effectual entrepreneurship Ch 1-9

What are the three types of Start-Up Markets?

1. Existing Markets 2. New Markets 3. Re-Segmented Markets

what are the 2 types of re-segmented markets?

1. Low cost: you deliver a product at the right price for "good enough" performance 2. Niche: you delivery a product to buyers interested in paying a premium for a very specific thing

What are the 5 ways to make money?

1. Manufacturing 2. Retail 3. Dollars for Hours/Space/Access 4. Brokering 5. Leveraging Intellectual Property 6. Combination of any of the above

what are the characteristics of a new market?

1. People don't know what your product or service is/does 2. you have created the opportunity for customers to do something they could not do before

What does Dollars for Hours refer to?

1. charge a fee per "unit" 2. earn a margin on every "unit" sold

What does Retail refer to?

1. create an appropriate space/environment 2. merchandise a collection of products (usually made by others) 3. earn a margin on items sold

what does Brokering refer to?

1. earn a margin for making connections/facilitating transactions 2. usually do not have to take title or possession of items being bought and sold

what does Leveraging Intellectual Property refer to?

1. protect and sell/license your OWN intellectual property OR 2. acquire access to intellectual property owned by others to develop any of the other ways to make money

What are the 4 parameters of good testing?

1. realtransactions 2. real price 3. real setting 4. big enough to be reasonable; small enough to fail affordably

What does Manufacturing refer to?

1. take in raw materials and convert/add value 2. earn a margin by moving goods into the market through a distribution system

What are the characteristics of an existing market?

1. your product or service is "better" in some way 2. you have clearly identifiable competitors 3. success is driven by delivery of valuable features and benefits

Core Competencies lead to Competitive Advantage, which leads to...

Compelling Messaging

Which of the start-up markets is the most common?

Existing

What does Bill Payne refer to as a "lifestyle company"?

built to keep. usually family owned or partnerships; grow revenue slowly and without investor capital

what does Bill Payne refer to as a "growth company"?

built to sell. usually require professional investors and can rapidly increase revenue and number of employees

What is a core competency?

capabilities an organization has that help make it valuable.

Compelling messages highlight...

competitive advantage

to qualify as a core competency, a capability must...

contribute to customer benefits across a variety of markets and be hard to replicate

Core Competencies are NOT...

product specific

What is a Competitive Advantage?

something that attracts others to your offerings over competing options. Advantages ARE product specific

T ------------------------M

technical feasibility vs. market feasibility