Entrepreneurial Thinking Final Exam

Describe the 4 columns in the Immunity to Change process.

1. My commitment a. What is your improvement goal? 2. What I do/don't do that works against [1] a. What are you doing or not doing that work against Column 1. 3. My competing commitment that led to [2] a. If you did do Column 2, what is your biggest worry? b. What commitments do you have that keep these fears from happening? 4. My big assumption behind [3] a. What assumption are you making to support Column 3?

What are some examples of prototypes?

1. Napkin Sketches 2. Ad Libs 3. Create Multiple VPC

What is a Customer Archetype?

A description of customer traits that may be made up of demographics, psychographics, and other customer data.

What is a startup accelerator?

A startup accelerator is a program that supports startup companies in the form of capital and guidance in exchange for equity in the company.

What is a startup?

A startup is a temporary organization built to search for the answers to what makes a repeatable and scalable business model

What is split testing?

Also known as A/B testing, is a technique to compare the performance of two or more options.

What is an Earlyvangelist?

An Earlyvangelist is someone who is willing to pay for a new products that may not be finished or tested, solely to have the newest products.

10. What is an MVP?

An MVP is a Minimum Viable Product. It is the smallest set of features that may illicit feedback from customers.

What is anchoring?

Anchoring is when a number becomes the basis of a conversation or negotiation. It sets a certain number in a person's mind and can set the tone for the negotiation.

Why are Earlyvangelists important?

Earlyvangelists can help to generate large amounts of word-of-mouth about your company or product. Earlyvangelists may influence other to buy. Also may be more willing to provide feedback.

How is Job Value calculated?

Important + Tangible + Unsatisfied + Lucrative = High-Value Jobs.

Why is identifying High-Value jobs important?

Important to identify them because they allow you to know which jobs, pains, or gains to focus on.

Is failure acceptable in a startup?

In fact, it is necessary, because from the failures you learn what direction you need to go and how to adjust from the failure.

What is Prospect Theory?

Is a behavioral economic theory that describes the way people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

What is Cognitive Framing?

Is a cognitive illusion by which framing is use to influence the answer you get from a question.

What is the Value Proposition Canvas?

Is a simple way to understand your customer needs, and design products and services they want.

How does Prospect Theory differ from Expected Utility Theory?

It differs from expected utility theory in that the choices have an uncertain outcome.

Which is better to test first: the customer profile or the value map? Why?

It is better to test your customer profile first in order to provide evidence on what customers care about before focusing on how to help them. Understanding customer needs first allows you to then better understand what is needed from your product to meet these needs.

How does the Value Proposition Canvas differ from the Business Model Canvas?

It works in conjunction with the BMC, it is a part of the value propositions segment of the BMC

What are the segments of the Business Model Canvas

Key Partnerships Key Activities Key Resources Cost Structure Value Proposition Customer Relationships Channels Customer Segment Revenue Structure

How and why are MVPs used?

MVPs are used to gain feedback from customers about a product. A MVP is tested by potential customers

How is technology push different than market pull?

Market pull means you're beginning with a manifest customer job, pain, or gain for which you design a value proposition. In simple, this is a problem in search of a solution.

What is the difference between a candy, vitamin, and painkiller?

Painkillers are products that alleviate a critical need, whereas vitamins are products that improve things, but the problem that vitamins are helping may not be as critical. Candies products that aren't really needed, they're just nice to have.

What is a Call to Action?

Prompts a subject to perform an action; used is an experiment in order to test one or more hypothesis

What is the difference between Risk Seeking and Risk Averse in the context of Prospect Theory?

Risk seekers are more willing to take risks even if the gamble and the for sure thing have the same expected value. Risk Aversion is the preference of a for sure thing over a gamble with a higher or equal expected value. (Basically seekers are aggressive, and averse people are conservative)

How do startup accelerators differ from startup incubators?

Startup accelerators focus is on quick growth, while incubators typically have less of a focus on rapid growth. Incubators also typically take none to very little equity.

What are system one and system two? Give examples for each.

System 1: A type of thinking that is automatic and instantaneous. Takes very little to no thought. i. Ex. Movement of your legs while walking System 2: A type of thinking that requires more energy and that one has more control over

What is Technology Push approach?

Technology Push indicates that you're starting the design of your value proposition from a technology or innovation you possess.

What is prototyping?

