Training 2

What is a primary benefit of starting a new business without purchasing a franchise or buying an existing business?

developing your own rules

Which of the following is an example of Primary Data?

information collected from a poll of your company facebook followers

focus shifts to revenue, expenses, and growth. cashflow is the major issue

survival of the fittest

expansion strategies are implemented, and investment is balanced with potential

takeoff

Elements of Sales Process Step 3.

approach

Elements of Sales Process Step 6.

closing

high quality products marketed to high-income individuals

premium pricing

A barber charges $20.00 per haircut. The total cost for running his home-based business is $4,000 per month, which includes his salary of $3000 per month. The minimum number of haircuts he must do to cover all of these expenses and his salary is 200 per month. The barber wants to increase his salary to $4000 per month, making his total monthly expenses $5000. What is the minimum price he must charge for each of the 200 haircuts so he can cover this increased salary?

$25

Calculate the customer retention cost Number of customers at start of month= 100 Number of customers at end of month= 120 Number of new customers= 40 Value of free dinners redeemed= $240 What was the customer retention cost?

$3

Initial cash balance $1500 projected revenue based on existing clients $2500 gas $100 equipment maintenance fees $300 truck payment $400 payroll $3000 insurance $120 What is your projected ending cash balance for the month?

$80

Indirect Competition

- a local burger king franchise - mobile fish and chips truck

Direct Competition

- a local taco bell franchise - walk-up Mexican Food stand

Trademarks, trade secrets, copyrights, and patents false

- a patent is used to protect an original work, like music - a copyright is used to protect a company logo

Trademarks, trade secrets, copyrights, and patents true

- a trademark protects a brand name -trade secrets are confidential information which may be sold or licensed

Which two are benefits of using Angel investors to help start a business?

- angels often accept a lower return on investment compared to other sources of equity capital - angel investors typically do not expect to be paid until the business begins making money

Physical businesses

- bakery in your community - hair salon that makes appointments online

Product/Market fit true

- before hypothesizing a solution, first determine if there is a problem worth solving - when users love your product so much they tell other people to use it, you have a product/market fit - a fit exists when people need your product rather than just seeing a potential benefit of using it

Requirements to obtain funding true

- bootstrapping requires the owners of the company to provide all the funding - the business owners personal credit score does not affect their ability to qualify for a loan - equity financing requires a business owner to give up control of the business to obtain funding

which three are online marketing platforms?

- email - google ads - social media

In general, which two characteristics define a "small" business?

- fewer than 1,500 employees - less than $35.5 million revenue

You create a new strategy for lawncare services that involves assessing lawn health, applying the correct herbicides and pesticides and other necessary solutions to quickly bring a lawn back to health. What are three things you will need to consider regarding the mass delivery of your service?

- finding a source of materials to support your service - training employees with the knowledge to consistently deliver the service - creating an effective demonstration of your service for potential customers

Requirements to obtain funding false

- lenders do not require owners to identify the purpose of the loan

You have opened a for-profit adult technical school and you want to advertise it to potential students throughout your state. Which marketing method would be most appropriate?

- local television ad

Start-up costs and operating costs true

- logo and website design are examples of startup costs - operating costs include payroll - building improvements should be calculated into startup costs

A bakery has developed a new artisan bread. The staff are giving away taste samples to customers as they enter the store. What are the two criteria the bakery can use to determine the quality of their new product?

- measure sales of the new bread after customers have sampled it - observe customer reactions while they taste the product

digital businesses

- online store that dropships camping gear - bookstore on amazon that sells ebooks

SWOT analysis false

- opportunities identified in a SWOT analysis are not meant to be actionable - strengths identified in a SWOT analysis are new actions that a business should implement

Selection of distribution channels true

- products that are bulky or large in size are usually sold directly by company to their consumers - technical and complex products are best sold through direct distribution

Which two are segments in a marketing plan?

