EEE 370

Forget, Remember, Rearrange

A Path to Creativity is as follows: 1. ___1___ everything you know! (the relationships of knowledge) 2. ___2___ everything you know! (the pieces of knowledge) 3. ___3___ everything you know! (same pieces, new relationships into new creativity)

business plan, 25 to 35

A ___1___ is a written document that describes all the aspects of a business venture in a concise manner. It is usually necessary to have a written ___1___ to raise money and attract high-quality business partners. Some entrepreneurs are impatient and don't want to spend the time it takes to write a ___1___. This approach is usually a mistake. Writing a ___1___ forces an entrepreneur to think carefully through all the aspects of a business venture. It also helps a new venture establish a set of milestones that can be used to guide the early phases of the business rollout. A ___1___ is a written narrative, typically ___2___ pages long, that describes what a new business intends to accomplish and how it intends to accomplish it. A ___1___ is more compelling if it contains primary research conducted by the entrepreneurs launching the business.

mission statement

A _____ defines why a company exists and what it aspires to become. If carefully written and used properly, a _____ can define the path a company takes and act as its financial and moral compass.

virtual prototype

A _____ is a computer-generated 3D image of a product or service idea. It displays the idea as a 3D model that can be viewed from all sides and rotated 360 degrees.

barrier to entry

A _____ is a condition that creates a disincentive way for a new firm to enter an industry. There are six major sources of _____ (plural).

milestone

A _____ is a noteworthy or significant event. If you have selected and registered your company's name, completed a feasibility analysis, developed a business model, and established a legal entity, you have already cleared several important _____s.

tagline

A _____ is a phrase that a business plans to use to reinforce its position in the marketplace.

competitive analysis grid

A _____ is a tool for organizing the information a firm collects about its competitors. It can help a firm see how it stacks up against its competitors, provide ideas for markets to pursue, and, perhaps most importantly, identify its primary sources of competitive advantage. To be a viable company, a new venture must have at least one clear competitive advantage over its major competitors.

consultant

A _____ is an individual who gives professional or expert advice. New ventures vary in terms of how much they rely on business _____s for direction. In some ways, the role of the general business _____ has diminished in importance as businesses seek specialists to obtain advice on complex issues such as patents, tax planning, and security laws. In other ways, the role of general business _____ is as important as ever; it is the general business _____ who can conduct in-depth analyses on behalf of a firm, such as preparing a feasibility study or an industry analysis.

Path to Creativity

A _____ is as follows: 1. Forget everything you know! (the relationships of knowledge) 2. Remember everything you know! (the pieces of knowledge) 3. Rearrange everything you know! (same pieces, new relationships into new creativity)

mentor

A _____ is someone who is more experienced than you and is willing to be your counselor, confidant, and go-to person for advice.

product prototype

A _____ is the first physical manifestation of a new product, often in a crude or preliminary form. The idea is to solicit feedback and then iterate.

new-venture team

A _____ is the group of founders, key employees, and advisors that move a new venture from an idea to a fully functioning firm.

competitor analysis

A _____, which is a detailed analysis of a firm's competitors, should be included in a business plan.

minimum viable product

A _____, which is a staple component of the lean startup movement, has just those features that allow a product to be deployed, and no more. It's typically deployed to early adopters for testing. The idea is to avoid building bells and whistles into products that customers don't need or want.

profile

A brief _____ of each member of the management team should be provided, starting with the founder or founders of the firm. Each _____ should include the following information: -Title of the position -Duties and responsibilities of the position -Previous industry and related experience -Previous successes -Educational background Although they should be kept brief, the _____s should illustrate why each individual is qualified and will uniquely contribute to the firm's success.

young

A desire to pursue an entrepreneurial career is high among _____ people... A number of organizations are involved in spurring interest in entrepreneurship among _____ people... In addition to organizations targeting elementary and middle-aged school kids, a growing number of colleges and universities are offering entrepreneurship-focused programs for high school students... On university and college campuses, interest in entrepreneurship education is at an all-time high... A growing number of organizations are popping up that focus on helping college student entrepreneurs.

Characteristic

A distinctive feature.

Trait

A distinguishing feature or quality, as of character.

operating leverage, high, low

A firm's ___1___ is an analysis of its fixed versus variable costs. ___1___ is highest in companies that have a ___2___ proportion of fixed costs relative to their variable costs. In contrast, operating leverage is lowest in companies that have a ___3___ proportion of fixed costs relative to variable costs. A firm with a ___2___ ___1___ takes longer to reach break-even; however, once break-even is reached, more of its revenues fall to the bottom line.

Strategic Assets (or strategic resources)

A firm's _____ are anything rare and valuable that the firm owns or controls. What do you have? _____ can include (1) production processes, (2) locations, (3) brands, (4) patents, (5) customer data, etc. Starbucks resource of brand image Can it be sustained?

business model

A firm's _____ is its plan or recipe for how it creates, delivers, and captures values for its stakeholders. Entrepreneurial firms need to have a crystal clear understanding of the issues concerned with creating, delivering, and capturing value if they are to be successful.

marketing strategy

A firm's _____ refers to its overall approach for marketing it products and services. A firm's overall approach typically boils down to how it positions itself in its market and how it differentiates itself from competitors.

too big, four

A founding team can be ___1___, causing communication problems and an increased potential for conflict. A founding team larger than ___2___ people is typically too large to be practical.

realistic, better, unique, business model

A new venture can assess the thresholds determined in the five force model it may have to meet to be successful in a particular industry: Question 1: Is the industry a ___1___ place for our new venture to enter? Question 2: If we do enter the industry, can our firm do a ___2___ job than the industry as a whole in avoiding or diminishing the impact of the forces that suppress industry profitability? Question 3: Is there a ___3___ position in the industry that avoids or diminishes the forces that suppress industry profitability? Question 4: Is there a superior ___4___ that can be put in place that would be hard for industry incumbents to duplicate? -If the founders of a new firm believe that a particular industry is a ___1___ place for their new venture, a positive response to one or more of the questions posed increases the likelihood that the new venture will be successful.

Organizational Context

A part of the Integrative Model of Entrepreneurship. Garage start-up, franchise, existing company, family business, large company venture

environment

A part of the Integrative Model of Entrepreneurship. source of opportunity, obstacles/constraints, regulation, etc. The _____ is the biggest determinant in EI.

entrepreneur

A part of the Integrative Model of Entrepreneurship. the _____ is the driver

position, feasibility analysis

A product or service's ___1___ is how it is situated relative to its rivals. If you plan to open a new smoothie shop, for example, you should explain how your smoothie shop differs from others and how it will be ___1___ed in the market in terms of the products it offers and the clientele it attracts. This section is the ideal place for you to start reporting the results of your ___2___.

Attention-Deficit/Hyperactivity Disorder (ADHD)

A study said that sufferers of _____ can make for great entrepreneurs.

weak-tie (relationship), strong-tie (relationship)

According to research in the area of relationship ties, it is more likely that an entrepreneur will get a new business idea through a ___1___ than a ___2___ because ___2___s, which typically form between like-minded individuals, tend to reinforce insights and ideas the individuals already have. ___1___s, on the other hand, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea.

(consultants who are made available for) free or at a reduced rate

One of the two categories of consultants. Consultants are also available through nonprofit or government agencies. SCORE, for example, is a nonprofit organization that provides free consulting services to small businesses. SCORE currently has over 13,000 volunteers, 360 local chapters, and can provide assistance in over 500 areas. An increasing number of score volunteers, called mentors, assist clients via email rather than face-to-face. Commonly, SCORE mentors are retired business owners who counsel in areas as diverse as cash flow management, operations, and sales. The Small Business Administration, a government agency, provides a variety of consulting services to small businesses and entrepreneurs, primarily through its network of Small Business Development Centers (SBDC), which are spread throughout the United States. There is evidence that these centers are effective in providing advice and helping entrepreneurial ventures get off to a good start. For example, one study found that the rates of survival, growth, and innovation of SBDC-counseled firms are higher than the population of start-ups in general.

paid (consultants)

One of the two categories of consultants. Includes large international consulting firms, such as Bearingpoint, Accenture, IBM Global Services, and Bain & Company. These firms provide a wide array of services but are beyond the reach of most start-ups because of budget limitations. But there are many smaller, localized firms. The best way to find them is to ask around for a referral.

global

One of the two most common strategies pursued by firms in global industries. Firms pursuing a _____ strategy use the same basic approach in all foreign markets.

multidomestic

One of the two most common strategies pursued by firms in global industries. Firms that pursue a _____ strategy compete for market share on a country-by-country basis and vary their product or service offerings to meet the demands of the local market.

business trends

One of the two most important trends for entrepreneurs to evaluate. For example, the firms in some industries benefit from an increasing ability to outsource manufacturing or service functions to lower-cost foreign labor markets, while firms in other industries don't share this advantage. In a similar fashion, the firms in some industries are able to move customer procurement and service functions online, at considerable cost savings, while the firms in other industries aren't able to capture this advantage. Trends like these favor some industries over others.

environmental trends

One of the two most important trends for entrepreneurs to evaluate. The strength of an industry often surges or wanes not so much because of the management skills of those leading firms in a particular industry, but because _____ shift in favor or against the products or services sold by firms in the industry. Economic trends, social trends, technological advances, and political and regulatory changes are the most important _____ for entrepreneurs to study. For example, companies in industries selling products to seniors such as the eyeglasses industry and the hearing aid industry benefit from the social trend of the aging of the population. In contrast, industries selling food products that are high in sugar, such as the candy industry and the sugared soft-drink industry, are suffering as the result of a renewed emphasis on health and fitness. Sometimes there are multiple environmental changes at work that set the stage for an industry's future.

Employees

One of the two primary audiences for a firm's business plan. Although it's true that marketplaces can and often do change rapidly, the process of writing the plan may be as valuable as the plan itself. A clearly written business plan helps a firm's rank-and-file _____ operate in sync and move forward in a consistent and purposeful manner. The existence of a business plan is particularly useful for the functional department heads of a young firm.

External Stakeholders

One of the two primary audiences for a firm's business plan. To appeal to this group, the business plan must be realistic and not reflective of overconfidence on the firm's part. At the same time, the plan must clearly demonstrate that the business idea is viable and offers potential investors financial returns greater than lower-risk investment alternatives. The same is true for potential business partners, customers, and key recruits.

Core Competencies, unique, valuable to customers, difficult to imitate, transferable to new opportunities

One of the two primary elements of strategic resources. A firm's ___1___ determine where the firm is able to create the most value. What are you good at? What are you not good at? This information will shape how to go about business. ___1___ should be (1) ___2___, (2) ___3___, (3) ___4___, and (4) ___5___. Apple's competence in product innovation Netflix's competence in supply chain management Dell Computers competence in PC assembly and e-commerce sales

External (Reason)

One of the two primary reasons for writing a business plan. Communicates the merits of a new venture to outsiders, such as investors and bankers.

Internal (Reason)

One of the two primary reasons for writing a business plan. Forces the founding team to systematically think through every aspect of its new venture.

Inhibitors of Creativity, Facilitators of Creativity

Actions and Behaviors that Encourage and Discourage Creativity at the: 1. Organizational Level 1a. ___1___ --Failing to hire creative people --Maintaining an organizational culture that stifles people --Retaining people in the same job for years, preventing them from broad and deep experiences --Promoting a mentality suggesting that the best solutions to all problems are known 1b. ___2___ --Supporting and highlighting creativity's importance in all parts of the firm --Overtly rewarding those demonstrating creativity in their work --Investing in resources for the purpose of helping employees become more creative --Hiring people with different skills and viewpoints compared to current employees 2. Individual Supervisory Level 2a. ___1___ --Being pessimistic, judgmental, and critical --Punishing people for failed ideas --Insisting on precision and certainty early in the creative process --Being inattentive, acting distant, and remaining silent when employees want to discuss new ideas 2b. ___2___ --Listening attentively for the purpose of openly acknowledging and supporting ideas early in their development --Treating employees as equals for the purpose of demonstrating that status isn't important --Speculating, being open, and building on others' ideas --Protecting people who make honest mistakes and commit to learning from them

competitor analysis (or competitive analysis)

After a firm has gained an understanding of the industry and the target market in which it plans to compete, the next step is to complete a _____. A _____ is a detailed analysis of a firm's competition. It helps a firm understand the positions of its major competitors and the opportunities that are available to obtain a competitive advantage in one or more areas. These are important issues, particularly for new ventures. First we'll discuss how a firm identifies its major competitors, and then we'll look at the process of completing a _____ grid, which is a tool for organizing the information a firm collects about its primary competitors.

three categories of means

All entrepreneurs begin with _____: (1) Who they are - their traits, tastes, and abilities; (2) What they know - their education, training, expertise, and experience; and (3) Whom they know - their social and professional networks. Using these means, the entrepreneurs begin to imagine and implement possible effects that can be created with them.

Who they are, What they know, Whom they know

All entrepreneurs begin with three categories of means: (1) ___1___ - their traits, tastes, and abilities; (2) ___2___ - their education, training, expertise, and experience; and (3) ___3___ - their social and professional networks. Using these means, the entrepreneurs begin to imagine and implement possible effects that can be created with them.

Entrepreneurial Intensity(EI), frequency, degree

All firms fall along a conceptual continuum that ranges from highly conservative to highly entrepreneurial. The position of a firm on this continuum is referred to as its ___1___. Captures the combined effects of both the ___2___ (how often) and ___3___ (how innovative) of entrepreneurship

enter, attractive position

Along with helping a firm understand the dynamics of the industry it plans to enter, the five forces model can be used in two ways: (1) to help a firm determine whether it should ___1___ a particular industry and (2) whether it can carve out an ___2___ in that industry.

Environment, The Entrepreneur, Resources, Business Concept, and Organizational Context all surround the Entrepreneurial Process

An Integrative Model of Entrepreneurship (starting at top, going clockwise, then stating what's in the center): _____ applicable not only to individuals, but to large companies, or even countries trying to foster entrepreneurship

idea bank (or vault), intranet

An ___1___ (or vault) is a physical or digital repository for storing ideas. An example of an ___1___ would be a password-protected location on a firm's ___2___ that is available only to qualified employees. It may have a file for ideas that are being actively contemplated and a file for inactive ideas.

Entrepreneurial Type

An _____ dictates what company one could best fit in to.

industry

An _____ is a group of firms producing a similar product or service, such as music, fitness drinks, or electronic games. The main body of the business plan begins by describing the _____ in which the firm intends to compete. This description should include data and information about various characteristics of the _____, such as its size, growth rate, and sales projections. It is important to focus strictly on the business's _____ and not its _____ and target market simultaneously.

Integrative Model of Entrepreneurship

An _____: Environment, The Entrepreneur, Resources, Business Concept, and Organizational Context all surround the Entrepreneurial Process applicable not only to individuals, but to large companies, or even countries trying to foster entrepreneurship

favor

An investor who is able to identify weaknesses in a business plan or presentation does a _____ for the entrepreneur. This is because the entrepreneur can take the investor's feedback to heart and use it to improve the business plan and/or the presentation.

bug report, 75, bug

Approaches to brainstorming are only limited by a person's imagination. For example, to teach her students an approach to utilizing brainstorming to generate business ideas, Professor Marcene Sonneborn, an adjunct professor at the Whitman School of Management Syracuse University, uses a tool she developed called the "___1___" to help students brainstorm business ideas. She instructs her students to list ___2___ things that "___3___" them in their everyday lives. The number ___2___ was chosen because it forces students to go beyond thinking about obvious things that ___3___ them (campus parking, roommates, scraping snow off their windshields in the winter), and think more deeply. On occasions, students actually hold focus groups with their friends to brainstorm ideas and fill out their lists.

lenders and investors

As emphasized throughout this book, _____ have a vested interest in the companies they finance, often causing these individuals to become very involved in helping the firms they fund.

other professionals

At times, _____ assume important roles in a new venture's success. Attorneys, accountants, and business consultants are often good sources of counsel and advice.

conferences and trade shows

Attending _____ is one of the six sources of competitive intelligence. Participants talk about the latest trends in the industry and display their most current products.

Fail

Business Concepts Can _____ When: -There really was no opportunity... Entrepreneurs often have highly innovative ideas or concepts while no opportunity really exists. -The target market is fragmented or not in positive need for the product/service -The concept is too complex or difficult to understand -The perceived switching costs are too high -The Field of Dreams takes over

unqualified friends or family members, automatically translates, one person team, without sharing ownership, Not disclosing or talking dismissively of management team skill or competency gaps, Vague or unclear plans

Common mistakes made in putting together a new-venture team: 1. Placing ___1___ in management positions. 2. Assuming that previous success in other industries ___2___ to your industry. 3. Presenting a "___3___" philosophy - meaning that one person (or a small group of people) is wearing all hats with no plans to bolster the team. 4. Hiring top managers ___4___ in the firm. 5. ___5___. 6. ___6___ for filling the skill or competency gaps that clearly exist.

declining; leadership, niche, harvest, and divest

Consistent reduction in industry demand. One of the five primary industry types are ___1___ industries. Opportunities: ___2___. ___1___ industries are industries that are experiencing a reduction in demand (renting of video games and DVDs, for example). Typically, entrepreneurs shy away from ___1___ industries because the firms in the industry do not meet the tests of an attractive opportunity. There are occasions, however, when a start-up will do just the opposite of what conventional wisdom would suggest and, by doing so, stakes out a position in a declining industry that isn't being hotly contested. That is what Cirque du Soleil did in the circus industry.

attractiveness, industry, threat to industry profitability, identify the threats

DETERMINING THE ___1___ OF AN INDUSTRY USING THE FIVE FORCES MODEL: Step 1: Select an ___2___. Step 2: Determine the level of ___3___ for each of the forces (low, medium, or high). Step 3: Use the table to get an overall feel for the ___1___ of the ___2___. Step 4: Use the table to ___4___ that are most often relevant to ___2___ profitability.

The process of creating value by bringing together a unique combination of resources to exploit an opportunity.

Define entrepreneurship.

central planning, free enterprise

Economic structure with lower levels of entrepreneurship: ___1___ Economic structure with higher levels of entrepreneurship: ___2___

conforming/standardized, creative/ambiguous

Educational experience with lower levels of entrepreneurship: ___1___ Educational experience with higher levels of entrepreneurship: ___2___

expected return, affordable loss, competitive analyses, strategic partnerships, exploitation of pre-existing knowledge and prediction, leveraging contingencies

Effectual Reasoning Principles: -While causal reasoning focuses on ___1___, effectual reasoning emphasizes ___2___; -While causal reasoning depends upon ___3___, effectual reasoning is built upon ___4___; and, -While causal reasoning urges the ___5___, effectual reasoning stresses ___6___.

Creative Blocks

Eleven _____: -Awaiting The 'Right Answer' -That's Not Logical -Follow the Rules -Be Practical -Avoid Ambiguity -To Err is Wrong -Play is Frivolous -That's Not My Area -I'm Not Creative -You're too Foolish to be Creative -I'm too tired Q: What can cause these blocks? Ourselves, co-workers, bosses, clients, stranger Q: Are they real or imagined? Both How can they be dealt with - examine the physical, mental, emotional & social aspects Example: Too tired to be creative Physical: take a nap, eat better, exercise, go for a walk Mental: write in your journal, listen to/watch something motivational Emotional: call a friend who is positive Social: go out for lunch with a friend

suicide quadrant

Embodied in a network of such enduring relationships, effectual logic is particularly useful and effective in domains such as the introduction of new products in new markets, an area often referred to as the _____, exactly where traditional marketing techniques are ineffective.

Creativity at the Firm Level, creativity, innovation

Encouraging ___1___ is one of the two steps entrepreneurial ventures can take to build an organization that encourages and protects new ideas. There is an important distinction between ___2___ and ___3___. ___3___ refers to the successful introduction of new outcomes by a firm. In contrast, ___2___ is the process of generating a novel or useful idea but does not require implementation. In other words, ___2___ is the raw material that goes into ___3___. A team of employees may come up with a hundred legitimate creative ideas for a new product or service, but only one may eventually be implemented. Of course, it may take a hundred creative ideas to discover the one that ideally satisfies an opportunity.

bottom-up process

Entrepreneurship is a _____. It does not start with government policy or corporate strategy. It begins with people. (Entrepreneurial Intensity, Morris.)

Attractive, Durable, Achievable, Anchored in a product

Essential qualities of opportunities: 1. ___1___ - Attributes, innovative, large, meaningful, obvious 2. ___2___ (will be here tomorrow; circumstances are ongoing) 3. ___3___ - Has to be something we can do; do we have expertise and capabilities to do this and if so, how do we find it (can't bring people to Mars for $100). 4. ___4___ Why opportunities may fail: -too small -too competitive -NBA (Next Business Alternative)

opportunity

Essentially, entrepreneurs recognize an _____ and turn it into a successful business. An _____ is a favorable set of circumstances that creates a need for a new product, service, or business

Established Business Ownership (EBO)

Established by the GEM, the _____ rate shows the percentage of adults who own a business that is older than 42 months. It helps illustrate some of the staying power of some firms and also provides insights into how more established businesses fare.

corporate entrepreneurship

Established firms with an orientation toward acting entrepreneurially practice _____.

Focal Point for Ideas

Establishing a _____ is one of the two steps entrepreneurial ventures can take to build an organization that encourages and protects new ideas. Some firms meet the challenge of encouraging, collecting, and evaluating ideas by designating a specific person to screen and track them—for if it's everybody's job, it may be no one's responsibility. Another approach is to establish an idea bank (or vault). Other firms do not have idea banks but instead encourage employees to keep journals of their ideas.

Bill Gates, Steve Jobs, Elon Musk, and Mark Cuban

Examples of the Expert Idea Generator include _____.

Michael Dell, Richard Branson, and Michael Jordan.

Examples of the Personal Achiever include _____.

