Enes 210 Quizzes

If you sell 20% of your company today to an angel investor for $20,000, and your company is acquired a year from now for $5 million, how much will you angel investor receive?

$1,000,000

To effectively answer the question of whether the problem is worth solving, you also need to understand the specifics of the target customers who experience the problem. What is the best term to describe this?

Target Customer Segment

What is the purpose of a value proposition

Tells the target customer why they should buy from you and not from the competition Defines specific benefits that will be delivered by your product Explains how your product solves customers' problems or improves their situation

Business expenses that are heavily dependent on the volume of output a company produces are:

Variable costs

Which techniques are valuable to gathering competitive intelligence?

Visit their locations, if they have an offline presence. Analyze their websites and marketing materials. Evaluate their marketing and advertising campaigns.

The Lean Product Process consists of six steps. Which of these is NOT one of these six steps?

Select a market where customers are satisfied with existing solutions

What are the prerequisites for co-founders?

Share a common vision and values Offer complementary skill sets

What are the elements of the typical initial team structure in today's agile, high-performance startups?

1 to 3 co-founders with complementary skills and a common interest in the startup's mission Several active advisers that bring experience, wisdom, and relationships to the team Membership in an incubator environment, such as a University-based entrepreneurship program or a local co-working space Minimal investment of $0 to $100,000 Multiple startup peers that you can learn from, and share with

What is the difference between an angel investor and a venture capitalist

Angel investors are investing their own money, while venture capitalists are typically investing other people's money. Angels investors typically invest significantly less money in a startup than venture capitalists.

How is digitization upending many core tenets of competition among industries?

By providing high-speed ways to scale up enterprises. By lowering the cost of entering markets.

Businesses that offer low-priced value propositions, a high degree of automation, and outsourcing of costly functions are typically described as:

Cost-driven

In the sales process, the act of finding out what the needs of your prospects are is called:

Cross questioning and identification

What is the first step to developing your marketing mix?

Defining the Unique Selling Proposition

When a company owns all elements of its distribution channel, this is called a:

Direct Distribution Channel

What are the 3Ds for evaluating a value proposition?

Disruptive business model Discontinuous innovation Defensible technology

What is Squarespace's revenue model?

Subscription

What type of distribution channel is most likely to result in a user experience that may vary, and an inconsistent image for the company's product?

Dual Distribution Channel

Which characteristics are helpful for you to categorize consumers into customer segments?

Each consumer group feels strongly enough to pay for a different version of the product or service, tailored to their preferences. There is a very clear difference in the level of profitability each group represents for the organization. The groups require relationships of different kinds. The group needs a separate distribution channel to be reached. The customer groups have a particular need which justifies the creation of a product to match this need.

When there is a reduction of costs when a producer invests in multiple markets or a larger breadth of operations, the producer is experiencing:

Economies of scope

What are the qualifications of an adviser that startup teams should desire?

Excitement for the startup's idea Skills in communicating and networking Experience in the industry, market, and/or technology of the startup

A startup adviser is an individual who provides advice on running your startup and holds decision-making control on the management team. T or F

False

Based on their innovative nature, startups are less vulnerable to competition than established companies. T or F

False

Throughout the life cycle of a product, it is best to maintain one consistent type of promotional activity and a singular strategy T or F

False

To build rapport with the management team, a startup advisor will typically work for free for several months before expecting compensation. T or F

False

What are the typical benefits to producers for using distribution channels?

Faster delivery times Promotional assistance Increased exposure to customers Cost savings

Which of these pricing factors are examples of internal factors?

Fixed costs, variable costs and market segments

An engineer and developer type person that can build the functional prototype (MVP) and alpha is often called the:

Hacker

A person with design and user experience (UX) know-how to improve UX and conversion is often called the:

Hipster

The team member that can find a way to sell the product or service, scale customer acquisition, and distribute the product or service is often called the:

Hustler

What are the typical goals of a startup's promotional activities?

Improved brand equity Acceptance of a new product Increase in sales Addressing competitor's actions

When creating your business model, what cost related questions should you consider:

Is your business more value driven or cost driven? What activities create costs in your business? Are these activities matched to the Value Propositions for your business?

