ENTR Final Flashcards
Business Model
describes the rationale of how a new venture creates, delivers, and captures value
Business model needs to stay what
flexible
Finacial Viability
the revenue and cost structures a business needs to meet its expenses and financial obligations.
Difference between revenue and business model
. A Revenue Model is a sub-category of a Business Model.
Revenue model explains what
how an entrepreneur will make money from delivering on the customer value proposition.
Infrastructure part of a simple business model refers to what
All things an entrepreneur will need to run their business
Unit Sales
i. Measures the amount of revenue generated by the number of items (units) sold by a company.
Subscription Revenue Model
i. Involves charging customers to gain continuous access to a product or service.
Utility and Usage Revenue Model
i. Charges customers fees on the basis of how often goods or services are used.
Professional Services
i. Provides professional services on a time and materials contract.
Freemium
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.
Data Revenue Model
i. Generate revenue by selling high-quality, exclusive, valuable information called data assets.
Advertising Revenue Model
i. Relies on the amount of revenue gained through sales of advertising products and services.
Licensing
i. Earning revenue by giving permission to other parties to use protected intellectual property (copyrights, patents, and trademarks) in exchange for royalties or fees.
Intermediation Revenue Model
i. The people who organize transactions between buyers and sellers and who play important roles in connecting people to different services.
Franchising Revenue Model
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.
What is the pitch
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
4 different types of planning documents in a Pitch Draw
i. Business Brief
ii. Feasibility Study
iii. Pitch Deck
iv. Business Plan
Business Brief
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
Feasibility Study
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?’
Business Plan
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.
Pitch Deck
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
