38690205
Description
Flashcards by Austin Hammond, updated more than 1 year ago
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Created by Austin Hammond
over 1 year ago
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| Question | Answer |
| Define entrepreneur | From the French word Entreprendre, meaning a person that undertook the risk of new enterprise. |
| Number of new businesses created each year in the economy | 600k - 800k |
| Ratio of new businesses that fail | 8 out of 10 (most within 5 years) |
| Top 3 reasons a business fails | No market need (42%), Ran out of cash (29%), and Not the right team (23%) |
| Four types of entrepreneurs | SLAG: serial, lifestyle, aspiring, and growth |
| Define the 4 types of entrepreneurs | S: moves from one venture to the next; L: develops enterprise around their individual circumstances; A: Have yet to make the leap but hope to be their own boss; G: Has the desire and ability to grow fast and large. |
| Entrepreneurial Traits | Seeks new opportunities, self-discipline, pursues promising options and avoids problematic ones, focuses on adaptive execution, engages the energies of others, and leads by example |
| The Spider Web Model | Managing a start up is analogous to building and maintaining a fragile spider-web which is under continuous attack. |
| Near Neighbor Networks | Each node has a similar characteristic and is connected more or less equally to its neighbors. |
| Scale-Free Networks | Certain nodes have a highly concentrated set of connections. |
| Inter-Network | Type of scale-free network. Entrepreneurs exploit its unique characteristics for finding resources, tackling problems, and creating efficient market entry strategies. |
| 5 stages of getting started | 1. Conduct Opportunity Analysis 2. Develop the plan and set up company 3. Acquire financial partners and funding 4. Determine resources required and implement plan. 5. Scale and harvest the venture (marketing, attract clients, success with product/service) |
| Disruptive Innovation | Also called radical innovation. The change from candles to incandescent lighting. |
| Incremental Innovation | Also called derivative innovation. The change between basic candles to designer candles. |
| Models for Innovation | Analogs: Automated Amazon Reordering- Taking one thing popular in one industry and making use of it in another. Intersection of Tech: Netflix- Innovation in technology on an already existing product. Points of Pain: Dollar Shave Club- Turning a threat into an opportunity. Analysis of Existing Business: Fancy pizza joint- how do existing businesses in the industry work? You can be a cost leader or you can differentiate. |
| 4 Sources for Business Ideas | Present day work environment - 47%; secondary sources - 27%; improving existing product/service - 15%; vision for an opportunity - 11% |
| Market Issues Opportunity Evaluation | Need, Customers, Payback to User/Client, Product Lifestyle, Industry Structure, and Potential Market Size |
| Financial and Harvesting Opportunity Evaluation | Profits after Tax, Time to (break even, positive cash flow, ROI potential), Value, Capital Requirements, Exit Mechanism |
| Competitive Advantage Opportunity Evaluation | Fixed and Variable Costs, Degree of Control, Barriers to Entry, Legal Contractual Advantage, Sources of Differentiation, and Competitors Mindset and Strategies |
| Management and Risks Opportunity Evaluation | Management Team, Contracts and Networks, Risk, Fatal Flaws |
| 4 Barriers to Market Entry | Economies of Scale: Firm that cannot produce the minimum efficient scale will be at a disadvantage; Product differentiation: Entrants are forced to overcome customer loyalties to existing products/switching costs; Cost advantage independent of scale: incumbents may have learning advantages; Government Policies: May impose trade restrictions and/or grant monopolies |
| 5 phases of success | Recognize the opportunity and act, investigate the need, develop the business plan, determine the resources needed, and manage the business. |
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