Michael Eisner (Disney), Herb Kelleher (Southwest Airlines), Ray Kroc (McDonalds), Jack Welch (General Electric), and Carly Fiorina (Hewlett-Packard)

Examples of the Real Manager/Dynamic CEO include _____.

Mary Kay Ash, Charles Schwab, and Oprah Winfrey

Examples of the Super Salesperson include _____.

Small Business

Examples: income and lifestyle; smaller and geographically sound than entrepreneurial ventures; often had entrepreneurial potential and chose not to pursue it. Stable.

nurturing, authoritarian

Family experience with lower levels of entrepreneurship: ___1___ Family experience with higher levels of entrepreneurship: ___2___

Centralized/Conservative, Decentralized/Competitive

Financial Structure with lower levels of entrepreneurship: ___1___ Financial Structure with higher levels of entrepreneurship: ___2___

customer board of advisors (advisory boards), day-in-the-life research

Firms use a variety of other techniques to generate ideas. Some companies set up ___1___ that meet regularly to discuss needs, wants, and problems that may lead to new ideas. Other companies conduct varying forms of anthropological research, such as ___2___.

window of opportunity

For an entrepreneur to capitalize on an opportunity, its _____ must be open. The term _____ is a metaphor describing the time period in which a firm can realistically enter a new market. Once the market for a new product is established, its _____ opens. As the market grows, firms enter and try to establish a profitable position. At some point, the market matures, and the _____ closes.

80, 35

Haircut results from surveys a bit. Assume that only ___1___% of people who say they will buy the product and give an explanation will buy the product. Assume that only ___2___% of people who say they will buy the product and don't give an explanation or say they will probably buy the product will actually buy the product.

board of directors (or board), inside director (or insiders), outside director (or outsiders)

If a new venture organizes as a C corporation, it is legally required to have a ___1___—a panel of individuals who are elected by a corporation's shareholders to oversee the management of the firm. A ___1___ is typically made up of both ___2___s and ___3___s. An ___2___ is a person who is also an officer of the firm. An ___3___ is someone who is not employed by the firm. In the wake of corporate scandals such as Enron, WorldCom, and others, there is a strong emphasis on the ___1___'s role in making sure firms are operating ethically. One outcome of this movement is a trend toward putting more ___3___s on ___1___, because people who do not work for the firm are usually more willing to scrutinize the behavior of management than ___2___s who work for the company.

High class mobility

If a society has _____, it means it is more likely to be able to change social classes within that society.

board of directors, board of advisors

If a start-up has a ___1___ and/or a ___2___, their qualifications and the roles they play should be explained and they should be included as part of your management team. A ___1___ is a panel of individuals elected by a corporation's shareholders to oversee the management of the firm. A ___2___ is a panel of experts asked by a firm's management to provide counsel and advice on an ongoing basis. Unlike a ___1___, a ___2___ possesses no legal responsibility for the firm and gives nonbinding advice.

board of directors, Providing expert guidance and legitimacy

If handled properly, a company's ___1___ can be an important part of the new-venture team. ___2___ in the eyes of others (e.g., customers, investors, and even competitors) are two ways a ___1___ can help a new firm get off to a good start and develop what will hopefully become a sustainable competitive advantage.

two ways a board of directors can help a new firm get off to a good start and develop what will hopefully become a sustainable competitive advantage

If handled properly, a company's board of directors can be an important part of the new-venture team. Providing expert guidance and legitimacy in the eyes of others (e.g., customers, investors, and even competitors) are _____.

heterogeneous, homogeneous

If the members of the team are ___1___, meaning that they are diverse in terms of their abilities and experiences, rather than ___2___, meaning that their areas of expertise are very similar to one another, they are likely to have different points of view about technology, hiring decisions, competitive tactics, and other important activities. Typically, these different points of view generate debate and constructive conflict among the founders, reducing the likelihood that decisions will be made in haste or without the airing of alternative points of view.

Formation (Phase 2), evaluation and elaboration

In the ___1___ Phase (Phase 2) of the creative process phase, opportunities are molded; this is where we take the idea from the mental drawing board into the real-life world for some testing. -The ___1___ process first requires that potential opportunities be evaluated for their feasibility. -Strong opportunities are then shaped into viable business ventures. -Opportunity formation methods include: --Feasibility analysis --Market testing --Operations & logistics planning The ___1___ Phase (Phase 1) of the creative process involves going into a marketplace and letting the market tell you what you need to do; the ___1___ Phase consists of the ___2___ steps of the creative process.

Genetic Traits

Intelligence, Physical Prowess, and Artistic Talent are _____ - They are not traits of the entrepreneur

benefit, feature

It is common for entrepreneurs to think they're focusing on the ___1___s they're providing to the customer when actually they're describing ___2___s. For example, using the furniture importer example, the typical entrepreneur may say that he or she is providing retailers with unique pieces of furniture from many parts of the world. That certainly is true, but uniqueness is a ___2___ or a characteristic of the furniture, not the ___1___ to the customer. The ___1___ to the customer is those factors that encourage the customer to purchase from you over your competitors. The ___1___ is what's in it for the customer and it's typically something intangible like convenience, better health, speed, or reliability.

nontraditional barriers to entry

It is difficult for start-ups to create barriers to entry that are expensive, such as economies of scale, because money is usually tight. The biggest threat to a new firm's viability, particularly if it is creating a new market, is that larger, better-funded firms will step in and copy what it is doing. The ideal barrier to entry is a patent, trademark, or copyright, which prevents another firm from duplicating what the start-up is doing. Apart from these options, however, start-ups have to rely on _____ to discourage new entrants.

opportunity, idea

It is important to understand that there is a difference between an ___1___ and an ___2___. An ___2___ is a thought, an impression, or a notion. An ___2___ may or may not meet the criteria of an ___1___. This is a critical point because many entrepreneurial ventures fail not because the entrepreneurs that launched them didn't work hard, but rather because there was no real ___1___ to begin with. An ___2___ involves potential for exploitation (a good word in entrepreneurship). Before getting excited about a business ___2___, it is crucial to understand whether the ___2___ fills a need and meets the criteria for an ___1___.

5 to 10, status quo

It is impossible for a firm to identify all its direct and indirect competitors, let alone its future competitors. However, identifying its top ___1___ direct competitors and its top ___1___ indirect and future competitors makes it easier for the firm to complete its competitive analysis grid. If a firm does not have a direct competitor, it shouldn't forget that the ___2___ can be the toughest competitor of all. In general, people are resistant to change and can always keep their money rather than spend it. A product or service's utility must rise above its cost, not only in monetary terms but also in terms of the hassles associated with switching or learning something new, to motivate someone to buy a new product or service

business model, business plan

It is widely known that a well-conceived ___1___, one that flows from the firm's previously established ___2___, cannot get off the ground unless a firm has the leaders and personnel to carry it out.

feasibility analysis, business plan

It's important to distinguish between a ___1___ and a ___2___. A ___1___ is a way to test your business concept in the market to see whether it makes sense to develop it and enter the market. By contrast, a ___2___ assumes that the ___1___ shows positive results. The purpose of the ___2___ is to describe the creation of a company to execute the concept. In short, the ___1___ is about an idea; the ___2___ is about a company.

elevator pitch

It's important to state your business concept in a couple of clear and concise sentences, so that when someone asks about your new business, you can get the information out quickly rather than stammering and talking around the key points, which only causes confusion. Some entrepreneurs refer to this two-sentence statement as their "_____." Pretend that you find yourself in an elevator with a potential funder. You only have the duration of an elevator ride to interest him or her in your business concept. What would you say? If you can get the concept out in two to three sentences, you've given the listener the critical elements and caught his or her attention sufficiently so that the conversation might continue after you leave the elevator.

Unlimited Liability, Limited Liability

Legal/regulatory structure with lower levels of entrepreneurship: ___1___ Legal/regulatory structure with higher levels of entrepreneurship: ___2___

Resources

Money, patents, first-mover advantage, facilities, staff expertise

ratio analysis, ratio

Most business plan writers interpret or make sense of a firm's historical or pro forma financial statements through ___1___. ___2___s, such as return on assets and return on sales, are computed by taking numbers out of financial statements and forming ___2___s with them. Each ___2___ has a particular meaning in regard to the potential of the business.

Next Business Alternative (NBA)

NBA stands for _____.

liability of newness

New ventures have a high propensity to fail. The high failure rate is due in part to what is known as the _____, which refers to the fact that companies often falter because the people who start them aren't able to adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and suppliers.

Unique business model

One of the Six Nontraditional Barriers to Entry. If a start-up is able to construct a _____ and establish a network of relationships that make the business model work, this set of advantages creates a barrier to entry. Example: Netflix.

First-mover advantage

One of the Six Nontraditional Barriers to Entry. If a start-up pioneers an industry or a new concept within an existing industry, the name recognition the start-up establishes may create a formidable barrier to entry. Example: Facebook. A _____ is a sometimes insurmountable advantage gained by the first company to establish a significant position in a new market.

Strength of management team

One of the Six Nontraditional Barriers to Entry. If a start-up puts together a world-class management team, it may give potential rivals pause in taking on the start-up in its chosen industry. Example: Square.

Passion of management team and employees

One of the Six Nontraditional Barriers to Entry. If the key employees of a start-up are highly motivated by its unique culture, are willing to work long hours because of their belief in what they are doing, and anticipate large financial gains through stock options, this is a combination that cannot be replicated by a larger firm. Think of the employees of a biotech firm trying to find a cure for a disease. Example: Amgem.

Inventing a new approach, exemplary fashion

One of the Six Nontraditional Barriers to Entry. Involves ___1___ to an industry and executing the idea in an ___2___. If a start-up does this, they create a barrier to entry for potential imitators. Example: Cirque du Soleil.

Internet domain name

One of the Six Nontraditional Barriers to Entry. Some _____s are so "spot-on" in regard to a specific product or service that they give a start-up a meaningful leg up in terms of e-commerce opportunities. Think of www.1800flowers.com, www.1800gotjunk.com, and www.bodybuilding.com. Example: www.1800contacts.com.

Comprehensiveness

One of the five Criteria for Evaluating a Business Concept. Does the Concept address all of the relevant variables that make up the buyer's value proposition (such as packaging, pricing, distribution channels, location and logistics)? The business concept should address all the relevant strategic variables of the user's total value proposition.

Internal Consistency

One of the five Criteria for Evaluating a Business Concept. How well do the internal components (packaging, pricing, distribution channels, location, and logistics) work together? For example: Does the distribution channel work with the target market and product attributes being emphasized?

Feasibility

One of the five Criteria for Evaluating a Business Concept. Is the Concept realistic? Can it be delivered timely at an acceptable cost? Is the market definition realistic? Addresses the question of reality. Can the concept be introduced in a timely manner? At an acceptable cost? Is the market size estimate reasonable?

Sustainability

One of the five Criteria for Evaluating a Business Concept. Once implemented, can the Concept withstand the rigors of competition, new technologies, and related challenges? Can the Entrepreneur erect successful barriers to entry? Has to do with the concept once it is implemented. Will the product endure in the face of competition, changing costs, and new technologies? Can you create barriers to entry?

Uniqueness

One of the five Criteria for Evaluating a Business Concept. The degree of novelty or innovativeness of the Concept. Not a "me too" concept. The need for a degree of novelty or innovativeness in a new concept. Failure: Products that fail to get the consumer to switch. Failure: No differentiation.

Ability to Learn

One of the five Entrepreneurial Skills. -Somewhere along the way, we had to learn how to learn.

Managerial (Managing Conflict)

One of the five Entrepreneurial Skills. -Work life vs. home life. -Ability to manage multiple things at once and keep balls running.

Guerilla Skills

One of the five Entrepreneurial Skills. -Ability to creative acquire needed resources at minimal cost. Manifested in marketing & resourcefulness (used furnishings, cheap space, surplus PC's, etc.) -Creative, new ways to market products. -Need in order to cover salary expenses and keep growing; factoring skills perhaps. -Know or foresee trouble and deal with it.

Social Skills and Networking

One of the five Entrepreneurial Skills. -Ability to get along with others -Ability to develop working relationships -Persuasive manner -Not something most people are born with; not something you walk into college knowing. -Without this, you are just one person fighting against the world.

bargaining power of buyers

One of the five forces of the five force model. In general, industries are more attractive when the _____ (a start-up's customers) is low. Buyers can suppress the profitability of the industries from which they purchase by demanding price concessions or increases in quality. For example, even in light of the problems it has encountered over the past several years, the automobile industry remains dominated by a handful of large automakers that buy products from thousands of suppliers in different industries. This enables the automakers to suppress the profitability of the industries from which they buy by demanding price reductions. Similarly, if the automakers insisted that their suppliers provide better-quality parts for the same price, the profitability of the suppliers would suffer. Four factors impact buyers' ability to exert pressure on suppliers and suppress the profitability of the industries from which they buy. In other words, there are four factors that impact the bargaining power of buyers.

bargaining power of suppliers

One of the five forces of the five force model. In general, industries are more attractive when the _____ is low. In some cases, suppliers can suppress the profitability of the industries to which they sell by raising prices or reducing the quality of the components they provide. If a supplier reduces the quality of the components it supplies, the quality of the finished product will suffer, and the manufacturer will eventually have to lower its price. If the suppliers are powerful relative to the firms in the industry to which they sell, industry profitability can suffer. There are four factors that impact the ability of suppliers to exert pressure on buyers and suppress the profitability of the industries they serve; there are three factors that impact the _____.

threat of substitutes

One of the five forces of the five force model. In general, industries are more attractive when the _____ is low. This means that products or services from other industries can't easily serve as substitutes for the products or services being made and sold in the focal firm's industry. For example, there are few if any substitutes for prescription medicines, which is one of the reasons the pharmaceutical industry is so profitable. In contrast, when close substitutes for a product do exist, industry profitability is suppressed because consumers will opt not to buy when the price is too high. Consider the price of airplane tickets (business people can skype instead).

entry of new competitors

One of the five forces of the five force model. In general, industries are more attractive when the threat of _____ is low. This means that competitors cannot easily enter the industry to copy what the industry incumbents are doing. There are a number of ways that firms in an industry can keep the number of new entrants low. These techniques are referred to as barriers to entry.

rivalry among existing firms

One of the five forces of the five force model. In most industries, the major determinant of industry profitability is the level of competition among the firms already competing in the industry. Some industries are fiercely competitive to the point where prices are pushed below the level of costs. When this happens, industry- wide losses occur. In other industries, competition is much less intense and price competition is subdued. For example, the airline industry is fiercely competitive and profit margins hinge largely on fuel prices and consumer demand. In contrast, the market for specialized medical equipment is less competitive, and profit margins are higher. There are four primary factors that determine the nature and intensity of the _____ in an industry.

work hard for an extended period of time

One of the five main reasons passion is an important main characteristic of successful entrepreneurs is a willingness to _____. Commonly, entrepreneurs work longer hours than people with traditional jobs. You can only do that, on a sustained basis, if you're passionate about what you're doing.

learn and iterate

One of the five main reasons passion is an important main characteristic of successful entrepreneurs is the ability to _____. Founders don't have all the answers. It takes passion and drive to solicit feedback, make necessary changes, and move forward. The changes won't always be obvious. Passion makes the search for the right answers invigorating and fun.

Ability to overcome setbacks and "no's"

One of the five main reasons passion is an important main characteristic of successful entrepreneurs. It's rare that an entrepreneur doesn't experience setbacks and hear many "no's" from potential customers, investors, and others while building an entrepreneurial business or social enterprise. The energy to continue comes from passion for an idea.

Higher education

One of the five preferred attributes of a firm's founder or founders. Evidence suggests that important entrepreneurial skills are enhanced through _____.

Prior entrepreneurial experience

One of the five preferred attributes of a firm's founder or founders. Founders with _____ are familiar with the entrepreneurial process and are more likely to avoid costly mistakes than founders new to the rigors of the entrepreneurial process.

Broad social and professional network

One of the five preferred attributes of a firm's founder or founders. Founders with _____s have potential access to additional know-how, capital, and customer referrals.

Relevant industry experience

One of the five preferred attributes of a firm's founder or founders. Founders with experience in the same industry as their new venture will most likely have better-established professional networks and more applicable marketing and management expertise than founders without _____.

Firm started by a team

One of the five preferred attributes of a firm's founder or founders. New ventures that are started by a team can provide greater resources, a broader diversity of viewpoints, and a broader array of other positive attributes than ventures started by individuals.

fragmented, Consolidation

One of the five primary industry types are ___1___ industries. Large number of firms of approximately equal size. Opportunity: ___2___. ___1___ industries are industries characterized by a large number of firms of approximately equal size. The primary opportunity for start-ups in ___1___ industries is to consolidate the industry and establish industry leadership as a result of doing so. The most common way to do this is through a geographic roll-up strategy.

emerging, First-mover advantage

One of the five primary industry types are ___1___ industries. Recent changes in demand or technology; new industry standard operating procedures have yet to be developed. Opportunity: ___2___. ___1___ industries are new industries in which standard operating procedures have yet to be developed. The firms that pioneer or take the leadership of ___1___ industries often capture a ___2___. Because a high level of uncertainty characterizes ___1___ industries, any opportunity that is captured may be short-lived. Still, many new ventures enter ___1___ industries because barriers to entry are usually low and there is no established pattern of rivalry.

global, multidomestic (strategy) and global strategy

One of the five primary industry types are ___1___ industries. Significant international sales. Opportunities: ___2___. ___1___ industries are industries that are experiencing significant international sales. Many start-ups enter ___1___ industries and from day one try to appeal to international rather than just domestic markets.

mature, process and (after-sale) service innovation

One of the five primary industry types are ___1___ industries. Slow increases in demand, numerous repeat customers, and limited product innovation. Opportunities: emphasis on ___2___. ___1___ industries are industries that experience slow or no increase in demand, have numerous repeat (rather than new) customers, and have limited product innovation. Occasionally, entrepreneurs introduce new product innovations to ___1___ industries, surprising incumbents who thought nothing new was possible in their industries.

I really interested

One of the five questions to ask before conducting a feasibility analysis .Am _____ in this business opportunity? If you develop this concept, it is going to take all the time and energy you can give it, so it's important that you be passionate about it. Many potential entrepreneurs have gone forward with concepts that others suggested to them only to discover, after they have spent considerable time and effort - not to mention money - that their heart wasn't in the business. The most successful businesses come from the passion of the entrepreneur for the business concept.

anyone else interested

One of the five questions to ask before conducting a feasibility analysis. Is _____? You can't have a business without customers, and you may also need investors, so you had better be sure that others are interested in what you plan to offer.

people actually pay

One of the five questions to ask before conducting a feasibility analysis. Will _____ for what I am offering? Often when people hear about a new product or service they express interest, even excitement, over it. But what are they willing to pay for it? And how much? If they are not willing to pay what you believe it's worth, you may need to rethink the idea.

Why me

One of the five questions to ask before conducting a feasibility analysis. _____? Why are you the right person to execute this concept? Knowing what assets you bring to the concept is an important part of deciding if it's doable.

Why now

One of the five questions to ask before conducting a feasibility analysis. _____? Why is this a good time to launch this business? And why has no one done this before? Or have they?

poorly cited

One of the five red flags in business plans. A _____plan. A plan should be built on hard evidence and sound research, not guesswork or what an entrepreneur "thinks" will happen. The sources for all primary and secondary research should be cited.

market size too broadly

One of the five red flags in business plans. Defining the _____. Defining the market for a new venture too broadly shows that the true market has not been clearly identified. For example, saying that a new venture will target the global pharmaceutical industry isn't helpful. The market opportunity needs to be better defined. Obviously, the new venture will target a segment or a specific market within the industry.

none of their own money

One of the five red flags in business plans. Founders with _____ at risk. If the founders aren't willing to put their own money at risk, why should anyone else?

aggressive financials

One of the five red flags in business plans. Overly _____. Many investors skip directly to this portion of the plan. Projections that are poorly reasoned or unrealistically optimistic lose credibility. In contrast, sober, well-reasoned statements backed by sound research and judgement gain credibility quickly.

Sloppiness

One of the five red flags in business plans. _____ in any area. It is never a good idea to make a reader wade through typos, balance sheets that don't balance, or _____ in any area. These types of mistakes are seen as inattention to detail and hurt the entrepreneur's credibility.

Intermediary

One of the five types of business models is the _____ model. Brings buyers & sellers together. Charges commission.

Transaction fee

One of the five types of business models is the _____ model. Charging to buy product or service.

Affiliate

One of the five types of business models is the _____ model. Commission-based to have sites drive traffic.

Subscription

One of the five types of business models is the _____ model. Monthly or annual fee.

Advertising support

One of the five types of business models is the _____ model. Paid for gaining access to customer eyes.

political and regulatory changes

One of the four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps. New changes in political arena and New laws and regulations.

technological advances

One of the four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps. New technologies, Emerging technologies, and New uses of old technologies.

social forces

One of the four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps. Social and cultural trends, Demographic changes, and What people think is "in."

economic forces

One of the four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps. State of the economy, Level of disposable income, and Consumer spending patterns.

Creativity

One of the four characteristics shared by those who excel at opportunity recognition, _____ is the process of generating a novel or useful idea. On an anecdotal basis, it is easy to see the _____ involved in forming many products, services, and businesses. Increasingly, teams of entrepreneurs working within a company are sources of creativity for their firm.Not Doc Brown from Back to Future . Joined at the hip to innovation. More about seeing connections and different ways to do things - why or why not? An environment/climate with _____ has -Trustful management, not over-control -Open communication -Contact outside the organization -Variety of personalities -Willing to accept change -Enjoy experimenting with new ideas -Don't fear mistakes -Rewards based on performance -Techniques that encourage ideas (brainstorming) -Provide resources to accomplish goals 1. _____ is that act of relating previously unrelated things; the application of a person's mental ability and curiosity to discover something new. 2. It is the ability to challenge assumptions, recognize patterns, see in new ways, make connections, take risks, and seize upon chance. 3. Edison once declared that "Innovation" and "_____" often look a whole lot like hard work! =Inspiration = 1% & Perspiration = 99%

Providing legitimacy (or lending legitimacy), signaling

One of the two ways a board of directors can help a new firm get off to a good start and develop what will hopefully become a sustainable competitive advantage is by ___1___. Well-known and respected board members bring instant credibility to the firm. For example, just imagine the positive buzz a firm could generate if it could say that Blake Mycoskie of TOMS or Drew Houston of Dropbox had agreed to serve on its board of directors. This phenomenon is referred to as ___2___. Without a credible signal, it is difficult for potential customers, investors, or employees to identify high-quality startups. Presumably, high-quality individuals would be reluctant to serve on the board of a low-quality firm because that would put their reputation at risk. So when a high-quality individual does agree to serve on a board of a firm, the individual is in essence "___2___" that the company has potential to be successful.