The practice of building quick, inexpensive and rough study models to learn about the desirability, feasibility, and viability of alternative value propositions.

What is a Low Fidelity MVP?

The simplest minimum viable product used to gather feedback about the validity of the customer problem

What is a startup's only goal?

To find a scalable and repeatable business model

How is the Value Proposition Canvas used?

Used to focus on the jobs, pains, and gains that matter to customers.

What is the forth phase in Customer Discovery? What do you do and why is it important?

Verify or Pivot- stop and assess the results of the experiments you've conducted and verify that you have everything you need. It either proves that you are ready to move forward or need to go back and change a few things around.

What are personal/emotional jobs

When customers seek a specific emotional state, such as feeling good and secure.

What is a functional job?

When customers try to preform or complete a specific task or solve a specific problem

What is a social job?

When customers what to look good or gain social power or status. Jobs describe how customers want to be perceived by others.

What is an entrepreneur?

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so

List and describe the steps in Customer Development model

a. 1. Customer Discovery i. Hypothesize BMC ii. Develop test to test these hypotheses b. 2. Customer Validation i. Test the hypotheses 1. Gain feedback ii. Determine customer segments iii. Analyze whether customer response validates your hypotheses c. 3. Customer Creation i. Drawing attention ii. Creating interest iii. Building loyalty d. 4. Company Building i. Transitioning from startup to company that can scale proven business model

List and describe the 4 phases of Customer Discovery

a. 1. State your hypothesis: deconstructs the founders into the nine parts of the business model canvas b. 2. Test the problem: you conduct experiments to test your "problem" hypothesis. You'll gain a deep understanding of customers' product needs. c. 3. Test the solution: test your solution presenting your value proposition and the minimum viable product. Compare customers' responses to the pass/fail goal d. 4. Pivot or proceed: stop and assess the results of the experiments you've conducted and verify that you have everything you need.

Give 3 examples of Low Fidelity MVPs.

a. A landing page with a sign-up section to get more information b. A cardboard mockup of a physical product c. Surveys

List and describe the steps in the Traditional New Product Development Model.

a. Concept/Seed Stage: i. Founder laysout vision for company and product or service 1. Rough outline of the business model b. Product Development: i. Determining market ii. Determining features of the product iii. Building the product c. Alpha/Beta Testing: i. Product is built ii. Tested by small group of users ii. Changes made to product if needed d. Product Launch: i. Company and product are launched ii. Building brand recognition

Describe and provide examples for the 3 components of a Customer Profile in the Value Proposition design.

a. Customer Gains: Benefits or positive things customers want to achieve b. Customer Pains: Problems that customers want to avoid or fix c. Customer Jobs: Tasks that customers must complete in their life

List and describe the types of Customer Jobs

a. Functional Jobs b. Social Jobs c. Personal/Emotional Jobs d. Supporting Jobs

Name and describe 3 channels of distributions

a. Independent sales-rep firm - typically handle compatible but not competing product lines. b. Web/Online - purchases made online with no human interaction c. Direct Sales - salespeople you employ to either call on end users or sell to other resellers.

What are the 4 examples of the Customer Problem?

a. Latent: Customer has problem, but not aware of it b. Passive: Customer knows they have a problem, but isn't motivated to solve it c. Active: Customer is looking for a solution to their problem d. Vision: Customer has come up with their own makeshift solution to their problem

Describe and provide examples of the 3 components of a Value Map in the Value Proposition design.

a. Product/Service: What are the features and attributes of your product b. Pain Relievers: In what ways does your product alleviate customer problems c. Gain Creators: In what ways does your product provide benefits and gains to customers

List and describe the Customer Types

a. Recommenders: People who influence other to buy a product; can make or break buying decision b. Influencers: People whose opinions are values and because of this can influence others to buy c. Buyers: People who pay for product. Make decision on whether a product is bought or not. d. End-users: People who actually use the product e. Saboteurs: Someone who prevents purchase of a product

What are the most important points to address during a pitch? Explain why

b. Pains - Shows the problems that customers have c. Market Size - Shows the market potential and profitability e. Business Model - Shows your work, research, test, and verifies that your idea works (is scalable and repeatable) f. Product - Shows your solution to the problem of the customers

Why is prototyping important?

important because it helps you learn faster for cheaper and ensures that you don't fall in love with your first idea.

What are supporting jobs?

purchasing and consuming value either as consumers or as professionals