Lean Canvas Model
What does MVP stand for? What is it?
Minimum Viable Product. Version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.
What is bootstrapping?
Founding and running a company using only personal finances or operating revenue
What is sole proprietorship? What is one of the advantages and disadvantages?
The simplest and most common structure chose to start a business. It is owned and run by one individual with no distinction between the business and you, the owner. The owner is entitled to all profits and is responsible for all your business' debts, losses, and liabilities. HIGHER LIABILITY-LOWER TAXES.
What is a balance sheet? Why is it important for managing a business?
A financial statement that covers revenue and expenses for a period of time.
How do we calculate profit? (Profit equation)
Revenue-Expenses=Profit
What is the difference between UVP and Competitive Advantage?
Unique Value Proposition:
Competitive Advantage:
When trying to get a line of credit to fund your business, what things does the bank consider? (5 c's of credit worthiness)
CHARACTER, CAPACITY, CAPITAL, COLLATERAL, & CONDITIONS
Which of the types of business ownership is an arrangement between two or more people who oversee business operations and share its profits and liabilities?
Partnership
What is an income statement?
A financial statement that analyzes the assets, liabilities, and equity of a business.
What is market segmentation? What are the 4 types of market segmentation?
Market segmentation is the process of grouping a market into smaller subgroups defined by specific characteristics.
Market segments are subgroups of buyers with similar characteristics.
Demographics: Who? Age, gender, income level, education level, race, or ethnicity
Geographics: Where? National/political boundaries, climate, area, city/state
Psychographics: Why? People of similar interests, lifestyles, attitudes, values, opinions, and personality
Behavioral/Buying Characteristics: How? Shopping patterns, usage rate, benefits
Explain the difference between intrapreneurs and entrepreneurs?
Intrapreneurs: Valued labor trait where an individual behaves like an entrepreneur to solve problems WITHIN an organization
Entrepreneurs: An individual who undertakes to start and run their own business or with the intention of making a profit.
What is the difference between angel investors, crowdfunding, and venture capitalists?
Angel investors: Family and friends
Crowdfunding: Methods of funding new business ideas and products that rely on receiving small contributions from many supporters
Venture Capitalists: A form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential
What is a corporation? Name an advantage and disadvantage of corporations.
Is legally a separate and distinct entity from its owner. Corporations possess many of the same legal rights and responsibilities as individuals. It has limited liability, which means that it shareholders are NOT PERSONALLY responsible for the companies debts. It may be created by an individual or a group of people with a shared goal.
What kinds of costs are associated with starting and running a business? (Fixed and Variable Expenses)
Start-Up Costs: All costs incurred to start a business including research, business licensing, website development, and more.
Variable Costs: Costs that fluctuate based on units of production.
Fixed Costs: Costs that stay consistent from month to month, such as rent, utilities, and fees. Non-production related expenses.
Define copyright, patents, and trademarks
Copyright: The exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something.
Patent: The legal right to an invention given to a person or entity without interference from others who wish to replicate, use, or sell it.
Trademark: Recognizable insignia, phrase, word, or symbol that denotes a specific product and legally differentiates it from all other products of its kind.
Which part of the lean canvas model refers to the way we measure the success of our business?
Key Metrics. (Profitability, breaking even, revenue (sales), etc.)
List 5 ways that entrepreneurs can fund their business?
Crowdfunding, bootstrapping, angel investors, venture capitalists, lines of credit
What does LLC stand for?
Limited Liability Company: is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine characteristics of a corporation with those of a partnership or sole proprietorship.
What is opportunity cost? How does it apply to owning a business?
What is profit motive?
Profit Motive: Motivation to operate so as to maximize profits. The ultimate goal of owning a business is to make money.
What resources does the government offer to help entrepreneurs start their business?
SBA, SCORE, SBDC, TRADE ASSOCIATIONS, CHAMBER OF COMMERCE, PUBLICATIONS, INTERNET RESOURCES, ETC.
Name all 9 parts of the Lean Canvas Model?
Why is it important to conduct market research when starting your business and as you run your business? Should we conduct primary or secondary research first?
Market research will give you insight into how well your product will do. It will find out potential problems. You can check why your customers do not come back by conducting surveys. The market research also helps you find out your problem areas and why there are drop-in sales.
Secondary research should be conducted first! Why??
If I am starting a business and I want to limit my personal risk even though I may pay higher taxes, which kind(s) of ownership would I most likely use?
Corporation
Explain the break even point in a business.
The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you've reached the level of production at which the costs of production equals the revenues for a product.
What are the 4 p's of marketing mix? What makes a price good?
Product, Price, Place, and Promotion
Good price for product/service: The amount of money requested or exchanged for a product, should COVER EXPENSES AND ALLOW FOR A PROFIT.