sold), 205, 226
• Colgate, 301
• colleague leadership style, 327
• Columbia Pictures, 293
• commodities marketplace, 77
• communication skills, 329
• company culture, 329–332
• company description section
  • capabilities and resources, 19–20
  • consumer viewpoint, 20
  • overview, 19–20
  • sample, 362–365
• company overview section
  • overview, 18–19
  • planning documents, 18–19
  • sample, 356–357
• company strategy section
  • alternative possibilities for action, 20
  • overview, 20
  • sample, 365–369
• Company Strengths and Weaknesses Questionnaire, 165
• competition, 139–160
  • analyzing, 158–160
    • choosing battles, 160
    • profiling, 160
    • resources, 158–160
  • identifying, 142–151
    • customer choice, 143–145
    • future competition, 149–151
    • product and service usage, 146
    • product-selection process, 145
    • strategic groups, 147–149
  • industry structure, 73–74
  • predicting, 155–158
    • assumptions, 156–158
    • goals, 155–156
  • refreshing plans when competition heats up, 339
  • tracking, 151–154, 345
    • capabilities, 151–153
    • strategies, 153–154
  • underestimating, 350
  • understanding rival’s customers, 123–124
  • value of competitors, 140–142
• competitive advantage, 194–197
  • defined, 195
  • sustained competitive advantage, 196–197
• concreteness in language, 134
• confirmation bias, 157
• construction industry, 298
• Coors, 301
• core competence, 195–196
• corporate social responsibility (CSR), 331
• cost of goods produced, 213
• cost of goods sold (COGS), 205, 226
• Costco, 105, 150, 153, 269
• cost-per-thousand (CPM) ratio, 112
• costs, 205–206
  • cost of goods sold, 205
  • depreciation expense, 205
  • increasing, 340
  • interest expense, 205
  • sales, general, and administration expense, 205
  • taxes, 206
• COVID-19 pandemic, 43, 57, 79, 105, 175, 194, 246–247, 251, 278
• CPM (cost-per-thousand) ratio, 112
• Craftsman, 126
• Craigslist, 192
• critical success factors (CSFs), 85–88, 177–180
  • adopting new technologies, procedures, and policies, 86
  • business drivers, 86–87
  • capabilities and resources compared to, 178–179
  • company name, 88
  • defined, 85, 177
  • distribution, 87
  • government regulation, 88
  • importance of, 88
  • location, 87
  • marketing, 87–88
  • priorities, 86
  • specificity, 85
• CSR (corporate social responsibility), 331
• CTAs (calls to action), 129
• cultural trends, 253–255
  • demographic changes, 253
  • lifestyle changes, 254–255
  • social changes, 254
• currency value, 251, 253
• current assets, 207, 209, 228
• current liabilities, 210, 229
• current ratio, 216
• customer interviews, 114
• customer lifestyle, 102
• customer lifetime value (CLV), 132–133
• customer profiles, 101–102
• customer service units, 134, 169–170
• customer value equation, 141
• customers, 96–113, 117–138
  • behavior, 124–127
    • customer motives, 127
    • customer needs, 125–127
  • benefits of, 96–97
  • big picture, 118–119
  • business customers, 134–138
    • decision-making process, 136
    • derived demand, 135
    • forces to be reckoned with, 136–137
    • questions to consider, 137
    • unique forces, 138
  • categorizing, 119–124
    • bad customers, 122–123
    • generations, 120–121
    • understanding rival’s customers, 123–124
  • data analytics and privacy, 125
  • decision-making process, 128–129
  • defection of, 339
  • global customers, 130–131
  • good customers, 96, 121
  • identifying, 122, 344–345
    • benefits, 108–109
    • decision-making, 108–110
    • demographic data, 101
    • distribution and delivery, 105–106
    • features, 103–104, 108
    • geographic data, 100–101
    • lifestyle, 102
    • packaging, 104
    • pricing, 104–105
    • profiles, 101–102
    • what customers buy, 103–106
    • who buys, 98–103
    • why customers buy, 107–110
  • identifying competition based on customer choice, 143–145
  • second-guessing, 350
  • serving better, 132–134
  • studying customer base, 168–170
  • test marketing, 113–115
  • useful segments
    • identifying customers, 111
    • reaching market, 111–113
    • scaling, 110–111

