ENTR Test 3

The Twitter approach

(140 characters)

Storytelling approach (pitch)

(Once upon a time...)

Elevator pitch

(less than one minute) short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period of time.

The question approach

(question not statement)

______ is impossible if you do not know the numbers

GROWTH

Flow of cash through a business

In: -Owners Investment -Borrowed Funds -Sale of Fixed Assets -Cash Sales -Collection of accounts receivable Out: -Purchase of Fixed Assets -Payment of Expenses -Payment of Dividends -Payment for Inventory

Four elements of the marketing mix:

Product, Price, Place, Promotion

Marketing

The method of placing the right product at the right place and the right time.

Market

a place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand)

Balance Sheet

a snapshot at a point in time (e.g, at the end of the year or your accounting period) regarding the dollar value of things you "own", what you owe, and how much value is in the business

The marketing mix is constantly _________ ,you don't simply develop it and move on. By continually reviewing and tweaking your marketing mix you will be better able to adjust to an ever-changing competitive environment.

changing

Consumer

customers who actually use a product or service

Cash build

excess of cash receipts over cash distribution

Cash burn

gap between cash being spent and that being collected

Demographics and psychographics

give limited information

Product application

goods or services created to meet a demand, thereby providing a solution to a customer problem

The numbers are much _______ than you may believe---book keeping is not a mystery

simpler

Researchers believe that a _________ _______ approach is needed when it comes to marketing products

solutions-focused

Customer

someone who pays for a product or service

Product

tangible or intangible goods offered by the company

Price

the cost of the product/service, its perceived value, and how much the cost can be adjusted

Market opportunity

the degree of customer or market demand for a specific product application

Supply

the sellers who compete for customers in the marketplace

Promotion

the various ways company's communicate with their customers

The risk of not doing customer journey mapping is ____________ ____________

unsatisfied customers

Customer Journey Mapping

•Focuses on the buyer's experience. •Visual representation of customer experience. •Allows for the identification of pain points.

Accountants normally start with balance sheet, go to income statement, go to cash flow statement.....

•For the entrepreneur, do it in reverse because CASH FLOW IS KING- for operations, for growth, for planning

Exclusionary Personas

•Helps refine the customers. •Importance of buyer insights and buyer profiles.

Income Statement (1/2)

•Revenues (sales) minus expenses •Expenses might be broken down into -a) cost of good sold, and -b) overhead or general, selling and administrative costs

Create a General Ledger:

•Single entry •No debits and credits •Sales journal and expense journal •Dedicated time each day or every couple of days to make the basic entries •Brings a discipline

Cash flow is different than income in that:

•Things are recorded when they happen (e.g. receivables, payables) •No non-financial outlay items (e.g., depreciation) •Cash inflows from other than sales •We are recording all outflows as well (e.g., not just interest expense, but loan repayments) •Must get an intimate feel for when we need cash and when we generate cash

Guerilla Marketing

•Very popular in social media •Low budget •Spreads quickly •Surprises audience •Spread by technology

What are the three sources of data used to confirm your findings (customer journey mapping process)

•Website Analytics: Customers' location, the amount of traffic to your site. •Social Media Tools: Useful source of data. •Direct Customer Contact: Feedback about customer experience.

Questions to Ask (marketing):

•What are the benefits and features of my product? (Product) •What is the value of my offering and what are customers willing to pay? (Price) •How will they know my business exists? (Promotion) •How will the customer be reached? Where will they buy my product or service? (Place)

Addressing Branding Questions

•What is the primary goal of your company? •What are the features and benefits of your products or services? •What are your customers saying? •What sorts of qualities do you want them to associate with your company?

Four main elements to define a market:

-A set of customers for products or services who have needs or wants, and who reference each other when making a buying decision. -Market opportunity: the degree of customer or market demand for a specific product application -Product application: goods or services created to meet a demand, thereby providing a solution to a customer problem -Importance of market research.

Benefits of customer journey mapping:

-Clear picture of customer interaction. -Clarifies what customers think. -Confirms the journey of the customer. -Highlights the gaps between desired customer experience and actual experience -Connects with customers on an emotional level

Interviews and data generate key buying insights such as:

-Interested and non-interested buyers. -Relevant and irrelevant features of the solution. -Buyers and negative experience. -Resources that buyers trust. -Buyers involved in decisions and influence.

Factors to keep in mind when creating a Customer Journey Map:

-Key touch points, tasks, knowledge, pain points, happy points, emotions, wish list, and influencers.

Market: Place where people can sell goods and services.

