Unit 2

Minimum viable product

A concept central to lean business practices where you make a minimum product, but one that can be sold. By selling to customers and collecting feedback, an entrepreneur can develop a product at minimum cost

Lean business practices

application where rapid experimentation and constant monitoring of viewers choices are possible

Bootstrapping

using low-cost or free techniques to minimize your cost of doing business

Trade name franchising

an agreement that provides to the franchisee only the rights to use the franchisor's trade name and/or trademarks

Accelerator

an organization that supports start-up technology businesses by providing inexpensive office space, a variety of support services, and resources; most accelerators are associated with universities

Bricolage

the process of analyzing the resources available and creating a product or service from them

Effectual reasoning

A logical process in which one analyzes the resources available and restraints on the use of resources to create an attainable goal.

Start up

A new business that is started from scratch

Strategic partnerships

Formal or informal relationships with customers, vendors, or mentors to ensure the success of an entrepreneurial venture.

Founders

People who create or start new businesses

Asset

Something the business owns that is expected to have economic value in the future

Affordable loss

The minimum possible expenditure of capital and other resources in order to bring an entrepreneurial idea to market.

Causal (predictive) reasoning

The process of setting a goal and then determining the strategy and resources required to attain the goal

spin-off

a business that is created by separating part of an operating business into a separate entity

Revolving credit

a credit agreement that allows the borrower to pay all or part of the balance at any time; as the loan balance is paid off, it becomes available to be borrowed again

Business format franchising

An agreement that provides a complete business format, including trade name, operational procedures, marketing, products, or services to sell

Franchise

a prepackaged business bought, rented, or leased from a company called a franchisor