D

• D&B Hoovers, 83
• D2C (direct to consumer), 80, 175
• data analytics, 106–107, 125
• Dean and DeLuca, 105
• debt-to-equity, 218
• decentralized finance (De-Fi) lenders, 36
• decision-making process (DMP), 108–110, 128–129
  • actual decision-makers, 109
  • business customers, 136
  • customer loyalty, 109–110
  • five-step adoption process, 129
  • level of product use, 109–110
  • perceptions of reality, 128
  • speed of purchase decisions, 109
• decision-making units (DMUs), 109, 136
• decline stage in product life cycle, 286–287, 290
• De-Fi (decentralized finance) lenders, 36
• delivery, 105–106
• Deloitte, 260
• demographic changes, 253
• demographic data, 101
• depreciation, 227
• depreciation expense, 205
• DeWalt, 126
• diffusion curve, 255–256
• dimensions of change
  • cultural trends, 253–255
    • demographic changes, 253
    • lifestyle changes, 254–255
    • social changes, 254
  • economic trends, 248–253
    • currency value, 251, 253
    • GDP, 249
    • inflation rates, 250–251
    • interest rates, 249–250
  • governmental trends, 244–248
    • executive branch, 246
    • foreign governments, 247–248
    • judicial branch, 246–247
    • legislative branch, 246
    • local and state governments, 247
    • reaction cycle, 245
  • technological trends, 255–259
    • diffusion curve, 255–256
    • personality types, 256–258
    • tracking, 258–259
• direct marketing, 111–112
• direct to consumer (D2C), 80, 175
• Disaster Loan Programs, 34
• distribution channels, 80, 91, 105, 174–175
• distribution systems, 79
• dividend distribution to owners, 214
• dividend income, 213
• divisional format, 318–319
• DMP. See decision-making process
• DMUs (decision-making units), 109, 136
• Dollar Shave Club, 150
• Doritos, 173–174
• Drucker, Peter, 53, 63
• Dun & Bradstreet
  • Industry Handbook, 84
  • Industry Norms and Key Business Ratios, 215
  • Reports, 83
• DuPont formula, 231–233
  • components of, 232–233
  • DuPont chart, 232
  • what-if analysis, 233
• Dylan, Bob, 252
• dynamic capabilities model, 322–323

E

• early adopters, 256–258
• early majority, 257
• earnings before interest expense and taxes (EBIT), 218
• Eastman, George, 70
• Eastman Kodak, 70–71, 259
• eBay, 91, 105, 131–132, 175, 192, 273
• economic trends, 248–253
  • currency value, 251, 253
  • GDP, 249
  • inflation rates, 250–251
  • interest rates, 249–250
• economies of scale, 74, 80
• Economist, 260
• ecosystem partners, 280
• Edible Complex, The, 88
• Edison, Thomas, 303

• 80 percent experience curve, 271

• Einstein, Albert, 206
• elevator pitches, 18
• Encyclopedia of Emerging Industries, 84
• Encyclopedia of Global Industries, 84
• enhanced products, 119
• entry barriers, 74–75
• environmental scanning, 243–244
• Equifax, 45
• ESG (environment, social issues, governance), 331
• estimated balance sheets, 228–230
  • assets, 228–229
  • liabilities, 229
  • owners’ equity, 230
• Etsy, 105
• executive branch, 246
• executive summary section
  • length of, 18
  • overview, 17–18
  • sample, 356
  • summarize, say, reiterate, 18
• exit barriers, 75
• expansion, 292–302
  • Ansoff Matrix, 292–293
  • new market, existing product, 296–297
  • new product and new market, 293, 300–302
  • new product, existing market, 293, 297, 299
  • same product and same market, 292, 294–296
  • steps for, 293–294
• Expedia, 144
• experience curve, 81, 269–272
  • defined, 269
  • 80 percent experience curve, 271
  • intangibles, 270
  • learning, 271
  • scale, 270–271
  • scope, 271

