Chapter 4 entrepreneurship

Opportunity Recognition

searching and capturing new ideas

Entrepreneurial Alertness

a skill that one has to identify and observe good opportunities

Imitative Strategy

when the entrepreneur does what others are already doing

Incremental Strategy

doing something slightly better

Radical Innovation strategy

Extreme new or innovative ideas

Causal Model of Entrepreneurship

think about what you need to do to create something that doesn’t exist yet

Retail Arbitrage

Buying closeouts at your local stores and selling at full price online

License

a legal agreement granting rights to use a particular piece of property

Licensee

the person who obtains the license/rights to property

Licensor

Person offering the rights to use piece or property

Royalty

the licensing fee

Creativity

Brainstorming

SCAMPER

a tool to help you come up with new ideas

S in Scamper

Substitute

C in Scamper

Combine

A in Scamper

Adapt

M in Scamper

Magnify/modify

P in Scamper

put to other uses

E in Scamper

Eliminate

R in Scamper

Rearrange

IDEO

consulting organization that is one of the creators of the approach

What is one of the simplest and fastest ways to screen ideas?

IDEO Screening

Customer Jobs

term given to what a potential customer is trying to do

Feasibility

the extent to which the idea is viable and realistic

Business Model

a way you identify and organize information on an organization and how you are going to achieve your goals

Customer Segment

group or subgroup of potential purchases that can be approached in a coherent manner

Pain

Any problem that a customer wants to solve

Gain

Any outcome, product, or service to solve the pain

Freemium

Gives you something and lets you buy add ons

Pilot Test

low risk, low cost test to see how well your business approach works

Conversion Rate

How many people actually make the purchase

A/B Testing

Check customer reactions describing your product or services

Target Market

people or market groups who would be most interested in your product