Pathways and Valuation
Franchisees have the option of using the logo and symbols of the franchisor. T or F
False.
Value can be tangible or abstract. T or F
True.
Tangible value. e.g., lower price, higher quality.
Abstract value. e.g., better customer service and convenience.
What is the symbol of a pending trademark? A registered trademark?
TM, pending.
(R), registered.
Bootstrapping requires resourcefulness. T or F.
T
What are angel investors?
Accredited, wealthy individuals who invest in startups. Entrepreneurs, retired corporate execs, professionals
What is another way of saying income statement?
P&L (profit and losses) statement
What are Key Partners? Name four different types of key partners.
Network of suppliers and partners that make a business model work. e.g., Alliances, coopetition, joint ventures, buyers, suppliers
What are trade secrets? Provide an example. How do they differ from other forms of IP?
Padories are protected by secrecy. They differ from other forms as they have no legal protection. e.g., WD40, Long John Silvers, Farmville, Customer Lists.
What is the difference between how you convey an elevator pitch vs. a traditional pitch?
Pitches lay out the grand vision. Elevator pitches are meant to capture the attention quickly.
Define Venture Capital. What are two pros of VC? What are two cons?
Venture capitalists are investors who invest in business ventures with money pooled by a firm.
Advantages: Can make much larger investment than any other group, Are willing to wait 6-10 years for return, Are willing to provide further financing rounds if the business is succeeding, Possess a lot of expertise and connections.
Cons:
Disadvantages: Require a much longer timeframe to close (due to due diligence), Require a much higher return, Can fire you and take over your business if you are not doing a good job
What is franchiseing? Who is the franchisor? Franchisee?
An arrangement where the owner of a trademark, trade name, or copyright (franchisor) has licensed others to use it in goods or services (franchisee).
What are Parodies? Explain the legal and illegal use of parodies.
Parodies are used to make fun of or comment on something. Parodies are legal when they differ from the original work. Parodies are illegal when consumers confuse the original work and the parody.
What are the three components of resourcefulness?
(1) A boundary-breaking behavior
(2) Creatively bringing resources to bear
(3) Generate and capture new or unexpected sources of value.
Define debt financing. Equity financing?
Debt financing is to borrow money, and you should pay it back plus a fee (interest) for using the money.
Equity financing is the sale (exchange) of some of the ownership interest in the venture in return for an unsecured investment in the firm.
What is the new-new approach to entrepnruerhsip? New-old? Provide an example of each.
•New, New Approach: New product/ services in a new market. (iTunes, Netflix)
•New, Old Approach: Old products/ services in a new market. (soda shop, coffee house).
Define and provide an example of each of the following.
Customer Segments.
Channels.
Customer Relationships.
Customer Segments: Groups of people an organization aims to reach and serve.
Channels: How a business communicates with and reaches its customer segments to deliver its value proposition. e.g., sales force, web sales, own stores, partner stores, wholesaler
Customer Relationships: Types of relationships a business establishes with its customer segments. e.g., personal assistance, self-service, automated, communities, co-creation
Trademark law allows businesses to re-register their trademark every 10 years if it meets trademark requirements. What does it mean to "meet the requirements"?
The trademark must remain distinctive—not generic, descriptive without secondary meaning, or confusingly similar to other marks. e.g., Spikeball, Kleenex, Xerox.
The ability to quickly and clearly articulate the idea is often more important than the deal itself.
Investors often focus on their belief in the entrepreneur's ability to execute the idea rather than the idea itself—particularly in conditions of uncertainty.
What are four different types of equity financing?
Loan with warrants (or stock option) provide the investor with the right to buy stock at a fixed price at some future date.
Convertible debentures are loans that can be converted into stock.
Preferred stock is equity that gives investors a preferred place among the creditors in the event the venture is dissolved.
Common stock is the most basic form of ownership; stock issues are often sold through public or private offerings.
What is SWOT analysis? Describe each component. Make sure to indicate internal vs. external.
Strengths: Internal! These are the characteristics that give the business a competitive advantage over others.
Weaknesses: Internal! These characteristics give a business a disadvantage relative to its competitors.
Opportunities: External! Elements in the external environment that allow it to formulate and implement growth strategies.
Threats: External! Elements in the external environment that can endanger the business and its ability to operate.
Generally speaking, what should be the last component of the business model canvas you consider? Explain.
Start with creation and think about costs last.
Focusing too soon on cost structure can diminish the innovativeness of new ideas.
Identify and define the three types of intellectual property. Provide an example of each.
Patents. provide exclusive rights to hold, transfer, and license the production and sale of the product or process. Crocs shoe.
Copyrighting. provides exclusive rights to creative individuals to protect their literary or artistic productions. Artwork.
Trademark. a distinctive name, mark, symbol, or motto identified with a company or a company’s product(s). McDonald's Arches.
In class, we talked about ten different components that should be included in your pitch. Name six.
•Title of your Venture
•Problem/ Opportunity
•Value Proposition
•Why Important
•Business Model
•Market Plan
•Competitive Analysis
•Management Team
•Projections
•Current Status
A Special Purpose Acquisition Company is a publicly traded corporation with a two-year lifespan formed with the sole purpose of acquiring a company and taking it public. e.g., Draft Kings.