PART TWO Stage One: Infancy Flashcards
1
Q
What is the top priority function in an entrepreneurial venture?
A
Marketing
Without marketing, you cannot achieve sales, cash flow, or sustain the business.
2
Q
What is Rule Number One of Entrepreneurship?
A
Without sales, it is very hard to sustain an ongoing business.
3
Q
What is the main problem faced by a business in Stage One: Infancy?
A
You don’t really know what you are doing.
4
Q
What is the main challenge in Stage One: Infancy?
A
Making the first profitable sale.
5
Q
What is the main opportunity in Stage One: Infancy?
A
Achieving a minimum critical mass of customers.
6
Q
What main skill is needed in Stage One: Infancy?
A
Selling the product.
7
Q
What mistake did Jim Koch almost make when starting The Boston Beer Company?
A
He focused on buying a computer instead of making sales.
8
Q
What crucial advice did Jim Koch’s uncle give him?
A
Focus on making sales first before investing in other business aspects.
9
Q
What percentage of time should entrepreneurs spend on selling?
A
80 percent.
10
Q
What are the tertiary considerations in Stage One of a business life cycle?
A
Legal, accounting, operational, and image-building activities.
11
Q
What is the consequence of spending excessive time on setting up a business rather than selling?
A
Wasting valuable resources on secondary and tertiary endeavors.
12
Q
True or False: Entrepreneurs should prioritize perfecting their product before making sales.
A
False.
13
Q
What are the four aspects of entrepreneurial success mentioned?
A
- A seller: someone to market the product.
- An improver: someone to improve the product.
- An organizer: someone to make sure things flow smoothly.
- A pusher: someone to get people to do what they are supposed to do.
14
Q
In what order should priorities be set during the first two stages of growth?
A
- Selling
- Pushing (to make sales)
- Improving (products and sales)
- Organizing
15
Q
What is the primary role an entrepreneur should maintain as their business grows?
A
In charge of marketing your products.
16
Q
What did Jim Koch learn about the importance of selling during his time at Harvard?
A
None of his education prepared him for the importance of selling.
17
Q
What attitude did Koch observe towards salespeople in business culture?
A
Salespeople were often viewed as failures.
18
Q
What does Ted Ciuba say every business is really two businesses?
A
One related to the product/service and the other related to selling.
19
Q
Fill in the blank: The real business that every business owner is in is _______.
A
selling.
20
Q
What is often the misconception of wannabe entrepreneurs regarding selling?
A
They believe selling will happen automatically once the product is introduced.
21
Q
What two things are wrong with the attitude that selling can be assigned to someone else?
A
- It is arrogant.
- It is foolish.
22
Q
What should entrepreneurs focus on before perfecting their product?
A
Getting feedback from customers through sales.
23
Q
What is the mistake often made when trying to improve a product without customer feedback?
A
Investing time and money in unnecessary improvements.
24
Q
What did Jim Koch’s mentor advise him to focus on?
A
Making more sales.
25
What is the common view of selling among business professionals, according to Koch?
Selling is often undervalued and not taken seriously.
26
What is the most important job of any entrepreneur?
To be in charge of marketing your products.
27
During the first two stages of growth, what are the priorities in order?
* Selling
* Pushing (to make sales)
* Improving (products and sales)
* Organizing
28
Is it necessary for entrepreneurs to do all the marketing and selling themselves?
No, but they must understand revenue generation and stimulate sales when needed.
29
What is considered the ultimate strength of an entrepreneur?
The ability to stimulate sales.
30
What personal bias did the author have against sales?
An unconscious bias stemming from an academic family background.
31
What was the author's first job after returning to the United States?
A journalist for a small company producing newsletters related to international commerce.
32
How did the author initially prioritize his work at the newsletter company?
He focused on editorial work rather than selling.
33
What happened to the company during the recession in the early 1980s?
New sales stopped, and the company went into the red for the first time.
34
What lesson did the author learn after leaving his first job?
