Entrepreneurship test 2 (5-9)
123 ordering
1- Most essential to the business 2- lesser importance, can be rescheduled 3-You do when you have time
How many percent of internet users do not go beyond the first couple of pages in a Google search?
85%
Home party
A business model in which the entrepreneur arranges a customer to host a party, inviting friends, family, and neighbors. During the party, the entrepreneur demonstrates products and accepts orders for future delivery.
Market
A business term for the population that you sell your product or service to.
Takeovers are only possible if
A company has shares of stock
Minimum viable product
A concept central to lean business practices where you make a minimum product, but one that can be sold. By selling to customers and collecting feedback, an entrepreneur can develop a product at minimum cost.
Workout
A form of business termination in which the firm's legal or financial obligations are not fully met at closing.
Standardization
A form of lean business practices that creates efficiency
Effectual reasoning
A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.
Network marketing
A method of direct distribution in which individuals act as independent distributors for a manufacturer or private-label marketer.
Reverse price
A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.
Franchise
A prepackaged business bought, rented, or leased from a company, called a franchisor
Degree of similarity plus 1
A small degree of innovation is added to existing business. Think of burger joints. BK- Have it your way Wendy's- As is Hardee's- Supersized
Episodic business
A temporary, project-based, or sporadically operating business.
Volatility
A term used by economists to describe the frequency of businesses starting and stopping
Blog
A web page where entries are posted in reverse chronological order.
Pure innovation
Also called a Blue Ocean strategy- A previously unseen product or service that has no competition
Buy in
An agreement for a purchase of a business where less than 100% of equity is involved.
Lean business practices
An application created by Eric Ries that addresses the specifics of new business creation, particularly Internet-based businesses, where rapid experimentation and constant monitoring of viewers' choices are possible.
Bankrupt
An extreme form of business termination that uses a legal method for closing a business and paying off creditors when debts are substantially greater than assets.
Permanence
An indicator of legitimacy
RSS Feed
An internet messaging services that pushes whatever web material you specify to subscribers to that feed.
Innovative strategy
An overall strategic approach in which a firm seeks to do something that is very different from what others in the industry are doing
The difference between original acquisition cost and the amount of accumulated depreciation is called the
Book value
Walkaway
Business termination in which the entrepreneur ends the business with its obligations met.
Loyal customers
Customers that return and are already presold.
Local customers
Customers that you can keep tabs on because of close they are in terms of proximity, but in the digital age it's now more about taking the time to stay in touch with your customers
Marketing focuses on the ________, while strategy focuses on the ________.
Customers; Competition
Licensing
Documented permission from the government to run your business
Strategic partnerships
Formal or informal relationships with customers, vendors, or mentors to ensure the success of an entrepreneurial venture.
What is the most used search engine?
Most service and retail firms start out as a
Hobby
Most small businesses are
Imitative
What is the biggest issue with having a home based business?
Keeping boundaries between home life and the work life.
Leveraging contingencies
The practice of and ability to seize upon novel opportunities that become apparent during the conduct of business.
Bricolage
construction or creation from a diverse range of available things
Poisoning the well
creating a negative impression among your employers' customers
Hybrid entrepreneurship is also referred to as...
Operating a part time business
Degree of similarity minus 1
Parallel competition- You're essentially cloning another business. Nothing sets you apart
Outsourcing
employing outsiders who are not your subordinates a task or responsibility
home-based business
firm operated from the residence of the business owner
Variance
Permission from a government organization to act differently that the laws state.
Episodic businesses are also known as...
Pop up shops
Zoning laws
government specifications for acceptable use of land and buildings in particular areas
Mobile offices
Salespeople can stay in constant contact with their customers even when driving between cities or states.
