Entrepreneurship exam 2

Feasibility studies consist of careful investigation of five primary areas:

1. the overall business idea 2. the product/service 3. the industry and market 4. financial projections (profitability) 5. the plan for future action.

Avoid Pitfalls

1.Identifying the wrong problem 2. Judging ideas too quickly 3. Stopping with the first good idea 4. Failing to act 5. Obeying rules that don't exist

Caveat emptor

A Latin expression which means "let the buyer beware" which has been made into a philosophy sometimes used by businesses to put the burden for consumer protection onto the customer

General environment

A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector

Task environment

A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like.

Conflict of interest

A situation in which a person faces two or more competing standards or goals.

Entrepreneurial ecosystem

A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of startup businesses. 9 The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.

BATNA

An acronym for "Best Alternative to a Negotiated Settlement" in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation.

Success Factors for Part-time Businesses

Boundary:separating and balancing business and home ,Time management , Use a to-do list , Prioritize, Keep it in its own space (home based)

Five Skills for Managing Relations with the Environment

Building legitimacy, Developing a social network, Handling a crisis, Achieving sustainability, and Making ethical decisions

Social capital

Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur.

Outsourcing

Contracting with people or companies outside your business to do work for your business.

Poisoning the well

Creating a negative impression among your employers' customers.

home-based business #2

Home-based business meets at least two of the three criteria for start-up

Time to start-up

How long it takes to start a new business.

home-based business #3

It is inexpensive, since you are already living somewhere and you can get your business going where you live.

Universalism

Suggests that there is a code of right and wrong that everyone can see and follow

Cannibalizing

Taking business away from your employer

Mutuality

The action of each person helping another

Cost to start-up

The amount of money it takes to start a new business.

Delegation

The assignment of work to others over whom you have power.

External environment

The forces, institutions and people (i.e., the rest of the world) outside the boundary of the firm.

Internal environment

The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm

Environment

The sum total of forces outside of the entrepreneur and the firm.

Home-based Business

There were about 9.0 million home-based businesses in the United States in 2012, and they represented 33 percent of all firms.

Bootstrapping

Using low-cost or free techniques to minimize your cost of doing business

Moving from Part-time to Full-time

Wait until there is a solid income, Make use of any transition services offered by the former employer ,Recognize that initially, you will spend all your time running and marketing the business

SCAMPER

a creativity tool that provides cues to trigger new ideas for your business

Entrepreneurial alertness

a special set of observational and thinking skills that help entrepreneurs identify good opportunities. The ability to notice things that have been overlooked, without actually launching a formal search for opportunities, and the motivation to look for opportunities

Ethics

a system of values that people consider in determining whether actions are right or wrong

Business models

a way to identify and organize key information on a business and how it achieves its goals. Can be analytic tools (like a business model canvas) or a way to do business (like the "razor and blade" business model).

Organizational identity

composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories. part of the BRIE model

Aggrandizing

making your business or yourself seem more accomplished than it is

Target market

refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors. can refer to individuals or market groups called segments. 9 also called serviceable obtainable market, or SOM

Opportunity recognition

searching and capturing new ideas that lead to business opportunities. involves creative thinking that leads to discovery of new and useful ideas

Golden Rule

suggests you treat others in the manner you wish to be treated

Utilitarianism

supports seeking the greatest good for the greatest number of people

Networking

Interacting with others in order to build relationships useful to a business

External relations

The general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary.

Permanence

The impression of long-term continuity a business gives others.

Covenants

The limitations imposed on your property by your neighborhood group.

Imitative strategy

an overall strategic approach in which the entrepreneur does more or less what others are already doing

Zoning laws

Government specifications for acceptable use of land and buildings in particular areas.

Networking Skills

Know who you are Know whom you want and why Buddy up Bone up on the small talk Do not forget why you're here Make the connection Follow up

Developing a Social Network

Make it easy for people to contact you, Take the initiative to ask others on the network to link with you, Find and link up with network mavens, Keep at it—successful online networking requires consistent involvement

Ethical Dilemma

a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do

Billboard principle

asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see.

Moonlighting

working on your own part-time after your regular job

Legitimacy

the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors 9 Based on people, product, or organization

Social network

the entrepreneur's set of relationships and contacts with individuals and institutions 9 way to work trust, reciprocity, and long-term relationships into your day-to-day business operations

Feasibility

the extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

Incremental strategy

taking an idea and offering a way to do something better than it is done presently