The importance of focusing on sales to manage a business effectively.
35
What was the author's perspective change when he became managing editor of another company?
He began to see the importance of sales and marketing for business success.
36
What significant business achievement did the author accomplish with his partner?
Grew the business from practically nothing to grossing $135 million in 11 years.
37
What did the author do after retiring from the newsletter business?
Bought a half-interest in an art gallery.
38
What did the author realize about the fine-art business?
It was primarily about selling, just like every other business.
39
What is Rule Number Two of Entrepreneurship?
There is a direct relationship between business success and resources devoted to selling.
40
What did the New York realtor fail to do before launching his business?
Test his basic sales assumption regarding attracting free postings.
41
What was the approach of the car repairman entrepreneur compared to the realtor?
Focused on selling first before addressing other business concerns.
42
What was the revenue of Street Glow Inc. by 2002?
$23 million.
43
How soon should you start selling when beginning a new business?
As soon as possible.
44
What unique idea did Alex Tew have for selling advertising space?
Selling it by the pixel.
45
How did Alex Tew initially sell pixels?
By bundling them and reaching out to friends and relatives.
46
What was the total amount Alex Tew earned within a month?
$40,000.
47
What did Alex achieve in less than a month of selling pixels?
$40,000 worth of sales
## Footnote
This amount was sufficient to cover his entire tuition.
48
What is the primary focus for stage one businesses?
Selling
## Footnote
Selling is considered the most crucial activity in the early stages of a startup.
49
What should be the first priority when starting a business?
Get the product ready enough to sell it
## Footnote
Perfection should not be the initial concern.
50
What is the second step after getting the product ready?
Sell it
51
What should entrepreneurs do if their product sells?
Make it better
52
What common mistake do many would-be entrepreneurs make?
They focus on secondary and tertiary activities instead of selling
## Footnote
This includes legal requirements and marketing materials.
53
What is the importance of making the first sale?
* Creates cash flow
* Tests the unique selling proposition (USP)
## Footnote
Understanding if the business idea is viable.
54
What should be the first question an entrepreneur asks?
How can I make the first sale?
55
What was the advice given to the young man setting up an Internet counseling business?
Focus on how to attract online clients and the cost of acquisition
56
What mistake did the young man make with his business plan?
He spent over a million dollars before answering the primary question of client acquisition
57
What did the woman starting a cosmetics business overlook?
She did not attempt to sell anything before investing in packaging and marketing materials
58
What should a new entrepreneur consider before signing a lease for retail space?
Test the basic selling proposition
59
What are some ways to test a selling proposition?
* Rent booths at flea markets
* Advertise on eBay and Craigslist
* Wholesale to existing retail shops
* Sponsor accessory parties
* Model accessories in local restaurants
60
What are the benefits of testing products in various selling environments?
* Discover which products sell well
* Learn effective selling strategies
* Generate cash flow
61
What should be prioritized after testing the market?
Making informed decisions about advertising and product displays
62
What is the ultimate goal of testing the market before committing fully?
To confidently sign a lease and know what products to stock
63
What did the brother-in-law of the author do to start his jewelry business?
Started by selling gold at flea markets before moving to malls
64
True or False: It's better to rush into retail without testing the market.
False
## Footnote
Testing the market helps avoid costly mistakes.
65
What is the first priority when starting a new business?
Identifying a way or several ways to test your basic selling idea.
## Footnote
This involves stocking up on merchandise needed for testing.
66
What are some ways to test a selling idea?
* Selling at flea markets and art fairs
* Doing person-to-person wholesale selling
* Sponsoring home-based party events
## Footnote
These methods provide immediate feedback and help establish retail customers.
67
What adjustments should be made during the first year of business?
* Product selection
* Packaging
* Pricing
* Merchandising
## Footnote
These adjustments should be easy and inexpensive.
68
What is the essential role of selling for Stage One entrepreneurs?
Selling is essential; entrepreneurs must become their company’s number one salesperson.
