Small Business Management - Week 3 part B - chapters 10,11

*This posting covers chapters 10 & 11* Chapter 10 - The Legal Environment

On this chapter we have discussed the following issues:

* Laws and regulations that affect small business. * Types of bankruptcy. * The elements of a contract. * Ways to protect intellectual property.

Imagine there were no laws in our world, and each one of us could do whatever poped on our mind... sounds dreamy ? not quite. With abscense of laws come chaos and crime. Laws exist to protect us. In the world of business laws exist to protect both business owners and employees. There are laws to protect employees from being taken advantage of by employers , like the Fair Labor Standards Act, Civil Rights Act, Americans with Disabilities Act and more. There are laws that protect intellectual property (an idea, a product, a design etc') such laws include patents, copyrights and trademarks. A brand is a name, term, symbol, design, or combination of these elements that clearly identifies and differentiates your products from those of your competitors. Copyright is a form of protection for intellectual property provided to the creator of a literary, musical, or artistic work for a period of the creator's life plus 50 years. A Patent is a form of protection for intellectual property provided to an inventor for a period of 17 years. A Trademark is a form of protection for intellectual property provided to the owner of a brand name or symbol. On the following closing case analysis, I have tried to explain why Intellectual Propery protection laws are so important in the competitive environment of the world of business.

Closing case # 2 – Knocking off the Superclip Summary: Linda Froehlich is the owner of a wire products manufacturing company, who developed an idea called Superclip, a high carbon steel paper clip. The article brings her story as an example and explanation about the importance of Laws to protect intellectual property. Questions: Linda Froehlich believed that patenting her SuperClip would be all the legal protection she needed. Why did that turn out not to be the case? Obtaining patent rights is not enough to protect intellectual property. In addition, one should obtain copyrights as it allows you to take to court anyone who violates these rights by trying to copy your idea. Did Froehlich make a mistake in approaching Acco regarding the purchase of her patent rights? Froehlich made a mistake by contacting Acco before obtaining copyrights, and by doing so without consulting with an attorney. Approaching Acco without being protected from infringement left her with no case after her idea had been knocked off. How can a company prevent a patented product like the SuperClip from being knocked off? A company can prevent an idea such as Superclip from being knocked off by registering the idea as a patent, applying for copyrights through WIPO (World intellectual property Organization) and PTO (Patent trademark office). Analyze Froehlich’s initial decision to insist on making SuperClips in Pennsylvania, rather than moving production offshore as competitors had done. Linda Froehlich and her husband always believed in American manufacturing and saw themselves as such for many years. She and her husband wanted to keep control of the quality of their product and as a result refused to go offshore like their competitors. What advice would you give Froehlich at this point? My advice to Froehlich at this point would be to reduce the price of her product by reducing costs – manufacture the product outside the States in order to lower costs, try to supervise the quality of product by staging an American representative close to the factory, and in the future consult with an attorney regarding any ideas that might become a patent. Conclusion: The laws that protect intellectual property exist for a reason and are highly important. In order to avoid any disputes with competitors, the patent owner must register his idea as a patent but obtain copyrights as well. Any propositions to competitors should be done via an attorney. The world of business is a tough and competitive one, you must be well aware of your rights for protection before stepping into the deep water.

Chapter 11 - Small Business Marketing - Strategy and Marketing

On this chapter, we have discussed the importance of marketing to the small business, explained the process of developing a small business marketing stratergy, and learned why is the marketing research so important to the small business and what steps it involves.

Some personal thoughts on the subject...

I want to be an Interior Designer. In fact, this class is the last class that completes my Interior Design certificate. I am planning to continue to a bachelor degree in art or Interior Design, and one day, when I feel experienced enough, perhaps I could open my own Interior Design business. So as a small business owner, I will need to write a business plan. I have previously mentioned the importance of a business plan. What about marketing ?

One of the main parts of a business plan, is the marketing plan. Who am I going to sell my products or services to? who will be my Target Market ? to whom should I aim my marketing plan ? where will I advertise? All these questions require a thorough research. You also need to know who your competitors are and what is their product like - compares to yours.

Setting marketing objectives is very important. Marketing objectives define the goals of your plan. Marketing research is the process of gathering all the necessary information that will link consumers to marketers in an attempt to imrove marketing efforts.

Planning market research involves the following stages:

- Identifying the types of info you need

- Identifying sources of info

- Selecting a sample the represents the population you're studying.

- Selecting a research method and measurements techniques.

Abit about...

Niche Marketing. Niche marketing allows a small business to identify a group of people who would most likely be the business’s customers and then direct marketing efforts towards them. Small businesses cannot do everything for everyone, therefore they should concentrate on marketing their products and services to the right niche that has more potential of becoming clients.

So what will be my niche as an interior designer ? time will tell !...