Idea Generation
How many new businesses survive through year 2?
7/10 or 70%
"A written document that describes all of the steps necessary for opening and operating a successful business" is the definition of what?
a business plan
This is used to manage a company’s revenue streams, predict income, and modify revenue strategy.
Revenue Model
This is a resourceful approach to starting and growing a business using personal savings and revenue generated from the business, relying on minimal external funding
Bootstrapping
This is the term for a business transaction that occurs when one company purchases and gains control over another company.
Acquisition
Define "blue sky idea"
ideas that you think will be successful even if you may not have the skills or resources to develop them right now.
This box of the business plan explains how the business will bring in revenue and make a profit
The Revenue Streams
True or false: one of the downsides to a subscription based revenue model are the high customer acquisition costs.
True!
The sharks on sharktank are an example of people providing this kind of financing strategy
Angel Investing
Name the 5 types of exit strategies (that we discussed in class)
- Initial public offering
- Merger
- Acquisition
- Management Buyout
-Liquidation
"A groundbreaking product, service, or business model that creates a new market or significantly disrupts existing industries, often challenging established incumbents" defines what concept?
Disruptive Innovation
This box of the business plan explains the short, medium and long term goals of the business that will help mark its success.
The Milestones
In this type of revenue stream, users can access the main product for free but are charged for additional functions, services, bonuses, plugins, or extensions.
Freemium
What are the 3 types of venture capital funding?
Seed funding, early stage funding, late stage funding
Large corporations that want to sell off unprofitable assets or those that no longer make sense for their business model would choose this exit strategy
Management Buyout
What are the 3 components of a good entrepreneurial idea?
Solve a real problem for real people
Serve a specific and identifiable target market that is actually accessible to you and where you are setting up your business
Have the potential to scale
This box of the business plan briefly tells your reader what your company is and why it will be successful. It includes a mission statement, a company description, and any other key facts that would catch the audience’s attention about your business.
the Identity
What is the definition of a markup revenue model?
the type of revenue model with which you buy a product at a certain cost and then sell it for a higher price: The difference between the two is your profit margin.
This is the term to describe the type of ownership that entrepreneurs exchange for a financial investment
Equity
Explain the concept of a hostile takeover
When a company wants to acquire another company without their consent, so they start buying up as much of their stock as they can in order to have the majority ownership stake in the company, which would allow them to take control of it
What are the 5 key questions for opportunity evaluation?
Is there a need for this in the market?
Is there already a feasible solution to this problem?
What is the competition? Will my product have a competitive advantage?
Do I have the skills to accomplish the execution of this idea, or can I hire a team of people who can help me execute it?
Is the risk/reward tradeoff worth making an investment in this idea?
A business plan serves these 3 key purposes
1. Explains the idea behind your business and how you will produce your products/services
2. Sets specific objectives and describes how your business will achieve your goals
3. Describes the background and experiences of the people who will be running the business
This type of revenue model aligns costs with usage, charging customers based on their specific usage of the product or service.
Pay-per-use model
Explain the difference between a secured and unsecured loan
A secured loan requires collateral to secure, while an unsecured loan simply requires that the borrower have good credit
List 3 (or more!) of the steps that companies must complete when undergoing a liquidation
- inventory
- selection
-hiring
-contracts
- creditors
-costs
-shareholders