Allmänt Flashcards
<p>Which are the three crucial elements of entrepreneurship?</p>
<p>At its heart, successful entrepreneurship is comprised of three crucial elements: markets, industries and the one or more key people who make up the entrepreneurial team.</p>
<p>Which are most important - the macro or micro aspects?</p>
<p>The micro domains are the most important! …and they both require leaving your computer screen</p>
What is the typical mistake in market analysis?
The micro level is ignored.
No differentiated benefits or growth = failure
Which are the four questions for market micro?
Target segment who we offer benefits?
Benefits better than competition in customer’s mind?
Size, growth?
Gives access to more segments?
What is the best outcome of a bad idea?
Being rejected on good grounds at an early stage
Which are the four questions for market micro?
Target segment who we offer benefits?
Benefits better than competition in customer’s mind?
Size, growth?
Gives access to more segments?
Summarize market micro in a sentence
It’s not about you, it’s about target customers.
What do investors want to know in market micro?
What customer pain is relieved?
Is there evidence the that target customer will buy at the price?
Which are the three questions for market macro?
Market large enough for competitors to serve their segments?
Short-term growth? (historical)
Long-term growth? (macro trends)
Name five learnings from market macro
Find the soon-to-boom market
Catch trends
Speed to market
Speak to prospective customers
Start with less important customers
What was the surprising insight about “barriers to entry”?
Barriers to entry are…
…bad for quick exit
…good for long-term venture
What was Warren Buffett’s quote about industry choice?
“When a management with a reputation for brilliance takes on a business with a reputation for bad economics, it’s the reputation of the business that remains intact”
How can a low score on industry macro be overcome?
By excelling at the industry micro level
What are the 2 steps of industry macro?
Define the industry
Conduct five forces analysis
Which are the keys to sustaining an advantage (in industry micro)?
Proprietary elements
Capabilities/resources of organization
Business model
- Revenue ≥ investment
- Time & cost to get customers = viable
- Margins cover fixed costs
- Favorable CCC
Which are the three ways to overcome a low score in industry micro?
Keep innovating
Keep loyal customer base
Early exit
Which were the three learnings from industry micro?
Is a patent enough to ward of rivals?
HRM perks help retain organizational capabilities
Advantages must be sustainable
Which are the three team domains?
Missions, aspirations and propensity for risk
Ability to execute on CSFs
Connectedness up, down and across the value chain
How do investors match up to the three components of “motivation”?
Investor’s aspirations are simple, and their risk propensity often clearly stated. The trick is matching the mission.
Which are the three team domains?
Missions, aspirations and propensity for risk
Ability to execute on CSFs
Connectedness up, down and across the value chain
What is the name of market macro?
Market attractiveness
What is the name of industry macro?
Industry attractiveness
What is the name of market micro?
Target segment benefits and attractiveness
What is the name of industry micro?
Sustainable advantage
How are the critical success factors (CSFs) found?
Through experience
What do investors want, went it comes to execution?
Lead entrepreneur understands CSFs + 7 domains
Team’s proven ability to execute (After investment, execution is the only thing protecting investors’ money)
Which team connections are relevant?
Suppliers
Competitors
Buyers
End users
What do investors want, went it comes to execution?
Lead entrepreneur understands CSFs + 7 domains
Team’s proven ability to execute (After investment, execution is the only thing protecting investors’ money)
Which team connections are relevant?
Suppliers
Competitors
Buyers
End users
Why are team connections relevant?
They can help you cut costs (suppliers) and increase revenue (buyers)…
…but most importantly, it keeps you flexible (plan B)
Which are the steps for putting the 7 domain model to work?
Consider the three motivation points
See in which domains your idea is off the charts
- (not important for niche business)
- One or two = good sign
See in which domains it’s kinda crappy
– Find strong domain that compensates
– …or improve the idea
Which domains can be deal makers?
(Market micro, if it’s a niche business)
Industry macro, if it’s a niche business that doesn’t need external capital
Which domains can be deal breakers?
Market micro
– (Unless it’s a niche business in a awesome industry)
Ability to execute on CSFs
How is the 7 domain model different for niche businesses?
Macro factors not very important
Name five typical business idea traps
“Huge” markets
(you are not alone in thinking that… so target precisely)
Technology focus
(No, it’s about customer needs)
Flaky business models
“Me too!”
(Low barriers to entry + no sustainable advantage –> you will neither be alone or competitive
Hubris
Name five typical business idea traps
“Huge” markets
(you are not alone in thinking that… so target precisely)
Technology focus
(No, it’s about customer needs)
Flaky business models
“Me too!”
