Entrepreneurship

List the seven lesser-known truths about entrepreneurship

(1) entrepreneurship is not reserved for startups; (2) entrepreneurs do not have a special set of personality traits; (3) entrepreneurship can be taught and it is a method that requires practice; (4) entrepreneurs are not extreme risk takers; (5) entrepreneurs collaborate more than they compete; (6) entrepreneurs act more than they plan; (7) entrepreneurship is a life skill.

9 components of the Business Model Canvas.

(1) value proposition. Customers relate to (2) customer segments, (3) channels (4) customer relationships. Infrastructure includes (5)key activities, (6) key resources (7) key partners. Financial viability includes (8) cost structure (9) revenue streams.

Task Completion

(also known as usability testing) involves watching someone using your product to understand what works and what doesn't.

Corporate entrepreneurship

(or intrapreneurship) is entrepreneurship within large corporations.

Early adopters (next 13.5% of customers)

- 2nd group to adopt a product - usually influential people from business or government

Principles of Entrepreneurial Thinking

- Bird in Hand Principle - Affordable Loss Principle - Lemonade Principle - Crazy-Quilt Principle - Pilot in the Plane Principle

IDEO's Three Phases of Design Thinking

- Divergence Inspiration(empathize) whats the problem? - Ideation (Create) How might we solve the problem? - Convergence Implementation (test) how can we make it better?

Experiments most commonly uses

- Interview - Paper Testing - Advertising - Button to Nowhere - Landing Page - Task Completion - Prototyping - Preselling - Concierge & Wizard of Oz - Live Product & Business

Different types of prototypes

- MVP - Rapid Prototypes - Mock-up Prototype - High Fidelity Prototype - LEGO Prototypes - Role-Playing - Wizard of Oz Prototypes - User-Driven Prototypes - Pilots & Prototypes - Storyboards

7 Skills of Designers That Entrepreneurs Should Have

- Observation - Listening - Desire Change - Context & Integration - Solution-drive - Consideration - Unbound

CVP main approaches

- all-benefits focus is on the product - points-of-difference focus on the competition - resonating-focus focus on the customer

right brain thinking

-Big-picture oriented -Presents possibilities -Intuition -Emotional -Synthesizing -Spatial -Nonverbal processing -Drawing -Manipulating objects -Subjective -Creative -Experiential -Symbols -Images -Dreaming

left-brain thinking

-Detail oriented -Forms strategies -Logic -Rational -Analytical -Verbal-Quantitative processing -Talking -Writing -Objective -Linear -Directive -Words -Language -Reasoning

7 Strategies for Idea Generation

1. Analytical strategies 2. Search strategies 3. Imagination-based strategies 4. Habit-breaking strategies 5. Relationship-seeking strategies 6. Development strategies 7. Interpersonal strategies

3 Steps to cross the chasm

1. Create the entire product first 2. Position the product 3. Distribute the product through the right channels

why marketing sizing is important

1. It estimates the number of sales and resulting profits of new products or customer segments. 2. It identifies growth opportunities in different product lines and customer segments. 3. It helps to pinpoint competitive threats and how to develop strategies for those threats. 4. It forces you to think about exit strategies or pivot points in the future. 5. It gives you a sense of market trends and their potential to impact your business in the future. 6. It is important for investors who want to see evidence of a large enough market to justify their investment.

3 factors that define a beachhead market:

1. The customers in that market buy similar products. 2. Those customers have similar expectations of value. 3. The customers use word of mouth to communicate to others in similar regions or professional organizations

8 key of the Entrepreneurship Method

1. identify your desired impact on the world; 2. start with the means at hand; 3. describe the idea today; 4. calculate affordable loss; 5. take small action; 6. network and enroll others in your journey; 7. build on what you learn; 8. and reflect and be honest with yourself.

Benefit Corporation (B Corp)

A form of social entrepreneurship, designates for-profit firms that meet high standards of corporate social responsibility.

Market

A market is a place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand)

Search Pathway

A pathway used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities.

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.

interpersonal strategies

Actions that involve group members generating ideas and building on each other's ideas.

search strategies

Actions that involve using a stimulus to retrieve memories in order to make links or connections based on personal experience that are relevant to the current problem.

Experiments

An experiment is a test designed to help you learn and answer questions related to the feasibility and viability of your venture. Experiments need to have a clear purpose, be achievable, and generate reliable results.

Pilot in the Plane Principle

Control the controllable

Explain how to develop the habit of creativity.

Creativity is defined as the capacity to produce new ideas, insights, or inventions that are unique and of value to others. - Developing the habit of creativity requires engaging in new experiences, making new associations, and letting go of fears and insecurities.

Concierge and Wizard of Oz

During the concierge test, the customer interfaces with the product but the "technology" is going on behind the scenes, while during the Wizard of Oz test, customers think they are interfacing with the real product, but it is actually you behind the scenes manually providing the service.