Providing expert guidance

One of the two ways a board of directors can help a new firm get off to a good start and develop what will hopefully become a sustainable competitive advantage. Although a board of directors has formal governance responsibilities, its most useful role is accomplished through _____ and support to the firm's managers. Many CEOs interact with their board members frequently and obtain important input. The key to making this happen is to pick board members with needed skills and useful experiences who are willing to give advice and ask insightful and probing questions.

(assembling a) talented and experienced new-venture team

One of the two ways entrepreneurs overcome the liability of newness. Indeed, experienced management teams that get up to speed quickly are much less likely to make a novice's mistakes. In addition, firms able to persuade high-quality individuals to join them as directors or advisors quickly gain legitimacy with a variety of people, such as some of those working inside the venture as well as some outside the venture (e.g., suppliers, customers, and investors). In turn, legitimacy opens doors that otherwise would be closed.

(attending) entrepreneurship-focused workshops and events

One of the two ways entrepreneurs overcome the liability of newness. These types of activities - such as Startup Weekend, hackathons, boot camps, and so on - are often sponsored by local universities, small business development centers, and economic development commissions.

externally stimulated

One of the two ways in which most entrepreneurial ventures are started; Some ventures are _____. In this instance, an entrepreneur decides to launch a firm, searches for and recognizes an opportunity, and then starts a business, as Jeff Bezos did when he created Amazon.com. In 1994, Bezos quit his lucrative job at a New York City investment firm and headed for Seattle with a plan to find an attractive opportunity and launch an e-commerce company.

skills profile

One technique available to entrepreneurs to help prioritize their hiring needs is to maintain a _____. A _____ is a chart that depicts the most important skills that are needed and where skills gaps exist... A _____ should also explain how current skills gaps are being dealt with.

trade associations, trade shows, and trade journals

One thing that's important for a start-up is to become active in the industry it's entering. Activity leads to learning the ins and outs of an industry, finding business partners, and becoming recognized as an industry leader. Three important Ts that lead to industry activity are _____. Start-ups should consider utilizing these Ts as a part of their early and ongoing activities.

Three important Ts that lead to industry activity

One thing that's important for a start-up is to become active in the industry it's entering. Activity leads to learning the ins and outs of an industry, finding business partners, and becoming recognized as an industry leader. _____ are trade associations, trade shows, and trade journals. Start-ups should consider utilizing these Ts as a part of their early and ongoing activities.

less tangible factors

Other _____ have also been shown to affect the environmental perspective of entrepreneurship, such as cultural perspective, education, entrepreneurial training, and role models.

changed

Over the past 10 years, the demographic makeup of entrepreneurial firms has _____ in the United States and around the world.

Social Networks

One of the four characteristics shared by those who excel at opportunity recognition. People who build substantial _____ (including professional contacts) will be exposed to more opportunities and ideas than people with sparse _____. This exposure can lead to new business starts... A study found that network entrepreneurs identified significantly more opportunities than solo entrepreneurs but were less likely to describe themselves as being particularly alert or creative. An important concept that sheds light on the importance of _____ to opportunity recognition is the differential impact of strong-tie versus weak-tie relationships. According to research in this area, it is more likely that an entrepreneur will get a new business idea through a weak-tie than a strong-tie relationship because strong-tie relationships, which typically form between like-minded individuals, tend to reinforce insights and ideas the individuals already have. Weak-tie relationships, on the other hand, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea.

Prior experience

One of the four characteristics shared by those who excel at opportunity recognition. Several studies show that _____ in an industry helps entrepreneurs recognize business opportunities. For example, evidence over time about the founders of firms appearing on the Inc. 500 list shows that well over 40 percent of those studied got the idea for their new businesses while working as employees for companies in the same industries. There are several explanations for these findings. By working in an industry, an individual may spot a market niche that is underserved. It is also possible that while working in a particular area, an individual builds a network of social contacts in that industry that may provide insights that lead to opportunities.

Cognitive Factors

One of the four characteristics shared by those who excel at opportunity recognition. There are some who think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss. This sixth sense is called entrepreneurial alertness. Most entrepreneurs see themselves in this light, believing they are more "alert" than others. Alertness is largely a learned skill, and people who have more knowledge of an area tend to be more alert to opportunities in that area than others. A computer engineer, for example, would be more alert to needs and opportunities within the computer industry than a lawyer would be.

distribution channel

One of the four elements contained within a business concept. How do you get the product/service to the customer?

customer definition

One of the four elements contained within a business concept. Who is the customer?

Buyer group concentration

One of the four factors that impact the bargaining power of buyers. If the buyers are concentrated, meaning that there are only a few large buyers, and they buy from a large number of suppliers, they can pressure the suppliers to lower costs and thus affect the profitability of the industries from which they buy..

Degree of standardization of supplier's products

One of the four factors that impact the bargaining power of buyers. The _____ from its competitors' affects the buyer's bargaining power. For example, a buyer who is purchasing a standard or undifferentiated product from a supplier, such as the corn syrup that goes into a soft drink, can play one supplier against another until it gets the best combination of features such as price and service.

Buyer's costs

One of the four factors that impact the bargaining power of buyers. The greater the importance of an item is to a buyer, the more sensitive the buyer will be to the price it pays. For example, if the component sold by the supplier represents 50 percent of the cost of the buyer's product, the buyer will bargain hard to get the best price for that component.

Threat of backward integration

One of the four factors that impact the bargaining power of buyers. The power of a buyer is enhanced if there is a credible threat that the buyer might enter the supplier's industry, or a _____. For example, the PC industry can keep the price of computer monitors down by threatening to make its own monitors if the price gets too high.

Attractiveness of substitutes

One of the four factors that impact the bargaining power of suppliers. Supplier power is enhanced if there is a lack of _____ for the products or services the supplier offers. For example, there is little the computer industry can do when Microsoft and Intel raise their prices, as there are relatively few if any practical substitutes for these firms' products (although this is less true today than has been the case historically).

Threat of forward integration

One of the four factors that impact the bargaining power of suppliers. The power of a supplier is enhanced if there is a credible possibility that the supplier might enter the buyer's industry. For example, Microsoft's power as a supplier of computer operating systems is enhanced by the threat that it might enter the PC industry if PC makers balk too much at the cost of its software or threaten to use an operating system from a different software provider.

Supplier concentration

One of the four factors that impact the bargaining power of suppliers. When there are only a few suppliers to provide a critical product to a large number of buyers, the supplier has an advantage. This is the case in the pharmaceutical industry, where relatively few drug manufacturers are selling to thousands of doctors and their patients.

Switching costs

One of the four factors that impact the bargaining power of suppliers. _____ are the fixed costs that buyers encounter when switching or changing from one supplier to another. If _____ are high, a buyer will be less likely to switch suppliers. For example, suppliers often provide their largest buyers with specialized software that makes it easy to buy their products. After the buyer spends time and effort learning the supplier's ordering and inventory management systems, it will be less likely to want to spend time and effort learning another supplier's system.

so a company can boast

One of the four guidelines to organizing a board of advisors. A board of advisors should not be organized just _____ of it. Advisors will become quickly disillusioned if they don't play a meaningful role in the firm's development and growth.

compatible and complement one another

One of the four guidelines to organizing a board of advisors. A firm should look for board members who are _____ in terms of experience and expertise. Unless the board is being established for a specific purpose, a board that includes members with varying backgrounds is preferable to a board of people with similar backgrounds.

caution their advisors to disclose, relationship (or affiliation) with the venture

One of the four guidelines to organizing a board of advisors. Firms should ___1___ that they have a ___2___ before posting positive comments about it or its products on blogs or on social networking sites. A potential conflict of interest surfaces when a person says positive things about a company without disclosing an affiliation with the firm, particularly if there is a financial stake in the company.

rules in terms of access to confidential information

One of the four guidelines to organizing a board of advisors. When inviting a person to serve on its board of advisors, a company should carefully spell out to the individual the _____. Some firms ask the members of their advisory board to sign nondisclosure agreements.

depends on the type

One of the four important guidelines that should influence the writing of a business plan. How long and detailed the business plan should be (or what should the plan's style and format be) _____ of business plan that is being written. There are three types of business plans, each of which has a different rule of thumb regarding length and level of detail. The plan should not suggest to the potential investor that a great deal of money was spent to prepare the plan itself.

elements may change

One of the four important guidelines that should influence the writing of a business plan. Recognizing the fact that the business plan's _____. The plan will usually change as it is being written and as the business evolves.

clear and concise

One of the four important guidelines that should influence the writing of a business plan. The business plan should give _____ information on all the important aspects of the proposed new venture. It must be long enough to provide sufficient information, yet short enough to maintain reader interest.

conventional structure

One of the four important guidelines that should influence the writing of a business plan. To make the best impression, a business plan should follow a _____. Typically, investors are very busy people and want a plan where they can easily find critical information.

Internet Searches

One of the four methods for estimating a new firm's initial sales. Conduct _____. _____ often reveal magazine and newspaper articles as well as blog entries that focus on firms in your industry. On occasion, these articles and blog entries will talk about the sales experience of a similar early-stage firm. If you know of a firm that is comparable to your firm, target that firm first in your search. You may get lucky and find an article or entry that says, "XYZ firm earned gross revenues of $250,000 per year its first three years." If the source of this data is credible and XYZ firm is comparable to your firm, you've just found useful information.

Industry Trade Associations

One of the four methods for estimating a new firm's initial sales. Contact the premier _____ and ask if they track the sales numbers for businesses that are similar to your business. If the trade association doesn't track actual sales numbers for comparable businesses, ask if there are other rules of thumb or metrics that help new companies estimate sales. For example, many industries collect statistics such as "average sales per square foot" or "average sales per employee" for firms in their industry.

Comparable Firm

One of the four methods for estimating a new firm's initial sales. Find a _____ and ask for an estimate of annual sales. For example, if you are planning to open a women's clothing boutique, try to find a boutique that is similar to yours (and is not in your trade area) and simply call the owner and ask for a chance to talk to him or her about the business. Once a relationship has been established, you can ask for an estimate of the business's annual sales.

Multiplication Method, top-down approach, bottom-up approach

One of the four methods for estimating a new firm's initial sales. Utilize the ___1___. There are two approaches that fit this category. Start-ups that plan to sell a product on a national basis normally use a ___2___. This involves trying to estimate the total number of users of the product, estimate the average price customers pay, and estimate what percentage of the market your business will garner. Start-ups that plan to sell locally normally use more of a ___3___. This approach involves trying to determine how many customers to expect and the average amount each customer will spend.

brand recognition

One of the four primary benefits to joining a startup accelerator program is _____. The best startup accelerator programs are hard to get into. As a result, when potential employees, investors, or other companies see that you've graduated from TechStars, Y-Combinator, AngelPad, or one of the other better known accelerator programs, it sets you apart from other startups. This factor helps gain legitimacy.

learning

One of the four primary benefits to joining a startup accelerator program is the _____ that takes place. Along with providing mentoring and support, most accelerator programs provide training in developing successful business models, raising capital, connecting with potential investors, and protecting intellectual property. A startup can normally get up to speed on these issues and others faster by participating in an accelerator program than going it alone.

network of people

One of the four primary benefits to joining a startup accelerator program is the _____ you'll meet and with whom you'll become acquainted. You'll be connected to not only mentors and advisors, but to former alumni companies. All this helps a firm gain legitimacy and support. Both Airbnb and Dropbox, for example, are Y-Combinator graduates. Imagine how helpful it would be for a startup that is currently going through the Y-Combinator program to get acquainted with people at Airbnb or Dropbox and earn their endorsement and support.

work side-by-side with other startups

One of the four primary benefits to joining a startup accelerator program is the opportunity to _____. As mentioned, most accelerators admit startups in classes, ranging from just a few startups to 25 at a time. Most participants want to be well-regarded by their peers, which provides an incentive to work hard and succeed. A close bond often develops among the members of an accelerator cohort. The bond remains after the program finishes. As a result, when a company that has been part of an effective accelerator program graduates, it normally already has a group of other companies that are willing to lend it legitimacy and support.

Level of fixed costs, high fixed costs, low fixed costs

One of the four primary factors that determine the nature and intensity of the rivalry among existing firms in an industry is the ___1___. Firms that have ___2___ must sell a higher volume of their product to reach the break-even point than firms with ___3___. Once the break-even point is met, each additional unit sold contributes directly to a firm's bottom line. Firms with ___2___ are anxious to fill their capacity, and this anxiety may lead to price-cutting.

Growth rate of an industry, slow-growth, fast-growth

One of the four primary factors that determine the nature and intensity of the rivalry among existing firms in an industry is the ___1___. The competition among firms in a ___2___ industry is stronger than among those in ___3___ industries. ___2___ industry firms, such as insurance, must fight for market share, which may tempt them to lower prices or increase quality to get customers. In ___3___ industries, such as pharmaceutical products, there are enough customers to satisfy most firms' production capacity, making price-cutting less likely.

Degree of difference between products

One of the four primary factors that determine the nature and intensity of the rivalry among existing firms in an industry. The _____ from one producer to another affects industry rivalry. For example, commodity industries such as paper products producers tend to compete on price because there is no meaningful difference between one manufacturer's products and another's.

Number and balance of competitors

One of the four primary factors that determine the nature and intensity of the rivalry among existing firms in an industry. The more competitors there are, the more likely it is that one or more will try to gain customers by cutting prices. Price-cutting causes problems throughout the industry and occurs more often when all the competitors in an industry are about the same size and when there is no clear market leader.

Collect demographic information

One of the four quick tips on surveys.

ask about importance of select benefits/features

One of the four quick tips on surveys. How important are the following criteria to your satisfaction with your cable provider? (And then have a list on a 1-5 scale)

Do NOT use yes/no questions

One of the four quick tips on surveys. This is acceptable format: -How satisfied are you with your cable provider? Not satisfied at all 1 2 3 4 5 Extremely satisfied -I am extremely satisfied with my cable provider. Strongly disagree 1 2 3 4 5 Strongly agree -My cable TV service, overall, is: Poor Fair Good Very good Excellent

ask about willingness to pay a specific price

One of the four quick tips on surveys. _____, then heavily discount responses!

Leapfrogging

One of the four rules for a formal brainstorming session is that _____ is encouraged. This means using one idea as a means of jumping forward quickly to other ideas.

Freewheeling

One of the four rules for a formal brainstorming session is that _____, which is the carefree expression of ideas free from rules or restraints, is encouraged; the more ideas, the better. Even crazy or outlandish ideas may lead to a good idea or a solution to a problem.

quickly

One of the four rules for a formal brainstorming session is that the session moves _____, and nothing is permitted to slow down its pace. For example, it is more important to capture the essence of an idea than to take the time to write it down neatly.

Virtual assistant

One of the four sources of labor that new ventures utilize to get their work done. A freelancer who provides administrative, technical, or creative assistance to clients remotely from a home office.

Freelancer (or contractor)

One of the four sources of labor that new ventures utilize to get their work done. A person who is in business for themselves, works on their own time with their own tools and equipment, and performs services for a number of different clients.

Intern

One of the four sources of labor that new ventures utilize to get their work done. A person who works for a business as an apprentice or trainee for the purpose of obtaining practical experience.

Full- or part-time employee

One of the four sources of labor that new ventures utilize to get their work done. Someone who works for a business, at the business's location, utilizing the business's tools and equipment, and according to the business's policies and procedures.

library and internet research

One of the four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses. A natural tendency is to think that an idea should be chosen, and the process of researching the idea should then begin. This approach is too linear. Often, the best ideas emerge when the general notion of an idea, like creating casual electronic games for adults, is merged with extensive _____, which might provide insights into the best type of casual games to create.

other techniques

One of the four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses. Firms use a variety of _____ to generate ideas including customer advisory boards and day-in-the-life research.

brainstorming

One of the four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses. In general, _____ is simply the process of generating several ideas about a specific topic. The approaches range from a person sitting down with a yellow legal pad and jotting down interesting business ideas to formal "_____ sessions" led by moderators that involve a group of people.

focus groups, 5, 10

One of the four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses. ___1___ are gatherings of ___2___ to ___3___ people who are selected because of their relationship to the issue being discussed. Although ___1___ are used for a variety of purposes, they can be used to help generate new business ideas. ___1___ usually work best as a follow-up to brainstorming, when the general idea for a business has been formulated, such as casual electronic games for adults, but further refinement of the idea is needed. Usually, ___1___ are conducted by trained moderators.

Partnership Network

One of the four types of business models. A firm's _____ includes suppliers and other partners; a firm's _____ includes those key resource relationships required to fulfill its value proposition. New ventures are VERY reliant upon this element, and sometimes have trouble attracting key partners due to their newness. Companies, staff, employees, investors, suppliers, partners, etc. are all examples. "What is the need for them?" is the most important question.

Customer Interface

One of the four types of business models. A firm's partnership network includes customers and other partners; a firm's _____ tracks how a firm interacts with its customers. How does it work with them? This is central to how you will compete. Transactional vs. Relational. What do customers look like - what are their demographics? How many are there? Age, sex, location, income, etc. Try as best as we can to understand their nuances as this affects how we price.

Total Entrepreneurial Activity (TEA)

One of the key things the Global Entrepreneurship Monitor (GEM) measured was the percentage of people who were actively in the process of starting a business or were actively involved in running a new firm, which they called _____.

entrepreneurial training

One of the less tangible factors. Done so that entrepreneurs can learn the necessary skills and knowledge needed to be successful. Providing training into how to write a business plan, acquire capital, and manage a small business is important for teaching people how to perform important entrepreneurial tasks. Some programs, such as SCORE, provide counseling and mentoring to entrepreneurs by retired executives. Other regions provide incubators to help entrepreneurs... Most cities and regions have other support systems such as small business development agencies.

complacent/constraining, bold/adventurous

Peer group experience with lower levels of entrepreneurship: ___1___ Peer group experience with higher levels of entrepreneurship: ___2___

cultural perspective

One of the less tangible factors. Some have taken a _____, looking at the attitudes, beliefs, and values of a country. This can be seen from simple things such as views concerning risk-taking and traditional perceptions of profit. Some countries treat entrepreneurs as heroes and put them on the front covers of magazines and offer them awards. Other countries treat entrepreneurs with suspicion and as pure profit-seekers who should not be trusted. Other _____s, such as how hierarchical a country is, can also affect entrepreneurship. In countries that are more hierarchical, where there is a major distinction between blue and white collar work, substantial differences in pay between "classes", and formality of communication (and lack of communication between classes or blue and white collar workers), there is generally less entrepreneurship.

Strategic Resources

One of the of four main facets of business models. A firm's available _____ materially affect how its business model is used. What I have, how I have it, how can I use it, why do I need it, etc.

Core Strategy

One of the of four main facets of business models. The first component of a business model is the _____, which describes how a firm competes relative to its competitors. Who will I seek to do business with and how so? Who won't I seek to do business with and why not? What is my unfair advantage?

Fulfillment and Support

One of the of four main facets of business models. _____ defines 'go to market strategies' and how product is delivered to the target market. Do you license technology, manufacture, outsource, partner with retail channel? Think of Dell, Apple, Samsung, Verizon.

Customer Environment

One of the seven environments characterized by turbulence. Can be homogeneous or heterogeneous

Legal/Regulatory Environment

One of the seven environments characterized by turbulence. Can be passive or aggressive

Resource Environment

One of the seven environments characterized by turbulence. Can be predictable or unpredictable

Economic Environment

One of the seven environments characterized by turbulence. Can be stable or widely changing.

Technological Environment

One of the seven environments characterized by turbulence. Can be stagnant or rapidly changing.

Competitor Environment

One of the seven environments characterized by turbulence. Can be status quo or threatening

Social Environment

One of the seven environments characterized by turbulence. Can be traditional or experimental

Value chain analysis, value chain

One of the seven layers of a feasibility analysis (in order from outer to inner) is the ___1___. There are many ways to deliver a benefit to the customer: directly (by mail, the Internet, a manufacturer's outlet), through a distributor, or through a retailer, to name a few. The ___2___ is the distribution channel through which products and services flow from the producer to the end-user. At each point along the channel, intermediaries add value through the services they provide. Today, more than ever before, businesses can create a competitive advantage by looking at ways to streamline the ___2___ or bring products and services to customers in new ways. In this section of the feasibility analysis, it's important to justify your choice of the method of delivery of the benefit to the customer. In a world where technology and the Internet are regularly shortening ___2___s, it's vital to examine and justify your ___2___ for investors and others with a stake in your business.

Totalitarian, Democracy

Political structure with lower levels of entrepreneurship: ___1___ Political structure with higher levels of entrepreneurship: ___2___

Financial analysis

One of the seven layers of a feasibility analysis (in order from outer to inner). In feasibility analysis, you start to consider money after you've determined that you have customers who will buy from you and a great team to execute the concept. The _____ focuses on the capital requirements for launching the business. Through forecasts of potential sales and expenses, as well as working capital and equipment requirements, the entrepreneur gains a sense of whether or not it's financially feasible to move forward with the business concept.

three fundamental types of motivation

Power Motivation, Affiliation Motivation, and Achievement Motivation are the _____.

