02 06 2012 40 Multiple choice questions Worth 80 points Mostly stuff from class some from the book cases over night express craigs list A1 bowling his high score 260 definition of entrepreneurship growth oriented as opposed to make money for the owner figure 1 1 key things you need to do are the inner circle outer circle is the know it is a process of entrepreneurshup environment outcomes of entreprenuership economic growth new industry jobs will occur new industry formation born when technological change produces a new opportunity that enterprising entrepreneur size figure 1 3 number of firms in the industry GDP share figure 1 4 entrpreneurs with E solo people or teams comes within a corporation I intrpreneurs the better job you do in the start up the better the chances are for success Don t rush to get your product out o Industry o market o feasibility analysis figure 1 5 know what each decade is all about 60s a lot of large not a lot of small 70s major industries were deregulated o technological revolution o ietnam o international competition o termoil o large companies down o small companies up 80s high interest rates due to mess of 70s 90s information age because of the internet o y2k peak o dot com peak 00s o commercial peak chapter 2 7 myths 1 Entrepreneurs start businesses solely to make money false could be social entreprenuers help society independence 2 It takes a lot of money to start a business false need motivation access to people with money contacts 3 It takes a great idea false you can have a team 4 The bigger the risk the bigger the reward if you file the process and do the analysis and feasibility you can reduce the risk by a lot 5 A business plan is required for success it s not neccary but it is when you want to go to a venture capitalist to give you money Lower the risk to investors because it gets rid of the unknown aspect 6 Entrepreneurship is for the young and reckless old people can 7 Entrepreneurship cannot be taught it is a process Pathways to Entrpreneurship The home based entrepreneur low cost if you do it out of your invest too home The internet entrepreneur low cost The serial or portfolio entrepreneur o Serial starts one gets it to a certain point and sells it off They enjoy making a business Guy in the Tallahassee democrat likes to build programs and sells them o Portfolio starts one keeps it and then starts another The traditional entrepreneur start one and go with it as far as you could go The nonprofit entrepreneur people who start non profit The corporate venturer o interprenuer Table 2 1 know the challenges might have a question like all these are challenges except preparing to be an entrepreneur Find a mentor you can start doing this now Build a network Learn about entrepreneurs Identify reasons for wanting to own a business Analyze personality and business preferences Improve or acquire critical skills Study an industry o this is important so you can learn about it work in it for hands on experience Chapter 3 Creativity o creates useful ideas Look at slide creativity and innovation difference between idea and business opportunity business opportunity has commercial vaibility nature of creativity creativity as a process wright brothers created something and now it works challenges to creativity No time for creativity No confidence No creative skills removing the roadblaocks 1 Design an environment to stimulate creativity Minimize distractions o no texting Devote time daily to quiet contemplation o give them a half hour off to go walk go to the gym Spend time in the places that best promote your creative thinking o ride your bike Develop a creative company culture o reward people like google Have fun and get rewarded Mix people up o instead of keeping all marketing people together mix themup 2 Keep track of ideas o write them down 3 Start with the familiar 4 Take advantage of a personal network o business people friends family 5 Return to your childhood o play with toys 6 Think in opposites o If it is supposed to be this way how is it not supposed to be decision tree analysis Customers writing down makes you think sources of innovation Newspapers and magazines Observation Demographic shifts Unexpected news events Trends and patterns of change New government regulation Emerging industries look at new product slide chapter 4 developing a business concept o A business concept is a concise description of an opportunity that contains four essential elements o 1 The customer definition o 2 The value proposition and compelling story like the elevator speech o 3 The product service o 4 The distribution channel after you made it how are you going to get it in the hands of the customer the customer definition The customer is the one who pays o focus effort and product on this The end use customer is as important as the intermediary customer business concept The Product Service o What does the customer need o What is the team s core competency if your good at sales The Distribution Channel o How will the benefit be delivered to the customer Value chain Suppliers E ent Customer from Ent customer distrbution wholesalers retailers finance trucking airplanes modes of concept quick test transport reduce risk by taking this test once it is developed in the business concept Ask yourself this o Am I really interested in this business opportunity If yes who else is o Is anyone else interested with the other people interested who pay for it o Will people pay for what is being offered find people to pay o Why me o Why now is it good for me Is it a good time in my life If you find yourself saying no you should rethink this value chain like the distribution channel above Upstream activities those related to the production of a product or service which may include raw materials product development manufacturing and warehousing S E Downstream activities those associated with selling the product or service such as customer acquisition sales transactions and logistics E C forces affecting the value chain The Internet o Reduced transaction costs o Disintermediation taking one or more intermediary out o since the internet has become big we no longer need some of these the vaule channel chain and concept Characteristics of an effective distribution channel o Inventory the amount of stock you have o Ownership buy it from you and sell it there o Financing and payment offer financing cant pay now we can finance Accept different payment types and capabilities o Risk