Terms 5 Ps of Marketing Definitions Product What is being offered to the customer Price What the customer is willing to pay for Place Channel thru which the customer can find the product or service Promotion Strategies for creating awareness and reaching the customer People The customers Advertising Media Advisory Board Angel Investors Balance Sheet Statement of Financial Position Bankers Lenders Board Members Bootstrapping Brand Equity Business Model Business Concept Newspapers Magazines direct mailing direct mail mail order telemarketing yellow pages signs radio A panel of experts interested in the new venture success Used when board members are not required Helps the entrepreneur to overcome tunnel vision They are a part of an informal risk capital market They usually focus on first stage financing between 10 000 500 000 and their intention as investors are hidden until they are ready to make them known Angel investors tend to prefer technology manufacturing energy resource and service ventures This looks at the financial health of a business at a particular point in time given a date The balance sheet is an important tool for answering questions about the health of a business Assets Liabilities Shareholder s Equity They are primarily interested in the company s margins and cash flow projections because they are concerned about how their loans or credit lines to the business will be repaid These individuals consider the track record of the management team and usually require personal guarantees They are mandatory for corporations They assist with business development act as arbitrators of dispute resolution and give credibility to the new company s image Is the term often applied to the minimizing of resources required to start and operate a business Conveys the effectiveness of the brand in the market often in terms of financial metrics such as return of marketing costs Brand equity requires that the customer forms and emotional connection to the brand This represents how you would structure a business after identifying an opportunity Questions associated with the formation of a business model Pages 315 327 164 354 355 217 218 208 209 161 177 322 323 73 74 Size and importance of revenue streams Significant cost drivers of the business Capital required to execute the model Critical success factors to achieving the goals of the business model Business Plan Writing a business plan is a huge undertaking that should be planned in terms of task and timeline Entrepreneurs should customize their business plan based on the specific needs of the business but here are some essential components of a business plan Operations plan organization plan marketing plan Financial plan growth plan contingency plan and harvest strategy timeline to launch appendices and 214 220 Capitalization Statement of cash flows inflows outflows Corporations Certificate of Doing business under an Assumed Name Chasm Common Stock Holders Consultants Contribution Margin Core Values Cost of goods Sold CGS Current Ratio Customer Acquisition Costs direct selling expenses 235 238 endnotes A persuasive plan requires that the entrepreneur weave a compelling story with supporting evidence so that readers can reasonably conclude that the business is viable One of the major resources needed to launch a new venture They fall under four categories human capital social capital physical capital and financial capital This provides information on the company s cash account changes Cash inflows include sales and account receivable that has been collected loans investments sales of assets Cash outflows include inventory payments accounts payable payments payroll taxes utilities and so forth A corporation is an artificial being invisible and intangible existing only in the contemplation of law It is chartered and registered by a state and can survive the death of its owners A corporation is owned by shareholders through the issuing of stocks A C Corporation enjoys limited liability in that its owners are liable for its debts and obligations only to the limit of their investments A S Corporation however is not a tax paying entity It is much like a sole proprietorship in that profits becomes the income of the owners Shareholders Is the only thing required to operating a business as a sole proprietor and can be obtained by filing an application with the appropriate government agency It is also called the fictitious name statement and ensures that it is the only business within that area using that name Is a period when the early adopters of a product have been exhausted and the technology stops selling They are entitled to vote at the shareholders meeting and to divide the profits remaining after the preferred holders are paid their dividends assuming that these profits are not retained by the corporation to fuel growth They are a type of independent contractor who are best used for their critical one time advising or problem solving assignments Consultants can Train staff conduct market research prepare policy manuals act as temporary managers recommend marketing strategies etc Represents the amount available to pay for fixed costs and provide a profit to the business These are the fundamental beliefs that a company holds about what is important in business and life in general They are mostly based on the founding team s personal values and beliefs Consist of direct labor cost of material and direct factory overhead Provides info on the company s ability to meet short term goals It is found by Current Ratio Total current assets Total current Liabilities Any cost associated with securing customers This may vary depending on the type of business This includes advertising costs travel expenses sales salaries commissions and the costs of promotional supplies 344 217 228 318 235 170 183 260 190 218 184 190 Entrepreneur s Extended Network Dogmatism Egoism Elevator Speech Equity Equity Investors Ethical code Ethical Dilemma Ethics Executive Summary Feasibility Analysis Financial Plan Foreign Corporation Never lying cheating or stealing as a means of solving ethical dilemmas Everyone needs to look out for himself as a means of solving ethical dilemmas Is a term that has been applied to the idea that entrepreneurs have only a few seconds the time it takes to ride an elevator to get an investor interested in a concept When an entrepreneurial firm interacts with another firm in its industry it creates additional extended networks which is