chapter 4 entree

SCAMPER- a tool used to trigger new ideas for your business

Substitute Combine Adapt Magnify or Modify Put to other uses Eliminate Rearrange

freemium

an approach to pricing, and a business model, that connects free and premium products or services

retail arbitrage

approach to business where the entrepreneur buys something at a low price and resells it at a price closer to retail price

customer segment

group of potential purchases

target market

individuals or market groups called segments

license

legal agreement granting you rights to use a particular piece of property

causal model of entrepreneurship

one of two approaches to thinking about entrepreneurship/ creating a service that does not yet exist

gain

outcome that customers would like to encounter or be able to depend on

royalty

payment to a licensor based on the number or value of licensed items sold

conversion rate

people who click on your online advertisement

pain

problem, annoyance, or suboptimal situation customers or potential customers face

creativity

producing an idea or opportunity that is novel and useful

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently

opportunity recognition

searching new ideas that lead to business opportunites

entrepreneurial alertness

set of observational and thinking skills that help entrepreneurs identify good opportunities

imitative strategy

strategic approach in which the entrepreneur does more or less what others are already doing

Licensee

the person or firm which is obtaining the rights to use a particular piece of intellectual property

Licensor

the person or organization that is offering the rights to use a particular piece of intellectual property

business model

way to identify and organize key info on a business and how it achieves its goals

pilot test

way to test the fit of a solution and value proposition to the customers using a low-cost, low-risk approach

incremental strategy

taking an idea and offering a way to do something slightly better than it is done presently

customer job

term given to what a potential customer is trying to do

A/B testing

way to check customer reaction to websites describing your product or service

feasibility

which an idea is viable and realistic and the extent to which you are aware of internal and external forces

IDEO screen

-conducting a fast initial analysis of an idea for their potential -fast and simple 1. Market Desirability 2. Technical Feasibility 3. Business Viability