Major Pitfalls
This pitfall occurs when the founders' business ideas lack differentiation from existing businesses.
What is lack of uniqueness in business ventures?
This market issue described as launching a business at the time of least engagement is called this:
What is poor timing/miscalculation?
This start-up phase is described as beginning with an idea and ending when the business opens for the first time.
What is the pre-startup phase?
Investors often care about this more than the idea itself.
What is the turn of profit?
A simple early version of a product made to test the idea is called...
What is an MVP (Minimum Viable Product)?
This pitfall occurs when founders underestimate the amount of money required to complete development, launch and run a business venture.
What is poor understanding of financial requirements?
When a business depends heavily on a singular customer or submarket, it carries this risk:
What is overreliance/dependance on the customer?
This money problem occurs when a business starts out with too little funding available.
[Hint: "under" + Aa]
What is undercapitalization?
A startup struggles when it doesn’t have this: shared effort and teamwork.
What is a team approach?
The Lean Startup cycle is “Build, Measure, ___.”
What is Learn?
This pitfall occurs when the entrepreneur lacks understanding of the technical concepts involved in making/delivering product.
What is poor understanding of technical requirements?
This market issue occurs when the business owner does not properly analyze its customers to learn who they are nor their shopping habits.
What is unclear target market/ lack of knowledge on customer habits?
This start-up phase describes when the venture is terminated OR is no longer under the control or management of the entrepreneur.
What is the post-startup phase?
This hiring mistake is choosing people because they’re family/friends instead of qualified.
What is nepotism?
A planned change in direction after learning from results is called this.
What is a pivot?
This pitfall occurs when entrepreneurs fail to understand the customer market or product timing/life cycle.
What is lack of insight/poor insight into the market?
This customer issue occurs when product is not designed with customer preferences in mind.
What is product design problems?
This money problem occurs when a startup is overzealous and spends too much of its funding too quickly under the expectation of rapid success and revenue.
What is overspending / cash burning?
This leadership problem happens when the founder thinks they’re always right.
What is inflated ego/overconfidence?
Before going “all in,” entrepreneurs should check if the idea can actually work and sell. This is called...
What is feasibility?
This pitfall occurs when founders "fall in love" with an idea and forego the preliminary studies of the area associated.
What is lack of objectivity/objective evaluation?
This happens when the entrepreneur chooses an inefficient way to get the product to customers (i.e. online/in-store)
What is a weak distribution strategy?
This start-up phase is described as the one that begins with initiating sales and delivering products and or services, and ending when the business grows beyond short-term survival threats.
What is the startup phase?
This people problem can sink a venture through low morale, high turnover, and conflict.
What is poor HR management?
A small test or demo that shows the idea could work and gets feedback is called...
What is a proof of concept?