Product/service analysis and test

One of the seven layers of a feasibility analysis (in order from outer to inner). In this, you will be developing the business concept and considering issues like intellectual property protection, product development, and prototyping. Your goal will be to establish the unique features and benefits of your products and services and to develop your bundle of competitive advantages. Creating a bundle of competitive advantages ensures that you aren't putting all your eggs in one basket.

incubators

Provided by some regions to help entrepreneurs with a physical location to work, pool resources, and network as a part of entrepreneurial training.

competitors' products

Purchasing _____ is one of the six sources of competitive intelligence. Purchasing and using a _____ can provide insight into their benefits and shortcomings. The purchase process itself can provide data about how a competitor treats its customers.

skills

Q: Why are _____ important? If you do not have the _____, get them or hire them.

abilities and experiences

Question: Describe the difference between a heterogeneous and a homogeneous founding team. Answer: The members of a heterogeneous founding team are diverse in terms of their _____. In contrast, the members of a homogeneous founding team are similar to one another in terms of their _____.

Power Motivation, Affiliation Motivation, and Achievement Motivation

Question: What are the three fundamental types of motivation? Answer: _____

Mike Morris, Someone

"E" Teams are nice, but.... Per ___1___, the entrepreneur is the most critical element for successful entrepreneurship: -___2___ must come up with a concept, a vision, a dream. -___2___ must translate this dream into products and people within an organization. -___2___ must champion the concept to a whole wide range of publics and partners. -___2___ must adapt the concept to reflect the realities encountered in the environment. -___2___ must persevere in overcoming the normal obstacles that will exist.

succeed in some ventures, fail in others, succeed at one stage of the venture and fail later, Team building

Question: Why would it matter if there are different types of entrepreneurs? Answer: -May be why some entrepreneurs ___1___ and ___2___. Match your type with your venture! -May be why some entrepreneurs ___3___ -___4___ - maybe pick people with other skill sets.

industry-related books, magazines, and websites

Reading _____ is one of the six sources of competitive intelligence. Many of these sources contain articles or features that contain information about competitors.

back stage, front stage

Regarding the operations plan section of a business plan, the ___1___ refers to behind-the-scenes activities and the ___2___ refers to what the customers see.

Value Chain

Relationship between company (enterprise) and customers. example: retailers and wholesalers

Supply Chain

Relationship between company (enterprise) and suppliers.

ties

Relationships with other people are called "_____." We all have _____.

Market/customer analysis and test

One of the seven layers of a feasibility analysis (in order from outer to inner). Testing the market and primary customer for the business concept is perhaps the most important test of all, because it indicates whether there is sufficient demand from customers for the product or service. The information you gather from primary and secondary research lets you develop a comprehensive customer program, which will help you with product/service design and marketing. An effective _____ will demonstrate a demand for the product or service and prove that the customer is willing to purchase from your company. If it doesn't demonstrate sufficient demand, then you will need to revisit the concept based on the feedback you get.

Industry analysis

One of the seven layers of a feasibility analysis (in order from outer to inner). The broadest level of analysis is an in-depth understanding of an industry, and it typically precedes the development of a concept. A well constructed _____ will point up strengths and weaknesses in the industry, provide an understanding of how the industry operates, and identify where your business might fit in. It also gives you clues to your competitors' strategies.

email alerts

Setting up Google and Yahoo! _____ is one of the six sources of competitive intelligence. _____ are updates of the latest Google or Yahoo! results, including press releases, news articles, and blog posts, on any keywords of interest. You can set up _____ using your company's name or the name of a competitor.

U.S. Entrepreneurial Revolution

Since 1980 to 2004, America has created 34 Million new jobs, Fortune 500 lost 5 Million jobs In 1980, 1 in 5 worked for Fortune 500, by 2004, it was only 1 in 14!

Institutional, Individualistic

Social Structure with lower levels of entrepreneurship: ___1___ Social Structure with higher levels of entrepreneurship: ___2___

board of advisors (advisory board)

Some start-up firms are forming a _____s to provide them direction and advice. An _____ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis. Unlike a board of directors, an _____ possesses no legal responsibility for the firm and gives non-binding advice. As a result, more people are willing to serve on a company's _____ than on its board of directors because it requires less time and no legal liability is involved. Not as much power and informal; just a group to get advice from.

Founding team evaluation

One of the seven layers of a feasibility analysis (in order from outer to inner). This is what most investors and other interested parties look at first, because no matter how good the concept is, it won't get anywhere without a founding team that can execute the concept. In many cases, having a strong team becomes the deciding factor in whether the entrepreneur takes the risk associated with the new concept or not. And where the team lacks either expertise or experience, you must show that you have identified people you can tap to fill the gaps.

Price corridor of the mass

Special magical point where you can charge your highest price before customers leave; equilibrium price. You need to figure out where this is, perhaps through general surveys, research, talking to people, etc. This point is to be exceeded at your own detriment, so try not to. Sometimes considered strategic to go slightly less than this magical price to deter/combat competitors.

competitors' websites and social media

Studying _____ pages is one of the six sources of competitive intelligence. Many companies put a lot of information on their Web sites, including product information and the latest news about the company. The same goes for a company's pages on social media outlets, such as Facebook and Twitter.

motivated them to buy your product

Talking to customers about what _____ as opposed to your competitor's product is one of the six sources of competitive intelligence. Customers can provide a wealth of information about the advantages and disadvantages of competing products.

make money, operating leverage, volumes, margins

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. How will the firm ___1___ (economic factors)? A core element of the firm's business model is its economic model. The economic model provides a consistent vehicle for earning profits. It has four subcomponents. The first of these is the firm's ___2___, or the extent to which the underlying cost structure is dominated by fixed costs, or is driven more by variable costs. The second sub-component is ___3___, and whether the firm is organized for high, medium or low ___3___fma in terms of both the market opportunity and internal capacity. The third consideration is whether the firm will be able to charge high, medium, or low ___4___. Finally, the economic model considers whether the revenue sources are fixed or flexible.

worked together before

Teams that have _____, as opposed to teams that are working together for the first time, have an edge. If people have _____ and have decided to partner to start a firm together, it usually means that they get along personally and trust one another. They also tend to communicate with one another more effectively than people who are new to one another.

Similar

Teams with _____ skills communicate easier with each other; better relations with one another.

Gazelles

Term used by David Birch to describe rapidly growing firms (few in number but really important for economies).

25, 35

The Full Business Plan has ___1___ - ___2___ pages.

40, 100

The Operational Business Plan has ___1___ - ___2___ pages.

Physical, Relational, Organizational, Financial, Intellectual/Human, Technological(PROFIT)

The PROFIT acronym stands for _____

10, 15

The Summary (Business) Plan has ___1___ - ___2___ pages.

Title slide, Problem, Solution, Opportunity and target market, Technology, Competition, Marketing and sales, Management team, Financial projections, Current status, Financing sought, Summary

The Twelve Powerpoint Slides to Include in an Investor Presentation are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___ 7. ___7___ 8. ___8___ 9. ___9___ 10. ___10___ 11. ___11___ 12. ___12___

variable costs, fixed costs

The ___1___ (or costs of goods sold) for each revenue driver was figured previously. Add a projection of the business's ___2___. A firm's ___1___ vary by sales, while its ___2___ are costs a company incurs whether it sells something or not.

differentiate itself

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. How will the firm _____ (competitive strategy factors)? Depending on how they are applied, core competencies can enable the firm to _____, or produce something perceived to be unique in the marketplace. The challenge of differentiation is to identify salient points of difference that can be maintained over time. Given the ability of companies to quickly imitate one another, the entrepreneur seeks bases for differentiation that are more than cosmetic or transitory. Sustainable strategic positions tend to be designed around one of the following five bases of differentiation: operational excellence, product quality/selection/availability/features, innovation leadership, low cost, or intimate customer relationships/experiences.

Discovery (Phase 1); preparation, incubation, and insight

The ___1___ Phase (Phase 1) of the creative process involves deliberate effort and dedication to having one's mind open and seeking opportunity (perhaps by solving a problem); in the ___1___ phase, opportunities are identified. -The ___1___ process draws on a person's personal background and experience. It may occur either spontaneously or as a result of deliberate effort. -Opportunity ___1___ methods include: --Creative thinking --Brainstorming --Problem-solving techniques The ___1___ Phase consists of the ___2___ steps of the creative process.

First-Mover Advantage, second mover

The ___1___ allows one to carve and define market; have head start. Sometimes need inordinate amount of money; not always most profitable; The ___2___ is sometimes more profitable.

six steps of the entrepreneurial process, dreamers from doers

The ___1___ are as follows: Step 1: Identify an opportunity Step 2: Develop a business concept (often more than one concept exists) -------------------------------------------------------- Step 3: Assess the necessary resources Step 4: Acquire the needed resources (bootstrapping, stretch budgets, etc.) Step 5: Implement Step 6: Manage and Harvest (take out a salary, go public, hand off to next generation, etc.) The line differentiates ___2___

three (main) components of turbulence, environment

The ___1___ are: 1. Rate of change of key components of the ___2___ 2. The extent to which the ___2___ is hostile or threatening 3. The degree of complexity in the ___2___

five Negative Triggers, five Positive Triggers

The ___1___ include: 1. Survival 2. Job Dissatisfaction 3. Lay-off/retrenchment 4. Divorce 5. Death The _____ include: 1. Fresh Start 2. Opportunity Knocks 3. Curiosity 4. Desire to improve one's lot 5. Now or never

create value

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. How will the firm _____ (factors related to the offering)? The first question is concerned with the value offering of the firm. It includes the particular products or services being sold, the nature of the product/service mix, and the relative depth and breadth of this mix. In addition, the value proposition is defined by whether the firm provides access to the product or service, or sells the actual product or service by itself, or sells the product or service as part of a bundle or total system. Other issues include whether the firm makes the product or service, outsources product manufacture or service delivery, licenses others to make and sell, acquires the product and re-sells it, or acquires the product and then modifies and re-sells it. Finally, the value proposition is affected by whether the product or service is provided directly by the firm or through an intermediary.

five forces model, Michael Porter

The ___1___ is a framework for understanding the structure of an industry and was developed by Harvard professor ___2___. The framework is comprised of the forces that determine industry profitability. These forces—the threat of substitutes, the entry of new competitors, rivalry among existing firms, the bargaining power of suppliers, and the bargaining power of buyers—determine the average rate of return for the firms competing in a particular industry (e.g., the insurance industry) or a particular segment of an industry (e.g., health insurance only). Industry reports, produced by companies like Mintel, IBISWorld, and Standard & Poor's NetAdvantage, provide substantive information for analyzing the impact of the five forces on specific industries.

executive summary, 2

The ___1___ is a short overview of the entire business plan; it provides a busy reader with everything she needs to know about the new venture's distinctive nature. The most critical point to remember when writing an ___1___ is that it is not an introduction or preface to the business plan; instead, it is meant to be a summary of the plan itself. An ___1___ shouldn't exceed more than ___2___ single-spaced pages. Even though the ___1___ appears at the beginning of the business plan, it should be written last. The plan itself will evolve as it's written, so not everything is known at the outset. In addition, if you write the ___1___ first, you run the risk of trying to write a plan that fits the ___1___ rather than thinking through each piece of the plan independently. Make sure the first sentence captures the reader's attention and the first paragraph presents the business concept.

market analysis, industry analysis

The ___1___ is distinctly different from the ___2___. Whereas the ___2___ focuses on the industry in which a firm intends to compete (e.g., toy industry, fitness center industry, men's clothing industry), the ___1___ breaks down the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal.

cover page, table of contents

The ___1___ should include the company's name, address, and phone number; the date; the contact information for the lead entrepreneur; and the company's website address if it has one. A ___2___ should follow the cover letter. It should list the sections and page numbers of the business plan and the appendices.

four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps; Business, Product, or Service Opportunity Gap; New Business, Product, and Service Ideas

The ___1___: economic forces, social forces, technological advances, and political and regulatory changes. This leads to a ___2___, which in turn leads to ___3___.

four primary factors that determine the nature and intensity of the rivalry among existing firms (in an industry)

The _____ (in an industry) are as follows: 1. Number and balance of competitors 2. Degree of difference between products 3. Growth rate of an industry 4. Level of fixed costs

seven layers of a feasibility analysis

The _____ (in order from outer to inner) are as follows: 1. Industry analysis 2. Market/customer analysis and test 3. Product/service analysis and test 4. Founding team evaluation 5. Financial analysis 6. Value chain analysis 7. Feasibility

six major sources of barriers to entry

The _____ are 1. Economies of scale 2. Product differentiation 3. Capital requirements 4. Cost advantages independent of size 5. Access to distribution channels 6. Government and legal barriers

two best known startup accelerator programs

The _____ are Y-Combinator, located in the Silicon Valley, and TechStars, which originated in Boulder, Colorado.

five steps of the creative process

The _____ are as follow: 1. Preparation 2. Incubation 3. Insight 4. Evaluation 5. Elaboration -The steps can repeat themselves if needed to be repeated, but no steps can ever be skipped over. if at any stage an individual (such as an entrepreneur) gets "stuck" or doesn't have enough information or insight to continue, the best choice is to return to the first stage to obtain more knowledge or experience before continuing to move forward. -The first three steps are a part of the Discovery phase and the last two steps are a part of the Formation phase.

ways Lenders and Investors add value to an entrepreneurial venture

The _____ are as follows: -Help identify and recruit key management personnel -Provide insight into the industry and markets in which the venture intends to participate -Help the venture fine-tune its business model -Serve as a sounding board for new ideas -Provide introductions to additional sources of capital -Recruit customers -Help to arrange business partnerships -Serve on the venture's board of directors or board of advisers -Provide a sense of calm in the midst of the emotional roller-coaster ride that many new-venture teams experience

four guidelines to organizing a board of advisors

The _____ are as follows: 1. A board of advisors should not be organized just so a company can boast of it. 2. A firm should look for board members who are compatible and complement one another in terms of experience and expertise. 3. When inviting a person to serve on its board of advisors, a company should carefully spell out to the individual the rules in terms of access to confidential information. 4. Firms should caution their advisors to disclose that they have a relationship with the venture before posting positive comments about it or its products on blogs or on social networking sites.

five questions to ask before conducting a feasibility analysis

The _____ are as follows: 1. Am I really interested in this business opportunity? 2. Is anyone else interested? 3. Will people actually pay for what I am offering? 4. Why me? 5. Why now? Answering these questions will not require any research; you can simply rely on your own knowledge and the thoughts of people you seek out when you want to get some objective opinions. If you can answer all these questions to your satisfaction, then it's time for a more formal level of investigation: the feasibility analysis.

three formal responsibilities of the board of directors

The _____ are as follows: 1. Appoint the firm's officers (the key managers) 2. Declare dividends, and 3. Oversee the affairs of the corporation.

six sources of competitive intelligence

The _____ are as follows: 1. Attend conferences and trade shows 2. Purchase competitors' products 3. Study competitors' websites and social media pages 4. Set up Google and Yahoo! email alerts 5. Read industry-related books, magazines, and websites 6. Talk to customers about what motivated them to buy your product as opposed to your competitor's product.

three primary elements of core strategy

The _____ are as follows: 1. Business Mission 2. Product/market scope 3. Basis for differentiation

four factors that impact the bargaining power of buyers

The _____ are as follows: 1. Buyer group concentration 2. Buyer's costs 3. Degree of standardization of supplier's products 4. Threat of backward integration

four main facets of business models

The _____ are as follows: 1. Core Strategy 2. Strategic Resources 3. Partnership Network 4. Customer Interface

three different types of competitors a business will face

The _____ are as follows: 1. Direct Competitors 2. Indirect Competitors 3. Future Competitors

four quick tips on surveys

The _____ are as follows: 1. Do NOT use yes/no questions 2. Make sure to ask about importance of select benefits/features 3. Always ask about willingness to pay a specific price 4. Collect demographic information

two steps entrepreneurial ventures can take to build an organization that encourages and protects new ideas

The _____ are as follows: 1. Establishing a Focal Point for Ideas 2. Encouraging Creativity at the Firm Level

six basic components of a business model defined at the Foundation Level: Defining the Basic Components

The _____ are as follows: 1. How will the firm create value? 2. For whom will the firm create value? 3. What is the firm's internal source of advantage? 4. How will the firm differentiate itself? 5. How will the firm make money? 6. What are the entrepreneur's time, scope, and size ambitions?

Ten Most Important Questions a Business Plan Should Answer

The _____ are as follows: 1. Is the business just an idea, or is it an opportunity with real potential? 2. Is the product or service viable? Does it add significant value to the customer? Has a feasibility analysis been completed? If so, what are the results? 3. Is the business entering an exciting, growing industry, and has the firm identified an attractive position within the industry? 4. Does the business have a well-defined target market? 5. Does the business have points of differentiation that truly separate it from its competitors? Are these points of differentiation sustainable? 6. Does the business have a marketing plan? 7. Is the management team experienced, skilled, and up to the task of launching the new firm? 8. Is the business's operations plan appropriate and sound? 9. Are the assumptions that the firm is basing its financial projections on realistic? 10. Are the financial projections completed correctly, and do they project a bright future for the firm?

six elements of a new-venture team

The _____ are as follows: 1. Key employees 2. Board of directors 3. Other professionals 4. Lenders and investors 5. Board of advisors (advisory board) 6. Management team All of these surround the founder or founders of a venture.

four rules for a formal brainstorming session

The _____ are as follows: 1. No criticism is allowed 2. Freewheeling is encouraged 3. The session moves quickly, and nothing is permitted to slow down its pace. 4. Leapfrogging is encouraged.

six common mistakes made in putting together a new-venture team

The _____ are as follows: 1. Placing unqualified friends or family members in management positions. 2. Assuming that previous success in other industries automatically translates to your industry. 3. Presenting a "one person team" philosophy - meaning that one person (or a small group of people) is wearing all hats with no plans to bolster the team. 4. Hiring top managers without sharing ownership in the firm. 5. Not disclosing or talking dismissively of management team skill or competency gaps. 6. Vague or unclear plans for filling the skill or competency gaps that clearly exist.

two primary elements of strategic resources

The _____ are as follows: 1. Strategic Assets 2. Core Competencies

three types of business plans

The _____ are as follows: 1. Summary (Business) Plan 2. Full Business Plan 3. Operational Business Plan

four factors that impact the bargaining power of suppliers

The _____ are as follows: 1. Supplier concentration 2. Switching costs 3. Attractiveness of substitutes 4. Threat of forward integration

three primary elements of partnership networks

The _____ are as follows: 1. Suppliers 2. Partners 3. Other Key Relationships

three primary elements of customer interface

The _____ are as follows: 1. Target market (or targeted customer) 2. Fulfillment and Support 3. Pricing Structures

three levels (or sets of decisions) that a proposed framework (for characterizing an entrepreneur's business model) consists of

The _____ are as follows: 1. The Foundation Level: Defining the Basic Components 2. The Proprietary Level: Creating Unique Combinations 3. The Rules Level: Establishing Guiding Principles

Twelve Powerpoint Slides to Include in an Investor Presentation

The _____ are as follows: 1. Title slide 2. Problem 3. Solution 4. Opportunity and target market 5. Technology 6. Competition 7. Marketing and sales 8. Management team 9. Financial projections 10. Current status 11. Financing sought 12. Summary

five types of business models

The _____ are as follows: 1. Transaction fee model 2. Advertising support model 3. Intermediary model 4. Affiliate model 5. Subscription model ("freemium")

five Criteria for Evaluating a Business Concept

The _____ are as follows: 1. Uniqueness 2. Comprehensiveness 3. Internal Consistency 4. Feasibility 5. Sustainability

four methods for estimating a new firm's initial sales

The _____ are as follows: 1. Utilize the Multiplication Method 2. Find a Comparable Firm 3. Contact Industry Trade Associations 4. Conduct Internet Searches

five primary industry types

The _____ are as follows: 1. emerging industries 2. fragmented industries 3. mature industries 4. declining industries 5. global industries. There are unique opportunities offered by each type of industry.

four elements contained within a business concept

The _____ are as follows: 1. product/service 2. customer definition 3. value proposition (benefit to the customer) 4. distribution channel

three ways entrepreneurs overcome the liability of newness

The _____ are by 1. assembling a talented and experienced new-venture team, and/or 2. attending entrepreneurship-focused workshops, speaker series, boot camps, and similar events. 3. joining one of the growing number of startup accelerators that are popping up across the country.

two ways in which most entrepreneurial ventures are started

The _____ are by being externally stimulated or internally stimulated.

two categories of start-up firms

The _____ are opportunity-based and necessity-based.

two categories of consultants

The _____ are paid consultants and consultants who are made available for free or at a reduced rate through a nonprofit or government agency.

three main characteristics of successful entrepreneurs

The _____ are passion, product/customer focus, and execution intelligence.

four main components of our definition of entrepreneurship

The _____ are process, creating value, unique combination, and opportunity

three types of start-up firms

The _____ are salary-substitute firms, lifestyle firms, and entrepreneurial firms.

two caveats to keep in mind when looking at environmental trends to discern new business ideas

The _____ are that it's important to distinguish between trends and fads. New businesses typically do not have the resources to ramp up fast enough to take advantage of a fad. Second, even though we discuss each trend individually, they are interconnected and should be considered simultaneously when brainstorming new business ideas

three main things entrepreneurial firms have an impact on

The _____ are the economy, society, and larger firms.

two most common strategies pursued by firms in global industries

The _____ are the multidomestic strategy and the global strategy.

two most important issues in determining the way an entrepreneurial venture is received and the manner in which the new-venture team takes shape

The _____ are the size of the founding team and the qualities of the founder or founders.

five red flags in business plans

The _____ are: 1. Founders with none of their own money at risk 2. A poorly cited plan 3. Defining the market size too broadly. 4. Overly aggressive financials. 5. Sloppiness in any area.