## Footnote
Selling is not optional for Stage One entrepreneurs.
69
What is the goal during the start-up stage of a business?
Learn how to sell one particular product to one particular market.
## Footnote
Generalized marketing expertise is not necessary at this stage.
70
What is meant by the term 'lead product'?
The primary product used to acquire new customers for a business.
## Footnote
For start-up companies, the lead product is usually the only product.
71
What is the optimum selling strategy (OSS)?
The best way to acquire new customers that meets the company’s greatest current need.
## Footnote
For Stage One businesses, this often means generating positive cash flow.
72
What four questions should be answered to determine the optimum selling strategy?
* Where are you going to find your customers?
* What product will you sell them first?
* How much will you charge for it?
* How will you convince them to buy it?
## Footnote
Answering all four questions is crucial for unlocking entrepreneurial success.
73
What is the importance of discovering the OSS?
It simplifies problem-solving, overcoming obstacles, and reaching objectives.
## Footnote
It helps acquire new customers without depleting the bank account.
74
What are some common pitfalls entrepreneurs face when starting out?
* Ignoring cash flow
* Assuming the product will sell itself
* Not paying attention to selling strategies
## Footnote
Many entrepreneurs are too focused on their product.
75
What did EarlytoRise.com focus on to grow its business?
Developing an Internet selling strategy with minimal initial investment.
## Footnote
The goal was to avoid spending a lot of money.
76
How did EarlytoRise.com generate cash flow initially?
* Selling other people's information products
* Using pay-per-click advertising
## Footnote
This strategy reduced risk while testing the market.
77
What did EarlytoRise.com learn about customer spending habits?
Customers who initially spent $20 were worth an extra $6 per year, while those who spent $50 were worth about $50 a year.
## Footnote
This influenced pricing strategy.
78
What types of marketing copy did EarlytoRise.com test?
* Headlines
* Leads
* Hard vs. soft approaches
* Benefit-oriented vs. idea-oriented pitches
## Footnote
Testing various elements helped improve response rates.
79
True or False: The product always sells itself.
False
## Footnote
Successful product launches require effective selling strategies.
80
Fill in the blank: The greatest need for Stage One businesses is _______.
[positive cash flow]
81
What type of products do Early to Rise readers respond strongly to?
Products that can make them wealthier, healthier, or happier, priced under $50 with a strong money-back guarantee.
82
What is the optimum selling strategy (OSS) for Early to Rise based on customer response?
Construct offers for products that are affordable and come with a strong guarantee.
83
How did Early to Rise's cash flow change after implementing the optimum selling strategy?
Cash flow increased sharply, eliminating wasteful spending on ineffective marketing.
84
What significant change occurred when Early to Rise reached $1 million in sales?
They shifted from selling other people's products to selling their own.
85
What was the revenue growth from the second OSS at Early to Rise?
From $1 million to $8 million in about six years.
86
What is the first question every entrepreneur must ask?
Where will I find my customers?
87
What is the recommended strategy for finding customers as a new entrepreneur?
Imitate the industry norm initially.
88
What is the best way to find out where competitors are advertising?
Look for display ads in relevant locations and talk to marketing executives.
89
What is the importance of media placement in marketing?
The right media placement can make a mediocre advertisement profitable.
90
What is a common mistake entrepreneurs make when starting a business?
Starting with a single product idea.
91
What are the five steps to creating a product that can launch a business?
* Find out what products are currently hot in the market.
* Determine if your product idea fits that trend.
* If it fits, proceed.
* Create me-too versions of hot products.
* Improve them by adding features or benefits.
92
How can you identify hot products in a market?
Look at primary media and note the most advertised products.
93
What is a powerful way to grow a small business?
Market an upwardly trending product at a substantial discount.
94
What is the ideal pricing strategy for a lead product?
Promote it at a heavy discount while emphasizing quality for other products.
95
What should be the focus when selling back-end products to existing customers?
