Ch.8 Evaluating Opportunities
Things that have value but are not material goods
Intangible
A question about a prospective business opportunity that provides guidance to market research done for the business.
Research objective
Business evaluation method that draws its name from the four areas it evaluates: Strengths, Weaknesses, Opportunities, and Threats.
SWOT analysis
Risk in which potential costs and benefits are carefully considered before starting a business.
Calculated risk
The degree to which someone considers the future or long-term planning
Future orientation
Thinking and acting fairly, without emotion or prejudice.
Objective
A six-step process that entrepreneurs use to answer a question about their business by gathering and analyzing data
Research cycle
Known as vertical thinking, refers to a logical thought process that involves analyzing and evaluating a situation or object
Critical thinking
New information that is collected for a particular purpose. It is obtained directly from potential customers
Primary Data
Any social, economic, or political factors that could impact your business including global, national, and industry- related factors
Business environment
Affected by existing opinions
Subjective
A prototype or first attempt at an idea built quickly and cheaply that the entrepreneur tries to sell to get feedback from potential customers.
Minimum viable product
Process of adding up all the expected benefits of an opportunity and subtracting all the expected costs
Cost/benefit analysis
Organized way to gather and analyze information needed to make business decisions
Market Research
Process from guiding your business idea from inception through development
Product Planning
How possible or worthwhile it is to pursue your idea
Feasibility
Starting a business as soon as possible with very limited resources and using ongoing research to fine tune the business
Lean startup methodologies
The value of something you get in exchange for something you give up
Opportunity cost
Broad set of activities and functions that support the development, marketing and sale of your product or service
Product Management
Research technique that asks customers to interact with the product and observe the experience.
UE Testing
An alternate tool to traditional business planning that allows you to make changes to your opportunity as more information is gathered
Business canvas
Used to prove, through ongoing market research and data analysis, that your business idea is truly a business opportunity
Business model validation
Another term for critical thinking.
vertical thinking
Provides names and contact information for specific groups of consumers or businesses
List-rental companies
Existing information that was previously gathered for a purpose other than the study at hand.
Secondary data