five qualities of founders

The _____ are: 1. Higher Education (a BIG plus but not required) -Search skills -Foresight -Creativity -Math -Communication -Computer skills 2. Technical Education (where applicable) 3. Prior Entrepreneurial Experience 4. Relevant Industry Experience 5. Mature Network

three environmental determinants of Entrepreneurial Intensity(EI)

The _____ are: 1. Infrastructure 2. Turbulence 3. Life experiences

two primary reasons to write a business plan

The _____ are: 1. Internal Reason 2. External Reason

seven environments characterized by turbulence

The _____ are: 1. Technological Environment 2. Economic Environment 3. Customer Environment 4. Competitor Environment 5. Legal/Regulatory Environment 6. Resource Environment 7. Social Environment

five Entrepreneurial Skills

The _____ are: 1. The Ability to Learn 2. Adaptability/Versatility 3. Social Skills and Networking 4. Managerial (Managing Conflict) 5. Guerilla Skills Research has shown that these skills matter.

four entrepreneurial types

The _____ are: 1. The Personal Achiever 2. The Super Salesperson 3. The Real Manager/Dynamic CEO 4. The Expert Idea Generator

two primary audiences for a firm's business plan

The _____ are: 1. a Firm's Employees 2. Investors and Other External Stakeholders

seven structures captured by infrastructure

The _____ are: 1. economic structures 2. political structures 3. legal/regulatory structures 4. financial structures 5. logistical structures 6. social structures 7. educational structures

three strategies that entrepreneurial firms employ in declining industries

The _____ are: 1. leadership strategy 2. niche strategy 3. cost reduction strategy

five common myths regarding entrepreneurship

The _____ are: Myth 1: Entrepreneurs are born, not made Myth 2: Entrepreneurs are gamblers Myth 3: Entrepreneurs are motivated primarily by money Myth 4: Entrepreneurs should be young and energetic Myth 5: Entrepreneurs love the spotlight

five life experiences

The _____ are: 1. Family experience 2. Educational experience 3. Peer group experience 4. Work experience 5. Role models experience

three ways to identify an opportunity

The _____ are: observing trends, solving problems, and finding gaps in the marketplace.

three fatal errors

The _____ in making a business plan or model are as follows: 1. A complete misread of the customer 2. Inability to deliver upon value proposition 3. Unsound economic assumptions (or capital assumptions)

six dark sides of Entrepreneurs

The _____ include: 1. Excessive need for control 2. Suspicious of others 3. Impatience 4. Need for applause 5. Defensiveness 6. Blaming internal faults on outside events

Six Nontraditional Barriers to Entry

The _____ include: 1. Strength of management team 2. First-mover advantage 3. Passion of management team and employees 4. Unique business model 5. Internet domain name 6. Inventing a new approach to an industry and executing the idea in an exemplary fashion

four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses

The _____ include: 1. brainstorming 2. focus groups 3. library and internet research 4. other techniques (such as customer advisory boards and day-in-the-life research)

four main ways entrepreneurship impacts society

The _____ includes: 1. innovation 2. job creation 3. GDP growth 4. Quality of Life (QOL)

age distribution of business owners

The _____ is as follows: Age, Percentage of Business Owners 1. 18-29, 17.5% 2. 30-39, 25% 3. 40-49, 24% 4. 50-59, 21% 5. 60+, 12.5%

Real Manager/Dynamic CEO

The _____ is one of the four entrepreneurial types. -Desire to be corporate leader -Desire to compete -Decisiveness -Desire for power -Determined -Trend-setter -Positive attitudes to authority -Desire to stand out from the crowd -These are the guys/ladies who write the management books. -Strong-willed/assertive -Accept responsibility Examples: Michael Eisner (Disney) and Herb Kelleher (Southwest Airlines)

Expert Idea Generator (expertise + creativity = innovator)

The _____ is one of the four entrepreneurial types. -Desire to innovate (expertise + creativity = innovator) -Scientific curiosity -Belief that new product development is crucial component of company strategy; all about the product/ultimately about the product -Ambitious -Inventor -Desire to avoid taking risks -Love of ideas, curious, open-minded -Intelligence as competitive advantage -Thinking is central to entrepreneurial approach Examples: Bill Gates, Steve Jobs, Elon Musk, and Mark Cuban.

Super Salesperson (follows selling route to success, caters to customer needs)

The _____ is one of the four entrepreneurial types. -Follows the sales route - caters to needs of others; customer centric. -Belief that social processes are important -Belief that sales force is crucial to company strategy -Capacity to understand and to empathize desire to help others; fairly benevolent -Strong positive relationships with others; smiling personality -Can be very successful -Background = fewer years of education; more business experience, especially selling experience Examples: Mary Kay Ash and Charles Schwab

Personal Achiever (the classic entrepreneur)

The _____ is one of the four entrepreneurial types. -The classic entrepreneur -High need for achievement -Need for performance feedback -Desire to organize, achieve and plan/set new goals to organize and achieve -High energy! -Always looking to expand/grow. -Strong individual initiative -Strong personal commitment -Internal locus of control -Believe work should be guided by personal goals not those of others -Sometimes described using words or phrases like: =-fighter =-fanatic =-lust for conquest =-underdog =-maverick Examples: Michael Dell, Richard Branson, and Michael Jordan.

NASDAQ

The _____ is the largest U.S. electronic stock market, with nearly 5,000 companies listed on the exchange.

question-and-answer

The _____ period is extremely important. Here investors are typically looking for how well entrepreneurs think on their feet and how knowledgeable they are about the business venture.

time, scope, and size ambitions; subsistence; income; growth; speculative

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. What are the entrepreneur's ___1___ (personal/investor factors)? The business model must capture the entrepreneur's objectives and ambitions. As such, the entrepreneur views the business in terms of an investment model. Four such models can be used to characterize most ventures: ___2___, ___3___, ___4___ and ___5___. With the ___2___ model, the goal is to survive and meet basic financial obligations. When employing an ___3___, the entrepreneur invests to the point that the business is able to generate on an ongoing healthy income stream for the principals. A ___4___ model finds not only significant initial investment, but substantial reinvestment in an attempt to grow the value of the firm to the point that it eventually generates a major capital gain for the initial investors. The ___5___ model is employed where the entrepreneur's time frame is shorter, and the objective is typically to demonstrate the potential of the venture and then sell it.

internal source of advantage

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. What is the firm's _____ (internal capability factors)? The term core competency is used to capture an internal capability or set of skills that enables the firm to provide a particular benefit to customers. While a firm might attempt to build operations around any number of competencies, sources of advantage can be organized into seven general areas. These include the firm's production/operating system, capabilities in technology development/innovation, selling/marketing expertise, information management/mining/packaging prowess, competence in financial management/arbitrage, mastery of supply chain management, and skills at managing networks and leveraging resources.

For whom, b-to-c, b-to-b, upstream, downstream

One of the six basic components of a business model defined at the Foundation Level: Defining the Basic Components. ___1___ will the firm create value (market factors)? This question focuses on the nature and scope of the market in which the firm will compete. Of importance is whether the firm will principally sell to consumers (___2___), businesses (___3___), or both, and where it falls in the value chain. When selling to businesses, the entrepreneur must further distinguish where in the value chain the firm's customers will be, such as ___4___ (mining, agriculture, basic manufacturing), ___5___ (final manufacturing, assembling), wholesaling, retailing, or some combination.

Defensiveness

One of the six dark sides of Entrepreneurs. -"That had nothing to do with me! It was those politicians in Washington, DC!"

Impatience

One of the six dark sides of Entrepreneurs. -"Why don't you work as hard as me? I've been here all day!"

Need for applause

One of the six dark sides of Entrepreneurs. -Center of attention; self-absorbed.

Suspicious of others

One of the six dark sides of Entrepreneurs. -Distrust of others; thinking they don't have same interest in growing business. -"you guys are stealing money from me, aren't you?"

Excessive need for control

One of the six dark sides of Entrepreneurs. -Looking over an employee's shoulder -"My way or the highway"

Cost advantages independent of size

One of the six major sources of barriers to entry. Entrenched competitors may have _____ that are not available to new entrants. Commonly, these advantages are grounded in the firm's history. For example, the existing competitors in an industry may have purchased land and equipment in the past when the cost was far less than new entrants would have to pay for the same assets at the time of their entry.

Government and legal barriers

One of the six major sources of barriers to entry. In knowledge-intensive industries, such as biotechnology and software, patents, trademarks, and copyrights form major barriers to entry. Other industries, such as banking and broadcasting, require the granting of a license by a public authority.

Product differentiation

One of the six major sources of barriers to entry. Industries such as the soft-drink industry that are characterized by firms with strong brands are difficult to break into without spending heavily on advertising. For example, imagine how costly it would be to compete head-to-head against Pepsi or Coca-Cola. Another way of achieving differentiation is through product innovation. Apple is an example of a company that has differentiated itself in laptop computers by regularly improving the features on its line of MacBooks. It does this to not only keep existing customers and win new ones, but to deter competitors from making a big push to try to win market share from Apple in the laptop computer industry.

Economies of scale

One of the six major sources of barriers to entry. Industries that are characterized by large _____ are difficult for new firms to enter, unless they are willing to accept a cost disadvantage. _____ occur when mass-producing a product results in lower average costs. For example, Intel has huge microchip factories that produce vast quantities of chips, thereby reducing the average cost of a chip. It would be difficult for a new entrant to match Intel's advantage in this area. There are instances in which the competitive advantage generated by _____ can be overcome. For example, many microbreweries have successfully entered the beer industry by brewing their beer locally and relying on a local niche market clientele.

Capital requirements

One of the six major sources of barriers to entry. The automobile industry is characterized by large _____, although Tesla, which launched in 2003, was able to overcome this barrier and raise substantial funds by winning the confidence of investors through its expertise and innovations in electric car technology.

Access to distribution channels

One of the six major sources of barriers to entry. _____ are often hard to crack. This is particularly true in crowded markets, such as the convenience store market. For a new sports drink to be placed on a convenience store shelf, it typically has to displace a product that is already there. If Greenvelope started producing traditional wedding invitations and greeting cards, it would find it difficult to gain shelf space in stationary stores where a large number of offerings from major producers are already available to consumers.

Adaptability/Versatility

One of the ten Entrepreneurial Traits and Characteristics and One of the five Entrepreneurial Skills. -How/can you take rejection. -Fight through rejection knowing you have a plan. -Not all of us are equally able to adjust to new conditions well, at least not at first; some of us need to learn.

Dedication/Strong Work Ethic

One of the ten Entrepreneurial Traits and Characteristics. -7 day a week gig; thinking about it all the time. -Bandura - to see something through conclusion; _____.

Organizational Skills

One of the ten Entrepreneurial Traits and Characteristics. -Being able to organize thoughts, objectives, and processes into a logical, progressive, success; organize things in your mind.

Opportunistic

One of the ten Entrepreneurial Traits and Characteristics. -If we're not this, what are we doing as an entrepreneur?

Self Confidence

One of the ten Entrepreneurial Traits and Characteristics. -Not arrogant or foolish, but confident we can solve any problem that comes our way, even if through people we know.

Calculated Risk-Taking

One of the ten Entrepreneurial Traits and Characteristics. -Pursuit of a course of action that has a reasonable chance of costly failure (not meeting anticipated results) -Based on careful analysis and evaluation of many factors. Planning. -Calculated: (a) understand/estimate the likelihood of failure; (b) attempted to mitigate risk through good planning and managerial decision making; entrepreneurs are extraordinarily good at identifying and mitigating risks. -It is an acceptance of risk and failure. -Probability X significance of a risk -> do we ignore or deal with -> if deal with, how?

Desire for Independence

One of the ten Entrepreneurial Traits and Characteristics. -Self motivated, self reliant, and prefer a degree of autonomy -E's like to have room to maneuver -High degree of perseverance -Often serves as trigger/triggering event (or triggering factor).

Tolerance for Ambiguity

One of the ten Entrepreneurial Traits and Characteristics. -Things do not have to be precise - The process will be messy and can abruptly move in new directions. -Few ventures unfold in the manner described in the original business plan -Need to be reactive; don't know how each day will turn out.

Internal Locus of Control

One of the ten Entrepreneurial Traits and Characteristics. -Unlike others who believe that external events control their lives. -Entrepreneurs believe that with enough time and effort and their own involvement they can change their workplace, market, industry, etc. -We are in control of our environment. We as entrepreneurs understand it is a path to be travelled. No such thing as bad luck.

Future Competitors

One of the three different types of competitors a business will face. _____ are businesses that are not yet direct or indirect competitors but could be at any time. Firms are always concerned about strong competitors moving into their markets. For example, think of how the world has changed for Barnes & Noble and other brick-and-mortar bookstores since Amazon.com was founded. And, think of how smartphone technology continues changing the nature of competition for a variety of firms including those selling entertainment services, telephone services, and the like.

Indirect Competitors

One of the three different types of competitors a business will face. _____ are businesses offering close substitute products. _____ are important in that they target the same basic need that is being met by the new firm's product.

Direct Competitors

One of the three different types of competitors a business will face. _____ are businesses offering identical or similar products. These competitors are the most important because they are going after the same customers as the new firm. A new firm faces winning over the loyal followers of its major competitors, which is difficult to do, even when the new firm has a better product.

Achievement Motivation

One of the three fundamental types of motivation and one of the ten ten Entrepreneurial Traits and Characteristics. Greatest motivator for entrepreneurs - Driven by the challenge, the task, the opportunity to do what others cannot do. There is a reason why this is number 1; we enjoy and are motivated by the chase.

trade show (or a trade fair)

One of the three important Ts that lead to industry activity. A _____ is an exhibition organized so that companies in an industry can showcase and demonstrate their latest products and services. Some _____s are open to the public while others can only be attended by company representatives and members of the press. In the United States, over 2,500 _____s are held every year. Along with displaying their latest products and services, businesses attend _____s to study the activities of rivals, meet members of the press, and network with industry participants. Companies must rent exhibit space at _____s. Some of the better shows, which usually last just under a week, cost upward of $20,000 to attend. Small companies are often able to share exhibit space and split the cost. _____s offer prime opportunities for networking to generate business, establish new relationships, and nurture existing ones. In fact, there are many articles and "how to" guides published in periodicals and posted on Web sites that teach businesses how to maximize their time at _____s and establish business relationships.

trade association (or trade group)

One of the three important Ts that lead to industry activity. A _____ is an organization that's formed by firms in the same industry to collect and disseminate trade information, offer legal and technical advice, furnish industry-related training, and provide a platform for collective lobbying. In addition to promoting industry-related issues, _____ typically provide their members a variety of other services (such as training and technical support). _____ are typically governed by a paid staff and a volunteer board. Busy CEOs and entrepreneurs are motivated to serve on _____ boards, not only to influence the direction of the associations but because their service provides them visibility and a platform to network closely with other members of the association. These types of interactions can lead to businesses forming partnerships and working together in other ways. There are 7,600 national _____s in the United States. The vast majority have Web sites that list their activities and their members.

trade journals

One of the three important Ts that lead to industry activity. _____, or magazines, are usually published by trade associations, and contain articles and advertising focused on a specific industry. Very little general-audience advertising appears in _____. They may also include industry-specific job notices and classified advertising. Some _____s are available to the general public, and others are very specifically controlled—meaning that you must participate in the industry to receive the journal. This practice ensures advertisers that their ads will be viewed by people in their target audience. Many of the articles in _____ are written about companies in the industry. It enhances the stature and visibility of a company to have a favorable article written about it in a premier industry trade journal. Along with trade journals, some industries have peer-reviewed journals that contain both technical articles and heavy advertising content. The articles are often co-authored by people who work for vendors who advertise in the journal. Although _____ do not provide the direct networking opportunities that trade associations and trade shows do, the visibility a company can obtain by being featured in an article or by running ads can result in multiple positive outcomes.

Foundation Level: Defining the Basic Components

One of the three levels (or sets of decisions) that a proposed framework consists of. At its essence, a well-formulated business model must address six key questions.

Rules Level: Establishing Guiding Principles

One of the three levels (or sets of decisions) that a proposed framework consists of. When a business model is operationalized, its success may also be tied to a basic set of operating rules. These are guidelines that ensure the foundation or core components of the business model are reflected in the ongoing strategic actions of the firm.

Proprietary Level: Creating Unique Combinations

One of the three levels (or sets of decisions) that a proposed framework consists of. While the foundation level is adequate to capture the essence of any firm's business model, venture sustainability is ultimately dependent on the ability of the entrepreneur to apply unique approaches to one or more of the foundation components. Thus, having determined that the firm will sell some combination of products and services directly to customers, or that it will sell in business-to-business markets at high margins and low volumes, the entrepreneur defines ways to implement such decisions in a novel manner. This is referred to as the _____ of the business model, as it entails innovation that is unique to a particular entrepreneur and venture.

society

One of the three main things entrepreneurial firms have an impact on is _____. The innovations of entrepreneurial firms have a dramatic impact on a _____. Think of all the new products and services that make our lives easier, enhance our productivity at work, improve our health, and entertain us... However, innovations do create moral and ethical issues with which _____ (plural) are forced to grapple.

similar areas of expertise, problematic

One of the three potential pitfalls associated with starting a firm as a team rather than as a sole entrepreneur. If the founders of a firm have ___1___, it can be ___2___. The founders of Devver were both technically oriented, leaving the firm without a leader on the business side.

conflicts can arise when the firm needs to establish a formal structure

One of the three potential pitfalls associated with starting a firm as a team rather than as a sole entrepreneur. If two or more people start a firm as "equals," _____ and designate one person as the chief executive officer (CEO). If the firm has investors, the investors will usually weigh in on who should be appointed CEO. In these instances, it is easy for the founder that wasn't chosen as the CEO to feel slighted. This problem is exacerbated if multiple founders are involved and they all stay with the firm. At some point, a hierarchy will have to be developed, and the founders will have to decide who reports to whom. Some of these problems can be avoided by developing a formal organizational chart from the beginning, which spells out the roles of each founder.

team members may not get along

One of the three potential pitfalls associated with starting a firm as a team rather than as a sole entrepreneur. The _____. This is the reason investors favor teams consisting of people who have worked together before. It is simply more likely that people who have gotten along with one another in the past will continue to get along in the future.

Basis for differentiation, cost leadership, differentiation

One of the three primary elements of core strategy is the ___1___. how the firm competes and, in particular, how it competes differently than its competitors. It is important that a new venture differentiate itself from its competitors in some way that is important to its customers. If a new firm's products or services aren't different from those of its competitors, why should anyone try them? Firms often choose one of two generic differentiation strategies: ___2___ strategy, or ___3___ strategy (compete on the basis of providing unique or different products/services - examples include: quality, service, timeliness, etc.)

Business Mission

One of the three primary elements of core strategy. the overall objective of the strategy- what the business model is designed to accomplish or deliver. Don't be too narrow Example: Xerox = "The Document Company" focused on reproducing documents only and then they missed electronic versions.

Product/market scope

One of the three primary elements of core strategy. where the firm does and does not compete, i.e. which customers, geographies, and product segments. The choice of _____s has an important impact on a firm's business model. Example: Amazon = Started in books & moved to other _____s forcing changes to business model

Target market (or targeted customer)

One of the three primary elements of customer interface. One of the of four main facets of business models. _____ determines everything from desired supply chain to marketing strategies to methods of payment. Know thy customer!

Pricing Structures

One of the three primary elements of customer interface. _____ include Freemium models, hourly, cost plus, market pricing, etc. Will you be low price or premium value?

Partners, Insourcing

One of the three primary elements of partnership networks. ___1___ include 3PL companies who receive, warehouse, pick-n-pull, and deliver goods. ___2___ includes supply chain or other partners on-site with required solutions. You must be careful with new partnerships and not be reliant upon them!

niche

One of the three strategies that entrepreneurial firms employ in declining industries. The _____ strategy focuses on a narrow segment of the industry that might be encouraged to grow through product or process innovation.

cost reduction

One of the three strategies that entrepreneurial firms employ in declining industries. The _____ strategy is accomplished through achieving lower costs than industry incumbents through process improvements. Achieving lower costs allows a firm to sell its product or service at a lower price, creating value for consumers in the process of doing so.

leadership

One of the three strategies that entrepreneurial firms employ in declining industries. Using the _____ strategy, the firm tries to become the dominant player in the industry. This is a rare strategy for a start-up in a declining industry

Summary (Business) Plan

One of the three types of business plans. 10-15 pages. Works best for new ventures in the early stages of development that want to "test the waters" to see if investors are interested in their idea.

cultural perspective, education, entrepreneurial training, and role models

(Four) other less tangible factors have also been shown to affect the environmental perspective of entrepreneurship, such as _____

predict, control, control, predict

*Causal reasoning is based on the logic, "To the extent that we can ___1___ the future, we can ___2___ it." Effectual reasoning, however, is based on the logic, "To the extent that we can ___3___ the future, we do not need to ___4___ it." *Answer either "predict" or "control" for each blank

Full Business Plan

One of the three types of business plans. 25-35 pages. Works best for new ventures that are at the point where they need funding or financing; serves as a "blueprint" for the company's operations. The _____ is the usual format for a business plan.

Operational Business Plan

One of the three types of business plans. 40-100 pages. Is meant primarily for an internal audience; works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers.

occasional

One of the three types of opportunities. Circumstances might not be same a year later; scary must be cautious; new circumstances.

perennial

One of the three types of opportunities. Going to be there today, tomorrow, next year; constant, will be used constantly.

multiple cause/effect

One of the three types of opportunities. The longer, healthier, richer concepts - examples: concepts, cruises, retirement home, etc.

Opportunities, Concepts

-If ___1___ represent potential -- Potential customers, users, revenue, cost saving, -- then ___2___ represent ways to capitalize on that potential -Any one of countless ___1___ could conceivably be capitalized upon with a variety of different business ___2___

Opportunity

-One of the four main components of our definition of entrepreneurship. _____ must precede idea; entrepreneurship is _____ driven behavior. -The set of forces that come together in the external environment to create a market opening from which profits or returns can be realized. -Barringer: A favorable set of circumstances that creates the need for a new product, service or business idea; potential.