Emphasize their qualities and benefits, discounting infrequently.
96
What is the impact of pricing on sales?
The price you charge has a major impact on sales.
97
What is the significance of customer lifetime value?
It determines how much can be spent on acquiring each customer
## Footnote
Higher lifetime value allows for greater spending on customer acquisition.
98
What percentage of the product price do businesses often spend to acquire a customer?
Between 30 percent and 100 percent of the price of the new product.
99
What should businesses consider when determining product pricing?
Competitors' pricing, media used, and product appeal.
100
What is the optimal selling price?
The price at which a selling campaign yields the greatest profits.
101
How can the optimal selling price change?
It can change during the product life cycle.
102
What is a common optimal price for consumer health publications?
$39 a year.
103
What happens if you deviate significantly from the optimal price?
You will reduce profits or create losses.
104
What is the theory of market elasticity?
It describes the relationship between price changes and consumer demand.
105
What happens to sales when prices increase, according to market elasticity theory?
Sales generally decrease.
106
What is the allowable acquisition cost (AAC)?
The amount of money you can 'spend' to attract a first-time buyer.
107
What is the formula to determine the allowable acquisition cost?
Lifetime gross profit - cost of goods - overhead - desired profit.
108
What is the first step in determining lifetime gross profit?
Calculate total spending over a customer's lifetime.
109
What should you deduct from lifetime gross profit to find lifetime net value?
Overhead expenses.
110
What is a reasonable profit percentage to aim for in retail?
At least 20 percent of gross sales.
111
What can you expect your average customer to spend over time?
Between 100 percent and 500 percent of their initial purchase price.
112
What is a common strategy to attract new customers in restaurants?
Offering discounts or specials.
113
What is the risk of discounting a lead product too much?
Attracting bargain hunters who may not return.
114
What is the relationship between discounting and customer acquisition?
Discounting is a common method to acquire new customers.
115
What is back-end pricing?
Pricing strategies applied after acquiring a customer.
116
What factors contribute to an optimum selling strategy?
Media choice, product selection, pricing, and advertising copy.
117
How does marketing copy influence sales?
It can significantly affect response rates and profitability.
118
What is necessary to discover the best copy platform for a product?
Testing various media and pricing strategies.
119
What is the difference between a business that doubles in size every year and one that barely grows?
A business that doubles in size grows rapidly, while one that barely grows may flatten out and die.
120
What is the only way to discover the best copy platform for selling a product?
By testing different media, prices, and copy platforms.
121
What are the three key components to test when launching a new product?
* Different media
* Two or three different prices
* At least two different copy platforms.
122
Why is finding a good copywriter important in the selling process?
A good copywriter can write stronger copy that effectively sells the product.
123
True or False: You can abandon your role as the company's master marketer once you hire a copywriter.
False.
124
What is a method to create the impression of a large discount without actually lowering the price?
Increase the product's perceived value.
125
What sales pitch did the author use when selling aluminum siding?
The benefits of aluminum siding: beauty, ease, and durability.
126
What did Harvey suggest would improve the author's closing ratio?
Learning how to 'sell the spread' instead of just 'selling the sandwich.'
127
What technique did Harvey use to make aluminum siding seem like a better value?
He compared it to the cost of covering a house in solid oak.
128
Fill in the blank: The principle of _______ is a technique used to create perceived value through comparisons.
[contrast].
129
How did Sid from the tailor shop create a sense of urgency in customers?
He exaggerated the price of the suit and then reported a lower price.
130
What are the four key aspects to pay attention to when directing a copywriter?
The specific aspects will be covered in the next chapter.
131
What is essential for you to do when working with a copywriter?
Direct the copywriter to use their skills to sell your specific product.
132
What is an essential part of a chief executive's job?
The creation of advertising copy
## Footnote
This involves understanding how great copy looks and how to create it.
133
What is the first step to creating effective advertising copy?
Create a copy platform for your product using a provided cheat sheet
## Footnote
This process should take just a few hours.
