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The Startup Firm > Allmänt > Flashcards

Allmänt Flashcards

1
Q

<p>Which are the three crucial elements of entrepreneurship?</p>

A

<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>

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2
Q

<p>Which are most important - the macro or micro aspects?</p>

A

<p>The micro domains are the most important! &hellip;and they both require leaving your computer screen</p>

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3
Q

What is the typical mistake in market analysis?

A

The micro level is ignored.

No differentiated benefits or growth = failure

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4
Q

Which are the four questions for market micro?

A

Target segment who we offer benefits?

Benefits better than competition in customer’s mind?

Size, growth?

Gives access to more segments?

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5
Q

What is the best outcome of a bad idea?

A

Being rejected on good grounds at an early stage

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6
Q

Which are the four questions for market micro?

A

Target segment who we offer benefits?

Benefits better than competition in customer’s mind?

Size, growth?

Gives access to more segments?

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7
Q

Summarize market micro in a sentence

A

It’s not about you, it’s about target customers.

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8
Q

What do investors want to know in market micro?

A

What customer pain is relieved?

Is there evidence the that target customer will buy at the price?

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9
Q

Which are the three questions for market macro?

A

Market large enough for competitors to serve their segments?

Short-term growth? (historical)

Long-term growth? (macro trends)

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10
Q

Name five learnings from market macro

A

Find the soon-to-boom market

Catch trends

Speed to market

Speak to prospective customers

Start with less important customers

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11
Q

What was the surprising insight about “barriers to entry”?

A

Barriers to entry are…
…bad for quick exit
…good for long-term venture

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12
Q

What was Warren Buffett’s quote about industry choice?

A

“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”

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13
Q

How can a low score on industry macro be overcome?

A

By excelling at the industry micro level

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14
Q

What are the 2 steps of industry macro?

A

Define the industry

Conduct five forces analysis

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15
Q

Which are the keys to sustaining an advantage (in industry micro)?

A

Proprietary elements

Capabilities/resources of organization

Business model

  1. Revenue ≥ investment
  2. Time & cost to get customers = viable
  3. Margins cover fixed costs
  4. Favorable CCC
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16
Q

Which are the three ways to overcome a low score in industry micro?

A

Keep innovating

Keep loyal customer base

Early exit

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17
Q

Which were the three learnings from industry micro?

A

Is a patent enough to ward of rivals?

HRM perks help retain organizational capabilities

Advantages must be sustainable

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18
Q

Which are the three team domains?

A

Missions, aspirations and propensity for risk

Ability to execute on CSFs

Connectedness up, down and across the value chain

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19
Q

How do investors match up to the three components of “motivation”?

A

Investor’s aspirations are simple, and their risk propensity often clearly stated. The trick is matching the mission.

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20
Q

Which are the three team domains?

A

Missions, aspirations and propensity for risk

Ability to execute on CSFs

Connectedness up, down and across the value chain

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21
Q

What is the name of market macro?

A

Market attractiveness

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22
Q

What is the name of industry macro?

A

Industry attractiveness

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23
Q

What is the name of market micro?

A

Target segment benefits and attractiveness

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24
Q

What is the name of industry micro?

A

Sustainable advantage

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25
Q

How are the critical success factors (CSFs) found?

A

Through experience

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26
Q

What do investors want, went it comes to execution?

A

Lead entrepreneur understands CSFs + 7 domains

Team’s proven ability to execute (After investment, execution is the only thing protecting investors’ money)

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27
Q

Which team connections are relevant?

A

Suppliers

Competitors

Buyers

End users

28
Q

What do investors want, went it comes to execution?

A

Lead entrepreneur understands CSFs + 7 domains

Team’s proven ability to execute (After investment, execution is the only thing protecting investors’ money)

29
Q

Which team connections are relevant?

A

Suppliers

Competitors

Buyers

End users

30
Q

Why are team connections relevant?

A

They can help you cut costs (suppliers) and increase revenue (buyers)…

…but most importantly, it keeps you flexible (plan B)

31
Q

Which are the steps for putting the 7 domain model to work?

A

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

32
Q

Which domains can be deal makers?

A

(Market micro, if it’s a niche business)

Industry macro, if it’s a niche business that doesn’t need external capital

33
Q

Which domains can be deal breakers?

