SBANC
Newsletter
June
6, 2006
Issue 424-2006
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QUOTE
"The starting point of great success and achievement has always been the same. It is for you to dream big dreams. There is nothing more important, and nothing that works faster than for you to cast off your own limitations than for you to begin dreaming and fantasizing about the wonderful things that you can become, have, and do.
"
-- Brian
Tracy
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FEATURE
PAPER
The Relationship Between Boards and Family Planning in Small Businesses
The
following paper was presented at the 2006 USASBE/SBI Conference
held in Tucson, Arizona. It was written by Tim Blumentritt of
Kennesaw State University.
Abstract
This
study examines relationships between the existence of boards
of directors and advisory
boards and the use of planning in family businesses. It is argued
that both of the primary roles of
boards, the governance of a firm’s management team for the
firm’s stakeholders and the
provision of valuable business resources to the firm’s management
team, are significantly related
to the use of planning activities in family businesses. The empirical
evidence, drawn from a
survey of over 130 family businesses, largely supports the hypotheses.
Conclusions and
suggestions for future research close the article.
Introduction
Like other forms of businesses, family-owned firms which have clear perspectives on how their
managers run their firms and which have proper and effective governance structures are more
likely to enjoy long-term success. There are, of course, alternatives to utilizing strategic planning
and boards. Instead planning, managers may choose to make decisions based on intuition or
simply continue on with the trajectories set for the business in years past. Boards may not be
formed or ignored once in place, and family businesses may rely only on informal interactions
with family members for the advice and aid provided by boards at other firms.
While scholars have explored both planning and boards, to varying degrees, in family businesses,
little or no research has been conducted on the relationships between them. This lack of research
represents a significant gap in our understanding of how family businesses grow and develop,
especially in today’s world of intense competition and renewed interest in corporate governance.
The specific research question that guides this article is: Is there a relationship between the
existence of boards and the prevalence of planning in family-owned businesses?
Read
the Entire Paper...
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CONFERENCES
IPSI
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| Who: |
Internet,
Processing, Systems, and Interdisciplinary (Research)
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| What: |
IPSI
2006 - Montreal
|
| Where: |
Montreal,
Quebec, Canada |
| When: |
June
30-July 3, 2006 |
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EIRASS
|
| Who: |
European
Institute of Retailing and Services Studies
|
| What: |
13th
International Conference
|
| Where: |
Corinthia
Grand Hotel Royal in Budapest, Hungary |
| When: |
July
9-12, 2006 |
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ACI
|
| Who: |
Academic
Conferences International
|
| What: |
The
2nd European Conference on IS Managment, Leadership
and Governance
|
| Where: |
Paris,
France |
| When: |
July
12-13, 2006 |
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|
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FFI
|
| Who: |
Family
Firm Institute
|
| What: |
Annual
Conference -- FFI's 20th Anniversary
|
| Where: |
San
Francisco, California, USA |
| When: |
October
25 - 28, 2006 |
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BI
|
| Who: |
Barcoding
Inc.
|
| What: |
The
Future of Barcoding and RFID Conference and Exhibition
|
| Where: |
Renaissance
Schaumburg Hotel & Convention Center, Schaumburg,
Illinois |
| When: |
October
12, 2006 |
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|
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CALLS FOR PAPERS
IBEC/NEBAA
|
| Who: |
International
Business and Economy Conference
New England Business Administration Association
|
| What: |
Pacific
Rim Economies: Business
Issues and Opportunities
|
| Where: |
Iona
College in New Rochelle, New York, USA |
| When: |
July
14-16, 2006 |
Submission
Deadline:
June 25, 2006
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|
|
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AGB
|
| Who: |
Association
of Global Business
|
| What: |
Eighteenth
International Conference
|
| Where: |
Hyatt
Regency, Newport Beach, California, USA |
| When: |
November
16-19, 2006 |
Submission
Deadline:
June 30, 2006
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|
|
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ISBE
|
| Who: |
Institute
for Small Business & Entrepreneurship
|
| What: |
29th
Annual Conference
|
| Where: |
University
of Glamorgan in Wales, UK |
| When: |
October
31-November 2, 2006 |
Submission
Deadline:
June 30, 2006
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|
|
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MDC
|
| Who: |
Management
Development Center |
| What: |
Journal
of Business and Leadership: Research,
Practice, and Teaching
|
| Where: |
Fort
Hays
State University in Hays, Kansas, USA |
| When: |
September
27-28, 2006 |
Submission
Deadline:
June 30, 2006
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|
|
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AA
|
| Who: |
Allied
Academies |
| What: |
2006
Fall International Conference
|
| Where: |
Atlantis
Casino Resort & Spa, Reno, Nevada, USA |
| When: |
October
19-21, 2006 |
Submission
Deadline:
September 11, 2006
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TIP
OF THE WEEK
Forecasting Future Financial Performance: A GREAT WAY TO LOSE CREDIBILITY
For many entrepreneurs developing a financial plan takes a low priority, and they only do so when required by a banker or investor. Then when they finally make the time to do so, they invariably commit mistakes that cause them to lose credibility in the process. Here are some sure-fire ways to lose credibility with your banker or investors:
Making unrealistic sales projections. Entrepreneurs often think they can accomplish more than they are able to, especially when it comes to forecasting future sales. Their sales projections resembles a hockey stick, where the sales numbers are initially flat or rising slightly at first, (like the blade of a hockey stick), and then soaring upward like a hockey stick’s handle. To make things even worse, the entrepreneur with a straight face says, “…and my numbers are conservative.”