134
What analogy is used to describe designing an advertising campaign?
Designing a house
## Footnote
It involves starting with an idea and translating needs into a structure.
135
Who knows the product better than anyone else in a startup?
The person starting the business
## Footnote
This individual has the best understanding of the product and the customers.
136
What are the four key concepts every marketing genius must know?
1. The difference between wants and needs.
2. The difference between features and benefits.
3. How to establish a unique selling proposition (USP).
4. How to sell the USP.
137
Fill in the blank: Our needs are few and simple: air, water, food, shelter, _______.
transportation
## Footnote
This illustrates the basic necessities humans require.
138
What is the mistake many first-time marketers make in their sales campaigns?
They create campaigns that are logical and rational
## Footnote
This approach often fails to stimulate emotions necessary for selling wants.
139
What must advertising copy do when selling wants?
Stimulate emotions
## Footnote
Effective advertising connects with customers' feelings regarding how a product enhances their lives.
140
What is the difference between features and benefits?
Features describe objective qualities; benefits explain what those features mean to the customer.
141
List some features of a No. 2 pencil.
* Made of wood
* Has a specific diameter
* Contains a lead-composite filler
* Has an eraser at the end
142
What is a deeper benefit of having a pencil that sharpens easily?
Reduces the frustration of falling behind at work and feeling like you will never get ahead
## Footnote
This reflects an emotional connection to the product's usability.
143
What is a Unique Selling Proposition (USP)?
A single benefit presented as uniquely characteristic of your product.
144
What is the percentage of new products that come to market without distinguishing characteristics?
More than 90 percent
## Footnote
This highlights the commonality of products in the market.
145
What are two strategies to sell a new product in an established market?
* Make it better than the competition
* Make it seem better
146
How did FedEx establish itself in the market?
By creating a hub-and-spoke system for overnight delivery
## Footnote
This was a genuine improvement over existing methods.
147
What slogan did FedEx use to emphasize their overnight delivery service?
'When it absolutely, positively has to get there overnight.'
148
What unique characteristic did 7-Up use to market itself?
Its lack of color
## Footnote
This was positioned as a benefit by promoting it as 'the Uncola.'
149
What was the slogan used to promote 7-Up?
the Uncola
150
What was the effect of the 'Uncola' campaign on 7-Up's net sales from 1968 to a decade later?
$87.7 million to $190 million
151
Which company gained market dominance by promising overnight delivery?
FedEx
152
What does USP stand for in marketing?
Unique Selling Proposition
153
True or False: Not every product needs to be unique to be successful.
True
154
What strategy did John D. Rockefeller use to dominate the oil industry?
Buying up production and delivery
155
What is one way to introduce a new product in a mature business?
Underpricing the competition
156
What are the three characteristics of a successful USP?
* The appearance of uniqueness
* Usefulness
* Conceptual simplicity
157
What is a common mistake businesses make regarding their USP?
Failing to keep it updated
158
What is an example of a unique selling proposition for a natural health website?
The only natural health website that recommends a totally natural, 'caveman' approach to fitness and eating
159
Fill in the blank: The USP must be a benefit to the _______.
buyer
160
What is the Big Idea in marketing?
The main idea used to sell your product
161
What is the relationship between the USP and the Big Idea?
The Big Idea comes from the USP
162
True or False: The USP and the Big Idea are the same thing.
False
163
What type of consultation helped Schlitz beer distinguish itself in the market?
A marketing consultant tour of their facility
164
What is meant by 'incremental degradation' in product marketing?
The quality of any product will degrade over time if left alone
165
What should a company do to maintain its USP?
Continuously make improvements and innovations
166
What is a key benefit of having a narrowly defined specialty?
It creates a unique position in the marketplace
167
What is a specific claim in advertising?
A statement made to support the product's benefits
168
What famous quote by Confucius could be used for a marketing campaign about public speaking?
The man who speaks well has the power of five men
169
What must accompany a Big Idea in marketing?
