Term
| What is the Entrepreneurship Process? (6 steps) |
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Definition
Identify an Opportunity
Develop the Concept
Determine Resource Needs
Acquire Resources
Implement and Manage
Harvest |
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Term
| What are the types of opportunities? (5 types) |
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Definition
Shifting needs for Products, Services(Custom, new Apps of existing means)
Creating Mass Markets
Process Innovation (managing Supply Chain better)
Convergence of Industry
Increasing Scale/Reach of Firm |
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Term
| "Finding the Real Opportunities" (4) |
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Definition
Turn Old standbys into New products
Explore Mundane Moneymakers
Spin Off a more Lucrative business
Look for marketing avalanches |
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Term
| External Sources of Business Ideas (3+) |
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Definition
Economic,
Social,
Tech trends, etc |
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Term
| Internal Sources of Business Ideas (6) |
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Definition
You
Your Experiences
Attitudes about failure
Knowledge
Environments
Your group |
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Term
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Definition
One Hit Wonder
Cool for time being
Have Definite beginning and end
Unlikely to sustain a business
Advised to avoid them |
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Term
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Definition
Have roots and staying power
Strikes a deeper chord &connected to larger change in society
Spans more than 1 industry&touches more than 1 mark/gen
More likely to sustain business venture
Advised to spot them early |
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Term
| What are the 5 characteristics that make a business idea attractive? |
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Definition
Timely (current need or problem)
Solvable (prob that can be solved in near future w/acc. resrcs)
Important (cust. deems prob or need important)
Profitable (cust. will pay for solution &allow ent. to profit)
Context (favorable regulatory and industry situation) |
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Term
| Entrepreneur Plan for Evaluating a business idea (3ish) |
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Definition
Act
Review & Learn
Fix & Adjust
(repeat) |
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Term
| How Entrepreneurs craft strategies that work (3) |
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Definition
Screen opportunities quickly
Analyze ideas parsimoniously (focus on few important ideas)
Integration action & analysis (don't wait for all answers) |
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Term
| Evaluating Fit with an Opportunity (5) |
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Definition
Capabilities (consistent w/those of team members?)
Novelty (product novel, differentiated enough?)
Resources (can venture team attract necc. resources?)
Return (produced @cost so profit can be obtained?)
Commitment (team passionate/compelled to venture?) |
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Term
| VC tips for securing financing (3 areas) |
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Definition
TEAM: comfortable w/uncertainty,challenge conventional wisdom, stay focused on vision w/realistic expectations
MARKET: scalable model to grow exponentially, validation of opportunity, reasonable to become market leader
PRODUCT: simple to understand w/clear value proposition, can protect IP, will deliver quickly, good margins |
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Term
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Definition
Understand and evaluate what business opp. is.
Can share with others once concept is developed into shareable mode |
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Term
| Elements of a business story? (3) |
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Definition
Background
Challenge
Resolution |
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Term
| Business Model Canvas? (3) |
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Definition
Help to further develop mental models
Show parts of the whole
Check for completeness in business development |
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Term
| Main objective of the Elevator Pitch? |
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Definition
| To get to the next step with a potential investor/partner |
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Term
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Definition
Set the stage (define current situation, opportunity, players in a clear coherent manner)
Introduce the dramatic effect (describe the challenge & opportunities and need for coherent plan to reach success)
Reach a resolution (portray plan and describe how the new venture can overcome the obstacles by taking the plan) |
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Term
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Definition
Cover all the bases (fin, mgmt, actg, mktg, etc)
Expand the network
Increase credibility
Improve decision making |
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Term
| Characteristics a team should have (8) |
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Definition
Trust
Transparency
Openness
Relational coordination
Communication
Complimentary/diverse skills
Supportive or team goals
Accountable to team goals |
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Term
| Build BOD w/members that are: (4) |
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Definition
Knowledgeable
Interested in the new venture
Shareholder oriented
Have diverse profiles |
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Term
| Stages of Team Development (4) |
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Definition
Forming
Conforming
Norming
Performing |
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Term
| Objectives of Industry Analysis (3) |
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Definition
Identify gap of unserved needs
Anticipates competition for profit
Informs strategy |
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Term
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Definition
| Group of firms producing close substitutes for each other that serve the same customer |
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Term
| What are Porter's Five Forces |
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Definition
Competitive Rivalry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New Entrants
Threat of Substitute Products or Services |
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Term
| Porter's Five Forces provides & doesn't provide: |
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Definition
Provides: Snapshot of industry at a certain time; some data to help shape strategies
Doesn't Provide: Predictions or insights for how entrepreneur might change an industry |
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Term
| Force - Competitive Rivalry: Competition for profits is higher when.. |
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Definition
Numerous competitors of roughly similar size/power
Diverse rivals
High fixed costs
Low switching costs
Undifferentiated products (commodities)
High exit barriers
Low industry growth
Contraction in demand |
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Term
| Force - Bargaining Power of Customers |
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Definition
Bargaining leverage
Buyer volume
Buyer information
Brand loyalty |
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Term
| Force - Bargaining Power of Suppliers (3) |
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Definition
Suppliers concentration
Impact on inputs of cost differentiation
Importance of volume to supplier |
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Term