F

• Facebook, 107, 191, 243, 273, 291
• fast-moving consumer goods (FMCGs), 119, 150, 268
• Federal Reserve Bank, 250
• Federal Trade Commission, 83
• FedEx, 35
• FICO scores, 202
• financial ratios, 214–220
  • defined, 215
  • long-term responsibilities, 217–218
    • debt-to-equity, 218
    • times interest earned, 218
  • profitability, 218–220
    • defined, 218
    • net profit margin, 219
    • return on equity, 220
    • return on investment, 219–220
  • short-term obligations, 215–217
    • current ratio, 216
    • inventory turnover, 216–217
    • quick ratio, 216
    • receivables turnover, 217
• financial review section
  • financial documents, 21
  • financial projections, 21
  • overview, 20–21
  • sample, 369–372
• financial statements, 201–220
  • balance sheets, 21, 206–211
  • cash-flow statements, 21, 211–214
  • financial ratios, 214–220
  • income statements, 21, 203–206
  • overview, 201–202
• Financial Times, 260
• first-stage financing, 32
• first-tier competitors, 144–145
• fixed assets, 209–210, 229
• Fluor Corporation, 298
• FMCGs (fast-moving consumer goods), 119, 150, 268
• FNB Bank, 37
• focus strategy, 267, 276–278
  • defined, 277
  • difficulties of, 278
  • limited territory, 277
  • niche markets, 277
• Food and Drug Administration, 88
• Forbes, 260
• Ford, Henry, 97, 172, 292
• Ford Motor Company, 42, 57, 69, 97–98, 172
• forecasts, 221–233
  • assumptions, 222–223
  • DuPont formula, 231–233
  • estimated balance sheets, 228–230
    • assets, 228–229
    • liabilities, 229
    • owners’ equity, 230
  • flawed numbers, 223
  • pro-forma income statements, 224–228
    • anticipated costs, 226–228
    • defined, 224
    • projected revenue, 224–226
  • projected cash-flow statements, 230
• Foreign Affairs, 260
• foreign governments, 247–248
• forward integration, 150
• Fox, 111
• freemiums, 9, 192
• Frontgate, 105
• Fuld+Company, 159
• functional model, 318
• Functions of the Executive (Barnard), 60

G

• Gallup, 64
• game theory, 155
• Gary, Elbert, 186
• Gates, Bill, 309–310
• GDP (Gross Domestic Product), 249
• Gen Xers, 120, 330
• Gen Zers, 105, 121
• General Electric (GE), 155–156, 243, 302–303, 310–311
• General Motors (GM), 26, 69, 76, 98, 118, 242
• geographic data, 100–101
• gig economy, 273
• global customers, 130–132
• globalization, 65, 74, 86, 130–131, 149–150, 153, 169, 247, 251, 266, 281, 323, 329
• goals, objectives, words, numbers (GOWN), 59
• goals and objectives lists, 57–66
  • creating business goals, 61
  • creating business objectives, 62
  • defined, 19
  • efficiency vs. effectiveness, 60
  • goals, defined, 58–59
  • GOWN acronym, 59
  • importance of, 57–58
  • keeping mission on track through goals, 64–65
  • matching to mission, 62–63
  • objectives, defined, 59
  • sample, 363
  • SMART approach, 58
  • time frame for reaching, 63, 65–66
• Goldman Sachs, 243
• Google, 55, 58, 107, 115, 176, 191, 243, 256, 275
• governmental trends, 244–248
  • executive branch, 246
  • foreign governments, 247–248
  • judicial branch, 246–247
  • legislative branch, 246
  • local and state governments, 247
  • reaction cycle, 245
• GOWN (goals, objectives, words, numbers), 59
• Great Place To Work, 44
• Gross Domestic Product (GDP), 249
• gross receipts on sales, 213
• gross revenue on sales, 204
• Groth, Kristian, 355
• growth, 285–311
  • benefits of, 309–310
  • expanding, 292–302
    • Ansoff Matrix, 292–293
    • new market, existing product, 293, 296–297
    • new product and new market, 293, 300–302
    • new product, existing market, 293, 297, 299
    • same product and same market, 292, 294–296
    • steps for, 293–294
  • managing, 310–311
  • occurring too quickly, 340
  • product life cycle, 286–292
    • decline stage, 290
    • determining current stage, 290–292
    • growth stage, 288–289
    • introduction stage, 287–288
    • maturity stage, 288–289
  • product portfolio management, 302–308
    • Growth-Share Grid, 305–308
    • portfolio analysis, 304–308
    • strategic business units, 302–304
• growth stage in product life cycle, 286–289
• Growth-Share Grid, 305–308
  • building, 307–308
  • cash cows, 307
  • dogs, 307
  • stars, 306