A Big Promise
170
What did Jay Abraham emphasize about the Unique Selling Proposition?
It must be connected to customer benefits
171
What is the Big Promise in advertising?
A statement that suggests significant improvement in a customer's life through the product
## Footnote
It often stems from the Big Idea and aims to entice potential customers.
172
What should you brainstorm when developing a Big Promise?
Possible claims based on the Big Idea, such as income increase or personal success
## Footnote
This can include specific, quantifiable outcomes.
173
What is the role of proof in advertising claims?
To provide real-life examples and testimonials that validate the claims made
## Footnote
This includes historical proof and anecdotal evidence.
174
What is a copy platform in advertising?
A document containing product features, benefits, the Big Idea, and proof of claims
## Footnote
It serves as a guide for copywriters in creating advertising content.
175
What does USP stand for?
Unique Selling Proposition
## Footnote
It refers to what makes a product distinct from its competitors.
176
What is the importance of identifying a rising trend in marketing?
To tie product benefits to current market trends, enhancing relevance and appeal
## Footnote
This can help in establishing a strong USP.
177
What are two ways to learn about a business?
* Attending seminars and reading books
* Speaking with experienced professionals and mentors
178
Why is mentoring important for new entrepreneurs?
It provides firsthand knowledge and guidance, reducing ignorance about the business
## Footnote
Mentoring can lead to better decision-making and success.
179
What should a new business leader focus on instead of trivial tasks?
* Mentoring and being mentored
* Teaching the team about the business
* Setting business targets
180
What did the young man do to ensure his business success?
He asked questions, sought multiple mentors, and maintained relationships with them
## Footnote
His proactive approach helped him grow his division significantly.
181
What is a measurable benefit of mentoring, according to research?
Increased job satisfaction and trust among employees
## Footnote
89% of mentored individuals reported job satisfaction in a study by Dr. Lillian Eby.
182
What are some consequences of prioritizing trivial tasks over sales?
Loss of significant revenue and demotion in market position
## Footnote
This highlights the importance of focusing on core business operations.
183
Fill in the blank: The Big Idea for an advertising campaign comes from your product’s _______.
[USP]
184
True or False: The Big Promise is derived from the Big Idea.
True
185
What percentage of protégés reported that their mentors helped them advance in their careers?
More than 70 percent
## Footnote
This statistic highlights the effectiveness of mentorship in career development.
186
What percentage of mentors believed mentoring had a positive impact on their jobs?
74 percent
## Footnote
Mentoring relationships benefit both mentors and protégés.
187
What benefits did the informal mentorship program provide to the university?
* Increased productivity
* Lower stress levels
* Better job performance among employees
## Footnote
These outcomes suggest the broader impact of mentorship on organizational health.
188
What is the main priority during the first stage of a business's development?
Selling
## Footnote
This focus is crucial for generating cash flow and establishing a customer base.
189
What should employees be encouraged to take an active interest in, even if not directly involved?
Marketing and sales
## Footnote
Understanding these areas helps employees grasp the business's core operations.
190
What is meant by 'critical mass of qualified customers' (CMQC)?
The number of loyal customers needed to make subsequent selling transactions profitable
## Footnote
Achieving CMQC is essential for sustainable business growth.
191
What should be the primary focus of a company, according to the text?
Creating happy customers
## Footnote
A customer-oriented approach leads to long-term profitability.
192
True or False: Setting revenue and profit targets is the main objective of a business.
False
## Footnote
The text argues that the primary focus should be on customer satisfaction rather than just financial targets.
193
What is the suggested approach for teaching new employees?
* Teach instinctively if you have the instinct
* Teach formally if you don’t
* Document shared information
* Celebrate mistakes as learning experiences
## Footnote
A culture of open information sharing is encouraged to foster teamwork.
194
What is a key lesson learned from Scott Moore's experience?
Being flexible and willing to change strategies is crucial for success
## Footnote
Persistence and adaptability are vital traits for entrepreneurs.