Creative Abrasion, diversity, perfect harmony

-___1___ is descriptive of the friction that is caused when a heterogeneous group works together to develop creative ideas; most teams should have this as it is extraordinarily helpful in healthy amounts; abrasion for building a change. -___1___ is caused by the ___2___ of the team members along dimensions such as individual professional expertise, cultural heritage, dominant thinking styles, etc. -To have ___1___, groups must have ___2___ along those same dimensions. -Inverted U-Curve between abrasion and performance; has to be just right (too little ___1___ is not enough ___2___, too much ___1___ is too much ___2___, and the middle amount is ___3___.

Exit/Discontinuation

The _____ rate looks at the percentage of individuals who closed their business during that year period. The _____ rate may be the result of a negative assessment of the financial outlook of the company, a planned decision (some entrepreneurs plan on selling their businesses from the very beginning), or a number of unexpected events. For instance, the GEM data reveals that the dominant motivations for closing a business are lack of profitability, lack of financing, and personal reasons. At the country level, a high _____ rate should not be viewed necessarily as a negative thing. In fact, it normally suggests a lively economic environment capable of weeding out unproductive businesses or where people are confident that they will be able to do something else... But, a high _____ rate is negative if it comes with a low rate of new business creation - basically it would mean that businesses are closing more than new businesses are starting. Similarly, a low business _____ rate is not necessarily a good thing as it may signal a stagnating economic system where resources are not distributed efficiently by the market. In general, the business _____ rate tends to be higher in developing economies and it declines as economic development increases.

ten Entrepreneurial Traits and Characteristics

The _____: 1. Achievement Motivation 2. Internal Locus of Control 3. Calculated Risk-Taking 4. Tolerance for Ambiguity 5. Desire for Independence 6. Self Confidence 7. Dedication/Strong Work Ethic 8. Organizational Skills 9. Opportunistic 10. Adaptability/Versatility

five preferred attributes of a firm's founder or founders

The _____: 1. Firm started by a team 2. Higher education 3. Prior entrepreneurial experience 4. Relevant industry experience 5. Broad social and professional network

four sources of labor that new ventures utilize to get their work done

The _____: 1. Full- or part-time employee 2. Intern 3. Freelancer (or contractor) 4. Virtual assistant

three ways opportunities are identified

The _____: 1. Observing environmental trends - eyes are open, look around, get experience and become familiar. 2. Solving a problem; noticing and fixing a pain point. 3. Finding gaps in the fixing marketplace.

four characteristics shared by those who excel at opportunity recognition

The _____: 1. Prior experience 2. Cognitive Factors 3. Social Networks 4. Creativity

three cons of teams

The _____: 1. Teams have too much 'drama' 2. Team members may have: -differing commitments -different work habits -different risk tolerance -different passion -different opinions of company strategy -duplicative skills 3. Team members may not continue to get along

strategic partnerships principle

The _____: A key principle of effectual reasoning is the focus on building partnerships rather than on doing a systematic competitive analysis.

leveraging contingencies principle

The _____: This principle of effectual reasoning is at the heart of entrepreneurial expertise - the ability to turn the unexpected into the profitable.

affordable loss principle

The _____: While managers are taught to analyze the market and choose target segments with the highest potential return, entrepreneurs tend to find ways to reach the market with minimum expenditure of resources such as time, effort, and money.

four essential qualities of an opportunity

The _____: It is (1) attractive, (2) durable, (3) timely, and (4) anchored in a product, service, or business that creates or adds value for its buyer or end user.

Skill

The ability to use one's knowledge effectively and readily in execution or performance. A learned competence/action.

FWERP (like "twerk" but with f instead of t and p instead of k)

The acronym to remember the five life experiences is _____.

CCELTSR (like "seltzer")

The acronym to remember the seven environments characterized by turbulence is _____.

FELLSEP

The acronym to remember the seven structures captured by infrastructure is _____.

Identify an opportunity, Develop a business concept (often more than one concept exists), Assess the necessary resources, Acquire the needed resources (bootstrapping, stretch budgets, etc.), Implement, Manage and Harvest (take out a salary, go public, hand off to next generation, etc.)

The entrepreneurial process has six steps Step 1: ___1___ Step 2: ___2___ -------------------------------------------------------- Step 3: ___3___ Step 4: ___4___ Step 5: ___5___ Step 6: ___6___ The line differentiates dreamers from doers Mike Morris built the entrepreneurial process.

Elaboration

The fifth of the five steps of the creative process. _____ is the stage during which the creative idea is put into a final form: The details are worked out and the idea is transformed into something of value, such as a new product, service, or business concept. In the case of a new business, this is the point at which a business plan is written.

Implement

The fifth step of the entrepreneurial process. Initiate operations and adjust/fine-tune as circumstances and markets warrant

pro forma (or projected) financial statements, sources and uses of funds statement, assumptions sheet, 3, 5

The final section of a business plan presents a firm's ___1___. Having completed the previous sections of the plan, it's easy to see why the financial projections come last. They take the plan you've developed and express them in financial terms. The first thing to include is a ___2___, which is a document that lays out specifically how much money a firm needs (if the intention of the business plan is to raise money), where the money will come from, and how the money will be used. The next item to include is an ___3___, which is an explanation of the most critical assumptions on which the financial statements are based. The ___1___ are the heart of the financial section of a business plan. Most experts recommend ___4___ to ___5___ years of ___1___. If the company you're writing your plan for already exists, you should also include ___4___ years of historical financial statements.

Title slide

The first One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Introduce the presentation with your company's name, the name of the founders, and the company logo if available.

founding team

The first decision that most founders face is whether to start a firm on their own or whether to build an initial _____.

1, 15, 20

The first meeting with an investor is generally very short, about ___1___ hour (s). The investor will typically ask the firm to make a ___2___- to ___3___-minute presentation using PowerPoint slides and use the rest of the time to ask questions. If the investor is impressed and wants to learn more about the venture, the presenters will be asked back for a second meeting to meet with the investor and his or her partners. This meeting will typically last longer and will require a more thorough presentation.

Preparation

The first of the five steps of the creative process. _____ is the background, experience, and knowledge that an entrepreneur brings to the opportunity recognition process. Just as an athlete must practice to excel, an entrepreneur needs experience to spot opportunities. Over time, the results of research suggest that as much as 50 to 90 percent of start-up ideas emerge from a person's prior work experience. What you bring to the party; who you are; corridor principle.

who the competition is

The first step in a competitive analysis is to determine _____. This is more difficult than one might think. For example, take a company such as 1-800-FLOWERS. Primarily, the company sells flowers. But 1-800-FLOWERS is not only in the flower business; in fact because flowers are often given for gifts, the company is also in the gift business. If the company sees itself in the gift business rather than just the flower business, it has a broader set of competitors and opportunities to consider. In addition, some firms sell products or services that straddle more than one industry. For example, a company that makes computer software for dentists' offices operates in both the computer software industry and the health-care industry. Again, a company like this has more potential competitors but also more opportunities to consider.

market segmentation

The first task that's generally tackled in a market analysis is to segment the industry the business will be entering and then identify the specific target market on which it will focus. This is done through _____, which is the process of dividing the market into distinct segments. Markets can be segmented in many ways, such as by geography (city, state, country), demographic variables (age, gender, income), psychographic variables (personality, lifestyle, values), and so forth.

industry trends, environmental trends, business trends

The first technique that an entrepreneur has available to discern the attractiveness of an industry is to study ___1___. ___2___ and ___3___ are the two most important trends for entrepreneurs to evaluate.

Ability to Learn, Adaptability/Versatility, Social Skills and Networking, Managerial (Managing Conflict), Guerilla Skills

The five Entrepreneurial Skills are: 1. The ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ Research has shown that these skills matter.

threat of substitutes, entry of new competitors, rivalry among existing firms, bargaining power of suppliers, bargaining power of buyers, Industry reports

The five forces model is a framework for understanding the structure of an industry and was developed by Harvard professor Michael Porter. The framework is comprised of the forces that determine industry profitability. These forces—the ___1___, the ___2___, ___3___, the ___4___, and the ___5___—determine the average rate of return for the firms competing in a particular industry (e.g., the insurance industry) or a particular segment of an industry (e.g., health insurance only). ___6___, produced by companies like Mintel, IBISWorld, and Standard & Poor's NetAdvantage, provide substantive information for analyzing the impact of the five forces on specific industries.

Family experience, Work experience, Educational experience, Role models experience, and Peer group experience

The five life experiences are _____ (HINT: FWERP, like "twerk" but with f instead of t and p instead of k)

Firm started by a team, Higher education, Prior entrepreneurial experience, Relevant industry experience, Broad social and professional network

The five preferred attributes of a firm's founder or founders: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___

emerging, fragmented, mature, declining, global

The five primary industry types are as follows: 1. ___1___ industries 2. ___2___ industries 3. ___3___ industries 4. ___4___ industries 5. ___5___ industries. There are unique opportunities offered by each type of industry.

Higher Education, BIG plus but not required, Technical Education, Prior Entrepreneurial Experience, Relevant Industry Experience, Mature Network

The five qualities of founders are: 1. ___1___ (a ___2___) -Search skills -Foresight -Creativity -Math -Communication -Computer skills 2. ___3___ (where applicable) 3. ___4___ 4. ___5___ 5. ___6___

I really interested, anyone else interested, people actually pay, Why me, Why now

The five questions to ask before conducting a feasibility analysis are as follows: 1. Am ___1___ in this business opportunity? 2. Is ___2___? 3. Will ___3___ for what I am offering? 4. ___4___? 5. ___5___? Answering these questions will not require any research; you can simply rely on your own knowledge and the thoughts of people you seek out when you want to get some objective opinions. If you can answer all these questions to your satisfaction, then it's time for a more formal level of investigation: the feasibility analysis.

none of their own money, poorly cited, market size too broad, aggressive financials, Sloppiness

The five red flags in business plans are: 1. Founders with ___1___ at risk 2. A ___2___plan 3. Defining the ___3___ly. 4. Overly ___4___. 5. ___5___ in any area.

Preparation, Incubation, Insight, Evaluation, Elaboration, Discovery, Formation

The five steps of the creative process are as follow: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ -The steps can repeat themselves if needed to be repeated, but no steps can ever be skipped over. if at any stage an individual (such as an entrepreneur) gets "stuck" or doesn't have enough information or insight to continue, the best choice is to return to the ___1___ stage to obtain more knowledge or experience before continuing to move forward. -The first three steps are a part of the ___6___ phase and the last two steps are a part of the ___7___ phase.

Transaction fee, Advertising support, Intermediary, Affiliate, Subscription

The five types of business models are as follows: 1. ___1___ model 2. ___2___ model 3. ___3___ model 4. ___4___ model 5. ___5___ model ("freemium")

economic forces, social forces, technological advances, and political and regulatory changes

The four Environmental Trends Suggesting Business, Product, or Service Opportunity Gaps: _____. This leads to a Business, Product, or Service Opportunity Gap, which in turn leads to New Business, Product, and Service and Ideas.

Prior experience, Cognitive Factors, Social Networks, Creativity

The four characteristics shared by those who excel at opportunity recognition: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

Personal Achiever, Super Salesperson, Real Manager/Dynamic CEO, Expert Idea Generator

The four entrepreneurial types are: 1. The ___1___ 2. The ___2___ 3. The ___3___ 4. The ___4___

attractive, durable, timely, value

The four essential qualities of an opportunity: It is (1) ___1___, (2) ___2___, (3) ___3___, and (4) anchored in a product, service, or business that creates or adds ___4___ for its buyer or end user.

Buyer group concentration, Buyer's costs, Degree of standardization of supplier's products, Threat of backward integration

The four factors that impact the bargaining power of buyers are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

Supplier concentration, Switching costs, Attractiveness of substitutes, Threat of forward integration

The four factors that impact the bargaining power of suppliers are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

Core Strategy, Strategic Resources, Partnership Network, Customer Interface

The four main facets of business models are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

Multiplication Method, Comparable Firm, Industry Trade Associations, Internet Searches

The four methods for estimating a new firm's initial sales are as follows: 1. Utilize the ___1___ 2. Find a ___2___ 3. Contact ___3___ 4. Conduct ___4___

Number and balance of competitors, Degree of difference between products, Growth rate of an industry, Level of fixed costs

The four primary factors that determine the nature and intensity of the rivalry among existing firms in an industry are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

Do NOT use yes/no questions, ask about importance of select benefits/features, ask about willingness to pay a specific price, Collect demographic information

The four quick tips on surveys are as follows: 1. ___1___ 2. Make sure to ___2___ 3. Always ___3___ 4. ___4___

No criticism, Freewheeling, quickly, Leapfrogging

The four rules for a formal brainstorming session are as follows: 1. ___1___ is allowed 2. ___2___ is encouraged 3. The session moves ___3___ly, and nothing is permitted to slow down its pace. 4. ___4___ is encouraged.

Full- or part-time employee, Intern, Freelancer (or contractor), Virtual assistant

The four sources of labor that new ventures utilize to get their work done: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

brainstorming, focus groups, library and internet research, other techniques

The four techniques to stimulate and facilitate the generation of new ideas for products, services, and businesses include: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ (such as customer advisory boards and day-in-the-life research)

Evaluation

The fourth of the five steps of the creative process. _____ is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability. Many entrepreneurs mistakenly skip this step and try to implement an idea before they've made sure it is viable. _____ is a particularly challenging stage of the creative process because it requires an entrepreneur to take a candid look at the viability of an idea.

Acquire the needed resources(bootstrapping, stretch budgets, etc.)

The fourth step of the entrepreneurial process. Execute on assessment. Money is not normally the biggest determinant for success. Creative leverage. Remember the acronym PROFIT.

so a company can boast, compatible and complement one another, rules in terms of access to confidential information, caution their advisors to disclose, relationship with the venture

The guidelines to organizing a board of advisors are as follows: 1. A board of advisors should not be organized just ___1___ of it. 2. A firm should look for board members who are ___2___ in terms of experience and expertise. 3. When inviting a person to serve on its board of advisors, a company should carefully spell out to the individual the ___3___. 4. Firms should ___4___ that they have a ___5___ before posting positive comments about it or its products on blogs or on social networking sites.

revenue driver, costs of good sold, contribution margin

The major ___1___s, which are the ways a business earns money, should be identified. If a business sells a single product and nothing else, it has one ___1___. The more variety of ___1___s, the better (generally). Very few successful companies have only one revenue stream or transaction fee model. The gross margin for a ___1___ is the selling price minus the ___2___ or variable costs. The ___2___ are the materials and direct labor needed to produce the ___1___. The gross margin for a ___1___ is also called the ___3___. This is the amount per unit of sale that's left over and is available to "contribute" to covering the business's fixed costs and producing a profit.

organizational chart

The most effective way to illustrate how a company will be structured and the lines of authority and accountability that will be in place is to include an _____ in the business plan. An _____ is a graphic representation of how authority and responsibility are distributed within the company. The _____ should be presented in a graphical format if possible.

urbanized

The most entrepreneurial areas include those where there are population growth and growth in income as well as in more densely _____ areas. The main reason for this is that there is increased access to customers, suppliers, and capital.

costs and rules

The nature and magnitude of _____ to start a business may encourage or deter potential entrepreneurs. For example, there are always a number of application fees and administrative tasks that are involved when starting and registering a business. Such administrative tasks involve getting approval from differing agencies, acquiring licences, and even submitting paperwork that needs to get "stamped" before a business can start... More of this generally deter entrepreneurship. Oddly, one study found that this was seen as primarily being a deterrent for opportunity-based entrepreneurship but not for necessity entrepreneurship as necessity-based entrepreneurs were forced to start, regardless of the fees involved.

no criticism, criticism

The number one rule of the four rules for a formal brainstorming session is that ___1___ is allowed, including chuckles, raised eyebrows, or facial expressions that express skepticism or doubt. The reason for this is because ___2___ stymies creativity and inhibits the free flow of ideas.

geographic roll-up strategy

The primary opportunity for start-ups in fragmented industries is to consolidate the industry and establish industry leadership as a result of doing so. The most common way to do this is through a _____, in which one firm starts acquiring similar firms that are located in different geographic areas. This is an often observed path for growth for businesses such as auto repair shops and beauty salons. It is difficult for them to generate additional income in a single location, so they grow by expanding into new geographic areas via either organic growth or by acquiring similar firms.

Entrepreneurship

The process of creating value by bringing together a unique combination of resources to exploit an opportunity. Innovative, value creating, growth oriented (willing to incur risks).

Incubation

The second of the five steps of the creative process. _____ is the stage during which a person considers an idea or thinks about a problem; it is the "mulling things over" phase. Sometimes _____ is a conscious activity, and sometimes it is unconscious and occurs while a person is engaged in another activity. One writer characterized this phenomenon by saying that "ideas churn around below the threshold of consciousness. (subconscious)" One that does not recognize these sort of ideas allows them to eventually sort of "marinate" and go away or be too late to implement. At some point it comes out, leading to the next step.

Customer Environment, Competitor Environment, Economic Environment, Legal/Regulatory Environment, Technological Environment, Social Environment, and Resource Environment

The seven environments characterized by turbulence are _____ (HINT: CCELTSR, like "seltzer")

Industry analysis, Market/customer analysis and test, Product/service analysis and test, Founding team evaluation, Financial analysis, Value chain analysis, Feasibility

The seven layers of a feasibility analysis (in order from outer to inner) are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___ 7. ___7___

financial structures, economic structures, legal/regulatory structures, logistical structures, social structures, educational structures, and political structures

The seven structures captured by infrastructure are _____ (HINT: FELLSEP).

Strength of management team, First-mover advantage, Passion of management team and employees, Unique business model, Internet domain name, Inventing a new approach, exemplary fashion

The six Nontraditional Barriers to Entry include: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___ to an industry and executing the idea in an ___7___.

create value; For whom; internal source of advantage; differentiate itself; make money; time, scope, and size ambitions

The six basic components of a business model defined at the Foundation Level: Defining the Basic Components are as follows: 1. How will the firm ___1___? 2. ___2___ will the firm ___1___? 3. What is the firm's ___3___? 4. How will the firm ___4___? 5. How will the firm ___5___? 6. What are the entrepreneur's ___6___?

Excessive need for control, Suspicious of others, Impatience, Need for applause, Defensiveness, Blaming internal faults on outside events

The six dark sides of Entrepreneurs include: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___

Key employees, Board of directors, Other professionals, Lenders and investors, Board of advisors (advisory board), Management team, founder or founders of a venture

The six elements of a new-venture team are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___ All of these surround the ___7___.

Economies of scale, Product differentiation, Capital requirements, Cost advantages independent of size, Access to distribution channels, Government and legal barriers

The six major sources of barriers to entry are 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___

conferences and trade shows; competitors' products; competitors' websites and social media; email alerts; industry-related books, magazines, and websites; what motivated them to buy your product

The six sources of competitive intelligence are as follows: 1. Attend ___1___. 2. Purchase ___2___ 3. Study ___3___ pages 4. Set up Google and Yahoo! ___4___ 5. Read ___5___ 6. Talk to customers about ___6___ as opposed to your competitor's product.

Manage and Harvest(take out a salary, go public, hand off to next generation, etc.)

The sixth step of the entrepreneurial process. Run/grow the business to properly exploit opportunities presented. Harvest through sale of alternative means.

Achievement Motivation, Internal Locus of Control, Calculated Risk-Taking, Tolerance for Ambiguity, Desire for Independence, Self Confidence, Dedication/Strong Work Ethic, Organizational Skills, Opportunistic, Adaptability/Versatility

The ten Entrepreneurial Traits and Characteristics: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ 6. ___6___ 7. ___7___ 8. ___8___ 9. ___9___ 10. ___10___

execution intelligence

The third main characteristic of successful entrepreneurs is _____, the ability to fashion a solid idea into a viable business. In many cases, _____ is the factor that determines whether a start-up is successful or fails... The ability to effectively execute a business idea means developing a business model, putting together a new venture team, raising money, establishing partnerships, managing finances, leading and motivating employees, and so on. It also demands the ability to translate thought, creativity, and imagination into action and measurable results. NOT about intelligence or smarts; just being good at entrepreneurship.

Insight ("eureka" experience)

The third of the five steps of the creative process. _____ is the flash of recognition—when the solution to a problem is seen or an idea is born. It is sometimes called the "eureka" experience. In a business context, this is the moment an entrepreneur recognizes an opportunity. Sometimes this experience pushes the process forward, and sometimes it prompts an individual to return to the preparation stage. For example, an entrepreneur may recognize the potential for an opportunity but may feel that more knowledge and thought is required before pursuing it.

Assess the necessary resources

The third step of the entrepreneurial process. Need for staff, physical plant, licensing, execution, money needs & strategies to acquire same

Rate of change of key components, hostile or threatening, degree of complexity

The three components of turbulence are: 1. ___1___ of the environment 2. The extent to which the environment is ___2___ 3. The ___3___ in the environment

drama, differ, may not continue to get along

The three cons of teams: 1. Teams have too much '___1___' 2. Team members may have: -___2___ing commitments -___2___ent work habits -___2___ent risk tolerance -___2___ent passion -___2___ent opinions of company strategy -duplicative skills --Very rare to have a founding team who are truly equal to one another. 3. Team members ___3___

Direct Competitors, Indirect Competitors, Future Competitors

The three different types of competitors a business will face are as follows: 1. ___1___ 2. ___2___ 3. ___3___

Infrastructure, Turbulence, and Life experiences

The three environmental determinants of Entrepreneurial Intensity(EI) are _____.

misread of the customer, Inability to deliver upon value proposition, Unsound economic assumptions (or capital assumptions)

The three fatal errors in making a business plan or model are as follows: 1. A complete ___1___ 2. ___2___ 3. ___3___ - have we thought through what happens if we are successful? Will we need more money to fund growth? What about running/maintenance costs? Accounts receivable? Expansions? How will we raise more money?

