ENBF 7-11 Study Guide

STUDY GUIDES

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The experimentation template

1. Focus on all types of stakeholders: customers, partners, suppliers, distributors, even real estate agents. 2. Ask lots of questions. Remember, every question you have about your idea is fertile ground for an experiment. 3. Think like a scientist, but don't act like a scientist. In other words, it's important to think through your hypothesis, what you want to test, and how you are going to test, but don't get bogged down in the rigor. 4. Keep track of your data. You may think a piece of information is not important, but it is essential to keep track of everything. 5. Keep track of your data. You may think a piece of information is not important, but it is essential to keep track of everything. 6. Keep your experiments low cost and quick, and use them to shape and improve ideas. 7. Don't just talk with stakeholders—interact with them. 8. Don't ignore data just because you don't like what they're telling you.

Resources for building and maintaining networks

1. Meetup groups 2. Incubators and Accelerators 3. Networking Events Mentor Two-way street. Quid pro quo (something that is given or done in return for something) strategy is often used by networkers to initiate a business relationship

Networking to build your founding team. What to look for in a cofounder:

1. Possess the right skills. 2. Take a hands-on approach. 3. Use positive problem solving: problems not as obstacles but as challenges. 4. Leave ego at the door. 5. Share similar attitudes toward values, goals, and risk. 6. Care deeply.

Interviewing for customer feedback

1. The use of some type of prototype 2. Asking users their opinion of the product or service 3. Determining whether there is value for the user in the use of the product or service 4. Identifying ways to make the product better 5. Determining whether you are targeting the correct customers

Which of the following is an argument AGAINST writing a business plan?

A business plan is a document that is out of date once created, and based on assumptions and financial projections of questionable validity.

______ consists of 10 to 20 slides, depending on length and purpose of the presentation, with the goals of getting to the next meeting with a potential investor, applying to an incubator program, winning a competition, and/or getting funding,

A pitch deck

What is the best definition of cognitive comprehensiveness?

A process in which team members examine critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of actions.

Which of the following is a tip for networking?

Ask good questions.

Which of the following is accurate with respect to entrepreneurial failure?

Before entrepreneurs are able to move forward or even start their business, they must first overcome their fear of failure.

Which of the following is accurate when it comes to social capital?

Bonds that are too strong can have a negative impact on society.

______ is a type of visual plan that identifies any gaps in the business idea and integrates the various components of the idea.

Business model canvas

______ means working tirelessly in the face of challenges and toward the achievement of long-term goals.

Conscientiousness

______ enables you attract early customers and allows you to test your ideas at very little cost.

Crowdfunding

______ is the process of raising capital for a new venture from a large audience, typically through the Internet.

Crowdfunding

______ is an important strength for many entrepreneurs because experimenting, prototyping, hypothesizing and interviewing would often never come to fruition without it.

Curiosity

Research carried out into the impact of entrepreneurial failure has shown which of the following?

Entrepreneurs who experience the loss of a business can suffer symptoms similar to grief.

______ is related to resilience and is the quality that enables people to work hard and sustain interest in their "long term goals."

Grit

______ teams feature members who possess the same or similar characteristics.

Homogeneous

______ is/are paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you.

Impression management

Entrepreneurial failure can provoke an emotional reaction or an anti-failure bias which does which of the following?

Inhibits entrepreneurs from learning from their experiences.

______ take(s) place when experimentation is deemed necessary in order to find answers in situations that have never been explored before.

Intelligent failures

Types of experiments

Interview Paper Testing Button to Nowhere Landing Page Prototype Preselling Concierge and Wizard of Oz Live Product and Business

Which of the following is considered to be an advantage of crowdfunding?

It can provide you with an idea of the level of enthusiasm and interest in your product or service before launch.

Which of the following is true about business plans?

It is important to consider the purpose of the business plan before writing it.

Manny's Cookies, LLC wants to launch a Kickstarter Campaign to crowdfund a new product line. All backers who fund the project will receive 1% equity for each US$1000 funded, up to a total of 5% equity. Kickstarter has told Manny's Cookies the project will not be allowed because it violated the Kickstarter rules. Which rule was violated?

Kickstarter does not allow monetary rewards or equity in a company as incentive to back a project.

______ is a factor leading to failure whereby the entrepreneur is overextended and does not have the skillset to get the job done.

