venture module 2

Which of the following is a fixed expense for Maria's sandwich food truck?

Start-up expenses are usually one-time purchases that entrepreneurs must make before starting their business. Things that are paid on an ongoing basis, such as utilities, are considered fixed expenses.

George and Miguel are considering opening up a shoe store but first need to do market research. Which one of these is NOT part of the market research process?

The market research process includes the following steps: Identify research objectives, Determine methods and sources, Gather secondary research, Conduct primary research, Organize and analyze data, and Draw conclusions.

Pete's disappointed with the projections of how much his cupcake cart will make in the first month. What could he do to try to improve his net profit?

To be profitable, businesses need to bring in more money than it spends. After doing projections, entrepreneurs can adjust selling price, projected sales numbers or costs to ensure the business is as profitable as possible.

Sharon is thinking about opening a bakery. She knows she wants to set her own hours, reduce her stress and make a profit. But she still has a lot to think through. Which of the following would NOT be a good early step?

When evaluating a business opportunity, it's best to get as much info as you can about the opportunity. In fact, the only bad first step you can make is taking action without doing any opportunity screening and preliminary research first.

Sharon realizes that she needs additional research before she approaches potential investors. What kind of research should she do to effectively evaluate her potential business opportunity?

While Sharon can find some great information by talking with friends and family in her network, they probably don't have enough information to tell her if there's a need or want in the market. Thorough research will let her objectively decide if her business is just a good idea or a real business opportunity.

Which of these is NOT part of a consumer profile?

A consumer profile is an overview analysis of a group of potential customers that businesses use to improve how they market their goods and services.

Which of the following is NOT one of the four steps to preparing a sales forecast

A Sales Forecast is a prediction of the amount of future sales your company expects to achieve over a certain period of time. Think through steps one might take to predict future sales.

Which of the following is NOT a creative thinking exercise entrepreneurs use to generate ideas?

Entrepreneurs use many different creative thinking approaches to come up with business ideas. When brainstorming ideas, it's important to not judge each idea as realistic or not at first to get as many ideas as possible.

Regina is looking to start a knitting business and completes a target market profile to include in her business plan. Identify which item in her target market profile is in the wrong category and where it should be moved.

In order to appeal to their target customers, entrepreneurs need to know everything about their target market segment, including Demographics (objective social and economic facts about people), Geographics (where customers live and businesses are located), Psychographics (people's attitudes, beliefs, etc.), and Buying Patterns (how they spend their money).