| Force - Threat of Substitutes Products or Services (2) |
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Definition
Price performance tradeoff of substitutes
Switching costs |
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Term
| Force - Threat of New Entrants (6) |
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Definition
Economies of scale
Product differentiation
Capital requirements
Switching costs
Gov't policies
Team capabilities |
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Term
| 2 winning strategy examples for an underdog or newbie? |
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Definition
How David beat Goliath:
(Play the same game differently, Substitute effort for ability, Move fast where Goliaths move slow, Do what seems socially horrifying)
Value Innovation:
(Industry conditions can be shaped, Beat the market w/a quantum leap, Not constrained by what you have, Total solutions for customers) |
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Term
| How do most start ups fail, what do they have to do to avoid failure? |
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Definition
Fail from a lack of customer development rather than from a lack of product development
Startups have to perform marketing analysis to avoid failure |
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Term
| Recognize what kind of startup you are (3) |
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Definition
1. New product in Existing market
(Better performance, same price; unlikely type for new venture: prod development & customer development run parallel)
2. New product attempting to Resegment an existing product
(low cost strategy; niche strategy: prod development before market development happens)
3. New product in New market
(allows customers to do something that they couldn't before) |
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Term
| Stages to Product Development (4) |
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Definition
| Concept -> Prod Development -> Alpha/Beta Test -> Launch 1st Shipment |
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Term
| Stages to Customer Development (4) |
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Definition
Customer Discovery (stop) -> Customer Validation (stop, back to Cust. Disc.) -> Customer Creation (stop) -> Company Building
Also refer to Steve Banks' Cust. Dev. process |
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Term
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Definition
| Where your company will interface with actual customers, competitors, and suppliers |
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Term
| Define Customer Creation (3) |
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Definition
Comes after proof of sales
More customers, more orders from same customers, etc
"Promotion" |
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Term
| List &define the types of adopters in the innovation adoption bell curve (5) |
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Definition
Innovators
(tech enthusiasts, want to be on cutting edge, price insensitive)
Early Adopters
(visionaries, change agents, opinion leaders)
Early Majority
(pragmatists, price sensitive, mainstream)
Late Majority
(conservatives, need whole solution/proof, adopt out of necessity or pressure)
Laggards
(skeptics, tend to ignore innovations altogether) |
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Term
| Know how to cross the CHASM |
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Definition
Early Majority
Information customers need to evaluate an innovation
Viral marketing
Pitchman takeaways
(refer to doc) |
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Term
| How has the internet changed distribution for startups? (2) |
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Definition
Lower costs
Faster accumulation of customers |
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Term
Stages to the Indirect Channel (4)
vs Direct Channel (2) |
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Definition
Producer
Distributor
Retailer
End User
------------
Producer --> End User |
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Term
| 5 common Budgeting Mistakes |
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Definition
Overstating Projections (be realistic)
Ignoring Immediate Budgetary Needs
Assuming Existence of Revenue Means Cash Flow Positive (lag between sales & collection)
Forgetting About Taxes (build into budget)
Mismanaging Advertising Timeline (ad costs precede sales) |
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Term
| Factors influenced by Legal Form (7) |
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Definition
Personal liability
Taxation
Cost of formation
Continuity of business
Financing
Nature of returns
Management |
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Term
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Definition
Sole proprietorships
Partnerships
C and S corporations
Limited Liability Companies
Benefit corporations |
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Term
| Define Sole Proprietorship |
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Definition
1 owner, unlimited liability, lower formation costs
Lifespan of company determined by lifespan of the owner |
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Term
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Definition
| Unlimited liability, more than one owner, slightly easier to acquire financing, limited lifespan |
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Term
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Definition
Limited to 75 investors
Limited liability
Easier to attract financing |
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Term
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Definition
Split between owners and management double taxation
(corporate and personal tax) hard to change form, easier to attract financing, potentially limitless lifespan |
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Term
| Define Limited Liability Companies |
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Definition
| Hybrid form, more than one owner/member, limited liability, mix of financing opportunities |
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Term
Something to Protect (4)
vs Something to Sell (4) |
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Definition
Protect:
(Trade secrets, Copyright, Trademark, Patents)
Sell:
(License to others (Patents, Trademark), Franchise) |
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Term
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Definition
| Info that derives economic value from not being generally known |
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Term
Define Copyright
vs Trademark |
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Definition
Copyright: lifetime protection for authors
(copyrights protects original works of authorship, while a Patent protects inventions or discoveries.
Ideas and discoveries are not protected by the copyright law, although the way in which they are expressed may be)
Trademark: company names and proposed products
(A trademark protects words, phrases, symbols, or designs identifying the source of the goods or services of one party and distinguishing them from those of others) |
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Term
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Definition
Protects inventions or discoveries
20 years protection for new and useful products and processes (novel, non obvious, useful) |
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Term
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Definition
| When a patent already exists and you want to use the technology or processes, you can still use it, you just need to patent it |
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Term
| Different types of funding (from guest speaker Nathan) (6) |
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Definition
Bootstrapping
Crowdfunding
Friends, family and fools
Angel investors
Debt
VCs |
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