Lack of ability

Which of the following is true about crowdsourcing?

Like crowdfunding, crowdsourcing is a form of bootstrapping, because it is a valuable method of saving money.

Which of the following is true when it comes to maintaining your networking?

Maintaining a network through interaction can take the form of tweeting a useful piece of information to your network.

Which of the following is true when it comes to failure?

Many entrepreneurs see failure as the path by which individuals travel to develop into entrepreneurs.

______ is a two-way game; it's a targeted search, with a philosophy of contributing, giving value, sharing and exchanging information, and interacting with people.

Networking

Which of the following is true about networking?

Networking generally involves a quid pro quo strategy.

Which of the following is a common crowdfunding mistake?

Not having enough presence on social media, limiting your exposure to potential backers.

Which of the following is a common bootstrapping strategy?

Offer discounts to early customers to ensure a consistent cash flow.

______ is the commitment to long-term goals through purposeful deliberate practice.

Perseverance

______ is a testing technique where you try to book orders for your product before it has been developed.

Preselling

Which of the following is true about the type of people who tend to back crowdfunding campaigns?

Project backers tend to have an annual income over US$100,000.

______ are people who choose to be involved with a venture in order to connect entrepreneurs with resources in an effort to steer the venture in the right direction

Self-selected stakeholders

______ refers to our personal social networks populated with people who willingly cooperate, exchange information, and building trusting relationships with each other.

Social capital

Which of the following is an argument FOR writing a business plan?

Spending 200 hours to write a comprehensive business plan, at an opportunity cost of US$10,000 is financially prudent compared to launching a poor idea and/or unproven concept.

The TRIM framework is a planning tool that identifies which of the following categories?

Team, Resources, Idea, Market

The power & value of networks

The best networks can provide entrepreneurs with access to external sources of information, financing, emotional support, and expertise, and they allow for mutual learning and information exchange. Social capital, on the other hand, is our source for ideas, support, reputation, new knowledge, and resources. Structural dimension: social ties you may or may not have. Relational dimension: what your contacts represent, such as a trusting relationship. Cognitive dimension: the norms, visions, values, interpretations, and beliefs you may share with others, which provide a good foundation for working well together toward a common goal.

Which of the following is the best definition of bootstrapping?

The process of building or starting a business with very little funding or capital or virtually nothing at all.

What is the purpose of bootstrapping?

To save money in creative ways.

______ is a factor leading to failure whereby the entrepreneur makes poor decisions due to lack of clarity about future events.

Uncertainty

______ challenges the entrepreneur to imagine what a business could be three years into the future, as three years is a reasonable amount of time to "nail down" specific, measurable goals.

Vivid vision

During the ______ test, the customer thinks they are interfacing with the real product, but it is actually you behind the scenes manually providing the service.

Wizard of Oz

Heterogeneous team

a group of people with a mix of knowledge, skills, and experience.

Founding team

a group of people with complementary skills and a shared sense of commitment coming together in founding an enterprise to build and grow the company.

Homogenous team

a group of people with the same or similar characteristics such as age, gender, ethnicity, experience, and educational background.

Experiment

a method used to prove or disprove the validity of an idea or hypothesis.

Groupthink

a phenomenon in which people share too similar a mindset, which inhibits their ability to spot gaps or errors.

From an entrepreneurial perspective, ______ is a description of the future you envision for your business.

a plan

Bundled pricing

a pricing strategy whereby companies package a set of goods or services together and then sell them for a lower price than if they were to be sold separately.

Cognitive comprehensiveness

a process in which team members examine critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of action.

Pilot experiment

a small-scale study conducted to assess the feasibility of a product or service.

MVP (minimum viable product)

a version of a new product that allows a team to collect the maximum amount of validated learning about customers with the least effort.

Hypothesis

an assumption that is tested through research and experimentation.

Storyboard

an easy form of prototyping that provides a high-level view of thoughts and ideas arranged in sequence in the form of drawings, sketches, or illustrations.