Not having clear assumptions about marketing and pricing plans. Projections are often times based on vague assumptions, with no explanation for the kinds of marketing you plan to do
Using unrealistic profit margins. Projections are immediately suspect if profit margins (profits ÷ sales) or expenses are significantly higher or lower than the average figures reported by firms in the industry with similar revenues and numbers of employees. It is very tempting to assume that as the company grows it will achieve economies of scale, and gross and operating profit margins will improve. More often, as the business grows and increases its fixed costs, its operating profit margins are likely to suffer in the short run.
Limiting your projections to an income statement. Entrepreneurs frequently resist providing a balance sheet and cash flow statement. They feel comfortable in projecting sales and profits, but do not like having to commit to estimating the sources and uses of capital needed to grow the business. Investors want to see financing sources and uses, and they are particularly interested in the firm’s cash flows--and the entrepreneur should be as well.
Providing too much financial information. Computer spreadsheets are great for making projections and seeing how different assumptions affect the firm’s financials. But there is always the temptation to over use this tool. Endless pages of spreadsheets impress no one. It simply sends the signal that the entrepreneur does not understand what matters. Committing the above mistakes leads to the problem of over-promising and under-delivering—and the resulting loss of credibility. No doubt, entrepreneurs have to step out on the faith that they will be able to deliver on what they promise, even though it may not be exactly clear how it will be accomplished. Risk is part of the equation, and often, things will not go as planned. But integrity requires an entrepreneur to do everything possible to honor commitments, and that cannot be done by creating unrealistic expectations about what can be accomplished.
| Justin
Longenecker, Carlos Moore, William Petty, and Les Palich. Small
Business Management: An Entrepreneurial Approach. 13th Edition. South-Western Publishing. 2006. 227-228. |
ANNOUNCEMENTS
USASBE / SBI 2007
One of the themes of this year's conference is
improving excellence and productivity of research. There will
be a number of sessions on research challenges and approaches
in
entrepreneurship as well as a Best Papers series.
The Coleman Foundation Best
Empirical Paper Award is presented to the overall
best empirical paper author or coauthors. Finalists
are nominated by division/track program chairs. The
selection process is coordinated by the USASBE/SBI
Competitive Papers Chair.
The Conference will be held at Disney's Coronado Springs Resort in Orlando, Florida on January 11-14, 2007.
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The
SBANC Newsletter is provided as a service to the members of our
affiliates: Academy of Collegiate Marketing Educators (ACME), Association
for Small Business & Entrepreneurship (ASBE), Federation of
Business Disciplines (FBD), International Council for Small Business
(ICSB), Institute for Supply Management (ISM), The International
Small Business Congress (ISBC), Marketing Management Association
(MMA), Small Business Administration (SBA), Service Corps of Retired
Executives (SCORE), Small Business Institute (SBI), Society for
Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs (VA).. If you are
interested in membership or would like further information on one
of our affiliates, please see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr.
Don B. Bradley III, Executive Director of SBANC & Professor
of Marketing;
Direct Phone: (501) 450-5345
Brandon
Tabor, Development Intern
Tyler
Farrar, Development Intern
Garion
McCoy, Development Intern
To subscribe or unsubscribe to the
SBANC Newsletter, please E-mail SBANC at sbanc@uca.edu
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