Entrepreneurship Test

Buyer Entrepreneurship

This type of entrepreneur buys existing businesses and tries to grow them further.

Entrepreneur

Someone who identifies an opportunity by creating a solution to a problem, starts a business, assumes the personal and financial risk (and rewards) of the venture, and strives for constant improvement in an effort to grow the business and improve society.

Entrepreneurship

The process of identifying opportunities, cultivating resources (time, money, energy, people) and creating a business to solve problems.

Hustler Entrepreneurship

This type of entrepreneur uses hard work and bootstrapping to start build a business.

Imitator Entrepreneurship:

This is a cross between an innovator and a hustler, trying to improve on existing products in the marketplace.

Innovative Entrepreneurship

This type of entrepreneur focuses on new ideas and innovation, trying to change the way people go about their lives, and to change society.

Large Company Entrepreneurship

Scalable start-up that became a large company, while still trying to preserve their entrepreneurial nature.

Researcher Entrepreneurship:

This type of entrepreneur spends more time researching an idea before pursuing the venture, focusing more on data and facts, versus intuition.

Scalable Startup Entrepreneurship:

This type of entrepreneur intends to be innovative and even disruptive, and to build a profitable business that can grow quickly.

Small Business Entrepreneurship

Small businesses, often family owned, and that intend to serve the local community, make a living, and focus less on growth than scalable start-ups.

Social Entrepreneurship

Companies that are focused on creating products and services that make the world a better place; these can be non-profit, for profit, or a combination of the two.

An idea becomes an opportunity if it has

market, margin, and mission

business plan

roadmap of the business's goals and objectives, and the strategy and details of how those goals and objectives will be achieved.

entrepreneurial discovery

The process of systematically scanning for technological, political, and regulatory, social, and demographic changes to discover opportunities to produce new goods and services

resourcing

Gathering together the necessary elements needed to start a business, also called the 3rd stage of the entrepreneurial process.

Run the Business

This is the grand opening, where you start operating your business, and offer your solution to potential customers - hopefully repeat, paying customers.

5 stages of the Entrepreneurial process

Discovery, Business Plan, Resourcing, Run the Business, Harvesting

Harvesting

The 5th stage of the entrepreneurial process, where you evaluate if the company is a success or failure, and/or if it needs more time to prove itself.

Opportunity

A circumstance or set of circumstances that presents itself as something favorable to capitalize on or benefit from.

What is defined as a small business in the United States?

A company with fewer than 500 employees.

What percentage of businesses in America are considered small?

99.7%

Small Business Ownership vs Entrepreneurship

Innovation, risk, growth, vision

Financial Risk

he risk that financial stakeholders will lose money.

Spencer Silver

Developed a high-quality "low-tack" adhesive that eventually became the "secret sauce" for the Post-It note while working for 3M

Steven Sasson

Steven invented the portable digital camera.

Intrapreneur

Someone who exhibits the traits and/or skills of an entrepreneur as an employee within a company, without taking as much risk (and therefore often receiving not as much reward) as an entrepreneur.

gig economy

A labor market involving temporary, flexible, freelance jobs, often using technology to connect workers with those who are hiring.

Home-based business

A company that is operated out of someone's residence.

Contract Employee

An employee who is hired for a specific job at a specific rate of pay; a contract employee is not considered a permanent employee.

Self-employed

An individual who is their own boss.

Small-Business Owner

A person who owns a small business.

Solopreneur

These are one-person operations, where someone starts and runs the business by themselves, with no additional partners or staff.

Tax Deduction

An amount that reduces a business's revenue, or individual's income, which in turn reduces the taxes owed.

KPIs (Key Performance Indicators)

Key metrics and measures that highlight the health of the business.

Direct Competition

When companies offer essentially the same product or service, i.e. Coke and Pepsi, Ford and GM.

Indirect Competition

When products or services are not the same, but they could satisfy the same need, i.e. bicycles are indirect competition to automobiles.

Risk Averse

One who is generally reluctant to take risks.

Risk Tolerant

One who is generally open to accept taking risks.

_, not money, is usually the driver of entrepreneurism.

Passion

Examples of barriers of entrepreneurship

"isms", excessive hours, personal toll, hard work, irregular hours, irregular paychecks, Lack of capital funding, low sales, regulatory issues

External Factors that can impact entrepreneurial growth

Economic, racial, social, political, psychological factors

Bootstrapping

Being creative by working effectively with limited funds and resources.

Innovation

The introduction of something new; a new idea, product, method, device, or service.

Mission

A summary that describes a company's purpose; it's reason for being, the problem it is solving.

Opportunity Cost

The loss of potential gain from among other alternatives, when one alternative is chosen.

Passion

A strong feeling of enthusiasm, connection, determination, and devotion.

Self-Awareness

Conscious of one's own traits, skills, strengths, weaknesses, and emotions.

Traits

Personal characteristics, expressed by a regular pattern of behavior, that over time become a part of you.

Vision

An aspirational view of the future, that if the company is successful in accomplishing its mission, the company and/or world might look a certain way.

Common traits of successful entrepreneurs

innovation, passion, vision, confidence, work-ethic, persistence, focused, persuasive, risk, bootstrapping, multi-tasker, life-long learners

Communication Skills

The ability to express thoughts, concepts, and/or ideas in a clear, concise manner.

