GB 370 QUIZ 2 - Entrepreneur

What exactly is market research?

A way of collecting information you can use to solve or avoid marketing problems

Market research methods

Gather two types of data: primary and secondary

Business description

Gives description and overview of the business companies goals.

Mediation

When two parties need more help working out a solution - they can hire a neutral third party - the result is a written agreement to settle the dispute; both parties share the mediation costd

Operations and management plan

Where you describe how your business will function on a daily basis - logistics, responsibilities of each member, the capital and expense requirements for operating the business

Alternative Dispute Resolution (ADR)

a concept that includes mediation, arbitration, and other ways of resolving disputes w/o resorting to litigation

If you have two or more partners who want to be actively involved ...

a general partnership would be much easier to form

Summary jury trial

a jury of citizens hears a shortened trial and makes a non binding decision

D&B's million dollar database

can help you develop a marketing campaign for B2B sales

The financial section

contains your income and cashflow statements, balance sheet, and other financial ratios, such as break-even analyses - this part may require help from your accountant and a good spreadsheet software program

What are the most common forms of business?

sole proprietorship, partnership, corporation, and S corporation

Executive summary

the first thing the reader sees - must make an immediate impact by clearly stating the nature of the business. Describes the business, it's legal form of operation, the amount and purpose of the loan requested, etc

Market research should provide you with information about 3 critical areas:

the industry, the consumer, and the competition

Mini-trial

less common, giving both parties a sense of how their disagreement might resolve in court

A general accounting practice covers 4 basic areas of expertise :

1. Business advisory services 2. Accounting and record keeping 3. Tax advice 4. Auditing

When choosing a business name, keep the following tips in mind:

1. Choose a name that appeals not only to you but also the kind of customers you're trying to attract 2. To get customers to respond to your business on an emotional level, choose a comforting or familiar name that conjures up pleasant memories 3. Don't pick a name that is long/confusing - stay away from cute puns that only you understand 4. Don't use the word "Inc." after your name unless your company is actually incorporated 5. Don't use the word "Enterprises" after your name, this term is often used by amateurs

A business plan consists of seven major components:

1. Executive summary 2. Business description 3. Market strategies 4. Competitive analysis 5. Design and development plan 6. Operations and management plan 7. Financial factors

What qualities to look for when hiring an attorney

1. Experience 2. Understanding 3. Ability to communicate 4. Availability 5. Rapport 6. Reasonable fees 7. References

Steps to control legal costs

1. Have the attorney estimate the cost of each matter in writing so you can decide whether its worth pursuing 2. Learn what increments of time the firm uses to calculate its bill 3. Request monthly, itemized bills 4. See if you can negotiate prompt-payment discounts 5. Be prepared 6. Meet with your lawyer regularly

How lawyers bill their time:

1. Hourly/per diem rate 2. Flat fee 3. Monthly retainer 4. Contingent fee 5. Value billing

Tips to make your mission statement the best it can be:

1. Involve those connected to your business 2. Set aside several houses 3. Plan a date 4. Be prepared 5. Brainstorm 6. Use "radiant words"

Three primary parts of a business plan

1. The business concept 2. The marketplace section 3. The financial section

These 10 questions will help you create a verbal picture of your business' mission:

1. Why are you in business? 2. Who are your customers? 3. What image of your business do you want to convey? 4. What is the nature of your products and services? 5. What level of service do you provide? 6. What roles do you and your employees play? 7. What kind of relationships will you maintain with suppliers? 8. How do you differ from competitors? 9. How will you use technology, capital, processes, products, and services to reach your goals? 10. What underlying philosophies or values guided your responses to the previous questions?

How long on average do professional naming firms devote to the process of making up their mind?

Anywhere from 6 weeks to 6 months

Consumer close-up

Begin with a market survey, estimate the location's purchasing power based on its per-capita income, estimate how much of the total sales volume you can reasonably obtain

Two basic markets to sell to

Consumer and business

Design and development plan

Design - throughly describe the products design and materials used Development - generally covers these three 1)product development, 2) market development, 3) organizational development

How to receive primary research information

Focus groups, telephone interviews, direct-mail surveys, email interviews, social interviews, google it

What is a business plan and how do you put one together?

It conveys your business goals and the strategies you'll use to meet them, potential problems that may confront your business and ways to solve the, the organizational structure of your business, and the amount of capital required to finance your venture and keep it going until it breaks even

Competitive close-up

Keep an eye out for potential future competitors as well as current ones, examine the number of competitors on a local and national scale

Many business owners choose to form their company as a ....

Limited liability company (LLC) and the Limited liability partnership (LLP)

Industry information

Look for the latest trends, compare statistics and growth

Creating a good niche, advises Falkenstein, involves following a seven-step process:

Make a wish list, focus, describe the customer's worldview, synthesize, evaluate, test, and go for it!

"Many businesses owners neglect this crucial step in product development for the sole reason of not wanting to receive negative feedback" - Donna Barson

Market research

Pros and Cons of a Sole proprietorship

Pros: -Easily formed -Tax Advantages -Controlled by owner Cons: -Personal liability -Limited life - Raising money is difficult

Of all decisions when starting a business, which is the most important?

Relating to taxes and which type of legal structure you select for your company

Who said, "Mission statements help clarify what business you are in, your goals, and your objectives" ?

Rhonda Abrams, author of Successful Business Plan: Secrets & Strategies

Who said "there's only one boss - the customer." ?

Sam Walton, founder of Walmart

Most of your research will be ...

Secondary research

To get insights into consumer markets check out...

Statistical Abstract of the United States

Which is the most simple structure when setting up your business/company?

The Sole proprietorship - which usually involves just one individual who owns and operates the enterprise (if you intend to work alone, this structure may be the way to go)

Which business structure is the most complex and expensive of them all?

The corporate structure

What does the mission statement reflect about your business?

The range & nature of the products you offer, pricing, quality service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors, and the community

Two good sources for businesses references

ThomasNet and D&B Hoovers Industry Reports

A major advantage of a partnership is...

a partnership doesn't pay taxes on its income but "passes through" any profits/losses to the individual partners

Competitive analysis

a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

What does the Statistical Abstract of the United States contain?

a wealth of social, political and economic data

Government agencies

an invaluable source of market research, usually free

Partnerships come in two varieties:

general partnerships and limited partnerships

A limited partnership...

has both general and limited partners

Primary research

information that comes directly from the source - that is, potential customers. (surveys, focus groups)

Secondary research

involves gathering statistics, reports, studies, and other data from organizations such as government agencies, trade associations, and your local chamber of commerce

D&B's regional business directories

provide detailed information to help identify new business prospects and assists market potential

In a general partnership...

the parents manage the company and assume responsibility for the partnership's debts and other obligations

Arbitration

the process or act of resolving a dispute

Negotiation

the two parties discuss their differences and agree on a settlement

Market strategies

where you define your market- size, structure, growth prospects, trends, and sales potential. include price/distribution/sales details

The marketplace section

where you describe and analyze potential customers - who & where they are, what makes them buy, and so on - this is where you describe the completion and how you will position yourself to beat it

The business concept

where you discuss the industry, your business structure, your product/service and how you plan to make your business a success