Appoint the firm's officers (the key managers), Declare dividends, Oversee the affairs of the corporation

The three formal responsibilities of the board of directors are as follows: 1. ___1___ 2. ___2___, and 3. ___3___.

Foundation Level: Defining the Basic Components, Proprietary Level: Creating Unique Combinations, Rules Level: Establishing Guiding Principles

The three levels (or sets of decisions) that a proposed framework consists of are as follows: 1. The ___1___ 2. The ___2___ 3. The ___3___

passion, product/customer focus, and execution intelligence

The three main characteristics of successful entrepreneurs are _____.

Business Mission, Product/market scope, Basis for differentiation

The three primary elements of core strategy are as follows: 1. ___1___ 2. ___2___ 3. ___3___

Target market (or targeted customer), Fulfillment and Support, Pricing Structures

The three primary elements of customer interface are as follows: 1. ___1___ 2. ___2___ 3. ___3___

Suppliers, Partners, Other Key Relationships

The three primary elements of partnership networks are as follows: 1. ___1___ 2. ___2___ 3. ___3___

leadership, niche, cost reduction

The three strategies that entrepreneurial firms employ in declining industries are: 1. ___1___ strategy 2. ___2___ strategy 3. ___3___ strategy

Summary (Business) Plan, Full Business Plan, Operational Business Plan

The three types of business plans are as follows: 1. ___1___ 2. ___2___ 3. ___3___

salary-substitute firms, lifestyle firms, and entrepreneurial firms

The three types of start-up firms are _____.

talented and experienced new-venture team, entrepreneurship-focused workshops and events, startup accelerators

The three ways entrepreneurs overcome the liability of newness are by 1. assembling a ___1___, and/or 2. attending ___2___, such as Startup Weekend, hackathons, boot camps, and so on, and/or 3. joining one of the growing number of ___3___ that are popping up across the country.

Observing environmental trends, Solving a problem, Finding gaps

The three ways opportunities are identified: 1. ___1___ - eyes are open, look around, get experience and become familiar. 2. ___2___; noticing and fixing a pain point; noticing and fixing a pain point. 3. ___3___ in the fixing marketplace; women not served well by traditional gym model model, so along came curves - female-only gym. Big/heavy set/big and tall people; like Panera Bread (good and not too slow/restaurant).

observing trends, solving problems, finding gaps

The three ways to identify an opportunity are: ___1___, ___2___, and ___3___ in the marketplace.

moderate risk takers

The truth is, entrepreneurs are usually _____, as are most people.

Y-Combinator, TechStars

The two best known startup accelerators are ___1___, located in the Silicon Valley, and ___2___, which originated in Boulder, Colorado.

paid (consultants) and (consultants who are made available for) free or at a reduced rate

The two categories of consultants are _____ through a nonprofit or government agency.

opportunity-based and necessity-based

The two categories of start-up firms are _____.

distinguish between trends and fads, considered simultaneously

The two caveats to keep in mind when looking at environmental trends to discern new business ideas are that it's important to ___1___. New businesses typically do not have the resources to ramp up fast enough to take advantage of a fad. Second, even though we discuss each trend individually, they are interconnected and should be ___2___ when brainstorming new business ideas

multidomestic, global

The two most common strategies pursued by firms in global industries are the ___1___ strategy and the ___2___ strategy.

size, qualities

The two most important issues in determining the way an entrepreneurial venture is received and the manner in which the new-venture team takes shape are the ___1___ of the founding team and the ___2___ of the founder or founders.

Employees, External Stakeholders

The two primary audiences for a firm's business plan are: 1. a Firm's ___1___ 2. Investors and Other ___2___

Strategic Assets, Core Competencies

The two primary elements of strategic resources are as follows: 1. ___1___ 2. ___2___

Internal Reason, External Reason

The two primary reasons to write a business plan are: 1. ___1___ 2. ___2___

Focal Point for Ideas, Creativity at the Firm Level

The two steps entrepreneurial ventures can take to build an organization that encourages and protects new ideas are as follows: 1. Establishing a ___1___ 2. Encouraging ___2___

externally stimulated, internally stimulated

The two ways in which most entrepreneurial ventures are started are by being ___1___ or ___2___.

feasibility analysis (or feasibility study)

The way to determine whether an idea represents a viable business opportunity. How do we know this opportunity is good? Way to determine size and scope of opportunity. _____ is a set of tools and a process for examining a business concept in a way that gives you confidence about the conditions under which you are willing to move forward. Looks kind of like work because it is! The results of _____ tell you: -Whether or not there is market acceptance for the concept - the level of demand. -What conditions must be present for you to move into the business planning stage - the nature of the genesis team, start-up capital requirements, distribution channel, and so forth.

three potential pitfalls associated with starting a firm as a team

There are _____ rather than as a sole entrepreneur: 1. The team members may not get along. 2. If two or more people start a firm as "equals," conflicts can arise when the firm needs to establish a formal structure and designate one person as the chief executive officer (CEO). 3, If the founders of a firm have similar areas of expertise, it can be problematic.

four primary benefits to joining a startup accelerator program

There are _____, all of which help a startup overcome the liabilities of newness: 1. The network of people you'll meet and with whom you'll become acquainted 2. Brand recognition 3. The opportunity to work side-by-side with other startups. 4. The learning that takes place.

four important guidelines that should influence the writing of a business plan

There are _____. 1. To make the best impression, a business plan should follow a conventional structure: 2. The business plan should give clear and concise information on all the important aspects of the proposed new venture. 3. How long and detailed the business plan should be depends on the type of business plan that is being written. 4. Recognizing the fact that the business plan's elements may change.

conventional structure, clear and concise, depends on the type, elements may change

There are four important guidelines that should influence the writing of a business plan: 1. To make the best impression, a business plan should follow a ___1___. 2. The business plan should give ___2___ information on all the important aspects of the proposed new venture. 3. How long and detailed the business plan should be ___3___ of business plan that is being written. 4. Recognizing the fact that the business plan's ___4___.

liabilities of newness, network of people, Brand recognition, work side-by-side with other startups, learning

There are four primary benefits to joining a startup accelerator program, all of which help a startup overcome the ___1___: 1. The ___2___ you'll meet and with whom you'll become acquainted 2. ___3___ 3. The opportunity to ___4___. 4. The ___5___ that takes place.

team members may not get along, conflicts can arise when the firm needs to establish a formal structure, similar areas of expertise, problematic

There are three potential pitfalls associated with starting a firm as a team rather than as a sole entrepreneur: 1. The ___1___. 2. If two or more people start a firm as "equals," ___2___ and designate one person as the chief executive officer (CEO). 3, If the founders of a firm have ___3___, it can be ___4___.

minority

There has been a substantial increase in _____ entrepreneurs in the United States... Similar to women entrepreneurs, an important factor facilitating the growth of _____ entrepreneurs is the number of organizations that promote and provide assistance. Commonly, _____ entrepreneurs promote a particular sport or hobby.

no difference

There is _____ in the later success of an entrepreneurial venture based on whether the trigger/triggering event was positive or negative; it only matters that they got started.

company

This section of the business plan begins with a general description of the _____. The _____ history section should be brief, but should explain where the idea for the company came from and the driving force behind its inception.

Inventors

Though entrepreneurs regularly connect with _____, they are not the same.

Aggressive Legal/Regulatory Environment

Though most businesses think this is bad, it is a byproduct of turbulence. It would be like the wild wild west without it.

perennial, occasional, and multiple cause/effect

Three types of opportunities: _____

competitive intelligence

To complete a meaningful competitive analysis grid, a firm must first understand the strategies and behaviors of its competitors. The information that is gathered by a firm to learn about its competitors is referred to as _____. Obtaining sound _____ is not always a simple task. If a competitor is a publicly traded firm, a description of the firm's business and its financial information is available through annual reports filed with the Securities and Exchange Commission (SEC). These reports are public records and are available at the SEC's Web site (www.sec.gov). If one or more of the competitors is a private company, the task is more difficult given that private companies are not required to divulge information to the public. There are six ways that a firm can ethically obtain information about its competitors; there are six sources of _____.

Business Concept

Unique approach to capitalize on a given opportunity with: -New products, -New services, -New processes, -New markets, -New organizational structures/forms, -New technologies, and -New sales/distribution channels --Any one opportunity could be capitalized on with a variety of different concepts. --Are comprehensive in nature. --The two-sentence elevator pitch. Successful _____s represent unique combinations of resources that literally anyone could have come up with. A _____ is a concise description of an opportunity. -Built around a product, service, or process --Product: iPOD, DVD --Service: California Closets, Jiffy Lube --Process: FedEx

trigger/triggering event (or triggering factor)

Usually, a _____ prompts an individual to become an entrepreneur... Lifestyle issues may also trigger entrepreneurial careers; they are a result of environmental events or circumstances and can be positive or negative.

Similarity, Homogeneous, Experience, Complementarity, Heterogeneous

What is the appeal of ___1___? -___1___ leads to liking. -Almost any kind of ___1___ will do—___1___ with respect to attitudes and values, demographic factors, interests, etc. -Such effects are both strong and general. -___2___ Teams --Don't yield to the temptation to work solely with people whose background, training, and experience is highly similar to your own. Doing so will be easy and pleasant in many ways, but it will not provide the rich foundation of human resources the new venture needs. Add a member with ___3___! What is the value of "___4___"? -Avoids redundancy. -Provides a wider range of information, skills, aptitudes, and abilities. -The whole is greater than the sum of its parts. -___5___ Teams --Team members should only be hired if they have something to add.

strong

What makes an entrepreneur "_____" in the eyes of an investor is experience in the area of the proposed business, skills and abilities that will help the business, a solid reputation, a track record of success, and passion about the business idea. The first four of these five qualities favor older rather than younger entrepreneurs.

experience, skills and abilities, solid reputation, track record of success, passion

What makes an entrepreneur "strong" in the eyes of an investor is ___1___ in the area of the proposed business, ___2___ that will help the business, a ___3___, a ___4___, and ___5___ about the business idea. The first four of these five qualities favor older rather than younger entrepreneurs.

accessible, ripe for innovation, position

When studying an industry, an entrepreneur must answer three questions before pursuing the idea of starting a firm. First, is the industry ___1___—in other words, is it a realistic place for a new venture to enter? Second, does the industry contain markets that are ___2___ or are underserved? Third, are there positions in the industry that will avoid some of the negative attributes of the industry as a whole? It is useful for a new venture to think about its ___3___ at both the company level and the product or service level. At the company level, a firm's ___3___ determines how the company is situated relative to its competitors.

women

While men are still more likely to start businesses than _____, the number of _____-owned businesses is increasing... The number of groups that support and advocate for _____-owned businesses continues to increase.

comfortable, unsatisfactory

Work experience with lower levels of entrepreneurship: ___1___ Work experience with higher levels of entrepreneurship: ___2___

Traits, characteristics, skills

___1___ - distinguishing features or qualities, as of character - and ___2___ - distinctive features - are not something we learn consciously like we do with ___3___.

Actions and Behaviors that Encourage and Discourage Creativity, Organizational Level, Individual Supervisory Level

___1___ at the: 1. ___2___ 1a. Inhibitors of Creativity --Failing to hire creative people --Maintaining an organizational culture that stifles people --Retaining people in the same job for years, preventing them from broad and deep experiences --Promoting a mentality suggesting that the best solutions to all problems are known 1b. Facilitators of Creativity --Supporting and highlighting creativity's importance in all parts of the firm --Overtly rewarding those demonstrating creativity in their work --Investing in resources for the purpose of helping employees become more creative --Hiring people with different skills and viewpoints compared to current employees 2. ___3___ 2a. Inhibitors of Creativity --Being pessimistic, judgmental, and critical --Punishing people for failed ideas --Insisting on precision and certainty early in the creative process --Being inattentive, acting distant, and remaining silent when employees want to discuss new ideas 2b. Facilitators of Creativity --Listening attentively for the purpose of openly acknowledging and supporting ideas early in their development --Treating employees as equals for the purpose of demonstrating that status isn't important --Speculating, being open, and building on others' ideas --Protecting people who make honest mistakes and commit to learning from them

Effectual reasoning, causal reasoning

___1___ does not begin with a specific goal. Instead, it begins with a given set of means and allows goals to emerge contingently over time from the varied imagination and diverse aspirations of the founders and the people they interact with. ___1___ is needed to start, ___2___ is needed to grow.

Creativity, Innovation, Entrepreneurship

___1___ is the first step, recognizing opportunity ___2___ is taking that idea to a business concept/business model ___3___ is implementing the idea

Laws, Taxation

___1___ might include things like the need to report all financial performance information per year, limiting personal liability for entrepreneurs, providing protection for intellectual property, and even how to treat bankruptcies. ___2___ has an effect on entrepreneurship as entrepreneurs might see themselves losing a substantial portion of their profits to the government.

Opportunity recognition, perceiving, recognized

___1___ refers to the process of opportunity recognition refers to the process of ___2___ the possibility of a profitable new business or a new product or service. That is, an opportunity cannot be pursued until it's ___3___.

Barringer, 50, 70, Mike Morris

___1___ says that studies have shown that ___2___% to ___3___% of all new ventures are started by more than one individual. It is believed that new ventures started by a team rather than a single entrepreneur have an advantage. ___4___ says there is a need for a driving, visionary entrepreneur; there is a vital role for individualism.

prior entrepreneurial experience, relevant industry experience, networking

___1___, ___2___, and ___3___ are other attributes that strengthen the chances of a founder's success. Indeed, the results of research studies somewhat consistently suggest that ___1___ is one of the most consistent predictors of future entrepreneurial performance. Because launching a new venture is a complex task, entrepreneurs with prior startup experience have a distinct advantage. The impact of ___2___ on an entrepreneur's ability to successfully launch and grow a firm has also been studied. Entrepreneurs with experience in the same industry as their current venture will have a more mature network of industry contacts and will have a better understanding of the subtleties of their respective industries... A particularly important attribute for founders or founding teams is the presence of a mature network of social and professional contacts. Founders must often "work" their social and personal networks to raise money or gain access to critical resources on behalf of their firms. ___3___ is building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to a firm. The way this might play out in practice is that a founder calls a business acquaintance or friend to ask for an introduction to a potential investor, business partner, or customer. For some founders, ___3___ is easy and is an important part of their daily routine. For others, it is a learned skill.

Attributes of Effective Boards of Directors and Effective Board Members, Attributes of Effective Boards of Directors, Attributes of Effective (or strong) Board Members

___1___: -___2___: =-Strong communication with the CEO =-Customer-focused point of view =-Complementary mix of talents =-Decisiveness =-Mutual respect and regard for each other and the management team of the firm =-Ability and willingness to stand up to the CEO and top managers of the firm =-Strong ethics -___3___: =-Strong personal and professional networks =-Respected in their field =-Willingness to make personal introductions on behalf of the firm =-Strong interpersonal communication skills =-Pattern recognition skills =-Investment and/or operating experience =-Ability and willingness to mentor the CEO and the top managers of the firm

Death

_____ - a negative trigger - is illustrated by the following quote: "Dad died unexpectedly and left me with this troubled business that I had to turn around."

Now or never

_____ - a positive trigger - is illustrated by the following quote: "I turned forty and realized it is now or never".

Desire to improve one's lot

_____ - a positive trigger - is illustrated by the following quote: "I wanted to take control of my life and put myself in a situation where my own efforts determined my returns."

Opportunity Knocks

_____ - a positive trigger - is illustrated by the following quote: "My employer offered to finance me if I would become his outsourced supplier."

Lifestyle firms

_____ - one of the three types of start-up firms - provide their owner or owners the opportunity to pursue a particular lifestyle and earn a living while doing so... These firms are not innovative, nor do they grow quickly.

Highly Entrepreneurial Societies

_____ Often Have: Tolerance for women/minorities High levels of philanthropy High class mobility Higher QOL among poorest members High levels of product innovation-tech Consistent Venture Funding

Intelligence, Physical Prowess, and Artistic Talent

_____ are Genetic Traits - They are not traits of the entrepreneur

Strong-tie relationships

_____ are characterized by frequent interaction and ties between coworkers, friends, and spouses.

Weak-tie relationships

_____ are characterized by infrequent interaction and ties between casual acquaintances.

necessity-based

_____ firms, one of the two categories of start-up firms, are firms that are started due to a lack of other employment opportunities. In other words, entrepreneurs are almost forced into these situations as there are not a lot of other options to earn money.

Examples of the Expert Idea Generator

_____ include Bill Gates, Steve Jobs, Elon Musk, and Mark Cuban.

Examples of the Super Salesperson

_____ include Mary Kay Ash, Charles Schwab, and Oprah Winfrey.

Examples of the Personal Achiever

_____ include Michael Dell, Richard Branson, and Michael Jordan.

Examples of the Real Manager/Dynamic CEO

_____ include Michael Eisner (Disney), Herb Kelleher (Southwest Airlines), Ray Kroc (McDonalds), Jack Welch (General Electric), and Carly Fiorina (Hewlett-Packard).

Entrepreneurial vehicles

_____ include: Start-up ventures (minority) Acquisition of an existing business Franchising (franchisee or franchisor) Joint ventures Mergers and partnerships Entrepreneurial turnarounds

Access to capital

_____ is a majorly important factor for understanding an entrepreneurial environment. Entrepreneurs need money to be able to start their firms and also incur expenses, such as purchasing machinery or supplies, and even hiring employees. Being able to acquire bank loans or informal investment encourages people to start their own business... Potentially having access to larger sums of money in order to effectively run a business has been shown as being important for understanding people's willingness to become entrepreneurs.

Money

_____ is always assumed to be the most necessary component of a successful venture. While it's true that _____ is important, it is only an enabler; its presence does not confirm that the business concept is feasible. In fact, the dot com bust of spring 2000 proved that a large investment in a business idea will not make it feasible if customer demand and an effective business model are not present. Until you know that customers are interested in what you are offering and will pay for what you are offering, all the _____ in the world will not make your venture feasible. However, once you have successfully determined feasibility, you can begin to think about where you will get the funding needed to start the venture.

Mike Morris

_____ is involved with/built the entrepreneurial process.

Solving a problem

_____ is one of the three ways opportunities are identified. Problems can be recognized by observing the challenges that people encounter in their daily lives and through more simple means, such as intuition, serendipity, or chance. There are many problems that have yet to be solved.

Observing environmental trends

_____ is one of the three ways opportunities are identified. This can be done through the effective use of social media.

Finding gaps

_____ is one of the three ways opportunities are identified.. There are many examples of products that consumers need or want that aren't available in a particular location or aren't available at all. Part of the problem is created by large retailers, like Walmart and Costco, which compete primarily on price and offer the most popular items targeted toward mainstream consumers. While this approach allows the large retailers to achieve economies of scale, it leaves gaps in the marketplace. This is the reason that clothing boutiques and specialty shops exist. These businesses are willing to carry merchandise that doesn't sell in large enough quantities for Walmart and Costco to carry.

observing trends

_____ is one of the three ways to identify an opportunity. Study how they create opportunities for entrepreneurs to pursue. The most important trends to follow are economic trends, social trends, technological advances, and political action and regulatory changes. As an entrepreneur or potential entrepreneur, it's important to remain aware of changes in these areas. This sentiment is affirmed by Michael Yang, the founder of Become.com, a comparison shopping site, who believes that keen observation skills and a willingness to stay on top of changing environmental trends are key attributes of successful entrepreneurs.

Primary research

_____ is original and collected by the entrepreneur. This involves the Entrepreneur talking to potential customers and industry participants. Pros: Current, spot on, and only yours - it only being yours (meaning the competition does not have it) is the biggest benefit of _____! Con: _____ can be expensive. Examples: Interviews - experts, suppliers, customers, etc. Surveys - mostly customers Trade shows Product demonstrations - let customers know Focus groups Observation Google email alerts ... the point is TALK TO PEOPLE!!!

Secondary research

_____ probes data that already exists. This may come from library sources, government reports, industry analysts, or industry associations. Pros: Cheap and easy. Cons: Everyone can see what you see with _____. Examples of _____: -MarketResearch.com (via library) Has market reports -Mintel (via library or www.mintel.com) Specific market reports, may need to register -Quickfacts (quickfacts.census.gov) Census bureau data about spending, incomes, age, other demographics -SimplyMap (via library) Geographic based sales and demographic patterns. Search & scrollable -MRI+ (via library) Specific demographics on media issues, market uses -Trade industry websites -Claritas (www.claritas.com/MyBestSegments/Default.jsp?ID=20) Can find based on ZIP code; can find other markets where your customer lives -Pew Internet Research (www.pewinternet.org)

Startup accelerator programs (or startup accelerators)

_____ provide entrepreneurs access to mentors, investors, subject matter experts (such as attorneys and accountants), and other entrepreneurs. _____ are fixed-term, cohort-based programs for promising startups. Most _____ follow the following format: -Select a dozen or so startups for each class (many have between two and three classes a year). -Provide each startup $10,000 to $25,000 in seed funding in exchange for 5 percent to 8 percent equity in its business. -Bring the startups together for mentoring over the course of an on-site multi-week mentoring program. -Host a demo day at the end of the program where the participants pitch their businesses to angel investors, venture capitalists, and others.

Due diligence

_____ refers to the process investors go through after they tentatively commit to an investment. The commitment is based on a thorough investigation of the merits of the venture, whether any legal complications exist, and whether the claims made in the business plan are accurate and realistic. In most cases, a business plan will be required during the _____ phase.

John Gardner

_____ said that "every problem is a brilliantly disguised opportunity."

pro forma

_____ statements means projected financial statements

Proactiveness/passion

_____, one of the three underlying dimensions of Entrepreneurial Intensity (EI), involves action orientation, perseverance, tenacity, adaptability/versatility, asking for forgiveness instead of permission, and tolerance of failure.