(Low barriers to entry + no sustainable advantage –> you will neither be alone or competitive
Hubris
Which are the three broad steps toward a business plan?
Come up with the idea
Shape and assess with 7 domains
Write customer-focused feasibility study (memo to yourself)
Which are the three broad steps toward a business plan?
Come up with the idea
Shape and assess with 7 domains
Write customer-focused feasibility study (memo to yourself)
How is a customer-focused feasibility study different from a business plan?
More customer focused
Economics are very basic
The purpose is to question the idea, not sell it
How is a customer-focused feasibility study different from a business plan?
More customer focused
Economics are very basic
The purpose is to question the idea, not sell it
Which two lists should be made before the long interview?
What you think you know about your idea
What you think you don’t know
Name the four types of prompts
Floating prompts (latch on to new information)
Planned prompts (from lists)
Contrast prompts
Exceptional incident prompts
What are the optimal conditions for the long interview?
Strangers and experts
Face-to-face
90 min
20 interviews
According to the work sheet, what should a market analysis include?
Market size
Recent and future market growth
Trends from these six dimensions, and whether they are good or bad:
Demographic
Sociocultural
Economic
Technological
Regulatory
Natural
Which are the six steps of do-it-yourself market research?
•Identify problem and objectives
Based on the 7 domains
•Determine data sources
•Research design
•Collect data
•Analyze data
•Report results to decision-makerWhich are the six steps of do-it-yourself market research?
•Identify problem and objectives
Based on the 7 domains
•Determine data sources
•Research design
•Collect data
•Analyze data
•Report results to decision-makerName four methods for evidence-based forecasting
Statistical methods
Market tests
Surveys
Analogy
Name two keys to a good evidence-based forecast
State assumptions explicitly
Use multiple methods
What is the take-home-message of Baumol, W. (1990)
The rules of the game that specify the relative payoffs to different entrepreneurial activities play a key role in determining whether entrepreneurship will be allocated in productive or unproductive directions
What is the take-home-message of Winborg, J. (2009)
Financial bootstrapping is very common among incubator startups, and the three main motivations for this are ‘Lower costs’, followed by ‘Lack of capital’ and, slightly surprisingly, the existential motive ‘Fun helping and getting help from others’.
What is the take-home-message of Thornberry, N. (2001)
For companies that need an infusion of creativity, there are four types of corporate entrepreneurs to choose from, and eight pitfalls to avoid.
Name the four types of Corporate Entrepreneurship
Corporate Venturing
(a business within a business, usually emanating from a core competency or process)
Intrapreneuring
(attempt to take the mindset and behaviors that external entrepreneurs have, and inculcate these characteristics into their employees)
Organizational Transformation
Industry Rule Breaking
(another type of transformation but focuses on changing the rules of competitive engagement)
Name the eight pitfalls of corporate entrepreneurship
- Be overly seduced
- Talk the talk, but not walk the walk
- Want it without knowing what it is
- Using the wrong people (instead of finding new)
- Upper middle manager inhibition
- Part-time effort
- Wanting someone with all the skills
- Insufficient funding
Which are the antecedents of corporate entrepreneurship, on three different levels?
The organization:
External Environmental Conditions
Top-level management:
–
Organizational members:
Individual Entrepreneurial Cognitions
Which are the consequences of corporate entrepreneurship, on three different levels?
The organization:
• Competitive capability
•Strategic repositioning
Which are the consequences of corporate entrepreneurship, on three different levels?
The organization:
• Competitive capability
•Strategic repositioning
Which are the main components of a business plan?
- Company overview
- Product and service
- Market & industry analysis*
- Marketing plan*
- Operations plan*
- Management
- Competitive advantage
- Financial plan*
- Funding
- Appendices
BP: What goes into “Company overview”?
Overview & history
Mission statement
Objectives
BP: What goes into “Product and service”?
Features
Benefits
Proprietary rights
BP: What goes into “Market & industry analysis”?
Market
Size
Growth
Target
Industry forces
BP: What goes into “Marketing plan”?
STP
Pricing
Communication
BP: What goes into “Management”?
Organization
Team
BP: What goes into “Competitive advantage”?
Strengths of different advantages
Sustaining them
BP: What goes into “Financial plan”?
Projections
Summary
Key assumptions
Risk
BP: What goes into “Funding”?
Requirements
Sources
Uses
Offering (the pitch)
BP: What goes into “Appendices”?
Financial statements
Resumés