The first of six steps in the scientific process of experimentation is ______.

asking lots of questions

Which of the following tips includes the idea that, whenever possible, you should back up your projections with examples to show investors that you are at least in the right ballpark?

avoid the exaggerated hockey stick

Which tip listed in the text to help build your curiosity strengths includes asking questions and listening to responses, avoiding being judgmental, encouraging others to ask questions, and avoiding playing the expert in the room?

be a curiosity ambassador

Which of the following tips encompasses the idea that everything in a business plan should be based in fact, or well-researched assumptions?

be realistic

To build a ______, firm founders need to clearly communicate what sorts of failure are acceptable and unacceptable.

blame-free culture

Deviance is a ______ failure where an entrepreneur violates legal and ethical boundaries leading to the mismanagement of the venture.

blameworthy

A ______ is a 2- to 3-page typed document that is well formatted and professional looking; its purpose is to have something in writing to show anybody interested in the business.

business brief

One of the most important parts of an experiment is ______.

customer engagement in your product or service

What dimension of curiosity is defined by recognizing a gap in knowledge, the frustration this brings, and the determination to fill it?

deprivation sensitivity

Crowdcube, Circle Up, and OurCrowd are examples of what type of crowdfunding site?

equity crowdfunding

Value in ______ is what the service is offered at a competitive price. Value in ______ focuses on the availability and accessibility of the product.

exchange; distribution

A(n) ______ is a planning tool that allows entrepreneurs to test the possibilities of an initial idea to see if it is worth pursuing.

feasibility study

A(n) ______ is a group of people with complementary skills and a shared sense of commitment coming together in starting an enterprise to build and grow the company.

founding team

Advertising revenue model

generating revenue by advertising products and services.

A ______ prototype is a more sophisticated version of a mockup that has enough functionality to allow users to really interact with the product or service.

high-fidelity

A(n) ______ is an assumption that is tested through research and experimentation.

hypothesis

A(n) ______ is an organization that helps early-stage entrepreneurs to refine an idea while also providing access to additional networks.

incubator

Because experimentation is about trying things, seeing what happens and learning from it, failure might be better termed ______.

intentional iteration

In the ______ model of crowdfunding, funds are offered with the expectation the money will be repaid.

lending

There are three main varieties of social capital. Which of the following is one of those varieties?

linkages

The ______ element of the TRIM framework answers questions like, "Who is your primary customer?", "What are your customers willing to pay?", and "How will you reach your customers, and how will they hear and learn about your about your product/service?"

market

In the ______ model of crowdfunding, funds are offered without the expectation of a direct return for the funding.

patronage

Impression management

paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you.

Social capital

personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other.

A small-scale study conducted to assess the feasibility of a product or service is a ______.

pilot experiment

All entrepreneurs experience small "fails" that require a quick reaction and sometimes a change in direction known as a ______.

pivot

The text specifies three main advantages to networks. Which of the following is one of these advantages?

private information

The ______ element of the TRIM framework answers questions like, "What are your startup costs?", "What do you currently have that you can use to get started?", and "What assets are needed to start?"

resources

Kickstarter is an example of a crowdfunding site in the ______ model.

reward-based

An entrepreneur should avoid ______ by being strategic about pursuing opportunities, and to understand how to identify the right opportunity at the right time, rather than pursuing multiple opportunities that happen to come one's way.

shiny object syndrome

What dimension of curiosity is when one enjoys the process of learning about others by talking, listening, and observing?

social curiosity

Customers, partners, suppliers, distributors, and even real estate agents with whom you should interact when generating data and experimenting are called ______.

stakeholders

A(n) ______ provides you with a better understanding of your own idea and how it interacts with customers. It is a way of compiling your thoughts and ideas into one visual, easy-to-understand, logical document or set of documents.

storyboard

The increase in value or ownership interest created as a result of hard work is called ______.

sweat equity

Linkages

the connections to people or groups regardless of their position in an organization, society, or other community.

Bonds

the connections with family, friends, and others who have a similar cultural background or ethnicity.

Bridges

the links that go further than simply sharing a sense of identity; for example, making connections with distant friends or colleagues who may have different backgrounds, cultures, and so on.

Self-selected stakeholders

the people who "self-select" into a venture in order to connect entrepreneurs with resources in an effort to steer the venture in the right direction.

Brokers

the people who organize transactions between buyers and sellers.

A business plan should indicate that you ______, demonstrating that you know how your product or service will be delivered to your target customers.

understand your distribution channels

Using Internet sites like Twitter, LinkedIn, YouTube, Facebook and Instagram to connect with people who are experts in the field, potential stakeholders or fellow entrepreneurs is referred to as ______.

virtual networking