Myths of Entrepreneurship
true or false? All startups are able to survive for at least a year.
False. 10% of startups fail within their first year
What is Customer Lifetime Value (CLV)?
The predicted revenue a business can extract from a customer throughout their business relationship.
This is the term for the outline of a company and how it will create, deliver, and capture value.
What is a Business Model?
What is Concept Validation?
The process of refining and idea and validating it through customer feedback.
Building a business without investment or with minimal capital, using their own money to finance their startup.
What is Bootstrapping?
Do all startup entrepreneurs have a good marketing strategy before launching their business?
No. 22% of startups do not have an affective marketing strategy or no marketing strategy at all.
What is Total Addressable Market (TAM)?
The total market demand for a product or service.
The term that describes a marketing strategy that employs low-cost, non-traditional methods to grow a business quickly.
What is Growth Hacking?
What is Customer Discovery?
Understanding the real problems, goals and desires of potential customers when developing a product or service concept
Raising money from a lot of different people and pulpit all together, typically through an internet page or social media.
What is Crowdfunding?
Do business owners who have previously failed have a higher success rate?
Yes.
What is Burn Rate?
The rate at which a company is spending its capital.
This is the term used to describe a program that supports development of a new start-up business.
What is an Incubator?
What is a Minimum Viable Product (MVP)?
The first version of a product or service built/prototyped to test an idea.
Secure funding where investors provide money to startups they believe will have long term success in exchange for equity.
What is venture capitalist funding?
True or false? The main way to get funds for a startup is through millions in venture capital.
False. People are often self funded or get loans from people in their lives
What is Variable Cost Ratio?
The proportion of each sale that is made up of variable costs.
The term used to describe a business's ability to grow its revenue while increasing its costs.
What is Scalability?
What is Market Validation?
Evaluation of an idea to test if it has potential regarding market size and competition.
Forces business owners to figure out their ideas, monetize their problems, and create a sustainable business model.
What are the pros of bootstrapping?
True or false? You have to be lucky to have a successful startup.
False. Entrepreneurs use their hard work and resilience to become successful.
What is Payback Period?
The period it takes a business to recoup its investment.
This is the term used to describe a person who gives money to a start-up in its first stages of development.
What is an Angel Investor?
What is a Business Model Canvas?
A tool that helps entrepreneurs identify customers, value propositions, and solutions in a structured way.
They have a stake in the startup, if it takes off they reap the rewards. But, if it doesn't they don't expect to be paid back.
Why startups might use and angel investor instead of a bank?