This book review consists of two parts. The first focuses on who could
benefit from studying and using the book. The second part reports on and
elaborates some relevant or interesting aspects of the book. This book can be highly useful to financial advisers, and to entrepreneurs
who plan to start a new business or who are already running a business of
their own. The book can be used effectively in courses on entrepreneurship
taught in Schools of Business (Management), or sometimes in Law Schools.
Some of the book's chapters as 3, 4, 10, and 18 can be assigned in
introductory courses on management. If the instructor does not require
students to buy the book, then the college or university library should
acquire a few copies of the book so that the relevant chapters could be on
a reading list for introductory management courses. The book has very good explanations of many topics related to
entrepreneurship. We describe below, a few of such well treated topics. Many of my MBA students would like to eventually, or right after
graduation, found their own business. They ask many questions about what
legal form should their entrepreneurial venture take. Lane's book provides
an exhaustive explanation of the benefits and costs of several legal
organizational forms: proprietorship, partnership, corporation, S
corporation, and incorporation in Delaware or in another state. The book
also reports on a more recent legal form entitled: Limited Liability
Company (LLC). Lane's book provides a well-written explanation of how to evaluate a new or
existing entrepreneurial venture. He describes the ins and outs of
breakeven analysis, simple forecasting financial models, and relevant
aspects of financial statements which the entrepreneur must be able to
understand for his/her own sake as well as for presentation to his/her
audience of potential investors. The book is a good source for providing
knowledge of other topics which the entrepreneur must understand to be able
to run his/her business efficiently. These include the ebbs and flows of
the processes of cash and receivables. Additionally, it provides a
discussion of other business processes. If the entrepreneur's business is
one of producing or reselling physical manufactured goods, then for such a
situation the book provides a good discussion of the inventory process.
Also provided in a comprehensive discussion are the ups and downs of the
liabilities process which has to be monitored closely by the entrepreneur.
The book performs well in providing the necessary understanding of business
processes. It presents its concepts and ideas in a lucid and clear fashion. Among other analyses, the book offers in-depth analysis of risk management
for the entrepreneur. It discusses and explains the very important
insurance principle. It delves into the types of insurance that are
relevant for any business enterprise: property insurance, liability
insurance, self-insurance,
and specific insurance for directors and officers of the business entity. Another important topic received a thorough going treatment: valuing the
business. This topic is especially of interest to entrepreneurs who own
their businesses and whose ventures achieved a measure of success. When
success and growth become permanent features of the business the notion of
selling the business to other entrepreneurs or to a large company may
become an option. Some older owners would like to sell to attain a
comfortable retirement without the pressures of running a business. Young
owners may wish to sell, cash in, and move on to other experiences. Thus a
guide to valuation and selling is a useful part of the book. This review focused on a few of the many interesting topics covered in
Lane's book. However, it should be borne in mind that the book covers many
more topics of interest. The book unravels its presentation over 310 pages
and 18 chapters. It contains a wealth of information relevant to the
founding, running, financing and selling of business enterprises. It is and
will be useful for financial advisors and entrepreneurs... |
