Preface xi Acknowledgment xvii Chapter 1 Understanding the Small Business Environment 1 Understanding the Small Business 1 Small Business Management 4 Small Business Computerization 5 Operational Management Function 7 The Family Business 8 Basic Operating Formula 16 Why the Small Business is in Existence 16 Businesses the Small Business is Not In 17 Helpful Systems 21 Management Responsibility 21 Operating Areas to Be Addressed 22 Economy, Efficiency, and Effectiveness 29 The Initial Survey 31 Chapter 2 Strategic Concepts 35 Strategy Development 36 Strategies for Competitive Advantage 37 Other Strategies to Exploit 40 Business Models 42 Front-End Strategy Analysis 43 Overview of the Strategy Development Process 44 Some Basic Business Principles 49 Mental Models and Belief Systems 50 Situational Analysis: Planning Questions 52 Chapter 3 Planning and Budgeting: Identifying the Right Direction and Staying On the Path 57 Relationship between the Planning and Budgeting Process 58 Planning Process 62 Budgeting Defined 65 Developing and Monitoring the Budget 67 Nonmanufacturing Budgets 68 Conclusion 69 Chapter 4 Improving Customer Service 73 New-Customer Quest 75 Servicing Present Customers 76 Striving for Outstanding Customer Service 78 Golden Rule of Customer Service 88 Looking at Customer Service from a Fresh Perspective 98 Tips for Terrific Touchpoints 100 Tips for Avoiding Traps that Trip You Up 102 Tips for Watching Out for Traps 107 Making that Great Customer Service Last: Keep the Romance in the Relationship 107 Conclusion 108 Chapter 5 Cash Conversion 111 Cash Conversion Basics 112 Cash Conversion Objectives 119 Profitability versus Liquidity 120 Chapter 6 Sales Function 129 Purpose of the Sales Function 130 Sales Function in Business for Itself 132 Product Analysis 133 Sales and Product Controls 135 Sales Forecasts 138 Pricing Strategies 139 Methods of Sales 144 Methods of Compensation 145 Sales Information and Reporting Systems 147 Performing the Sales Function Analysis 148 Sales Function Desirable Practices 149 Conclusion 151 Chapter 7 Cost Considerations 153 Cost Classifications 154 Manufacturing versus Nonmanufacturing Costs 154 Activity-Based Costing Overview 157 Cost Elements 170 Cost Reduction Analysis: Traditional versus ABC 179 Customer Cost Concepts 183 Analysis of Cost Behavior 189 Conclusion 196 Chapter 8 Accounting Operations: Functional Considerations 199 Accouting Function 200 Function Analysis 201 Choosing What to Analyze 202 Financial Reporting 208 Operational Analysis Survey Form 208 Analysis of Functional Costs 212 Developing Recommendations 216 Conclusion 224 Chapter 9 Operational Reporting Considerations 227 Small Business''s Numbers 228 Financial and Operating Ratio Analysis 238 Key Operating Statistics 249 Conclusion 259 Chapter 10 Internal Controls for the Small Business 263 What is Business Risk? 264 Internal Controls as Best Practices 267 Small Business Stakeholders 268 Internal Control Concepts 269 Internal Control Objectives 273 Consideration of Fraud 274 Internal Control Considerations 278 How to Segregate Duties (at a Work or Activity-Unit Level) 285 Performance Measures 286 Internal Control Review: The 12-Step Program 289 Internal Controls for Operations 292 Effective Controls by Type of Business 298 Conclusion 310 Chapter 11 Information Technology Control Considerations 313 Overview of Computer Operations 315 Control Objectives for IT 316 IT Controls 319 Common Small Business IT Control Weaknesses 335 IT Control Examples 337 Developing a Web Site 345 Chapter 12 Organization Structure and the Role of Management 355 Organizing the Small Business 356 Why Organize? 359 Building the Small Business Organization Structure 365 Comparisons between Individuals 369 What is Management? 370 Management Functions 372 Management Skills 374 Why Managers Fail 375 Tools for Self-Appraisal 376 Conclusion 376 Afterword 383 Index 389.