ENTP midterm

Total Available Market (TAM)

A marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.

Creativity

A process introducing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities

Primary Research

An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation

enthographic research

Data gathered by simple observation — seeing what consumers do, rather than asking them

Product Development Process

The procedure to organize and pursue the creation of new goods or services.

due diligence

The process of investigating a business to determine its value

Screening plan

gives the basic overview of the firm and a detailed look at the financials. Also called a mini-plan

Perishability

if it is not used when offered, it cannot be saved for later use

Magnify or modify

taking an existing product and changing its appearance or adding more features, can also cue you to minimize something

incremental strategy

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

Sources of business ideas

- work an d personal experience: frustrations for personal life as a consumer - a similar business: seeing something new to you and thinking about importing or copying it - chance: right place right time - family and friends: someone else has a great idea - education or expertise: applying what you've learned in school or developed on your own - idea sties

RBI screen questions

1. People: who are you? 2. Offering: what are you offering? 3. Customer: Whom are you offering it to? 4. Value proposition: Why do they care? 5. Distinctive competencies: Do you have any key or core science/ technology or feature?

Focus group

A form of data gathering from a small group led by a moderator

Budget Cycle

A term applied to the schedule and the process for setting the schedule for making purchases by an individual or an organization

Vision statement

A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.

Managerial accounting

Accounting methods that are specifically intended to be used by managers for planning, directing, and controlling a business

Adapt

Adaptation from existing products or services

Tax accounting

An accounting approach based on specific accounting requirements set by governmental taxing agencies

Owners equity

The difference between assets and liabilities of a business

Commercialization

The process of making the new products ready for use by consumers by achieving standardsof durability and performance suitable for the market and comparable to (if not better than) the competition

Purchasing process

The sequence of steps an individual or organization goes through in making a decision to buy a product or service.

Generally Accepted Accounting Principles (GAAP)

The standardized rules for accounting procedures set out by the Financial Accounting Standards Board and used in all audits and submissions of accountingreports to the government.

Accounting equation

The statement that assets equal liabilities plus owner's equity Assets = Liabilities + Owners' Equity

Customer job

The term given to what a potential customer is trying to do—perform or complete some sort of task, solve some problem, or try to achieve some outcome

Pivot

Typically a term describing a change of direction in the thinking of an entrepreneur or a firm, often based on. New data or other findings

Substitute

What might you substitute for something else to form an idea

license

a legal agreement granting you rights to use a particular piece of intellectual property

Heterogeneity

a quality of a service in which each time it is provided it will be slightly different from the previous time

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

Risks

the parts of a business or business plan that expose the firm to any kind of loss - profits, sales, reputation, assets, customers, and so on

Put to other uses

think of ways you could generate a high number of opportunities for your product or service

Marketing strategy

- Overall strategy your firm pursues in the market - Sales plan that shows specific ways you apply strategy to secure sales from your customers - Longer-term competitive plan that shows how you protect your firm from efforts of the competition to unseat you

Opportunity Recognition

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

Market and target customer

- Total population of people or firms you plan to sell to - Target customer section: focuses attention on who would buy - Demographics' relation to the product, how often they buy, and past experience

Business models

- a way to identify and organize key information on a business and how it achieves its goals - can be analytic tools or a way to do business

Freemium

- an approach to pricing, and a business model, that connects free and premium products or services - typically a free version is offered and users have the option to pay to move up to premium features

casual model of entrepreneurship

- one in which you want to create a particular product or service that does not yet exist and to achieve that end, you have to cause the product or service to exist - this can mean you will have to learn new skills, or find others to help you achieve your end

Feasibility Studies

1. The overall business idea 2. The product/service 3. The industry and market 4. Profitability 5. The plan for future action

Customer segment

A group or subgroup of potential purchasers that can be approached in a coherent manner.

Serviceable available market (SAM)

A marketing term that refers to the customers within the geographic reach of a firm.

Cover letter

A one-page document on business stationery that introduces the business plan and the business owner to the recipient and indicates why the recipient is being asked to read the plan

Mission statement

A paragraph that describes the firm's goals and competitive advantages

Pilot test

A preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have

Secondary research

An approach to researching based on the use of existing information, often from government, commercial , or academic databases and research efforts often free and quick data may not be timely and don't know if data was gathered correctly

Tangibility

An item's capability of being touched, seen, tasted, or felt

Customer Development Process

The procedure to organize and pursue the finding, obtaining, and keeping of new customers.

RBI screen

- "Really Big Idea" -a fast technique for making initial assessments of prospective business ideas based on five questions

Elevator pitch

- A 30-second action-oriented description of a business designed to sell the idea of the business to another - Leads with the hook, follows up with purpose of the service, ends with where business is now - What makes firm unique or superior?

invention plan

- A business plan that provides information to potential licensees - focus on the details of an invention, including intellectual property rights.