H

• Haas School of Business, 56
• Handbook of North American Industry, 84
• Hanes, 175
• Harley-Davidson, 293
• Harvard Business Review, 169–170
• head-to-head competitors, 144–145
• Hewlett-Packard, 243, 259
• Hierarchy of Needs model, 126
• Home Depot, 105, 126, 131–132
• Honda, 196, 275
• Hsieh, Tony, 169–170
• Huawei, 65, 150
• Hyundai, 157

I

• IBM, 242, 280, 310
• IdeaPros, 36
• Immelt, Jeff, 311
• In Search of Excellence, 243
• income statements, 21, 203–206
  • costs, 205–206
    • cost of goods sold, 205
    • depreciation expense, 205
    • interest expense, 205
    • sales, general, and administration expense, 205
    • taxes, 206
  • defined, 203
  • net profit, 203
  • profits, 206
    • gross profit, 206
    • net profit, 206
    • operating profit, 206
    • profit before taxes, 206
  • pro-forma income statements, 203, 224–228
  • revenue, 203–204
    • gross revenue on sales, 204
• incumbents, 74
• independent thinking skills, 329
• indirect competitors, 145
• industry analysis, 71–84
  • finances, 80–82
    • costs, 80–81
    • profit margins, 81–82
  • markets, 75–78
    • growing vs. shrinking, 76
    • product differentiation, 77
    • product substitution, 77–78
    • size, 75–76
  • questionnaire, 71–72
  • relationships, 78–80
    • customer satisfaction, 79
    • distribution channel, 79–80
    • supply and demand, 78–79
  • structure, 73–75
    • entry barriers, 74–75
    • exit barriers, 75
    • rivals, 73–74
    • technology, 74
  • supporting data, 82–84
• inflation rates, 250–251
• information management skills, 329
• initial capital, 177
• innovators, 256–258
• intangibles, 210
• Intel, 114
• interest coverage, 218
• interest expense, 214, 227
• interest income, 213
• interest rates, 249–250
• introduction stage in product life cycle, 286–288
• inventories, 209
• inventory turnover, 216–217
• invested capital, 211, 213
• IRS, 10
• ITT Industries, 243

J

• JCPenney, 278
• JIT (just-in-time), 90
• Jobs, Steve, 29, 74
• John Deere, 150
• John Wiley & Sons, Inc., 56
• Johnson & Johnson, 146
• judicial branch, 246–247
• just-in-time (JIT), 90

K

• key performance indicators (KPIs). See critical success factors
• Kickstarter, 36
• KingSize, 277
• Kiva, 37
• Kodak, 70–71, 259
• Kohl’s, 105, 278–279
• KPIs (key performance indicators). See critical success factors

L

• laggards, 256–257
• late majority, 257
• leadership, 325–329
  • from front vs. from back, 326
  • personality traits, 328–329
  • skills, 329
  • styles of, 327–328
• leadership styles, 327–328
• learning curves, 81
• legislative branch, 246
• lending resources
  • bank loans, 33, 36
  • bootstrapping, 33
  • commercial lines of credit, 36
  • credit cards, 35
  • crowdfunding, 35–36
  • De-Fi lenders, 36
  • family and friends, 33, 35
  • international, 37
  • Small Business Administration, 34
• LGBTQ community, 90
• liabilities, 207, 210–211, 229
  • accounts payable, 210
  • accrued expenses payable, 210
  • current liabilities, 210, 229
  • long-term liabilities, 211, 229
• libraries, 13, 83–84
• Library of Congress, 215
• lifestyle
  • customer lifestyle, 102
  • lifestyle changes, 254–255
• LinkedIn, 190
• liquidity, 207, 215
• list brokers, 112
• local governments, 247
• long-term debt reduction, 214
• long-term liabilities, 211, 229
• long-term ratios, 217–218
  • debt-to-equity, 218
  • times interest earned, 218
• low-cost leadership strategy, 267–274
  • experience curve, 269–272
    • defined, 269
    • 80 percent experience curve, 271
    • intangibles, 270
    • learning, 271
    • scale, 270–271
    • scope, 271
  • low-cost culture, 272–274
  • no-frills products, 268–269
  • platforms vs. pipelines, 272–273
• Lucaz, Cora, 355
• Lyft, 300

