Saunders Entrepreneurship Midterm

True or false: The only way to begin an entrepreneurial journey is to start with a clear vision or idea for a new product or service.

False

Notes, observations, pictures and ideas are all considered ways to keep track of potential activities in a(n) __________.

Opportunity notebook

The entrepreneurship process is generally considered to begin with __________.

Opportunity recognition

All businesses need just three things. They are:

Something to sell, someone to buy, and a viable model to facilitate buying and selling.

offering distinct and desirable benefits to customers that set an offering apart from the competition

Unique Value Proposition

What are the three phases of the ideation (or design thinking) process?

understand, imagine, iterate (or refine)

Company X makes a new product called a Xenu. Each Xenu the company makes costs them $10 and they sell each Xenu for $25. What is the company's unit margin?

$15

New venture Narrative

-the problem you're solving -the customers/beneficiaries who have the problem -how you are solving the problem (i.e., a description of your product/service) -why your solution is different and better than existing alternatives (i.e., its unique value) -the basic economics underlying how you will make money (or sustain your social venture) -the collective means of your team members for pursuing the venture -any evidence you've gathered to show you're on the right track (and have started to gain customer-problem-solution traction)

To setup her luxury auto parts business, Danielle spent $25,000 to rent a warehouse and buy office furniture, computers and other essentials. She also plans to pay herself a $75,000 annual salary (including benefits). Assuming that Danielle's average unit margin on each part she sells is $50, how many parts will she need to sell to at least breakeven?

2000 parts

According to the video, which of the following is considered part of the domain of entrepreneurship?

All of the above

picking an idea that shows the most promise

Convergent Thinking

Pivot

Change an element of your customer‐problem‐solution hypothesis or business model based on learning

something that you see needs to be fixed, something that you can explore a solution to

Consequential Problems

Persist

Continue to systematically de‐risk your business model through customer discovery research

Brainstorming, coming up with ideas/ solutions without judging the quality of them.

Divergent Thinking

When determining the "economics of the opportunity", all of the following are important questions to consider, EXCEPT:

Do you care enough about the opportunity?

The overview and video discussed what it means to be an entrepreneur and stated that entrepreneurs are all of the following EXCEPT:

Effective Managers

A logic of thinking that uniquely serves entrepreneurs in starting businesses, Provides a way to control a future that is inherently unpredictable

Effectual Thinking

pay attention to the world around you and try to be intentional when making even the most routine decisions. Repetition is the key to developing new habits of mind.

Entrepreneurial Mindset

a consequential problem that you can solve using your current and attainable means.

Entrepreneurial Opportunity

Pursuing the creation, delivery, and capture of value from new ideas.

Entrepreneurship

gathering evidence to systematically de‐risk your novel model during search and optimize/continuously refine your model during execution

Evidence-based Entrepreneurship

For any entrepreneur, all consequential problems represent great opportunities.

False

MVP stands for

Minimum Viable Product

way of writing down ideas that could positively influence a new business venture or idea

Opportunity Notebook

Perish

Pulling the plug on your idea and moving on to the next (a worthwhile failure)

What is Horn Entrepreneurship's preferred definition of entrepreneurship?

Pursuing the creation, delivery and capture of value from new ideas.

Sarah knows she wants to live near the beach no matter what she does in her life professionally. When attempting to select her best opportunity for where to live, she would need to add this to her list of __________.

Screening Criteria

Underpricing your product by just 1% can reduce operating profits by 5% (or more).

True

True or False: According to the video, everyone benefit from learning to be entrepreneurial and developing entrepreneurial knowledge and skills

True

To develop a successful entrepreneurial venture, you need to

Value Creation Hypothesis

In the book Traction, the bullseye refers to

a method for identifying your most successful traction channel.

Ideation is a fancy word with a simple meaning. It refers to:

a process of forming and developing ideas

According to the ideate mixtape reading, all of the following are rules for brainstorming EXCEPT:

go for quality

Sam is very excited because she woke up this morning with an idea for a new product she can make and sell. Assuming she comes to you for advice, what should you recommend that she do next?

take time really understand the problem her idea would solve and the related opportunity