Entre2
Vision Statement
A very simple 5-10 word sentence or tagline that expresses the fundamental idea or goal of the firm.
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
Strategic Vision
concerns a firm's future business path The kind of company it is trying to become Customer needs to be satisfied in the future
Serendipity
being in the right place at the right time (luck)
combinational capabilities
combining tangible and intangible resources
Internal Understanding
extent to which employees, investors, and family members in the business know the business's purposes and operations
transformational capabilities
firm can make its product or service better in value
Volatility
frequency of business starts and stops
scope
geographic range covered by the market
Screening Plan
gives the basic overview of the firm and a detailed look at the financials. http://quizlet.com/11372000/edit/Also called a mini-plan
Work experience
idea grows out of listening to customer complaints Ideas can come from frustration Ideas can come from not finding what you are looking for as a consumer
Innovation
implementation of a creative idea or opportunity leading to profitable and effective outcomes
mass market
large portions of the population
License
legal agreement ranting you rights to use a particular piece of intellectual property
Aggrandizing
making your business or yourself seem more accomplished than it is
niche market
narrowly defined segment of the population that is likely to share interests or concerns
Undercapitalization
not having enough money available to the business to cover shortfalls in sales or profits
Stand Retail
one of the most ancient forms of business
Royalty
payment based on the number or value of licensed items sold
Due Diligence
process of investigating a business to determine its value
Creativity
a process introducing an idea or opportunity that is novel and useful, frequently derived from making connection among distinct ideas or opportunities
organizational capabilities
abilities, skills, and competencies used by the firm to make profits from tangible and intangible resources
Business Format Franchising
agreement that provides a complete business format, including trade name, operational procedures, marketing and products or services to sell
Conversion Franchising
agreement that provides an organization through which independent businesses may combine resources
product distribution franchising
agreement that provides specific brand name products which are resold by the franchisee in a specific territory
Elevator Pitch
A 30-second action-oriented description of a business designed to sell the idea of the business to another
Blog
A Web page in which entries are posted in reverse chronological order
Invention Plan
A business plan that provides information to potential licensees. Invention plans focus on the details of an invention, including intellectual property rights.
Revolving Credit
A credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again.
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.
Franchise
A legal agreement that allows a business to be operated using the name and business procedures of another firm.
Decline Stage
A life cycle stage in which sales and profits of the firm begin a falling trend.
Reciprocal links
A listed, live connection to a different Web site, which in turn displays a similar link to the first Web site.
Reserve Price
A minimum acceptable selling price in an auction. If the bidding does not exceed the price, the sale will not go through.
Executive Summary
A one- to two-page (250-500 words) overview of the business, its business model, market, expectations, and immediate goals.
RSS Feed
An Internet messaging service that pushes (sends) whatever Web material you specify to subscribers to that feed.
Operational Plan
Business plans designed to be used internally for management purposes.
Discounted Cash Flows
Cash flows that have been reduced in value because they are to be received in the future
Industry Dynamics
Changes in competitors, sales and profits in an industry over time
Tagline
Memorable catchphrase that captures the key idea of a business, its service, product, or customer. also known as a slogan
Preselling
Involves introducing your product to potential customers and taking orders for later delivery
caveat emptor
Latin: let the buyer beware
Asset
Something the business owns that is expected to have economic value in the future.
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.
Cash Flows
The actual receipt and spending of cash by a business.
Maturity Stage
The third life cycle stage, marked by a stabilization of demand, with firms in the industry moving to stabilize or improve profits through cost strategies.
Multichannel Marketing
The use of several different channels to reach your customers, for example, a Web site, direct mail, and traditional retailing.
E-Commerce
The use of the Internet to conduct business transactions.
Chargebacks
This is a fee the service levels on you for any of a variety of problems related to the sale
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
strategy
the ideas and actions that explain how a firm will make its profit
Boom
A type of life cycle growth stage marked by a very rapid increase in sales in a relatively short time.