M

• Mackey, John, 333
• Macy’s, 105, 278
• Mahindra, 150
• management by objectives (MBO), 63
• Mandela, Nelson, 326
• market followers, 281–283
• market leaders, 281–282
• market pain points, 91
• market segmentation, 96–113
  • benefits of, 96–97
  • good customers, 96
  • identifying segments, 98–110
    • benefits, 108–109
    • decision-making, 108–110
    • demographic data, 101
    • distribution and delivery, 105–106
    • features, 103–104, 108
    • geographic data, 100–101
    • lifestyle, 102
    • packaging, 104
    • pricing, 104–105
    • profiles, 101–102
    • what customers buy, 103–106
    • who buys, 98–103
    • why customers buy, 107–110
  • useful segments, 110–113
    • identifying customers, 111
    • reaching market, 111–113
    • scaling, 110–111
• Maslow, Abraham, 126
• mass customization, 106–107
• master budget, 234
• matrix format, 319–320
• Mattel, 131–132
• maturity stage in product life cycle, 286–289
• MBO (management by objectives), 63
• McDonald’s, 293–294
• McKinsey & Co, 242, 260
• Merck, 170
• Merrill Lynch, 84
• mezzanine financing, 32
• MicroLoan Program, 34
• Microsoft, 190, 243, 280, 309–310
• Millennials, 101–102, 105, 120–121, 330
• MINI Cooper USA, 56, 175
• Minolta, 259
• mission statements, 51–66
  • creating, 54
  • defined, 19
  • effective, 52
  • examples of, 55–56
  • following through, 332
  • goals in sync with, 343
  • keeping on track through goals, 64–65
  • length of, 52
  • matching goals and objectives to, 62–63
  • mission creep, 54
  • origin of, 52
  • overview, 51
  • preparing for, 53–54
  • product categories, 56
  • sample, 363
  • tangible image of company, 55
  • understanding business, 53
  • understanding customer, 53
  • value proposition vs., 189
• monopolies, 73
• monopsonies, 73
• Moody’s, 215
• Morgan Stanley, 84
• Motel 6, 277
• Motorola, 58, 243
• MSNBC, 111
• Musk, Elon, 74, 155
• MySpace, 291

N

• National Federation of Independent Business (NFIB), 10
• National Semiconductor Corporation, 301
• native content, 192
• needs fulfillment, 125–127
• net profit, 203
• net profit margin, 219, 233
• Netflix, 107, 191, 243
• New York Times, 192, 260
• Newell Brands, 301–302
• News Corp., 291
• NFIB (National Federation of Independent Business), 10
• Nike, 97
• Noémie, 105
• no-frills products, 103–104, 268–269
• Nolo, 10
• Northrup Grumman, 301
• Nucor Steel, 177–178

