Prelims Flashcards
LS1-2
Quickly Conveys to the listener your business Idea
Elevator Pitch
Maximum Amount of time for an Elevator Pitch
30s-2 min
Point where total cost and total revenue are Equal
Breakeven Point
First Offering of Corporate Stock in the public market
Initial Public Offering
Financial Sheet Summarizing asset, liabilities, and net worth
Balance Sheet
Any Item of Value
Asset
A business debt/What You owe
Liability
Formula for Owner’s Equity
Asset-Liability
What is Owner’s Equity Equal To?
Net Worth
Paid Promotion
Advertisement
Free Promotion
Publicity
Summarizes Income and Expenses
Income Statement
What is fabricated for testing by labs/customers
Prototype
What will assist in go/no go decisions
Feasibility Analysis
What are the 4 P’s in Marketing Mix
Product, Promotion, Place, Price
How you are going to achieve marketing goals
Marketing Plan
What you need to achieve with your marketing efforts
Marketing Strategy
This is about regularly setting goals
Business Planning
Is a document that thoroughly explains a business idea, it also saves time and money
Business Plan
What should a Company Description Context Answer?
Who, What, When, Why, Where, How
What is the strongest force in an industry?
The degree of rivalry
What provides a broad context to business plan?
Industry Analysis
What does an Industry Analysis Provide?
A critical view of the industry definition, size, and growth
What does an Environment Analysis Provide?
Addresses the role of the community and etc, as they relate your business
An investigation that provides evidence of a market opportunity
Proof of market
A group of people defined by common factors
Target Market
Research that compares an org with Direct/Indirect Competitors
Competitive analysis
Who said “If you fail to plan then you are planning to fail?’
Benjamin Franklin
Who said “Writing a business plan forces you into disciplined thinking?
Eugene Kleiner
Give a common example of an exit strategy
Being acquired by a 3rd party company
How entrepreneurs transfer ownership and get a return on their investment?
Exit Strategy
What is an Angel Investor?
Provides seed money for a start-up, in exchange for ownership equity
What is the 1st component of a business plan?
Executive Summary
What is an Executive Summary
It is an overview, it is the most important and is written last
Overview of key aspects like what makes your company special
Company Description Content
Forecast of Future Revenues and Expenses
Financial Analysis & Projection
Component 7 of Business plan
Financial Analysis & Projection
Describes how your business operates on a continuing basis
Management and Operations
Component 6 of business plan
Management and Operations
Component 8 of business plan
Funding request and Exit Strategy
The last section, and it shows how thoroughly thought out your business plan
Appendix
Component 2 of business plan
Mission, Vision and Culture
Component 3 of business plan
Company Description
Component 4 of business plan
Opportunity analysis & Research
Is a business function to assess current environment
Opportunity analysis & Research
Component 5 of Business Plan
Marketing Strategy & Plan
This type of entrepreneur looks for more social returns than financial ones
Venture Philanthropy
Enterprise activities that avoid harm to the environment/protect it
Green Entrepreneurship
For-profit enterprise with goals to attain returns for society
Social Entrepreneur
A company that achieves an annual growth of 20%>
Gazelle
What are Schumpeter’s sources of opportunity?
-New Technology
-Existing Technology to make a new product
-Existing Technology to make an old product in a new way
-New source of resources to produce more efficiently
-Develop a new market for an existing product
Legal/Commercial relationship between owner of trademark and individuals that want to use it
Franchise
Business with <5 employees, <$50k, frequent involvement of the Sole proprietor
Microenterprise
What is the difference between opportunity and idea
Opportunity has a unique characteristic
is an idea based on consumer needs/wants
Opportunity
3 C’s
Customer
Corporation
Competitor
5 M’s in agency theory
Manpower
Machine
Material
Method
Money
Manhour (Bonus)
What is Joseph Schumpeter’s theory on entrepreneurship?
Development is not an automatic process, but a deliberate one and actively promoted by some agency in the systems
What is the key factor in any entrepreneur field of specialization?
Creativity/Innovation
What is another name for a free-enterprise system
Private Enterprise system
The United states is a ____, based on what?
Free enterprise system, based on voluntary exchange
Who coined entrepreneur and the law of markets?
Jean Baptiste Say
What is the Law of Markets?
Producing a product creates demand because one product can be exchanged for another
What are the roots of opportunity
Problem
Changes
Inventions
Competitions
Technological Advancement
What is an opportunity cost
The price of the next best investment
OR
What was given up
What does an entrepreneur do in terms of moving resources
Shifts resources from low to high productivity areas with greater yield
Buying and selling of products and services
Business
Exists/Naturally Made and is tangible
Product
Work that provides time, skill, and expertise. Also intangible
Service
Difference between employee and entrepreneur
Employee earns through someone else
Entrepreneur earns through their own business
