ENTP 250
RBI screen
"Really Big Idea" -a fast technique for making initial assessments of prospective business ideas based on five questions PEOPLE: Who are you? OFFERING: What are you offering? CUSTOMER: Who are you offering to? VALUE PROP: Why do they care? DISTINCTIVE COMPETENCIES: Do you have any key or core science/technology or feature?
elevator pitch
A 30-second action-oriented description of a business designed to sell the idea of the business to another
focus group
A form of data gathering from a small group led by a moderator.
Serviceable obtainable market (SOM)
A marketing term (also called the target market) that represents the customers that a firm expects to be interested in its particular product or service, and able to be serviced by the firm.
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.
Serviceable available market (SAM)
A marketing term that refers to the customers within the geographic reach of a firm.
heterogeneity
A quality of a service in which each time it is provided it will be slightly different from the previous time.
Inseparability
A quality of a service in which the service being done cannot be disconnected from the provider of the service.
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.
tax accounting
An accounting approach based on specific accounting requirements set by governmental taxing agencies.
Primary Research
An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.
revenue
An increase in owners equity caused by selling your product or service. .income
tangibility
An item's capability of being touched, seen, tasted, or felt
Accounting Equation
Assets = Liabilities + Owner's Equity
feasibility study
Feasibility studies consist of careful investigation of five primary areas: the overall business idea the product/service the industry and market financial projections (profitability) the plan for future action.
causal model of entrepreneurship
One in which you wan 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. Feel, check, plan, do
Opportunity recognition
Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.
product development
The procedure to organize and pursue the creation of new goods or services.
Market Segmentation
The process of dividing the market into groups of customers with different needs, wants, or characteristics
marketing funnel
The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser.
variable costs
Those costs that change with each unit produced, for example, raw materials.
Sources of New Business Ideas
Work and personal experience A similar business (seeing something and copying it) Chance (right place right time) Family and friends (someone has a great idea) Education or expertise (applying what you've learned in school or developed on your own) Idea sites
expense
a decrease in owner's equity caused by consuming
customer segment
a group of customers with common needs, common behaviors, or other attributes
Depreciation
a lessening in value
The business plan Cover letter
a one page document that introduces the business plan and business owner to the recipient. Aka letterhead
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.
vision statement
a short statement that describes the firm's ideas and goals
Mission Statement
a statement that show's the firms purpose or what they plan to fulfill.
Business models
a way to identify and organize key information on a business and how it achieves its goals
Managerial Accounting
accounting used to provide information and analyses to managers inside the organization to assist them in decision making
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.
Imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
gain
any sort of outcome customers or potential customers would like to encounter
Pain
any sort of problem, annoyance, aggravation, shortcoming that customers or potential customers may face
core product
basic description of what a product is
value proposition
benefits, selling points
business plan title page
company name, company info,
Business Entity
concept that a business has an existence separate from that of its owners
fixed costs
costs that remain constant as output changes. Rent
License
legal agreement granting you rights to use a particular piece of intellectual property
Gross Margin
net sales - cogs
Royalty
payment based on the number or value of licensed items sold
target market
refers to the group of customers in your area you plan to serve who would likely be interested in your product
radical innovation strategy
rejecting existing ideas, and presenting a way to do things differently
secondary research
researching based on information that is alreayd known
Financial Accounting
rule based set of accounting principles and procedures intended for use by outside owners, banks, investors
Value Propsition
selling points that customers may expect from your good or service AKA benefits
tagline
slogan, catchphrase
incremental strategy
taking an idea and offering a way to do something slightly better than it is done presently
penetrated market
the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.
augmented product
the actual product plus other supporting features to differentiate from the competition
net profit
the amount of money left after all expenses have been paid
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
Perishibility
the inability of services to be stored or saved for later
Gross Profit
the money it has left after paying for the goods and services it sold.
breakeven point
the point at which total costs = gross revenue
customer development
the procedure to organize and pursue the finding, obtaining and keeping of customers