Identify the 4 core areas of a business model.

Each business model includes an offering, customers, infrastructure financial viability.

Act-Learn-Build

Entrepreneursip aren't extreme risk takers they use Act-Learn-Build

The Worldview

Expert entrepreneurs believe that the future is shaped by people. They believe that if they can make the future happen, they don't need to worry about predicting the future, determining perfect timing to start, or finding the optimal opportunity. - Sarasvathy calls this "effectual logic" which sits opposed to "causal logic" taught to managers in more certain (or predictable) circumstances.

Crazy-Quilt Principle

Form partnerships - Form partnerships with people and organizations willing to make a real commitment to jointly creating the future—product, firm, market—with you. Don't worry so much about competitive analysesand strategic planning.

GRIT

Grit is passion and perseverance for very long-term goals. - building grit "growth mindset"

Empathy Map

Helps integrate interview data into insights by considering: -What did they SAY? -What did they DO? -What might they be THINKing? -FEEL: What emotions do you think they are experiencing?

Design Thinking Phases and Outcomes

Inspiration: Design challenge & user needs Ideation: Potential solution to meet needs Implementation: Prototyping & test solutions

Demonstrate how to interview potential customers in order to better understand their needs.

Interviews should be done for two reasons: (1) to develop a better understanding of user needs during the inspiration phase of design thinking and (2) to get feedback on ideas during the implementation phase. - The interview must be well-prepared, the customer must be listened to and intelligent questions asked, and the interview must be evaluated when it is over.

Lemonade Principle

Leverage contingencies - Embrace surprises that arise from uncertain situations, remaining flexible rather than tethered to existing goals.

self-leadership

Methods to increase self-awareness and manage behaviors particularly when dealing with necessary but unpleasant tasks. These strategies include: self-observation, self-goal setting, self-reward, self-punishment, and self-cueing

Appraise the effectiveness of mindset in entrepreneurship.

Part of the Entrepreneurship Method is having the right mindset (or mental attitude) to start and grow a business. Entrepreneurs who have the right mindset are more likely to persist with ideas and act on potential opportunities.

Early majority (next 34% of customers)

People take interest in a new product as it begins to have mass market appeal. - look for opinion from others

Explain the importance of action and practice in entrepreneurship

Practice and action make it possible to achieve success. Many of the successful entrepreneurs behind major corporations today established their companies by acting, learning, and building what they learned into their next actions. Many entrepreneurs have learned entrepreneurship by doing entrepreneurship

Explain how to develop the habit of self-leadership.

Self-leadership is a process of self-direction that is developed by using behavior strategies, reward strategies, and constructive thought patterns.

Affordable Loss Principle

Set affordable loss - Evaluate opportunities based on whether the downside is acceptable, rather than on the attractiveness of the predicted upside.

Bird in Hand Principle

Start with your means. - Don't wait for the perfect opportunity. Start taking action, based on what you have readily available: who you are, what you know, and who you know.

Explain the importance of the Customer Value Proposition.

The CVP outlines exactly how the firm will generate value, how it will generate it in excess of its competition, and how it will continue to do so in the future. As the true measure of any business is creating value, the true measure of a business model is its customer value proposition.

Distinguish between entrepreneurship as a method and as a process.

The Entrepreneurship Method outlines the tools and practices necessary to take action. Entrepreneurship as a process, instead, guides would-be creators along a thorough but static path from inception to exit.

business model

The business model is the framework for creating and delivering consumer value, while extracting value for the entrepreneur as well.

Compare and contrast the prediction and creation approaches to entrepreneurship.

The two main perspectives on entrepreneurship are the predictive logic, the older and more traditional view; and the creation logic, which has been developed through recent advances in the field. Prediction is the opposite of creation. Whereas prediction thinking is used in situations of certainty, the creation view is used when the future is unpredictable.

Button To Nowhere

This just means that when your users click on the feature, nothing happens. - great way to measure user interest in a new feature

Describe the role of empathy in the design-thinking process.

To create meaningful ideas and innovations, we need to know and care about the people who are using them. Developing our empathic ability enables us to better understand the way people do things and the reasons why; their physical and emotional needs; the way they think and feel; and what is important to them.

Explain the importance of market sizing in growing your customer base.

When it comes to creating market opportunity, investors will want to see that you have thought through three important acronyms that represent different subgroups of the market: TAM, SAM, and SOM.

Market sizing

a method of estimating the number of potential customers and possible revenue or profitability of a product or service.

Find Pathway

a pathway that assumes that opportunities exist independent of entrepreneurs and are waiting to be found.

design pathway

a pathway that can uncover high-value opportunities because the entrepreneur is focusing on unmet needs of customers, specifically latent needs.

Effectuate pathway

a pathway that involves using what you have (skills, knowledge, abilities) to uncover an opportunity that uniquely fits you.