Shake-out
A type of life cycle stage following a boom in which there is a rapid decrease in the number of firms in an industry.
Differentiation Strategy
A type of generic strategy aimed at clarifying how one product is unlike another in a mass market.
New Entrant Business
A firm whose product or service is established elsewhere, but is new to this market.
Pioneering Business
A firm whose product or service is new to the industry or is itself creating a new industry.
Sponsored Link
A form of paid advertising that gets your company's Web site at the top of a search list.
Search engine optimization
A general approach to Web site design intended to result in the site being displayed toward the beginning of a search engine's (e.g., Google, Yahoo!, etc.) listing for that term.
Cost Strategy
A generic strategy aimed at mass markets in which a firm offers a combination of cost benefits that appeals to the customer.
Focus Strategy
A generic strategy that targets a portion of the market, called a segment or niche .
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 Talks in terms of how it will make a difference in for the customer or the industry
Industry Analysis
A research process that provides the entrepreneur with key information about the industry, such as its current situation and trends.
Private Placement Memo
A specialized legal form of business plan crafted by lawyers for the purpose of soliciting formal investments.
Informational Web Sites
An Internet site designed to introduce and explain a business to others.
Proof of Concept Website
An Internet-based type of business plan providing information or demonstration of a product or service designed to solicit information on customer interest.
Network Marketing
An approach to selling in which the salesperson recruits customers to become distributors of the product or service to others.
Rare Resource
An asset, capability, organizational process, information, or knowledge that is not generally available to competitors.
Valuable Resource
An asset, capability, organizational process, information, or knowledge that lets a firm take advantage of opportunities or lock out competitors.
Reverse Auction
An auction in which the low bid gets the business or wins.
Parallel Competition
An imitative business that competes locally with others in the same industry.
Growth Stage
An industry life cycle stage in which customer purchases increase at a dramatic rate.
Entry Wedge
An opportunity that makes it possible for a new business to gain a foothold in a market.
Retrenchment
An organizational life cycle stage in which established firms must find new approaches to improve the business and its chances for survival.
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.
Imitative Strategy
An overall strategic approach in which the entrepreneur does more or less what others are already doing.
Trade name franchising
agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks
Informational Plans
Give potential customers or suppliers information about the company and its product or service.
Zoning Laws
Government specifications for acceptable use of land and buildings in particular areas.
Payment
Most online transactions use a credit card or an online payment system like PayPal.
Variance
Permission from a government organization to act differently that the laws state.
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.
Test Marketing
Selling your product or service in a limited area, for a limited time.
Net Realizable value
The amount for which an asset will sell, less the costs of selling.
Strategic Direction
The conceptualization of how a business might best move in response to the findings of a SWOT analysis—Flaunt, Fix, Fight, Flee, Find, or Fire-up.
Replacement Value
The cost to acquire an essentially identical asset.
Book Value
The difference between the original acquisition cost and the amount of accumulated depreciation.
Degree of Similarity
The extent to which a product or service is like another.
External Legitimacy
The extent to which a small business is taken for granted, accepted, or treated as viable by organizations or people outside the small business or the owner's family.
Industry
The general name for the line of product or service being sold, or the firms in that line of business
Permanence
The impression of long-term continuity a business gives others.
Introduction Stage
The life cycle stage in which the product or service is being invented and initially developed.
Covenant
The limitations imposed on your property by your neighborhood group.
Competitive Advantage
The particular way a firm implements customer benefits that keeps the firm ahead of other firms in the industry or market.
Pure Innovation
The process of creating new products or services, which results in a previously unseen product or service.
SCAMPER
a creativity tool that provides cues to trigger breakthrough thinking; the letters stand for...
Opportunity Recognition
searching and capturing new ideas that lead to business opportunities involves creative thinking that leads to discovery of new and useful ideas
scale
size of the market
Bootstrapping
using low-cost or free techniques to minimize your cost of doing business
Moonlighting
working on your own part-time after your regular job