-Supply refers to sellers. -Demand is the desire held by prospective customers for goods and services.

Five different types of influencers:

-Users. -Influencers (or opinion leaders). -Recommenders. -Economic buyers. -Decision makers.

Marketing for entrepreneurs involves:

-involves showing how a product meets customer needs -pricing the products in a way that accurately represents the value perceived by the customer -promoting products in innovative ways to reach customers -implementing delivery of the products -maintaining the relationship with the customer even after the sale is made.

According to this research, the 4 Ps model

-overemphasizes product technology and quality -understates the necessity of explaining the value of the product and why customers need it -distracts businesses from promoting themselves as important sources of information and problem solving.

What are the five key phases of customer interaction:

1. Discovery. 2. Research. 3. Purchase. 4. Delivery. 5. After the sale.

What is the accounting process

1. Incurring expenses and revenues (generate transaction trail) 2. Recording 3. Generating financial statements and reports 4. Making business decisions (analyze patterns and draw implications)

Six Basic Steps to Creating Your Own Customer Journey Map:

1. Materials you need: Whiteboard, stick notes, and markers. 2. Identify the segment of customers you would like to map. 3. Write down as many touchpoints you can think of for the entire journey. 4. Identify three or four aspects of the customer journey. 5. Think about how you can resolve these problems. 6. Create a visual version of the journey.

Cash Flow Statement

A month to month picture of what money is actually flowing into the business and how much is flowing out; tells you whether you have enough cash to pay the bills

Income Statement

A month to month picture of whether your are incurring a profit or a loss; tells you if you are making money

Smile and Scratch Test

Alexandra Watkins, founder of San Francisco-based Eat my Words, a company that specializes in creating catchy brand names, believes that brand names should make people smile rather than scratch their heads. It is a fun way to test your company or product name to see if you should keep it or scratch it off the list.

Guerilla marketing can also be difficult to measure:

Monitoring the media (newspapers, radio) for mentions of your campaign, and taking the time to scout blogs, forums, and social networks to see who is talking about your company and your product is a good start in measuring the campaign's impact on sales.

__ _____ are possible if you do not know the numbers---lenders live in a numbers world, and a strong feel for your numbers can offset some of the limitations in the numbers themselves)

NO LOANS

S.A.V.E. = 4 P's

Solution—Products- tangible, service, process. Goal is for solution to be primary benefit. Access—Place- when you market something you are making it accessible Value—Price- value, experience, knowledgable, skills, attributes Education—Promotion- education

Misconception: "the faster I grow the more cash I'll have":

TRUTH: the faster you grow, the more money you'll need.

Pitch

The act of presenting a product to an audience. It is brief, enticing, and well developed.

You do not know your business if they do not know the numbers---so it is _______

personal

Think of accounting as a:

process or flow

Buyer personas are

profiles of ideal customers.

Demand

prospective customers' desire for the goods and services available

Cash flow statement is ____---only actual money being spent and actual money coming in

real

Place

where the product or service is being distributed to the market

In order to conduct a successful guerilla campaign, you need to have a good understanding of:

your target market and where the high traffic exists; for example, subway, mall, university campus and so on. You also need to get the timing right: should you conduct the campaign during business hours, at weekends, or morning or night?

Balance Sheet

•Assets: things you own or have that have a monetary value--- (e.g., cash, accounts receivable, buildings, equipment, vehicles, inventory) •Liabilities: things you owe immediately and longer term--- (e.g., accounts payable, loans, prepaid expenses) •Owner's equity: the difference between assets and liabilities---suggesting value in the company

Customer personas

•Building personas is a powerful way to predict buyers' behavior. •Using social networks and peer reviews.

Cash Flow Statement

•Cash is king •Cash is the lifeblood of a business •Considers all the sources of money coming in, not just sales •Considers all the payments going out, not just expenses

Types of customers

•Chain of customers to be identified. •The customer may play all three roles. •The saboteurs should not be ignored.

Income Statement (2/2)

•Decide on frequency---cash flow weekly, income either weekly or monthly •Income: revenue, cost of goods sold, operating expenses, tax payments •Depreciation---assets are probably stretched longer than normal---but you do want them thinking in terms of replacement over time •Set it up the way you want them to make a budget each month

Three Aspects of Connecting with Customers

•Empathy •Perspective-taking •Emotional motivators (i.e., identifying most powerful emotional motivators can provide for a competitive advantage)

Customers and markets

•Focus on customer. •Entrepreneurs with limited resources can use methods to identify and target their customers. •Customer identification: Essential to business success. •Difference between customer and consumer.