ENTR Final

Question 1

Business Model

Answer 1

describes the rationale of how a new venture creates, delivers, and captures value

Question 2

Business model needs to stay what

Answer 2

flexible

Question 3

Finacial Viability

Answer 3

the revenue and cost structures a business needs to meet its expenses and financial obligations.

Question 4

Difference between revenue and business model

Answer 4

. A Revenue Model is a sub-category of a Business Model.

Question 5

Revenue model explains what

Answer 5

how an entrepreneur will make money from delivering on the customer value proposition.

Question 6

Infrastructure part of a simple business model refers to what

Answer 6

All things an entrepreneur will need to run their business

Question 7

Unit Sales

Answer 7

i. Measures the amount of revenue generated by the number of items (units) sold by a company.

Question 8

Subscription Revenue Model

Answer 8

i. Involves charging customers to gain continuous access to a product or service.

Question 9

Utility and Usage Revenue Model

Answer 9

i. Charges customers fees on the basis of how often goods or services are used.

Question 10

Professional Services

Answer 10

i. Provides professional services on a time and materials contract.

Question 11

Freemium

Answer 11

i. Freemium Revenue Models are NOT non-profits.
ii. Freemium revenue model: Involves mixing free (mainly web-based) basic services with premium or upgraded services.

Question 12

Data Revenue Model

Answer 12

i. Generate revenue by selling high-quality, exclusive, valuable information called data assets.

Question 13

Advertising Revenue Model

Answer 13

i. Relies on the amount of revenue gained through sales of advertising products and services.

Question 14

Licensing

Answer 14

i. Earning revenue by giving permission to other parties to use protected intellectual property (copyrights, patents, and trademarks) in exchange for royalties or fees.

Question 15

Intermediation Revenue Model

Answer 15

i. The people who organize transactions between buyers and sellers and who play important roles in connecting people to different services.

Question 16

Franchising Revenue Model

Answer 16

i. The owner of an existing business (the franchisor) sells the rights to another party (a franchisee) to trade under the name of that business.

Question 17

What is the pitch

Answer 17

a. An entrepreneur is pitching /proposing their idea to a particular audience that they want to act in support of their business – often investing, sometimes being part of a pilot or a focus group

Question 18

4 different types of planning documents in a Pitch Draw

Answer 18

i. Business Brief
ii. Feasibility Study
iii. Pitch Deck
iv. Business Plan

Question 19

Business Brief

Answer 19

i. Thinking that boils down to a 2-3 page document outlining
ii. It’s a document that you should be able to send to almost anyone (that you trust) interested in the business
iii. It is focused on:
1. who you are (personally);
2. who your business is
3. and what the business’s potential is

Question 20

Feasibility Study

Answer 20

i. Thinking that boils down to a 10-page max outlining
ii. An internal tool that enables entrepreneurs to see if their idea is workable and profitable
1. Serves as foundation for pitch deck and business plan
iii. Big questions it answers
1. Is the business model feasible (can it be done)
2. viable (can it be sustained profitably?
3. Do I want to go forward?
iv. The biggest question it answers –? “will my venture work?’

Question 21

Business Plan

Answer 21

i. Thinking that boils down to a 20-40 pages plus additional pages for appendices
ii. Lengthy document that describes business concept, product mix, marketing plan, operations plan, development plan and financial forecast.
iii. The business plan has been replaced in many contexts by pitch deck, but many bankers and investors require one.
iv. The most formal of planning tools. It needs to show you are serious and that you have done your homework.

Question 22

Pitch Deck

Answer 22

i. Purpose is to describe your product and get action -you build your content based on your audience and purpose
ii. They have no strict rules for length or style.
iii. Should answer the question: what is the problem or need?
1. From investors $ - this should last no more than 20 min
2. From advisor - expert advice
3. From potential users – product feedback