O

• Office Depot, 105
• offshoring, 280–281
• oligopolies, 73
• Omaha Steaks, 105
• online resources
  • Ask For Funding, 36
  • Big Five Personality Test, 329
  • British Library, 13
  • California State Association of Counties, 83–84
  • Capterra, 202
  • Census Bureau, 83
  • Cheat Sheet (companion to book), 4
  • D&B Hoovers, 83
  • Dun & Bradstreet, 215
  • Dun & Bradstreet Reports, 83
  • Federal Trade Commission, 83
  • FNB Bank, 37
  • Fuld+Company, 159
  • game theory, 155
  • Great Place To Work, 44
  • Harvard Business Review, 82
  • IdeaPros, 36
  • IRS, 10
  • Kickstarter, 36
  • Kiva, 37
  • Library of Congress, 215
  • Lucidchart, 82
  • MindTools, 82
  • National Federation of Independent Business, 10
  • Nolo, 10
  • Numerator, 83
  • Open-Source Psychometrics, 329
  • Porter Five-Forces Model, 82
  • Quicken, 228
  • Securities & Exchange Commission, 83
  • Service Corps of Retired Executives, 10, 13
  • Small Business Administration, 10
  • Spotfund, 36
  • Standard & Poor Industry Surveys, 83
  • Standard and Poor’s Industry Surveys, 215
  • StartEngine, 36
  • Statista, 83
  • Truity, 329
  • US Department of Commerce, 83
  • US Justice Department, 83
  • Zappos and customer service, 170
• OPM (Other People’s Money), 37
• Oracle, 294
• Orbitz, 144
• organizational structure, 315–323
  • basic design, 317
  • choosing, 321
  • divisional format, 318–319
  • dynamic capabilities model, 322–323
  • form follows function, 315–317
  • functional model, 318
  • management levels, 320–321
  • matrix format, 319–320
• Other People’s Money (OPM), 37
• outsourcing, 280–281
• owners’ equity, 210–211, 230
  • accumulated retained earnings, 211
  • invested capital, 211

P

• packaging, 104
• paywalls, 192
• PepsiCo, 150, 173
• personality traits, 328–329
• PEST (political, economic, social/cultural, and technological) analysis, 243
• planning resources, 8–14
  • books, 9
  • business networking organizations, 14
  • business organizations, 13
  • business-planning software, 12
  • caution, 11–12
  • current information, 9–11
  • direct contact, 11
  • fact checking, 12
  • online resources, 9–12
  • professional help, 12–13
  • retired businesspeople, 13
  • tailored searches, 11
  • you, 8
• planning team, 14–16
  • assigning duties, 15
  • delegating responsibility, 15
  • establishing schedule, 15
  • ground rules, 15
  • identifying key steps, 15
  • organizing around plan, 16
  • project director, 16
  • senior plan editor, 16
  • size of, 15
  • size of company and, 14
  • willingness of members, 16
• political, economic, social/cultural, and technological (PEST) analysis, 243
• polyopolies, 73
• Porsche, 275
• Porter Five-Forces Model, 82
• portfolio analysis, 304–308
  • defined, 304
  • Growth-Share Grid, 305–308
  • market growth, 306
  • problem children, 306
  • relative market share, 306
• positive cash flow, 177
• Powell’s Books, 194
• pricing, 104–105
• pro forma statements, 21
• Probability and Impact Grid, 262–263
• Procter & Gamble, 111, 150
• product benefits, 108–109
• product differentiation, 77, 267–268, 274–276
  • defined, 274
  • packaging, 276
  • product features, 275
  • service industry, 276
• product features, 103–104, 108
• product life cycle, 256, 286–292
  • decline stage, 290
  • defined, 286
  • determining current stage, 290–292
  • growth stage, 288–289
  • introduction stage, 287–288
  • maturity stage, 288–289
  • overview, 286–287
• product portfolio management
  • Growth-Share Grid, 305–308
  • portfolio analysis, 304–308
  • strategic business units, 302–304
• product substitution, 77–78
• profit margins, 81–82
• profitability ratios, 218–220
  • defined, 218
  • net profit margin, 219
  • return on equity, 220
  • return on investment, 219–220
• profits, 206
  • gross profit, 206
  • net profit, 206
  • operating profit, 206
  • profit before taxes, 206
• pro-forma income statements, 203, 224–228
  • anticipated costs, 226–228
  • defined, 224
  • projected revenue, 224–226
• projected cash-flow statements, 230
• psychographic data, 102
• Public Policy, 260
• Puma, 97
• PwC, 260

Q

• quick ratio, 216
• Quicken, 228

R

• R&D (research and development), 170–171
• Rakuten, 105
• receivables turnover, 217
• Regeneron, 170
• repression of innovation (ROI), 89
• research and development (R&D), 170–171
• resiliency, 79
• resource allocation, 197–199
• return on assets (ROA), 219, 232
• return on equity (ROE), 220, 231–232
• return on investment (ROI), 219–220
• revenue, 29, 203–204
  • falling, 340
  • gross revenue on sales, 204
  • projected revenue, 224–226
• Revlon, 119
• Revson, Charles, 119

