BA CH3: Business Idea Generation and Initial Evaluation

Statements regarding education as it relates to skill sets

Technology skills acquire through education can be valuable

Business based on the founders hobby statements are....

The Entrepreneur may not enjoy the business or hobby as much as he or she enjoyed it when he or she began.

Which of the following steps are important to development of a quality business idea?

Compare ones ability to fill the gaps with the opportunity available

Without the needed skills, the founders would be faced with not holding any advantage over the ____________ who have the necessary depth in the area.

Competitors

Classified as threats to operational financing are

an entrepreneurial team with a low asset base

The process involved in the gap analysis is more _____ than _________.

art ; science

A founder or founding team must have synergy, which is the combination of ...

competitive advantage

Typical categories used to analyze a business idea

competitors

Typical categories used to analyze a business idea

finance

The founder(s) of a business need to be intimately involved in the....

funding of the business

Once a list of skills and abilities has been developed, the next step is to perform a _________ to examine the marketplace for an opportunity that exists between the demand for a product and the supply provided by firms in the market.

gap analysis

Not a common source of entrepreneur skills is...

genetics

Classified as threats to operational financing are

high development costs

Classified as threats to operational financing are

high inventory needs

Characteristics of a gap analysis methodology for a new venture using a chart

it requires minimal research

The steps in the process of generating ideas do not occur in a(n) _____ fashion but should occur in a(n) ________ manner.

linear; interactive

The initial analysis is a process of

moving from three to five ideas to one single idea

Typical categories used to analyze a business idea

nonfinancial resources

Perhaps as important as the entrepreneurs skills in a particular area is the need for entrepreneur to have __________ for starting a business in that domain.

passion

Classified as threats to operational financing are

rapid expansion costs

Typical categories used to analyze a business idea

risk

In hobbies and activities, individuals develop _____________ specific to the hobbies

skills

Generating a Business Idea (process)

then marrying these together into a business idea that interests the potential founders.

Entrepreneurs can examine business risk by considering three threats to business success...

threats to operational financing

Entrepreneurs can examine business risk by considering three threats to business success...

threats to sales generation schemes

Typical categories used to analyze a business idea

time

A founder or founding team must have synergy, which is the combination of ...

understanding of an industry

The business owner whose business is both a(n) _________ and a(n) ________ is difficult to beat.

vocation; avocation

Generating a Business Idea (process)

matching the initial financial funding available

Characteristics of a gap analysis methodology for a new venture using a chart

ideas that the founders skills

Generating a Business Idea (process)

identifying opportunities in the market

Thirds Step that is important to the development of a quality business idea.

Compare ones ability to fill the identified gaps with an opportunity available

Statements regarding education as it relates to skill sets

Knowledge gained from formal education provides a skill set

The founder(s) of a business need to be intimately involved in the....

design of the business

False Hobby skill sources are....

All hobbies are business opportunities

The nature of the effort required for an entrepreneur to carry out an effective due diligence analysis necessities ___________.

A focus on a single business idea

If done well, the process of generating ideas will result in...

A list of three to five business ideas

Statements regarding education as it relates to skill sets

An opportunity that uses your education is another source of a business.

Second Step that is important to the development of a quality business idea.

Analyze the market and look for a gap or a need that is not being met effectively

Which of the following steps are important to development of a quality business idea?

Analyze the market and look for a gap or need not being met efficiently

The suggested starting point for generating business ideas

Analyzing the skill set of the potential founders

What is NOT an example of family experiences that build knowledge and can grow into a new business opportunity

Attending SBA courses with your sibling

An individuals professional _____________ and _______________ are some of the main resources for new business ideas.

Background; Hobbies

Is included in the in the first column of the chart used in the gap analysis

Business idea

The following sources of skills for a new business that often is most overlooked.

Family experiences

Research suggests that successful new business ideas are NOT determined by your....

Gender

Why are hobbies a good skill source?

Hobbies require the development of specific skills

False Hobby skill sources are....

Hobbies tend to be tied to formal education

Characteristics of a gap analysis methodology for a new venture using a chart

Ideas that appear to be an oppurtunity

Generating a Business Idea (process)

Identifying the skills of the potential founders

Questions that could be explored to identify additional skill sources

In what industry would i prefer to work?

Why are hobbies a good skill source?

Individuals are passionate about their hobbies

Characteristics of a gap analysis methodology for a new venture using a chart

It is a reasonably quick analysis

Characteristics of a gap analysis methodology for a new venture

It is intended to be completed by the entrepreneur or the entrepreneur team

First Step that is important to the development of a quality business idea.

List and evaluate ones personal skill sets

Which of the following steps are important to development of a quality business idea?

List and evaluate ones personal skill sets

Research suggests that successful new business ideas are NOT determined by your....

Parents

Research suggests that successful new business ideas are NOT determined by your....

Race

Research suggests that successful new business ideas are NOT determined by your....

Religion

The founder(s) of a business need to be intimately involved in the....

Running of the business

An individuals work experience builds _______ sets that can have direct applicability to the pursuit of a new business.

Skill

A founder or founding team must have synergy, which is the combination of ...

Skill sets

The first step in entrepreneurship is:

The desire to own and operate a business

Business based on the founders hobby statements are....

The entrepreneur develops a following of fellow enthusiasts

Process of generating ideas are (no order)

The process typically requires consideration

Process of generating ideas are (no order)

The process typically requires interaction

Process of generating ideas are (no order)

The process typically requires iteration

Entrepreneurs can examine business risk by considering three threats to business success...

Threats to the profit margin

Questions that should NOT be explored to identify additional skill sources

What are my worst accomplishments in life?

What are probable questions potential business owners should ask themselves regarding hobbies?

What is it about the hobby that is exciting?

What are probable questions potential business owners should ask themselves regarding hobbies?

What products/services were used in these hobbies?

Questions that could be explored to identify additional skill sources

What skills were involved in the three greatest accomplishments of my life?

What are probable questions potential business owners should ask themselves regarding hobbies?

What specific skills were required of this hobby

Questions that could be explored to identify additional skill sources

What type of magazines and books do I read?

Business based on the founders hobby statements are....

The entrepreneur will stick with the business through lean times

Included in the second column of the chart used in the gap analysis

Categories of analysis - at-least five categories (finances, time, non-financial resources, risk, and competitors).