195
What metaphor is used to describe starting a business?
Moving a stopped train
## Footnote
This illustrates the initial effort required to get a business off the ground.
196
What is the importance of teaching employees in a new business?
It helps develop a core team with necessary skills and motivation
## Footnote
Early investment in employee training can lead to a stronger organization.
197
What should the main purpose of a business be, according to the text?
To enrich the lives of employees and customers, not primarily to make them rich
## Footnote
This perspective promotes a healthier business environment.
198
Fill in the blank: The first stage of a business involves acknowledging that you don’t know what you don’t know and telling your team that their job is to do _______.
whatever you tell them to do
## Footnote
This approach allows for flexibility in roles as the business evolves.
199
What should be documented and shared after teaching lessons?
A written memo that becomes part of an informal bible for new employees
## Footnote
This documentation serves as a valuable resource for onboarding.
200
What should be considered when setting secondary objectives in a business?
They should support the main purpose of customer satisfaction and be quantifiable
## Footnote
Specific goals help measure progress while maintaining a customer-first approach.
201
What must entrepreneurs accept about the early stages of their business?
It will take more effort than anticipated to get rolling
## Footnote
Understanding this can help manage expectations and prepare for challenges.
202
What character traits should entrepreneurs look for when hiring?
Good character
## Footnote
Trusting employees with good character fosters loyalty and a positive work environment.
203
What should entrepreneurs focus on in the early stages of a business?
Selling the product
## Footnote
Focusing on sales is crucial for initial growth and success.
204
True or False: Entrepreneurs should expect starting a business to be quick and easy.
False
## Footnote
Starting a business is often hard work and can be frustrating.
205
According to Tom Lawrence, what is essential to understand when starting a new business?
Key numbers
## Footnote
Analyzing sales and conversion figures helps identify problems.
206
Fill in the blank: The market is a creature of immense _______.
inertia
## Footnote
This inertia makes it difficult for new businesses to grow.
207
What is the main advice regarding corporate marketing in the early stages?
Don’t waste your time on corporate marketing
## Footnote
Focus on selling the product instead.
208
What should entrepreneurs avoid spending money on before their business is profitable?
Invisible business extras
## Footnote
This includes office space, furnishings, and equipment.
209
Who should entrepreneurs listen to for advice?
People who have successfully started businesses
## Footnote
Seek advice from formal and temporary mentors.
210
What is the critical mass of qualified customers abbreviated as?
CMQC
## Footnote
This is an important marketing goal for new businesses.
211
What is the allowable acquisition cost abbreviated as?
AAC
## Footnote
This refers to how much can be spent to acquire a new customer.
212
What should be the top priority of a company according to the text?
Sales
## Footnote
Spend 80% of time overseeing marketing and sales.
213
What does OSS stand for?
Optimum Selling Strategy
## Footnote
This is the combination of media, pricing, and positioning for sales.
214
True or False: Investing in a lot of inventory is advisable before figuring out the OSS.
False
## Footnote
Entrepreneurs should pretest their ideas before investing in inventory.
215
What is the main goal for the marketing team?
To bring in a certain number of qualified customers
## Footnote
This goal supports profitability and cash flow.
216
Fill in the blank: Steam is to revenue as _______ is to fuel.
sales
## Footnote
Sales are essential for driving the business forward.
217
What should entrepreneurs do if they are unsure about their business ideas?
Test their ideas before committing capital
## Footnote
Customers are the ultimate arbiters of value.
218
What does the author suggest about asking for advice?
Never be ashamed to ask for advice
## Footnote
Asking questions is empowering and essential for learning.
219
What should entrepreneurs prioritize over the appearance of their business?
Sales and product delivery
## Footnote
Focus on getting the business running before worrying about aesthetics.
220
What type of marketing is recommended for testing new ideas?
Direct marketing
## Footnote
It is fast, cheap, and reliable for testing customer responses.