- psychographic - demographic

You downloaded several of your favorite songs and used them in an ad to promote your product on social media sites. The ad rejected because of the songs you chose. You are told that you violated Fair Use copyright. Which three are factors used to evaluate Fair Use copyright?

- purpose of your use - effect of your use on the potential market of the work copied - amount of the work copied

Your company is manufacturing a new product. What are three things you must do to create establish your Product Quality Control Process?

- review the results of internal quality assurance testing - determine what standards have to be met based on the product and industry - establish the method to use for testing product quality

Selection of distribution channels false

- the geographic location of customers does not require different distribution channels - product price has no effect on the length of a distribution channel

SWOT analysis true

- threats identified in a SWOT analysis are the most difficult to mitigate -acting on weaknesses identified in a SWOT analysis can be challenging but often necessary to grow business

Which three components are characteristic of a pitch deck?

- used to get investors attention - 10-20 slides - highly visual

Which are two characteristics of fulfillment centers differ from direct distribution?

- warehousing is a primary role - fulfillment centers pack and ship for a manufacturer

Which two types of sales channels sell primarily to other businesses?

- wholesale - B2B

You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they cant work at all. You do all the sales for your business. Which two types of compensation would be appropriate for these landscapes employees?

-Salary -Hourly

Design thinking process true

-assumptions are challenged and ideas are created in the ideate phase -the empathize phase tests solutions to users problems -problem statements are written in the define phase

Start-up costs and operating costs false

-business insurance is a start-up cost - operating costs include your down payment on rental property

Sales revenue last year= $350,000 Sales revenue current year= $402,500 What is the sales growth?

15%

A rancher is preparing to retire. He is considering selling half of his land and giving the other half to his children. He hears that development for a ski resort was just approved on land adjacent to his property. Which viable business opportunity does the retiring rancher foresee?

An increase in land value

A __ is a multi-page document describing and detailing a business.

Business plan

You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities. Which legal structure should you set up for your business?

C- Corporation

The highest-ranking employee in the company; reports to the board of directors

CEO

Creates budgets, analyzes financial data, and forecasts company profits

CFO

Develops policies and structures to protect company data

CIO

Oversees the day-to-day administrative functions of a business; second in command

COO

Which tool is most useful in helping customer service support sales strategies?

CRM (customer relationship management)

Which of these is a characteristic of a successful entrepreneur mindset?

Doesn't give up easily

A ___ is a single-page business summary template that was created by Ash Maurya.

Lean Canvas

A slide presentation for potential investors that summarizes of the key items of a business is called a ___

Pitch Deck

current liabilities

bank loans

Design thinking process false

building prototypes is the final phase of the design thinking process

Pair several products together and selling them for less money than each would be individually

bundle pricing

Which is the primary characteristic of all physical and digital sales channels?

closing sales

Prices that targeting customers looking to save as much money as possible

economy pricing

Long-term assets

equipment

the business introduces itself to the market and attempts to catch the attention of potential customers

existence

Which is one of the greatest risks of being an entrepreneur?

financial instability

Elements of Sales Process Step 7.

follow-up

Elements of Sales Process Step 5.

handling objections

Which expense is a variable cost?

hourly wages for an office employee

You have an idea for a new service. Market research suggests the service is needed to solve a problem and will be enthusiastically embraced by customers. What is one of the first steps you must do before offering a new service?

identify knowledge required

current assets

inventory

setting prices low until after a reliable customer base is established, then raising prices

market penetration

The business is separate from the owner with responsibilities delegated to staff. A business in this stage usually commands a considerable share of the market and may even be a household name

maturity

long-term liabilities

mortgage payments

Elements of Sales Process Step 2.

preparation

Elements of Sales Process Step 4.

presentation

setting high prices when a product is introduced and then gradually lowering the price

price skimming

Elements of Sales Process Step 1.

prospecting

Product/Market fit false

startups should develop a growth hypothesis before testing their value hypothesis

Company is stable and profitable

success