Overview of Entreprenuership (Mod 1)
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards
entrepreneur
analysis of the capital needed to start, projected profit and breakeven points, and the return on investment potential.
Economics and profitability
True or false: target markets can be everyone
False
Changes to product or service design should be made based on observable, timely data.
True
A ratio that compares the gain or loss from an investment relative to its cost.
ROI- Return on Investment
a temporary organization that searches for a repeatable and scalable business model
start-up
analysis of the benefits the product/service offers potential customers, streamlined processes/efficiency, value of intellectual property, and strategic partnerships
The four P's of the marketing mix
Product, place, price, and promotion
Devote the least amount of resources to develop the product and gauge potential customer interest and validate the product idea, thereby minimizing risk in moving forward
Purpose of Minimum Viable Product (MVP)
Net profit or loss is shown on this financial document.
Income Statement
type of business started to fill a gap or provide a service where you can be your own boss
small business
analysis of the business's potential management style, team structure and composition, and their backgrounds and integrity
True or False: Customer relationships are easy to create and maintain.
False
method to minimize the effort, resources, and time it takes to test the product and decide whether or not to move forward
Lean Method
A financial document that explains how cash is being used during a period of time.
Cash flow statement
a formal narrative of the business often required by investors providing details of the company; slower to update
business plan
the process of combining empathy for potential customers' needs and problems with innovation of an entrepreneur and the entrepreneur's ability to iterate numerous prototypes to discover what best meets the customers' needs and creates value.
design thinking
The four ways to segment a market
Demographics, psychographics, geographics, behavioral characteristics
your assumptions were proved correct and you should move forward with your product and startup model
Persevere
A method for raising funding for a startup and utilizes all resources possible before turning to loans/credit
Bootstrapping
a visual summary of the business model, often on one page, may be updated frequently to reflect changes
Business Model Canvas
the identified problem or need of potential customers in the market that an entrepreneur might be able to address with their product or service concept
problem statement
sharing your value proposition with others
channel
Based on your Value Proposition, Target Market, and Minimum Viable Product in the customer discovery and test market phases, your assumptions were proved materially flawed and you should redesign the product and startup model and repeat the process
Pivot
5 C’s of Credit
Collateral, Character, Capital, Capacity, Conditions