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

Data room

- An online repository for the documentation that back ups and details the specifics of your business and business plan. - The contents of the data room are very similar to those of the three-ring-binder personal edition of the plan held and used by the founder.

The Company: Product/service and industry

- Describe firm's product or service - Explain how the customer uses the product - Proprietary technology - Industry descriptions

Competition and competitive advantage

- Major competitors - Competing product or service: market share, price, competitive advantages and disadvantages - What makes product or service unique

Public business

A business that has its stock bought and sold on an organized stock exchange, such as the New York Stock Exchange

Survey

A data-collection method using a questionnaire—in person, on phone, on paper, or on the Internet.

customer profile

A detailed description of an archetypical or hypothetical potential customer for a product or service, also called a customer persona.

Business plan

A document designed to detail the major characteristics of a firm— its product or service, its industry, its market, its manner of operating (production, marketing, management), and its financial outcomes with an emphasis on the firm's present and future.

Financial Accounting

A formal, rule-based set of accounting principles and procedures intended for use by outside owners, investors, banks, and regulators

AIDA model

Attention, Interest, Desire, Action

Gain business model

Can be any sort of outcome (a product, service, outcome, or situation) customers or potential customers would like to encounter or be able to depend on

Pain business model

Can be any sort of problem, annoyance, source of aggravation, shortcoming, or suboptimal situation customers or potential customers face

Informational plans

Give potential customers or suppliers information about the company and its product or service.

Liabilities

Legal obligations to give up things of value in the future

Tagline

Memorable catchphrase that captures the key idea of a business, its service, product, or customer.

combine

Possible combinations that result in something completely different

4 P's of marketing/ marketing mix

Product, price, proportion, placement

Open-ended question

Question that allows respondents to express themselves as they choose; for example, "What do you like about this book?"

Dichotomous question

Question that has only two possible choices; for example, "Have you shopped here before?"

Categorical question

Question that is answered by selecting the proper category; for example, "What is your ethnicity?White, African American, Hispanic, Asian, American Indian, Other."

Scalar question

Question that is answered by some sort of scale; for example, "On a scale of 1 to 5, how do youlike this book?"

Rearrange or reverse

Rearrange or reverse a product, problem, or process

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

Eliminate

Search for opportunities that arise when you get rid of something or stop doing something

Value proposition

Small business owners' unique selling points (also known as benefits) that customers can expect from your goods or services, including benefits that differentiate your offering from those of the competition.

Value proposition

Small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition

Asset

Something the business owns that is expected to have economic value in the future

Marketing research

Systematic collection and interpretation of data to support future marketing decisions

Going concern concept

The accounting concept that a business is expected to continue in existence for the foreseeable future

Business entity concept

The concept that a business has an existence separate from that of its owners

Total product

The entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer.

outstanding customer service

The idea of "going all out" for the customer or providing over-the-top service, not just the basic help, professionalism, and friendliness we all expect in any business transaction; an employee or manager who is trying to make sure the customer walks away with an exceptional experience

Prototype

The name given to the first model of a product or service, some may be functioning but built in a way that no consumer would buy it, but shows the product can do what is promised

Pitch

The name given to the formal presentation of a slideshow summarizing your business plan before judges or potential investors or partners

Pitch desk

The name of a slideshow presentation that summarizes a business or more often a business plan

Research and development

The part of a business that is focused on creating new products or services and preparing new technologies, ideas, products, or services for the firm's market.

Inseparability

a quality of a service in which the service being done cannot be disconnected from the provider of the service

Private Placement Memorandum

a specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments

Imitative strategy

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

Core product

basic description of what a product is

Operational plan

business plans designed to be used internally for management purposes

Augmented product

core product plus features that tend to differentiate it from the competition such as brand names, quality levels, and packaging

Idea evaluation

exhaustive process of specifying the details of each idea's technological feasibility, its cost, how it can be marketed, and its market potential

Preselling

involves introducing your product to potential customers and taking orders for later delivery

conversion rate

measures the frequency that someone who clicks on an ad makes a purchase, "likes" a site, or takes some other action desired by the advertiser

royalty

payment based on the number or value of licensed items sold

me-too products

products essentially similar to something already on the market

key employee/partner plan

provides information on the company, product/service, market, and critical risks to prospective business or marketing partners or to prospective key employees

Long term

refers to an asset that will still have value to the business more than one year from now or a liability that will still be owed more than one year from now

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently

Scamper

substitute, combine, adapt, modify, put to other uses, eliminate, rearrange