Chapter 12

The patronage model

In this model, financial support is given by backers without any expectation of a direct return for their donation

Crowdsourcing

Involves using the internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people.

Cash in Cash out Overall cash needs

It is important to pay attention to: Cash in Cash out Overall cash needs

Bootstrapping

Process of building or starting a business with very little funding or capital

Crowdfunding

Process of raising capital for a new venture from a large audience is called

Do no fund raise until you are positive the business will succeed

The chapter suggests all of these ideas for succesful crowdfunding except: Make sure the product solves a real problem Do not fundraise until you are positive the business will succeed Test and refine the idea Be prepared

Pursue as much professional development as possible

This is not a suggested "penny pinching" bootstrapping strategy.

Reflect on your desired impact on the world Start with the means at hand Describe the idea today

Which of the following is one of the eight components of the practice of entrepreneurship? Reflect on your desired impact on the world Start with the means at hand Describe the idea today

False

Crowdfunding is often avoided by entrepreneurs due to unexpected costs. T/F

True

Crowdfunding is such a recent phenomenon that very little research on it has been conducted. T/F