A

Market micro
– (Unless it’s a niche business in a awesome industry)

Ability to execute on CSFs

34
Q

How is the 7 domain model different for niche businesses?

A

Macro factors not very important

35
Q

Name five typical business idea traps

A

“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

36
Q

Name five typical business idea traps

A

“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

37
Q

Which are the three broad steps toward a business plan?

A

Come up with the idea

Shape and assess with 7 domains

Write customer-focused feasibility study (memo to yourself)

38
Q

Which are the three broad steps toward a business plan?

A

Come up with the idea

Shape and assess with 7 domains

Write customer-focused feasibility study (memo to yourself)

39
Q

How is a customer-focused feasibility study different from a business plan?

A

More customer focused

Economics are very basic

The purpose is to question the idea, not sell it

40
Q

How is a customer-focused feasibility study different from a business plan?

A

More customer focused

Economics are very basic

The purpose is to question the idea, not sell it

41
Q

Which two lists should be made before the long interview?

A

What you think you know about your idea

What you think you don’t know

42
Q

Name the four types of prompts

A

Floating prompts (latch on to new information)

Planned prompts (from lists)

Contrast prompts

Exceptional incident prompts

43
Q

What are the optimal conditions for the long interview?

A

Strangers and experts

Face-to-face

90 min

20 interviews

44
Q

According to the work sheet, what should a market analysis include?

A

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
45
Q

Which are the six steps of do-it-yourself market research?

A 
•Identify problem and objectives
    Based on the 7 domains
•Determine data sources
•Research design
•Collect data
•Analyze data
•Report results to decision-maker
46
Q

Which are the six steps of do-it-yourself market research?

A 
•Identify problem and objectives
    Based on the 7 domains
•Determine data sources
•Research design
•Collect data
•Analyze data
•Report results to decision-maker
47
Q

Name four methods for evidence-based forecasting

A

Statistical methods
Market tests
Surveys
Analogy

48
Q

Name two keys to a good evidence-based forecast

A

State assumptions explicitly

Use multiple methods

49
Q

What is the take-home-message of Baumol, W. (1990)

A

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

50
Q

What is the take-home-message of Winborg, J. (2009)

A

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’.

51
Q

What is the take-home-message of Thornberry, N. (2001)

A

For companies that need an infusion of creativity, there are four types of corporate entrepreneurs to choose from, and eight pitfalls to avoid.

52
Q

Name the four types of Corporate Entrepreneurship

A

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)

53
Q

Name the eight pitfalls of corporate entrepreneurship

A
  • 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
54
Q

Which are the antecedents of corporate entrepreneurship, on three different levels?

A

The organization:
External Environmental Conditions

Top-level management:
–

Organizational members:
Individual Entrepreneurial Cognitions

55
Q

Which are the consequences of corporate entrepreneurship, on three different levels?

A

The organization:
• Competitive capability
•Strategic repositioning

56
Q

Which are the consequences of corporate entrepreneurship, on three different levels?

A

The organization:
• Competitive capability
•Strategic repositioning

57
Q

Which are the main components of a business plan?

A
  1. Company overview
  2. Product and service
  3. Market & industry analysis*
  4. Marketing plan*
  5. Operations plan*
  6. Management
  7. Competitive advantage
  8. Financial plan*
  9. Funding
  10. Appendices
58
Q

BP: What goes into “Company overview”?

A

Overview & history
Mission statement
Objectives

59
Q

BP: What goes into “Product and service”?

A

Features
Benefits
Proprietary rights

60
Q

BP: What goes into “Market & industry analysis”?

A

Market
Size
Growth
Target

Industry forces

61
Q

BP: What goes into “Marketing plan”?

A

STP
Pricing
Communication

62
Q

BP: What goes into “Management”?

A

Organization

Team

63
Q

BP: What goes into “Competitive advantage”?

A

Strengths of different advantages

Sustaining them

64
Q

BP: What goes into “Financial plan”?

A

Projections
Summary
Key assumptions
Risk

65
Q

BP: What goes into “Funding”?

A

Requirements
Sources
Uses
Offering (the pitch)

66
Q

BP: What goes into “Appendices”?

A

Financial statements

Resumés

The Startup Firm (2 decks)

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