What It Takes
The model of effectuation tells us how expert entrepreneurs think. One of the effectuation building blocks is "Bird in Hand" which means_______
starting with what you have
Revenue minus cost of goods sold equals ____
gross proft
A major change in the business model is often referred to as a ______
pivot
What is the number one reason why businesses fail?
No market need, solving a non-problem
Which financial statement contains information about how much money customers owe your business a.k.a accounts receivable.
The balance sheet
The balance sheet accounting equation is______
Assets = Liabilities + Owners Equity
An LLC stands for ______
A limited liability company
All businesses fall into one of three broad categories or types of buisnesses that include...
a retail business, a service business, and a manufacturing business
For the business owners perspective, which source of capital is less risky, equity (investor in your business, or debt ( a business loan).
equity
Imagine an investor has offered to invest in your business $178,000 in exchange for 37% ownership (equity), Based upon those figures, how much is the investor saying your total business is worth?
Answer = $178,000 / .37 = $481,081
When a business owes money to a creditor/supplier that has already provided your business with a good or service, this is called an ______
accounts payable
What stages does a business go through
idea/concept, startup, scale up, and growth
Who created Amazon
Jeff Bezos
What is the most common sources of funding for starting most new businesses?
Bootstrapping (the owner invests their own financial resources, friends, and family members.
In terms of cash flow, if your business secures a business loan for $25,000, is the $25,000 recorded as a cash outflow or cash inflow?
cash inflow
What normally happens to the price of a good or service if the demand for the good/service is greater than the available supply of that good or service.
The price will increase
Before launching a business, what is something an entrepreneur must know, or be fairly certain of based upon research?
There is market demand for the solution the entrepreneur is developing
Who is the founder of Wal-Mart & Sam's Club
Sam Walton
What is an advantage of knowing your customer segment?
knowing who to sell to, being able to develop empathy, being able to find your customers
Is a 35% operating profit margin good or bad?
It depends
A business expense that does not change from month to month is referred to in accounting terms as a ____ expense
fixed