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Description
Flashcards by Alex Millar, updated more than 1 year ago
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Created by Alex Millar
almost 8 years ago
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| Question | Answer |
| What's the definition of Startup entrepreneurship? | A process of customer recognition, development and maintenance and aligning the emerging firm accordingly. |
| Second definition of startup entrepreneurship | A company, partnership or temporary organisations designed to search for a repeatable and scalable business model |
| What's the traditional approach to entrepreneurship? | That startups are smaller versions of large companies |
| What does this approach imply? | That startups have: market experience existing customer base existing distribution channels working cash flow model a systematic way to cope with known uncertainties |
| What does the contemporary approach emphasise? | That startups SEARCH while existing firms EXECUTE |
| What's the traditional approach to startup strategy? | They should start with an operating plan and financial model |
| What's wrong with this approach | Startups are organisations finding their feet with no solid plans that they have committed to and no established form of revenue These metrics (P&L, CF, BS) are not useful they don't reflect any improvements the startup makes |
| What's the contemporary approach to strategy of startups | Plan meetings with customers Don't begin with a Business Plan and then show it to customers (these are merely an assumption of contained uncertainty) It's about meeting customers, gathering info then putting together a BP |
| what is the point of business plans in the early stages of a startups life | fuck all they don't survive first contact with customers meet your customers first |
| What's the traditional approach to process of startups | Build startups by managing processes New Product Development Model Waterfall Engineering |
| What is the NPD Model | Concept > Seed Round > Product Development > Alpha/Beta Test > Launch |
| What's wrong with the NPD | It's time consuming Its linear/sequential with little room for iteration It assumes you know who your customer is - which suits existing firms fine but not startups |
| What is the Waterfall Engineering Process? | Requirements Design Implementation Verification Maintenance |
| What's the problem with Waterfall Engineering? | It executes on two KNOWNS customer problem product features |
| Why do most startups fail? | From lack of customers, not failure of new product development Which is why these models aren't suitable Startups don't know their customers |
| What is the contemporary approach to startup process? | It emphasises CUSTOMER DEVELOPMENT search followed by execution |
| what is the search followed by execution model? | |
| Instead of the NPD Model, what is now involved in the Search Model? | Concept > Seed Round > Customer Development > MVP > Reiterative Experiments combine it with Agile = Lean Startup (IMVU) |
| What's the significance of this approach? | Doing search first is a radical change, it isn't just another methodology |
| What is doing search first based on? | It's all about uncertainty reduction before beginning to converge activities and set up camp |
| Why this new scientific approach to startup entrepreneurship? | Because of the ever looming cloud that is uncertainty |
| Uncertainty in the business environment? | Aye business environment has undergone major changes which has an impact for startups Environmental dynamism Globalisation & Competition Complexity |
| Name one of these major changes | The move from physical to virtual in both products and delivery channels 4x4 matrix |
| Is this change a positive or a negative for startups? | It's been majorly disruptive (but in a creative way?) It's increased complexity But has provided incredible opportunities for entrepreneurs and startups |
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