Final Flashcards
partnership
voluntary contract under uniform partnership act or partnership agreement, single taxation on personal income tax, if no agreement they share losses and profits, fiduciary duties of loyalty and care, personally liable, joint and several liability
limited partnership
certificate of limited partnership w state, general partner and some limited partners, gen partner manages and personally liable, limited partner contributes cash or property but not liable,
c corp
legal entity under state law, file articles of incorporation, issue shares of stock, file annual reports, closely held or publicly traded, board of directors elected who manage, shareholders have limited liability unless veil pierced then owner; corp taxes combined fed and state rate of 39.3%, retain profits or pass in dividends (double taxation) or retained earnings, holding co owns shares to reduce taxes
subchapter s corps
reqs: domestic, up to 100 shareholders only us citizens; taxed like partnership, limited liability
limited liability
file articles of org w/ state, members and managers, unlimited # members that can be foreign or corporations, earnings subject to self employment tax, cant take adv of incentive stock options, must have at least 2 members, taxed as either partnership or corp, limited liability,
b corps
societal or environmental mission, fiduciary duty to all, report social environmental and financial impact
L3C
alternative to not for profit, take money from nfp as form of social venture capital
patents
federal law; utility, design or plant; utility - novelty, usefulness, nonobvious, 20 yrs from date of app, power to exclude others from doing something
trademarks
federal law; co name, logo, slogan, product name, nickname, brand identity; last for ever but can become generic, tm=common law in commerce state law, r = registered w uspto; domain names, cybersquatting and typosquatting
copyrights
automatic once in medium of expression; for anything text music art sculpture, registered w lib of congress, code is copyrightable but software is patentable, life+70 yrs if individual, 125 yrs if corporate owned,
trade secrets
state law, not public knowledge, no duration if kept secret; covenants not to compete and nondisclosure agreements; no recourse if reverse engineered
growth stages
emergence, transition, rapid growth
bootstrapping
traction as soon as possible, hire few employees, affordable loss principle
equity investment: friends and family
shares of co in exchange for money, be aware of relationships
equity investment: angel deals
1-3M, seed rounds between 300K and 1M, 12-18 mo runway, gain board rights, avg roi is 21%, tolerate longer time to exit, investing in perosn
angels look for:
solving problem, big market, evidence jockey can execute, demand, disruption product, potential exit
angels dont like these industries:
medical drugs, energy, selling to gov, huge start up costs
venture capitalist deals
larger money, maybe co-investors, high growth cos, 7M valuation, board seat, shorter exit of acquisition or IPO
IPOS
dropped off in recession, reporting expenditures run into millions, many dont take cos public, identify competitors who could end up being strategic partners and acquierers
2013-2014 ipos
163B worldwide and 59B US, 26% of global deals, 2014 ok year, 256B raised up 50%, tech healthcare and industrials
SBIR
small business innovation research grants
other funding
grants, state resources, STTR, incubators
why big co’s lose innovative toehold
responsibility to build is given to managers or those who dont have capability
capabilities define disabilities
skills that propel often bungle best ideas for disruptive growth
resources
people, physical capital, info, $, networks location, inventory; problem: hiring wrong people as managers bc of track record
process
how things get done, aligns with task
values
why they do what they do, shape the other two, foundation, can be constraints
intrapreneurial culture?
innovation team, or buy disruptive innovation
sole proprietorship
owner does business, receives all profits, pays personal income taxes, legal liability, 2/3 businesses and are small
managing product design process
managing ongoing innovation pipeline that will keep company competitive; efficiency improvement, cost reduction, innovation, robust products
product failure
lack of market and industry analysis, technical problems, lack of sufficient new product development resources resulting in poor execution, slow time to market, missed first to market opportunities, dumbing down too much, team morale declines
product development cycle
discovery, opp recognition, feasibility, intellectual property and reg reqs, prototype development, market tests, launch strategy, execution plan; new product checklist: market questions, swot analysis, design/development/manufacturing, financial
secondary sources of info
google, opinion, trade associations, journals, gov and agency resources, blogs, social networking
primary industry data
industry observers and analysts, suppliers and distributers, customers, employees of key firms, professionals in industries, trade shows
industry life cycle
emerging, growth and adaption, differentiation and competition, shakeout, maturity and decline
porters 5 forces
barriers to entry(economies of scale, brand loyalty, capital, regulation), threat from subs, threat from buyers bargaining power, threat from suppliers bargaining power, competitive rivalry among existing firms,
secondary customer data
mintel, neilson
primary customer data
surveys, focus groups
identifying competition
direct, indirect or sub, emerging or potential
finding info about competition
their websites, their products, search engines, public companies
stakeholder interest
rate of growth, roi, risk, protection
lender interests
companies margins and cash flow projections
strategic partner interests
new products processes techs that align with what looking for
proof of concept
customer sales, purchase order, final product, letter of intent for beta test, working prototype…outcomes assets actions
snaptax case
facilitated by intuits senior management, shipped early version of product to get customer feedback
MVP
test fundamental business hypotheses
video mvp
video to show how dropbox worked so wouldnt have risk of development before validating
concierge mvp
personalized service, questioning, to get at what consumer wants and needs
votizen study
pivoted because didnt see product growth, zoomed in to make social lobbying platform
customer segment pivot
keeping functionality but changing audience focus
platform pivot
reduce staff, build a self-serve sales platform where anyone could become a customer with just a credit card
failure to pivot
vanity metrics, unclear hypothesis, fear
customer need pivot
target consumer has a problem, but its different than what initially thought
business architecture pivot
change from high margin low volume to mass market, change operation
value capture pivot
monetization or revenue models
engine of growth pivot
changes growth strategy to seek faster or more profitable growth
channel pivot
way company delivers product to customers
tech pivot
finds way to achieve solution by using completely dif technology