Opportunity

a way of generating profit through unique, novel, or desirable products or services that have not been previously exploited.

Development Strategies

actions that involve enhancing and modifying existing ideas in order to create better alternatives and new possibilities

imagination-based strategies

actions that involve suspending disbelief and dropping constraints in order to create unrealistic states, or fantasies

analytical strategies

actions that involve taking time to think carefully about a problem by breaking it up into parts, or looking at it in a more general way in order to generate ideas about how certain products or services can be improved or made more innovative

habit-breaking strategies

actions that involve techniques that help to break our minds out of mental fixedness in order to bring about creative insights

Protype

an early and often crude version of a product - many different types

Franchising and buy-outs

are popular ways to start relatively near the ground level.

Inside entrepreneurs

are similar to corporate entrepreneurs, but they can be found in any type of organization, large or small, nonprofit or for-profit, and even among governing bodies.

Serial entrepreneurs

are so committed to entrepreneurship that they're constantly on the move creating new businesses.

Late majority

customers are typically skeptical, pessimistic, risk averse, and less affluent than the previous groups.

consumer

customers who actually use a product or service

Business Model: Financial viability

defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations.

The Entrepreneurship Method

designed so entrepreneurs can embrace and confront uncertainty rather than avoid it. - emphasizes smart action over planning.

Family enterprises,

entrepreneurship started within the family,

Interview

fast & inexpensive way to get insights into your idea from your target customers before you begin the experiment.

4 pathways to opportunity identification

find search effectuate design

Crossing the chasm involves:

focusing your resources on a single, primary market first, known as a beachhead market, before winning over that market and then using that momentum to dominate larger markets

Live Product & Business

gathered enough insights and validation to launch your live product and business in the marketplace.

Landing Page

gauge the level of customer response to your business's website is to include a particular call to action such as "click here for more information."

why do we do experiments?

guide us toward which customer opinions to listen to, what important product or service features should take priority, what might please or upset customers, and what should be worked on next. An experiment begins with a hypothesis, which is an assumption that is tested through research and experimentation.

Importance of crossing the chasm gap

important to first identify your specific market segment (the first pin), or beachhead market, and then create a plan to expand from that segment to other segments before finally reaching the broader market

Advertising

involves spreading the word about your business using brochures or social media directed to your relevant target market and assessing the level of response.

Laggards (final 16% of customers)

last to adopt a new innovation. - tend to have a negative attitude toward technology in general & have a strong aversion to change.

High Fidelity Prototype

more sophisticated version of a mock- up that has enough functionality to allow users to really interact with the product or service. - EX: An app that includes customer functions and some animation

Creation

most concerned with acting and collecting new data—real and relevant data—in order to create the future. - only choice under conditions of extreme uncertainty.

relationship-seeking strategies

plans of action that involve consciously making links between concepts or ideas that are not normally associated with each other

Rapid Prototypes

quickly created models used to visualize a product or service. - could be made out of crude paper models or storyboards.

Prediction

requires thinking about and analyzing existing information in order to predict the future - better suited when we can deduce the future from the past

Paper Testing

simple way to outline your vision and to spot any mistakes before the process goes any further. - range of techniques, including wireframe (or blueprint), storyboarding, or drawing the product you envision.

Customer

someone who pays for a product or service.

Preselling

testing technique that involves booking orders for your product before it has been developed

Define "entrepreneurial mindset" and explain its importance to entrepreneurs.

the ability to quickly sense, take action, and get organized under certain conditions. Of the two mindsets proposed by Carol Dweck, the growth mindset represents a fundamental belief that failure is something to build on, and a learning mindset is essential for personal and professional growth.

growth mindset

the assumptions held by people who believe that their abilities can be developed through dedication, effort, and hard work.

fixed mindset

the assumptions held by people who perceive their talents and abilities as set traits

"Chasm"

the biggest difficulty is making the transition between early adopters & the early majority

SOM (Share of Market)

the portion of SAM that your company is realistically likely to reach

Business Model: Infrastructure

the resources (people, technology, products, suppliers, partners, facilities) that an entrepreneur must have in order to deliver the CVP.

SAM (serviceable available market)

the section of the TAM that your product or service intends to target

TAM (Total Available Market)

the total market demand for a product or service.

Innovators (2.5% of customers)

those buyers who want to be the first to have the new product or service

LEGO Prototypes

useful for creating rough, simple prototypes of your ideas

Mock-Up Prototype

usually presented as a 2D or 3D model that looks like the finished product but lacks the right functionality

Business Model: Offering

what you are offering to a particular customer segment, the value generated for those customers, and how you will reach and communicate with them.

The Golden Circle

what, how, why

Social entrepreneurship

—entrepreneurship focused on making the world a better place—is manifested in nonprofit and large, for-profit firms alike.