How would you assess this sample value proposition: "ABC, Inc. delivers revenue-focused marketing automation and sales effectiveness solutions to unleash collaboration throughout the revenue generation ecosystem".

It's unclear and not succinct.

To improve your success in step 6 of the sales process, addressing concerns, what techniques are valuable?

Listen patiently Check back with a solution Show concern Get back to the conversation

What are the risks of partnering?

Loss of autonomy and control incompatible cultures Lack of attention in managing the relationship Loss of intellectual property, particularly trade secrets

What are the typical benefits of channel segmentation?

Needs of every channel segment can be addressed separately Local price differentiation may be possible Relevant products may be provided to the right channel More targeted and relevant promotional activities may be possible

Is dilution bad?

No, because your pie is getting bigger with each investment. Yes, because you are losing control of your company.

What are the objectives of customer discovery?

None of the above.

When a low price is initially set by the company to build up sales and market share, with the plan of later raising prices once its market position is established, this pricing strategy is called:

Penetration Pricing

What are the five elements that make up the promotional mix?

Personal selling Public relations and sponsorships Direct marketing Advertising Sales promotions

In the sales process, the act of planning the method of approach for potential customers with a deal or sales pitch that they may be interested in is called:

Pre-approach

Which of the 4Ps is the only source of income?

Price

According to Ben Horowitz, which of these are widely held, but false, beliefs?

Product market fit is always a discrete, big bang event. Once you have product/market fit, you don't have to sweat the competition. Once you achieve product/market fit, you can't lose it. It's patently obvious when you have product/market fit.

What are the 4Ps of the marketing mix?

Product, Price, Place, Promotion

In the sales process, the act of looking for potential customers is called:

Prospecting

When a startup's promotional strategy is to create advertising, media campaigns, and buzz about a product, this is called a:

Pull Strategy

When a startup's promotional strategy is to place the product with retailers, trade shows, and other venues for the customer to experience, this is called a:

Push Strategy

Revenues earned from consistent ongoing payments rendered to the company for either the delivery of the value proposition or after sales care for the customer are called:

Recurring Revenues

Which of these conditions typically motivate new competitors to enter the market?

There is very little competition. It's inexpensive to enter the market.

in early-stage valuation, what factor are most influential in valuation?

Traction Revenues Reputation

Asking existing customers for referrals to prospective customers is a valuable sales technique. Tor F

True

Based on Noam Wasserman's research, the more power retained by founders, the less valuable their companies are likely to become. T or F

True

Entrepreneurs should only take investment when it is necessary. T or F

True

Having a product or service that is faster, cheaper and better is not enough to make it compelling. T or F

True

Product-market fit means being in a good market with a product that can satisfy that market. T or F

True

The Lean Product Process is an iterative process. T or F

True

When entrepreneurs raises money from investors, they sell a piece of their company. T or F

True

What are the 4Us of problem definition?

Unavoidable Urgent Unworkable Underserved

Businesses that focus on the creation and delivery of high-value value propositions, to include those that may be customized to the customer segments' preferences, are typically described as:

Value-driven

What key questions should an entrepreneur consider when developing their revenue model?

What benefits are customers currently paying for? Are there unrealized benefits that customers would pay more for? What type and frequency of payment would be preferable to the status quo? What percentage of the total revenues does each revenue stream represent? How are customers paying for these benefits today?

To prepare for advisers, which questions should the startup team consider?

What does the startup team need right now? How will the adviser be compensated? Does the candidate adviser care about your industry and solution?

To determine the best distribution channels for a product, the producer should ask what key questions?

What successful channels are competitors using? Where do customers seek to purchase the product?

As an aspiring entrepreneur, when should you feel most comfortable in investing the resources required to build your product?

When you've repeated the lean product process for additional waves with customers demonstrating positive feedback, ease of use, and high value.

To define your target market and understand its problems or desires, the first question to ask is:

Who is the customer?

Competitive analysis is valuable to your startup plans in what ways?

You may take advantage of competitors' weaknesses. You may identify changes that you should make to your business strategies. It helps you understand your competition.

What is the first step to creating a winning value proposition?

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