ENT ch 3

the finance category on the gap analysis chart examines the

amount of money required to operate a business, amount of money required to start a business, amount of family resources that could be committed

the process of generating ideas will result in a list of three to five business ideas that

appear to be an opportunity and match the founders' skills

the process involved in the gap analysis is more ______ than _______.

are; science

a creative process in which a group of people are brought together and asked to generate ideas related to a specific topic, with little effort given to evaluating the potential of the ideas

brainstorming

the initial analysis is a process of

moving from three to five ideas to a single idea

an _________ that uses your education is a potential source of a business

opportunity

one type of gap analysis called _________ examines the opportunities in the marketplace side-by-side with the individual's ability to address those gaps

opportunity analysis

once a list of skills, abilities, and interests has been developed, the next step is to

perform a gap analysis

all new businesses have an inherent amount of _________ associated with the starting and operation of the business

risk

the first step in entrepreneurship is

the desire to own and operate a new business

what is true regarding the process of generating ideas?

the process takes time, interaction, consideration, evaluation, and iteration

which source of skills typically has direct applicability to the pursuit of a new business?

work experience

a __________ is the relatively simple process of systematically examining the difference between what is expected and what occurs

gap analysis

method used after you have developed a list of your skills, abilities, and interests, the next step is to examine the marketplace for opportunities to use these in a business is called

gap analysis

if done well, the process of generating ideas will result in

ideas that match the founders' skills, ideas that appear to be an opportunity, and a list of three to five business ideas

what is a principal cause of new business failure?

insufficient financial recourses at funding

characteristic of a gap analysis methodology for a new venture

it is intended to be completed by the entrepreneurial team or entrepreneur

_______ is key in successfully starting a new business venture

making quick adjustments using lean startup and evolution

without the needed ______, the founders would be faced with not holding any advantage over the competitors who have the necessary depth in the area

skill

examining _______ around the region, nation, or world that may not have reached a particular location is one way of identifying business opportunities or gaps

trends

the business owner whose business is both ________ and ________ is difficult to beat

vocation and avocation

questions an entrepreneur should address regarding education

what courses taken were enjoyable? have you attended any unusual educational programs? have you taken specialized training in any specific area?

what questions should be addressed by an entrepreneur when reflecting on family experience

what is your family history with new business ventures? what skill sets exist within your nuclear family? are there unique things your family does that others are interested in?

businesses that could most likely be pursued by people who do not prefer to work with people

order fulfillment, internet-bases businesses, bookkeeping

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

design, running, and funding of the business

why is discussing potential businesses with family members an attractive way to identify business opportunities?

- family members can provide an honest perspective - family members know your disposition - family members know your abilities

threats to operational financing include

- high development costs - an entrepreneurial team with a low asset base - rapid expansion costs - high inventory needs

true statements regarding skill includes

- skills are derived from our history - skills are derived from hobbies - skills are relatively idiosyncratic to the individual

why are hobbies a good skill source?

1. individuals are passionate about their hobbies 2. hobbies require the development of specific skills

list the steps that are important to the development of the quality business idea. start from the first initial step

1. list and evaluate one's personal 2. analyze the market 3. compare one's ability to fill the identified gaps with an opportunity available

along with the business idea, what else should be included in the first column of the gap analysis chart?

a brief explanation of the business idea

what is included in the second column of the chart used in the gap analysis

categories of analysis

a founder or founding team must have synergy, which is a combination of

competitive advantage, skill set, and understanding of an industry

which category on the gap analysis chart would examine companies doing the same thing as the new potential business?

competitors

_______ are uniquely positioned to provide a much-needed honest perspective on your efforts toward creating a new business

family members

statements that make interviewing key successful entrepreneurs an attractive way to identify opportunities or gaps

entrepreneurs have a keen eye for what businesses are needed in an area, most successful entrepreneurs are too busy with their own business to pursue new business ventures, most successful entrepreneurs have great ideas