• “richness vs. reach” dilemma, 112

• ROA (return on assets), 219, 232
• Robinhood, 105
• ROE (return on equity), 220, 231–232
• ROI (repression of innovation), 89
• ROI (return on investment), 219–220
• Rolex, 105, 190
• Ryan Air, 269

S

• Saks Fifth Avenue, 105
• sales, general, and administration (SG&A) expense, 133, 205, 213, 227
• Salesforce, Inc., 44–46
• Sam’s Club, 269
• SBA (Small Business Administration), 10, 13, 34
• SBIC (Small Business Investment Company), 34
• SBUs (strategic business units), 302–304, 318–319
• scaling, 110–111
• scenario planning, 260–261
• Schwab, 84
• Sciutto, Kent, 298
• SCORE (Service Corps of Retired Executives), 10, 13
• Sears, 126, 242, 278
• second-stage financing, 32
• Securities and Exchange Commission (SEC), 11, 83–84
• securities firms, 84
• seed financing, 32
• self-assessment, 163–181
  • overview, 163–164
  • SWOT analysis, 164–181
    • capabilities and resources, 166–177
    • Company Strengths and Weaknesses Questionnaire, 165–166
    • competition, 180
    • completing, 180–181
    • critical success factors, 177–180
    • frames of reference, 165–166
    • overview, 164
    • SWOT grid, 180–181
• SellMax, 35
• Sephora, 279
• Service Corps of Retired Executives (SCORE), 10, 13

• 7(a) program, 34

• SG&A (sales, general, and administration) expense, 133, 205, 213, 227
• Shopify, 190
• short-term ratios, 215–217
  • current ratio, 216
  • inventory turnover, 216–217
  • quick ratio, 216
  • receivables turnover, 217
• showrooming, 77
• Silent Generation, 120, 157
• situation analysis, 89
• Slack, 190
• Sloan, Alfred P., Jr., 98
• Small Business Administration (SBA), 10, 13, 34
• Small Business Investment Company (SBIC), 34
• SMART approach (Specific, Measurable, Attainable, Relevant, and Time-bound), 58
• SMEs (subject matter experts), 83
• Smith, Adam, 140
• Smith, Fred, 35
• social changes, 254
• social/cultural, technological, economic, and political (STEP) analysis, 243
• Sony, 71, 259
• Southwest Airlines, 95
• Specific, Measurable, Attainable, Relevant, and Time-bound (SMART approach), 58
• Spirit Airlines, 103–104, 108, 269
• Spotfund, 36
• Spotify, 107
• SPOTS Syndrome (Strategic Plans On Top Shelves), 29
• Square, 250
• stakeholders
  • defined, 31
  • lending resources, 33–36
  • venture capital, 31–33
• Standard and Poor Industry Surveys, 83, 215
• Starbucks, 91, 95, 132–133
• StartEngine, 36
• start-up financing, 32
• state governments, 247
• STEP (social/cultural, technological, economic, and political) analysis, 243
• strategic business units (SBUs), 302–304, 318–319
• strategic groups, 147–149
  • dividing competition into, 148–149
  • traits of, 147
  • variables, 148
• Strategic Plans On Top Shelves (SPOTS Syndrome), 29
• strategy, 95–115, 265–284
  • creating, 284
  • factors affecting, 279–281
  • generic strategies, 265–278
    • focus, 267, 276–278
    • low cost, 267–274
    • overview, 265–266
    • product differentiation, 267–268, 274–276
  • making sense, 346
  • market leaders and the market followers, 281–283
  • market segmentation, 96–113
    • identifying segments, 98–110
    • useful segments, 110–113
  • test marketing, 113–115
• Strategy and Structure, 316
• strengths and weaknesses, opportunities, and threats analysis. See SWOT analysis
• strengths-and-weaknesses grids, 180–181
• Subaru, 90
• subject matter experts (SMEs), 83
• Suite 07, 355
• Sullivan, Louis, 315–316
• Sun Tzu, 160
• Sundance, 105
• supply and demand, 78–79
• sustained competitive advantage, 196–197
• Swatch Group, 154
• SWOT (strengths and weaknesses, opportunities, and threats) analysis, 89–93, 164–181
  • capabilities and resources, 166–177
    • customer base, 168–170
    • digital presence, 171
    • distribution and delivery, 174–176
    • financial condition, 176–177
    • management, 167
    • marketing and sales, 173–174
    • operations, 172–173
    • organization, 168
    • research and development, 170–171
  • Company Strengths and Weaknesses Questionnaire, 165–166
  • competition, 180
  • completing, 180–181
  • critical success factors, 177–180
  • defined, 89
  • frames of reference, 165–166
    • competitive view, 166
    • internal view, 165–166
    • outside view, 166
  • ignoring strengths, 351
  • knowing strengths and weaknesses, 345
  • opportunities, 89–91
    • bottom-of-the-pyramid opportunities, 91
    • changing laws or regulations, 91
    • fresh organization models, 91
    • new customer segments, 90
    • new distribution channels, 91
    • new pools of workers, 90
    • new processes, 90
    • new technology, 89–90
    • new uses for old products, 90
    • nontraditional new locations, 91
  • overview, 164
  • sample, 364
  • SWOT grid, 180–181
  • threats, 92–93
    • economic threats, 93
    • political threats, 92
    • social threats, 92
    • technology threats, 92
• synergy, 301–302