Emotional Intelligence

The ability to care, empathize and understand the needs of others.

Financial Skills

The ability to manage money.

Leadership Skills

The ability to inspire and motivate others towards a common goal; also to direct and support the actions of others.

Operational Skills

The ability to manage people, processes, and resources, and to perform and manage day-to-day tasks, including organizing, planning, and executing the strategy.

Problem-Solving Skills

The ability to weigh many variables and find solutions to problems or and/or challenges.

Skill

An ability to do something well, developed from one's knowledge, training and practice.

Technical Skills

The ability to quickly learn, and effectively use, various forms of technology to accomplish business objectives.

Gross margin

Sales Price - COGS

Gross Margin Percentage

Gross Margin/Sales Price

Reverse engineering

Process used to examine a product in detail to determine how it works, in order to produce something similar.

Analogies

Analogies are comparisons, similarities, like metaphors or similes, or even slogans or taglines, used to compare something your audience might not yet understand, to something they already understand.

Circumstantial Discovery

Occurs when an observation is made based on specific knowledge of time, place, or circumstance.

Elevator Pitch

A short description of your idea that explains your business venture in a way that your listener could understand it in a short period of time, like during an elevator ride with you.

Scientific Discovery

The process or product of successful inquiry and investigation of natural phenomena.

Slogan

Used for promoting a product's features, benefits, and/or distinguishing characteristics - the "product" could range from a consumer product to a political candidate.

Tagline

Used to describe the essence of what the company is and/or does in just several words.

Inside-Out approach

This approach believes success comes from the inner strengths and capabilities of the organization.

Instinct

A natural ability to know what to do in certain situations.

Outside-In approach

This approach believes that success starts with the customer, and the organization views themselves from the customer's perspective.

First-mover advantage

The first-mover advantage is the advantage gained by being the first significant player or occupant in a certain market segment, allowing it to gain market share first.

Second-mover advantage

The second-mover advantage occurs when a company follows the lead of the first-movers, learning from their mistakes and from customers' reactions, and offers something better.

Self-assessment

Determining whether you and your team have the traits and skills it takes to be successful in a venture, and analyzing your strengths and weaknesses.

Technology (or Innovation) Adoption Lifecycle

The technology (or innovation) adoption lifecycle is a sociological model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups.

Behavioral Segmentation:

The process of dividing customers into groups based on variables like attitudes and knowledge of your brand, and the way they use it.

Competition (business)

The rivalry between companies selling similar products and services.

Demographic Segmentation

The process of dividing customers into groups based on physical and social characteristics, like age, gender, and income, for the purposes of target marketing.

Geographic Segmentation

The process of dividing customers into groups based on their geographic boundaries, for the purposes of target marketing.

Market

A market is a person or group who is willing and able to spend money to meet unsatisfied wants or needs.

Market Segmentation

The process of sorting people into groups who share one or more common characteristics, lumped together for target marketing purposes.

Marketing Segments

A group of people who share one or more common characteristics, like geographic, demographic, psychographic and/or behavioral similarities

Mass Marketing

Attempting to appeal to the entire market, using mass distribution and media to communicate the marketing message, with little regard to specific market segments or targets.

Psychographic Segmentation:

The process of dividing customers into groups based on variables like lifestyle, interests, personalities, and values, for the purposes of target marketing.

Search Engine Optimization

The process of maximizing traffic to a website by ensuring that it is prominently featured (ranks high) on the list of search results returned by search engines.

Target Market

A specific group of customers that is most likely to buy a certain product or service, and where marketing efforts are aimed or "targeted" in order to reach and connect with this group.

Customer Profile

A summary of common characteristics of your target customer, including demographic and economic information.

Sales Forecast

A prediction of sales for a future period of time, based on certain assumptions of sales that will be generated from the marketing plan.

Serviceable Available Market ("SAM")

The size of the market that you can reach with your current product mix and current distribution channels.

Target Market

A specific group of customers that is most likely to buy a certain product or service, and where marketing efforts are aimed or "targeted" in order to reach and connect with this group.

Total Available Market ("TAM")

The total market demand for a product or service over a one-year period; the total number of sales or customers your business can sell.

Commodity

A good or material bought and sold freely, and that is reasonably interchangeable among multiple suppliers, and whose price is usually highly correlated to perceived supply; more simply, it is an everyday type of product that is readily available, like green beans or milk at a grocery store.

Elasticity

A measure of the sensitivity or responsiveness of demand or supply of a good or service based on changes in its price.

Goal

A stated, observable and measurable end result to be achieved within a certain time frame.

Marketing Mix:

A combination of components used together in order to strengthen a product's brand and to help sell the product or service; most commonly the components are the 4P's - Product, Price, Place and Promotion.

Marketing Strategy

Marketing StrategyA company's game plan for reaching its target market, converting it to customers, and meeting company goals.

Marketing Plan

A specific written document that outlines objectives, actions, and timelines of how to attract target market customers to the business.

Objective

More specific than a goal, an objective is a specific result to be achieved within a time frame and with available resources.

Physical Evidence

Result of physical elements associated with a service.

Place

Place, or placement, is where a company's target customers can buy its product, and how the company gets the product to that place/s.

Price

The amount of money a business thinks it should charge for its product or service.