Risk-taking

_____, one of the three underlying dimensions of Entrepreneurial Intensity (EI), involves calculated or managed _____, having a clear sense of key risk factors and a strategy for managing, mitigating, and sharing risks.

Innovativeness

_____, one of the three underlying dimensions of Entrepreneurial Intensity (EI), involves developing novel, new products, services, and processes

Global Entrepreneurship Monitor(GEM)

_____, which is a joint research effort by Babson College, London Business School, and Universidad del Desarrollo, Santiago, Chile, tracks entrepreneurship in 59 countries, including the United States. Of particular interest to _____ is early stage entrepreneurial activity, which consists of businesses that are just being started and businesses that have been in existence for less than three and one-half years.

Effectual Reasoning Principles

_____: -While causal reasoning focuses on expected return, effectual reasoning emphasizes affordable loss; -While causal reasoning depends upon competitive analyses, effectual reasoning is built upon strategic partnerships; and, -While causal reasoning urges the exploitation of pre-existing knowledge and prediction, effectual reasoning stresses the leveraging of contingencies.

Essential qualities of opportunities

_____: 1. Attractive - Attributes, innovative, large, meaningful, obvious 2. Durable (will be here tomorrow; circumstances are ongoing) 3. Achievable - Has to be something we can do; do we have expertise and capabilities to do this and if so, how do we find it (can't bring people to Mars for $100). 4. Anchored in a product Why opportunities may fail: -too small -too competitive -NBA (Next Business Alternative)

Three types of opportunities

_____: perennial, occasional, and multiple cause/effect

internally stimulated, opportunity gap

as Jeff Bezos did when he created Amazon.com. In 1994, Bezos quit his lucrative job at a New York City investment firm and headed for Seattle with a plan to find an attractive opportunity and launch an e-commerce company; Some ventures are ___1___, like BenchPrep. An entrepreneur recognizes a problem or an ___2___ and creates a business to fill it.

industry analysis

business research that focuses on the potential of an industry.

status quo, threatening

competitor environment with lower levels of entrepreneurship: ___1___ competitor environment with higher levels of entrepreneurship: ___2___

homogeneous, heterogeneous

customer environment with lower levels of entrepreneurship: ___1___ customer environment with higher levels of entrepreneurship: ___2___

stable, widely changing

economic environment with lower levels of entrepreneurship: ___1___ economic environment with higher levels of entrepreneurship: ___2___

solo entrepreneurs, network entrepreneurs

entrepreneurs who identified their business ideas on their own are called ___1___. In a study, ___2___ identified significantly more opportunities than ___1___ but were less likely to describe themselves as being particularly alert or creative.

network entrepreneurs, solo entrepreneurs

entrepreneurs who identified their ideas through social contacts are called ___1___. In a study, ___1___ identified significantly more opportunities than ___2___ but were less likely to describe themselves as being particularly alert or creative.

GDP growth

entrepreneurship's impact on society includes: 1. innovation 2. job creation 3. ___1___ 4. Quality of Life(QOL)

passive, aggressive

legal/regulatory environment with lower levels of entrepreneurship: ___1___ legal/regulatory environment with higher levels of entrepreneurship: ___2___

Underdeveloped/Obsolete, Well Developed

logistical structure with lower levels of entrepreneurship: ___1___ logistical structure with higher levels of entrepreneurship: ___2___

more entrepreneurial potential

more turbulence = _____

Educational experience

one of the five life experiences and one of the less tangible factors. Education = highly entrepreneurial.

Peer group experience

one of the five life experiences. Involves who you spend time with

Work experience

one of the five life experiences. Job dissatisfaction = highly entrepreneurial Personal experience = highly entrepreneurial (I.e. summer jobs, family business) "Corridor Principle" - entrepreneurship often helps recognize more entrepreneurship

Role models experience

one of the five life experiences. One of the less tangible factors. Involves people you look up to. Many entrepreneurs have parents who are entrepreneurs. The majority of the others have a good friend or other person they know well who is an entrepreneur. The availability of this provides a valuable form of experience, guidance, and inspiration for an entrepreneur. It also shows that being an entrepreneur is truly a feasible career choice.

Family experience

one of the five life experiences. Turbulence = Entrepreneurship Order of Birth (first born = highly entrepreneurial) Family Income (poor = highly entrepreneurial) Immigrants = highly entrepreneurial Societies tolerant of women/minorities have higher EI.

political structures

one of the six structures captured by infrastructure. Freedom of choice - Individual rights Democratic rule - Policy initiatives (incubator programs, tax incentives, etc.)

financial structure(s)

one of the six structures captured by infrastructure. Institutional autonomy (competition among sources of capital) - Competitive interest rates Stable currencies - Reserve requirements and deposit insurance - Large private investment pools

legal/regulatory structures

one of the six structures captured by infrastructure. Limited liability - Contract enforcement MORTGAGE CRISIS! Intellectual property protection - Restrictions on monopolies

social structures

one of the six structures captured by infrastructure. Foster attitudes of individual freedom and an orientation toward self direction and personal achievement Facilitation of the development of networks to share information, identify opportunities and marshal resources "Mental Software" - prevailing attitudes, values, beliefs and social norms Public Support - social awareness & reinforcement, awards, news features, etc

economic structures

one of the six structures captured by infrastructure. Freely fluctuating prices - Private ownership Strong profit incentives - Limited taxation Limited role for government

logistical structures (or logistical systems)

one of the six structures captured by infrastructure. Roads, power, waterways, airports, communication systems. it includes the basic parts of society that help effective functioning. Things that are taken for granted in many developed countries, like access to roads, waterways, railways, and airports, obviously encourage entrepreneurship as they simplify access to supplies and customers. Other things within _____ such as consistent access to electricity, phones, the Internet, and other modes of communication help entrepreneurs better identify and serve their marketplace. Yet, a lack of these things might provide novel opportunities for development or areas where other opportunities may appear. Developing these _____ is a major issue for many developing countries.

educational structure(s)

one of the six structures captured by infrastructure. involves learning.

Infrastructure(characterizes a society)

one of the three environmental determinants of Entrepreneurial Intensity(EI). characterizes a society. Loosely captures the economic, political, legal/regulatory, financial, logistical, & social structures of a society. Not literally buildings and roads. US has good environmental _____.

Life experiences(family, educational, work experiences, role models)

one of the three environmental determinants of Entrepreneurial Intensity(EI). family, educational, work experiences, role models

Turbulence(what is present in a society)

one of the three environmental determinants of Entrepreneurial Intensity(EI). what is present in a society. Rate of change, type of environment (I.e. hostile/threatening), and complexity in the environment (I.e. legal hurdles). Creates threats and opportunities. One of the most wonderful things for entrepreneurship (best friend). There has never been a time on earth filled with more _____. Internet is great example of _____ in past 20 years.

Financial

part of the PROFIT acronym. Cash, debt, capacity

Relational

part of the PROFIT acronym. Customers, distributors, networks

Technological

part of the PROFIT acronym. Patents, licenses, access to technology

Intellectual/Human

part of the PROFIT acronym. Sales Talent, R&D skills

Organizational

part of the PROFIT acronym. Structures, systems

Physical

part of the PROFIT acronym. buildings, equipment, etc

Mental Software

prevailing attitudes, values, beliefs and social norms

Corridor Principle

principle which states that entrepreneurship often helps recognize more entrepreneurship. once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent. The insight provided by this principle is simply that once someone starts a firm and becomes immersed in an industry, it's much easier for that person to see new opportunities in the industry than it is for someone looking in from the outside.

predictable, unpredictable

resource environment with lower levels of entrepreneurship: ___1___ resource environment with higher levels of entrepreneurship: ___2___

unfair advantage

smarts, experience, first-mover advantage, etc. What is it I have that makes me special? When you find your _____, exploit the heck out of it.

traditional, experimental

social environment with lower levels of entrepreneurship: ___1___ social environment with higher levels of entrepreneurship: ___2___

stagnant, rapidly changing

technological environment with lower levels of entrepreneurship: ___1___ technological environment with higher levels of entrepreneurship: ___2___

three underlying dimensions of Entrepreneurial Intensity(EI)

the _____ are: 1. Innovativeness 2. Risk-taking 3. Proactiveness/passion

entrepreneurial alertness

the ability to notice things without engaging in deliberate search.

Management team

the eighth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Describe your existing _____. Explain how the team came together and how their backgrounds and expertise are keys to the success of your firm. If you have a board of advisors or board of directors, briefly mention the key individuals involved. If you have gaps in your team, explain how and when they will be filled.

Financing sought

the eleventh One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Lay out specifically how much financing you're seeking and how you'll use the money.

Technology

the fifth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. This slide is optional but is normally included. Talk about your _____ or any unusual aspects of your product or service. Don't talk in an overly technical manner. Make your descriptions easy to understand and interesting.

Opportunity and target market

the fourth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Articulate your specific target market. Talk about business and environmental trends that are providing your target market momentum.

Financial projections

the ninth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Briefly discuss the financials. Stress when the firm will achieve profitability, how much capital it will take to get there, and when its cash flow will break even. Use additional slides if needed to properly display your information, but don't go overboard.

Problem

the second One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Briefly state the _____ to be solved or the need to be filled.

Marketing and sales

the seventh One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Describe your overall marketing strategy. Talk about your sales process. If you've conducted primary research regarding how people feel about your product, report the results here.

Competition

the sixth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Explain specifically the firm's competitive advantage in the marketplace and how it will compete against more established competitors.

Current status

the tenth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Describe the _____ of your firm in the context of milestones you've achieved to date. Don't diminish the value of your accomplishments.

Solution

the third One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Explain how your firm will solve the problem or how it will satisfy the need to be filled.

Innovativeness, Risk-taking, and Proactiveness/passion

the three underlying dimensions of Entrepreneurial Intensity(EI) are _____

Summary

the twelfth One of the Twelve Powerpoint Slides to Include in an Investor Presentation. Bring the presentation to a close. Summarize the strongest points of your venture and your team. Solicit feedback from your audience.

kaleidoscope thinking

thinking across boundaries and creating new categories

variable

Entrepreneurship is a _____ in any new venture (and really, wherever you look).

Divorce

_____ - a negative trigger - is illustrated by the following quote: "I'm suddenly on my own with no source of support."

Survival

_____ - a negative trigger - is illustrated by the following quote: "My current situation does not pay the rent."

creative destruction

Because new products and technologies are typically better than those they replace and the availability of improved products and technologies increases consumer demand, _____ stimulates economic activity. The new products and technologies may also increase the productivity of all elements of a society. The _____ process is initiated most effectively by start-up ventures that improve on what is currently available. Small firms that practice this art are often called "innovators" or "agents of change." The process of _____ is not limited to new products and technologies; it can include new pricing strategies, new distribution channels, or new retail formats. This term was coined by Joseph Schumpeter as if it were a bad thing, yet it is celebrated today. Core part of entrepreneurship and capitalism. Most companies on Dow Jones only last 20 years, only company from very beginning is GE.

three main reasons people decide to become entrepreneurs

The _____ are to be their own boss, pursue their own ideas, and pursue financial rewards.

entrepreneurial process

The _____ has six steps Step 1: Identify an opportunity Step 2: Develop a business concept (often more than one concept exists) -------------------------------------------------------- Step 3: Assess the necessary resources Step 4: Acquire the needed resources (bootstrapping, stretch budgets, etc.) Step 5: Implement Step 6: Manage and Harvest (take out a salary, go public, hand off to next generation, etc.) The line differentiates dreamers from doers Mike Morris built the _____

five main reasons passion is an important main characteristic of successful entrepreneurs

The _____: 1. The ability to learn and iterate 2. A willingness to work hard for an extended period of time 3. Ability to overcome setbacks and "no's" 4. The ability to listen to feedback on the limitations of your organization and yourself 5. Perseverance and persistence when the going gets tough

value

The essence of entrepreneurship is creating _____ and then disseminating that _____ to customers. In this context, _____ refers to worth, importance, or utility.

seniors

The number of _____ (those 50 years of age and older) starting businesses is substantial and growing... This increase is attributed to a number of factors, including corporate downsizing, an increasing desire among older workers for more personal fulfillment in their lives, and growing worries among _____ that they need to earn additional income to pay for future health care services and other expenses. Many people in the 50 and older age range have substantial business experience, financial resources that they can draw upon, and excellent vigor and health, which make them ideal candidates to start businesses in many industries. In addition, the steady increase in life expectancy means that Americans are not only living longer, but are living healthier longer, and are likely to remain engaged in either a job or an entrepreneurial venture longer in their lives than earlier generations.

gamblers

The second common myth regarding entrepreneurship is that entrepreneurs are _____. The truth is, entrepreneurs are usually moderate risk takers, as are most people... This myth originates from two sources. First, entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than managers or rank-and-file employees... Second, many entrepreneurs have a strong need to achieve and often set challenging goals, a behavior that is sometimes equated with risk-taking.

product/customer focus

The second main characteristic of successful entrepreneurs is a _____... The two most important elements in any business are products and customers. While it's important to think about management, marketing, finance, and the like, none of those functions makes any difference if a firm does not have good products with the capability to satisfy customers.

pursue their own ideas

The second of the three main reasons people decide to become entrepreneurs is to _____. Some people are naturally alert, and when they recognize ideas for new products or services, they have a desire to see those ideas realized.

Develop a business concept(often more than one concept exists)

The second step of the entrepreneurial process. develop product/service, distribution method or pricing approach

motivated primarily by money

The third common myth regarding entrepreneurship is that entrepreneurs are _____. It is naïve to think that entrepreneurs don't seek financial rewards... However, money is rarely the primary reason entrepreneurs start new firms and persevere. Money follows entrepreneurs; entrepreneurs that follow money are usually unsuccessful and never satisfied. Mostly never a get rich game and definitely NOT a get rich quick game.

pursue financial rewards

The third of the three main reasons people decide to become entrepreneurs is to _____. This motivation, however, is typically secondary to the first two and often fails to live up to its hype. The average entrepreneur does not make more money than someone with a similar amount of responsibility in a traditional job. The financial lure of entrepreneurship is its upside potential.

be their own boss, pursue their own ideas, and pursue financial rewards

The three main reasons people decide to become entrepreneurs are to _____.

economy, society, and larger firms.

The three main things entrepreneurial firms have an impact on are the _____.

Joseph Schumpeter

This person coined the term creative destruction as if it was a bad thing, yet we celebrate it today.

Entrepreneurial firms (or entrepreneurial ventures)

_____ - one of the three types of start-up firms - bring new products and services to market... The essence of entrepreneurship is creating value and then disseminating that value to customers. In this context, value refers to worth, importance, or utility. _____ bring new products and services to market by creating and then seizing opportunities... Having recognized an opportunity, the entrepreneurs leading companies of this type create products and services that have worth, are important to their customers, and provide a measure of usefulness to their customers that they wouldn't have otherwise. One characteristic of _____... is that they partner with other firms and organizations, often to obtain the boost they need to realize their full potential. _____ are typically proactive innovators and are not averse to taking calculated risks.

opportunity-based

_____ firms, one of the two categories of start-up firms, are generally started by individuals or teams that want to exploit a specific opportunity. Many of these firms have higher aspirations to grow and also have higher potential.

common traits and characteristics of entrepreneurs

_____ include a moderate risk taker, persuasive, promoter, resource assembler/leverager, creative, self-starter, tenacious, tolerant of ambiguity, visionary, optimistic disposition, a networker, achievement motivated, alert to opportunities, self-confident, decisive, energetic, a strong work ethic, and a lengthy attention span.

Quality of Life(QOL)

_____ is one of the impacts entrepreneurship has on society. Societies have highest _____ where entrepreneurship is highest.

Job creation

_____ is one of the impacts entrepreneurship has on society. The only downside of small business jobs is that employee pay tends to be less than is the case in larger companies... Still, small businesses are held in high regard in terms of _____.

product/service

One of the four elements contained within a business concept. What is the _____ being offered?

value proposition (benefit to the customer)

One of the four elements contained within a business concept. What is the benefit?

ability to listen to feedback on the limitations of your organization and yourself

One of the five main reasons passion is an important main characteristic of successful entrepreneurs is the _____. You'll meet plenty of people along the way - some with good intentions and some without - who will tell you how to improve your organization and how to improve yourself. You have to be willing to listen to the people with good intentions and make changes if it helps. You have to be able to brush aside feedback from people with bad intentions without letting them get you down.

Perseverance and persistence when the going gets tough

One of the five main reasons passion is an important main characteristic of successful entrepreneurs. Perseverance and persistence come from passion. As an entrepreneur, you'll have down days. Building an entrepreneurial organization is fraught with challenges. Passion is what provides an entrepreneur the motivation to get through tough times.

process

One of the four main components of our definition of entrepreneurship. A chain of events that take place over time; can be learned. Mike Morris built on this idea.

creating value

One of the four main components of our definition of entrepreneurship. Entrepreneurs are known for _____ where there was none before; innovation.

unique combination

One of the four main components of our definition of entrepreneurship. New products and services; kaleidoscope thinking.

larger firms

One of the three main things entrepreneurial firms have an impact on is _____. In addition to the impact that entrepreneurial firms have on the economy and society, they also have a positive impact on the effectiveness of _____... The evidence shows that many entrepreneurial firms have built their entire business models around producing products and services that help _____ be more efficient or effective.

love the spotlight

The fifth common myth regarding entrepreneurship is that entrepreneurs _____. Indeed, some entrepreneurs are flamboyant; however, the vast majority of them do not attract public attention. In fact, many entrepreneurs, because they are working on proprietary products or services, avoid public notice.

passion

The first and number-one main characteristic of successful entrepreneurs is _____, whether it is in the context of a new firm or an existing business. This _____ typically stems from the entrepreneur's belief that the business will positively influence people's lives. Professor is now professor instead of entrepreneur because of loss of _____.

born, not made

The first common myth regarding entrepreneurship is that entrepreneurs are _____. This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. The consensus of many hundreds of studies on the psychological and sociological makeup of entrepreneurs is that entrepreneurs are not genetically different from other people. This evidence can be interpreted as meaning that no one is "born" to be an entrepreneur and that everyone has the potential to become one... However, there are common traits and characteristics of entrepreneurs.

be their own boss

The first of the three main reasons people decide to become entrepreneurs - to _____ - is given most commonly. This doesn't mean, however, that entrepreneurs are difficult to work with or that they have trouble accepting authority. Instead, many entrepreneurs want to _____ because either they have had a long-time ambition to own their own firm or because they have become frustrated working in traditional jobs.

Identify an opportunity

The first step of the entrepreneurial process. market, need for product/service, sense of profitability, length of market need, market surveys

Uniqueness, Comprehensiveness, Internal Consistency, Feasibility, Sustainability

The five Criteria for Evaluating a Business Concept are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___

Survival, Job Dissatisfaction, Lay-off/retrenchment, Divorce, Death, Fresh Start, Opportunity Knocks, Curiosity, Desire to improve one's lot, Now or never

The five Negative Triggers include: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___ 5. ___5___ The five Positive Triggers include: 1. ___6___ 2. ___7___ 3. ___8___ 4. ___9___ 5. ___10___

born, not made, gamblers, motivated primarily by money, young and energetic, love the spotlight

The five common myths regarding entrepreneurship are: Myth 1: Entrepreneurs are ___1___ Myth 2: Entrepreneurs are ___2___ Myth 3: Entrepreneurs are ___3___ Myth 4: Entrepreneurs should be ___4___ Myth 5: Entrepreneurs ___5___

learn and iterate, work hard for an extended period of time, Ability to overcome setbacks and "no's", ability to listen to feedback on the limitations of your organization and yourself, Perseverance and persistence when the going gets tough

The five main reasons passion is an important main characteristic of successful entrepreneurs: 1. The ability to ___1___ 2. A willingness to ___2___ 3. ___3___ 4. The ___4___ 5. ___5___

product/service, customer definition, value proposition (benefit to the customer), distribution channel

The four elements contained within a business concept are as follows: 1. ___1___ 2. ___2___ 3. ___3___ 4. ___4___

process, creating value, unique combination, and opportunity

The four main components of our definition of entrepreneurship are _____

Innovation, Job Creation, GDP growth, and Quality of Life (QOL)

The four main ways entrepreneurship impacts society includes _____.

young and energetic

The fourth common myth regarding entrepreneurship is that entrepreneurs should be _____. Entrepreneurial activity is fairly evenly spread out over age ranges... The majority of individuals who start companies are in their thirties and forties. Not surprisingly, given this age distribution of business owners, the majority of business owners have work experience prior to launching a new venture. Although it is important to be energetic, investors often cite the strength of the entrepreneur (or team of entrepreneurs) as their most important criterion in the decision to fund new ventures... What makes an entrepreneur "strong" in the eyes of an investor is experience in the area of the proposed business, skills and abilities that will help the business, a solid reputation, a track record of success, and passion about the business idea. The first four of these five qualities favor older rather than younger entrepreneurs.

Job Dissatisfaction

_____ - a negative trigger - is illustrated by the following quote: "I hate my boss, my work, and my environment."

Layoff/retrenchment

_____ - a negative trigger - is illustrated by the following quote: "My employer no longer needs me."

Fresh Start

_____ - a positive trigger - is illustrated by the following quote: "I just graduated from school and I am ready to do something different."

Curiosity

_____ - a positive trigger - is illustrated by the following quote: "What if....I saw something that intrigued me and just decided to give it a go."

Innovation

_____ - one of the impacts entrepreneurship has on society - is the process of creating something new, which is central to the entrepreneurial process; the successful introduction of new outcomes by a firm.

Salary-substitute firms

_____ - one of the three types of start-up firms - are small firms that yield a level of income for their owner or owners that is similar to what they would earn working for an employer... The vast majority of small businesses fit into this category. _____ offer common, easily available and not particularly innovative products or services to customers.