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ENT TEST 3
Terms in this set (69)
what you plan to do for your business
Team, Resources, Idea, Market
who, what skills, skill gaps, work experience?
what do you currently have to use, cash resources, people, advisors, technology, renting a space?, costs, expenses
how unique, what problem being solved, needs being met, trends supporting the idea
primary customer, what do they care about, how did they hear, how much, how many customers
Back of napkin (Forms of planning)
Primary audience - friends and prospective team members. Purpose - to gain clarity on the idea. Output- a drawing on a napkin.
Sketches on a page (Forms of planning)
Primary audience- team members and early employees. Purpose- to visualize the future potential. Output- more detailed drawing
Business Model Canvas (Forms of planning)
Primary audience- team members and advisors. Purpose- to identify gaps and evaluate business integration. Output- completed and tested BMC
The Business Brief (Forms of planning)
Primary audience- friends and family investors, advisors. Purpose- to have a concise written document to provide to interested parties. Output- 2-3 page-typed professional document.
What to include in a business brief
Description of business idea, value proposition that highlights the problem, customer profile and market size, proof of market, the team, actions taken, pro forma income statement up to 3 years.
Feasibility Study (Forms of planning)
GO OR NO GO. Primary audience- team members and early investors. Purpose- to prove that the venture has market potential. Output- 10 page-typed professional document.
The Pitch Deck (Forms of planning)
Primary- early investors purpose- to obtain funding output- approx. 10-20 slide pres
Business Plan (Forms of planning)
Primary- banks and investors. purpose- obtain funding output- aprox. 25+ page formal document
Why write a business plan?
-help gain clarity
-help organize thoughts
-establish a core message
Tips for writing business plan
be direct, realistic, conservative in financial, revise and edit, use visuals.
Which of the following is a type of entrepreneurial planning?
All of the above
What should you use a feasibility study to determine?
go or no go
What did Wes tell the class to write down?
Sales is the fundamental for every business
Which of the following is NOT one of Wes's 10 rules of entrepreneurship?
Raise as much capital as possible
income gained from sales
key component of the business model that identifies how the company will earn income and generate profits
HOW the money comes in
Unit Sales Revenue Model
The amount of revenue generated by the number of items sold
Advertising Revenue Model
the amount of revenue gained through advertising products and services (Facebook)
Data Revenue Model
company generates revenue by selling high quality, exclusive, valuable info to other parties
Intermediation Revenue Model
the different methods by which third parties can generate money (UBER)
giving permission to other parties to use protected intellectual property
Franchising Revenue Model
Sold by an existing business to allow another party to trade under the name of that business (SUBWAY)
subscription revenue model
Professional revenue model
professional services on a time contract
Utility and Usage Revenue Model
Freemium Revenue Model
free basic services are mixed with premium (games)
pricing a product or service above market value to pay for the loss of giving something away (Give aways, software or products)
Multi Party Markets
A free model that gives a product or service to one party for free but charges the other
Four Key Revenue Drivers
3. selling process
Customers (4 Key Revenue Drivers)
how much will they spend, how many, how to get them
Frequency (4 Key Revenue Drivers)
Price (4 Key Revenue Drivers)
what do they pay, willing to
selling process (4 Key Revenue Drivers)
how do u sell
Cost of Goods Sold (COGS)
money it takes to produce, percentage partners take
administrative, marketing, research, keeping the lights on
Competition led pricing
prices guided by other businesses selling the same thing
Customer led pricing
ask customers what they are willing to pay, then offer
offering a lower cost to attract customers
offering a free or discounted product when first launching
a high pricing methods with no competition
the degree to which both businesses and customers believe that the pricing is reasonable
Packaging together two or more complementary products and selling them at a single price
Which is one of the key drivers revenue?
What is a loss leader?
Something to get customers to the door
generally conceived as the termination of a commercial organization that has missed its goals and failed to achieve investors' expectations.
Deviance (The Failure Spectrum)
An entrepreneur defies legal and ethical boundaries
Inattention (The Failure Spectrum)
sidetracked from the core business
Lack of ability (The Failure Spectrum)
the entrepreneur is overextended and lacks skillset
Process inadequacy (The Failure Spectrum)
the wrong processes are set up, communication broken
Uncertainty (The Failure Spectrum)
lack of clarity about future
Exploratory experimentation (The Failure Spectrum)
market tests are conducted to get fee back
quality that enables people to work hard
What is one of the ways to learn from failure?
Find a deeper purpose
Which is NOT one of the common reasons for failure?
Not fundraising soon enough
the process of building or starting a business with very little funding
8 components of entrepreneurship
reflect you impact, starts with means, describe idea today, calculate affordable loss, small action, network, build, reflect and be honest
Methods of Bootstrapping
credit cards, fund from current salary, take out a home equity loan
the process of using the internet to attract free labor or info
the process of raising funding for a new venture from a large audience (GOFUNDME)
3 rules for kickstarter
must create to share, honest and clearly presented, can't fundraise for charity
What is not one of the types of crowdfunding?
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