T

• Taco Bell, 154
• Taco Bueno, 154
• Target, 105
• Target Roofing & Sheet Metal, 43
• taxes, 227
• team skills, 329
• technological trends, 255–259
  • diffusion curve, 255–256
  • personality types, 256–258
  • tracking, 258–259
• Tesla, 56, 88, 90, 140, 275
• test marketing, 113–115
  • alpha testing, 114–115
  • beta testing, 115
  • customer interviews, 114
• Thomas Cook, 143
• Tiffany & Co., 105
• TikTok, 77, 88
• Time, Inc., 291
• times interest earned, 218
• Timex, 104–105
• T.J. Maxx, 105
• Toyota, 90, 275
• trade associations, 84
• Travelocity, 144
• Tripadvisor.com, 144
• Trip.com, 144
• Trivago, 144
• TSMC, 157
• Turn-Key Construction Group, Inc., 298
• Turo, 300

U

• Uber, 273, 300
• Unilever, 150
• United Airlines, 104
• University of Phoenix, 269
• Upjohn, 146
• US Department of Commerce, 83
• US Justice Department, 83
• US Steel (USX Corporation), 135–136, 186, 242

V

• value chain, 183–199
  • business model, 190–197
    • competitive advantage, 194–195
    • core competence, 195–196
    • making money from plan, 191
    • sustained competitive advantage, 196–197
    • timing, 193
  • defined, 184
  • developing, 187–189
  • framework for, 187–188
  • links in, 184–186
    • primary links, 185
    • supporting links, 185–186
  • resource allocation, 197–199
  • summarizing key business activities, 184
  • value equation, 183
  • value proposition, 189–190
• value equation, 141, 183
• value proposition, 189–190
• Value-Line, 215
• values statements, 39–48
  • black-or-white philosophy, 41
  • creating, 46–48
  • crises, 43–44
  • defined, 18, 42, 44
  • ethics and legal issues, 42–43
  • following through, 48
  • imagining response to difficult dilemmas, 46
  • importance of, 39–41, 44–45
  • lack of values, 350
  • promoting during annual employee performance reviews, 48
  • stakeholders, 46
  • terms to avoid, 48
  • utilitarianism, 41–42
• venture capital (VC), 31–33
  • connecting with, 32
  • homework, 33
  • overview, 31
  • pitch, 33
  • terminology, 32
• vision statements, 48–50
  • changing, 49–50
  • creating, 49
  • defined, 18, 48
  • following through, 332
  • lack of vision, 350
  • sample, 363
• Volkswagen, 43
• Volvo, 275
• VUCA (volatility, uncertainty, complexity, ambiguity), 1, 89, 93

W

• Wall Street Journal, 260
• Walmart, 95, 105, 111, 153, 169, 172
• Walt Disney Co., 56
• Walton, Sam, 172
• webrooming, 77
• Weetabix, 301
• Welch, Jack, 155–156, 310
• Wells Fargo, 84
• Whole Foods, 333
• working capital, 221

X

• Xerox, 243, 259

Z

• Zappos, 169–170