ENTP 250

RBI screen

"Really Big Idea" -a fast technique for making initial assessments of prospective business ideas based on five questions PEOPLE: Who are you? OFFERING: What are you offering? CUSTOMER: Who are you offering to? VALUE PROP: Why do they care? DISTINCTIVE COMPETENCIES: Do you have any key or core science/technology or feature?

elevator pitch

A 30-second action-oriented description of a business designed to sell the idea of the business to another

focus group

A form of data gathering from a small group led by a moderator.

Serviceable obtainable market (SOM)

A marketing term (also called the target market) that represents the customers that a firm expects to be interested in its particular product or service, and able to be serviced by the firm.

Total Available Market (TAM)

A marketing term that refers to all of the people or organizations (in one nation, region, or the world) who might consider a product or service being offered.

Serviceable available market (SAM)

A marketing term that refers to the customers within the geographic reach of a firm.

heterogeneity

A quality of a service in which each time it is provided it will be slightly different from the previous time.

Inseparability

A quality of a service in which the service being done cannot be disconnected from the provider of the service.

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.

tax accounting

An accounting approach based on specific accounting requirements set by governmental taxing agencies.

Primary Research

An approach to researching based on the gathering of new information, using techniques such as interviewing, surveying, and observation.

revenue

An increase in owners equity caused by selling your product or service. .income

tangibility

An item's capability of being touched, seen, tasted, or felt

Accounting Equation

Assets = Liabilities + Owner's Equity

feasibility study

Feasibility studies consist of careful investigation of five primary areas: the overall business idea the product/service the industry and market financial projections (profitability) the plan for future action.

causal model of entrepreneurship

One in which you wan to create a particular product or service that does not yet exist and to achieve that end, you have to cause the product or service to exist. This can mean you will have to learn new skills, or find others to help you achieve your end. Feel, check, plan, do

Opportunity recognition

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

product development

The procedure to organize and pursue the creation of new goods or services.

Market Segmentation

The process of dividing the market into groups of customers with different needs, wants, or characteristics

marketing funnel

The rule of thumb in marketing that it takes a large number of people to be made aware of your product in order to find a purchaser.

variable costs

Those costs that change with each unit produced, for example, raw materials.

Sources of New Business Ideas

Work and personal experience A similar business (seeing something and copying it) Chance (right place right time) Family and friends (someone has a great idea) Education or expertise (applying what you've learned in school or developed on your own) Idea sites

expense

a decrease in owner's equity caused by consuming

customer segment

a group of customers with common needs, common behaviors, or other attributes

Depreciation

a lessening in value

The business plan Cover letter

a one page document that introduces the business plan and business owner to the recipient. Aka letterhead

Pilot test

a preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have.

vision statement

a short statement that describes the firm's ideas and goals

Mission Statement

a statement that show's the firms purpose or what they plan to fulfill.

Business models

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

Managerial Accounting

accounting used to provide information and analyses to managers inside the organization to assist them in decision making

Freemium

an approach to pricing, and a business model, that connects free and premium products or services. Typically a free version is offered and users have the option to pay to move up to premium features.

Imitative strategy

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

gain

any sort of outcome customers or potential customers would like to encounter

Pain

any sort of problem, annoyance, aggravation, shortcoming that customers or potential customers may face

core product

basic description of what a product is

value proposition

benefits, selling points

business plan title page

company name, company info,

Business Entity

concept that a business has an existence separate from that of its owners

fixed costs

costs that remain constant as output changes. Rent

License

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

Gross Margin

net sales - cogs

Royalty

payment based on the number or value of licensed items sold

target market

refers to the group of customers in your area you plan to serve who would likely be interested in your product

radical innovation strategy

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

secondary research

researching based on information that is alreayd known

Financial Accounting

rule based set of accounting principles and procedures intended for use by outside owners, banks, investors

Value Propsition

selling points that customers may expect from your good or service AKA benefits

tagline

slogan, catchphrase

incremental strategy

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

penetrated market

the actual number of customers of an operating firm, divided by the size of the target market, which gives a percentage of the market the firm (or product/service) has attained so far.

augmented product

the actual product plus other supporting features to differentiate from the competition

net profit

the amount of money left after all expenses have been paid

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

Perishibility

the inability of services to be stored or saved for later

Gross Profit

the money it has left after paying for the goods and services it sold.

breakeven point

the point at which total costs = gross revenue

customer development

the procedure to organize and pursue the finding, obtaining and keeping of customers