Entrepreneurship exam 2
Feasibility studies consist of careful investigation of five primary areas:
1. the overall business idea 2. the product/service 3. the industry and market 4. financial projections (profitability) 5. the plan for future action.
Avoid Pitfalls
1.Identifying the wrong problem 2. Judging ideas too quickly 3. Stopping with the first good idea 4. Failing to act 5. Obeying rules that don't exist
Caveat emptor
A Latin expression which means "let the buyer beware" which has been made into a philosophy sometimes used by businesses to put the burden for consumer protection onto the customer
General environment
A part of the external environment made up of sectors of major forces that shape the people and institutions of the task and internal environments, such as the economic sector or the demographic sector
Task environment
A part of the external environment made up of those components that the firm deals with directly such as customers, suppliers, consultants, media, interest groups, and the like.
Conflict of interest
A situation in which a person faces two or more competing standards or goals.
Entrepreneurial ecosystem
A specific configuration of the environment that reflects the components that are most central to developing a strong and active community of startup businesses. 9 The components are entrepreneurs, government, universities, investors, service people, mentors, and large organizations.
BATNA
An acronym for "Best Alternative to a Negotiated Settlement" in which the second-best outcome is identified by the parties in a negotiation to help clarify the value of achieving a successful negotiation.
Success Factors for Part-time Businesses
Boundary:separating and balancing business and home ,Time management , Use a to-do list , Prioritize, Keep it in its own space (home based)
Five Skills for Managing Relations with the Environment
Building legitimacy, Developing a social network, Handling a crisis, Achieving sustainability, and Making ethical decisions
Social capital
Characteristics of a business, such as trust, consistency, and networks, that represent potential social obligations that are assets of the firm or entrepreneur.
Outsourcing
Contracting with people or companies outside your business to do work for your business.
Poisoning the well
Creating a negative impression among your employers' customers.
home-based business #2
Home-based business meets at least two of the three criteria for start-up
Time to start-up
How long it takes to start a new business.
home-based business #3
It is inexpensive, since you are already living somewhere and you can get your business going where you live.
Universalism
Suggests that there is a code of right and wrong that everyone can see and follow
Cannibalizing
Taking business away from your employer
Mutuality
The action of each person helping another
Cost to start-up
The amount of money it takes to start a new business.
Delegation
The assignment of work to others over whom you have power.
External environment
The forces, institutions and people (i.e., the rest of the world) outside the boundary of the firm.
Internal environment
The people and groups within the boundary of a firm, including the owners, managers, employees, and board members of the firm
Environment
The sum total of forces outside of the entrepreneur and the firm.
Home-based Business
There were about 9.0 million home-based businesses in the United States in 2012, and they represented 33 percent of all firms.
Bootstrapping
Using low-cost or free techniques to minimize your cost of doing business
Moving from Part-time to Full-time
Wait until there is a solid income, Make use of any transition services offered by the former employer ,Recognize that initially, you will spend all your time running and marketing the business
SCAMPER
a creativity tool that provides cues to trigger new ideas for your business
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
Ethics
a system of values that people consider in determining whether actions are right or wrong
Business models
a way to identify and organize key information on a business and how it achieves its goals. Can be analytic tools (like a business model canvas) or a way to do business (like the "razor and blade" business model).
Organizational identity
composed of the name, description, and distinctive elements of a firm, such as trademarks, uniforms, logos, characters and stories. part of the BRIE model
Aggrandizing
making your business or yourself seem more accomplished than it is
Target market
refers to the group of customers in the area you plan to serve who would be likely to be interested in your product, or those of competitors. can refer to individuals or market groups called segments. 9 also called serviceable obtainable market, or SOM
Opportunity recognition
searching and capturing new ideas that lead to business opportunities. involves creative thinking that leads to discovery of new and useful ideas
Golden Rule
suggests you treat others in the manner you wish to be treated
Utilitarianism
supports seeking the greatest good for the greatest number of people
Networking
Interacting with others in order to build relationships useful to a business
External relations
The general description for the processes and skills used in the management of a firm's interactions with people, organizations and institutions outside of its boundary.
Permanence
The impression of long-term continuity a business gives others.
Covenants
The limitations imposed on your property by your neighborhood group.
Imitative strategy
an overall strategic approach in which the entrepreneur does more or less what others are already doing
Zoning laws
Government specifications for acceptable use of land and buildings in particular areas.
Networking Skills
Know who you are Know whom you want and why Buddy up Bone up on the small talk Do not forget why you're here Make the connection Follow up
Developing a Social Network
Make it easy for people to contact you, Take the initiative to ask others on the network to link with you, Find and link up with network mavens, Keep at it—successful online networking requires consistent involvement
Ethical Dilemma
a situation that occurs when a person's values are in conflict, making it unclear whether a particular decision is the right thing to do
Billboard principle
asks whether someone would be comfortable having his decision and name advertised on a billboard for the public to see.
Moonlighting
working on your own part-time after your regular job
Legitimacy
the belief that a firm is worthy of consideration or doing business with because of the impressions or opinions of customers, suppliers, investors, or competitors 9 Based on people, product, or organization
Social network
the entrepreneur's set of relationships and contacts with individuals and institutions 9 way to work trust, reciprocity, and long-term relationships into your day-to-day business operations
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
Incremental strategy
taking an idea and offering a way to do something better than it is done presently