Hybrid entrepreneurship
Someone who keeps a constant job and at the same time works on their own business
5 Ways to become a business owner
Start a new business Purchase franchise rights Buy an existing business Worked in a small business and worked their way up Inherit a business
Industry analysis
Study the dynamics and tends of your industry
Net Realizable Value (NRV)
The amount for which an asset will sell, less the cost of selling
Delegation
The assignment of new or additional responsibilities to a subordinate
Scope
The characteristic of the market that defines the geographic range covered by the market. Think locally or globally
Scale
The characteristic of the market that defines the size of the market. Think Mass market or Niche
What is the critical insight of lean business practices?
The customer is not willing to pay for everything the company does. If the company is wasting money and products are more expensive, the customer will not pay more,
Strategy
The idea and actions that explain how a firm will make it's profit
Introduction stage
The life cycle stage in which the product or service is being invented and initially developed
Covenenants
The limitations imposed on an individual's property by the neighborhood group.
Reverse auction
The low bid gets the win
The magic number
The main achievable goal or objective of the firm
Affordable loss
The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.
Casual or predictive reasoning
The process of setting a goal and then determining the strategy and resources required to attain the goal
One of the ways to determine the financial situation of a business is by crafting a business plan.
True
Purchasing franchising rights to an existing business is one of the five paths to business ownership.
True
The UFOC is a standard document franchises use to explain their operations, requirements, and costs to potential franchisees.
True
Accelator
Typically only found in start-ups, Its an office space where there is little or no overhead costs in exchange for equity of the company
What are the 5 initial key goal decisions?
What do you expect out of the business? What is your product or service idea? How imitative or innovative will you be? Do you plan to sell to everyone or targeted markets? Do you plan to sell locally, regionally, nationally, or globally?
Part time employment
Working less than 35 hours a week
Full time employment
Working more than 35 hours a week
Incubator
a facility that offers small businesses low-cost offices with basic services
Reciprocal links
a listed, live connection to a different website, which in turn displays a similar link to the first website
Search Engine Optimization (SEO)
a systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business
Intellectual property
a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, trademark, etc.
Post start-up
aims to refine your firm's strategies and tactics in order to maintain a competitive advantage
Business format franchising
an agreement that provides a complete business format, including trade name, operational procedures, marketing, and products or services to sell
Conversion franchising
an agreement that provides an organization through which independent businesses may combine resources
product distribution franchising
an agreement that provides specific brand name products which are resold by the franchisee in a specified territory
Passionate customers
people who are not just loyal but are likely to rave about your business are likely to generate more potential customers than any other type
e-commerce
the buying and selling of goods over the internet
Replacement value
the cost to acquire an essentially identical asset
Degree of similarity
the extent to which a product or service is like another
point of indifference
the price at which a buyer is indifferent about buying or not buying the business
Buyout
the purchase of substantially all of an existing business. Is only applicable to businesses that have formal legal paperwork.
Multichannel marketing
the use of several different channels to reach your customers, for example, a website, direct mail, and traditional retailing
Bootstrapping
using low-cost or free techniques to minimize your cost of doing business
Moonlighting
using work time and resources to complete something other than their job duties, such as assignments for another job
distinctive competence
what a company can make, do, or perform better than its competitors
What are the 4 set of resources all entrepreneurs have?
Access to capital their own skills and abilities their own knowledge their own network
Sponsored links
Advertising links returned from an online search that are located at the right side (or sometimes at the top) of the results; sponsored by companies that want to sell products
What are the 4 reasons to start with a small part time business before expanding it?
Gain experience You lack the resources necessary There is a narrow window of opportunity You are uncertain about the demands of going into a full time business
Canibalizing
taking work away from your employeer
trade name franchising
an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks
Parallel competition
an imitative business that competes locally with others in the same industry
Informational website
an internet site designed to introduce and explain a business to others
Incremental innovation
an overall strategic approach in which a firm patterns itself on other firms, with the exception of one or two key areas
imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
Intangibles
assets, such as patents or trademarks, and liabilities, such as accounts payable, that have no physical existence
Aggrandizing
attempting to make your business or yourself seem more accomplished or grander than reality
Corporate customers
business clients (B2B)
B2B
business to business
B2C
business to consumer
Discounted cash flows
cash flows that have been reduced in value because they are to be received in the future
