Business Planning and Start Up

Vocabulary flashcards based on lecture notes.

Design of a Business Idea Components

A founding concept for your product/service, demonstrating your professional qualifications, industry experience and commercial knowledge, submitting a market assessment, deciding on a location, describing future prospects based on the competitive situation.

Source of Opportunity

Work experience, a similar business, hobby or personal interest, chance happening (serendipity), family and friends, education and expertise, technology.

Outside-In-Perspective (Market-Based View)

The entrepreneurial idea emerges from identifying a market opportunity. Focus on the market.

Inside-Out-Perspective (Resource-Based View)

The entrepreneurial idea arises from an innovation introduced by a new product or service. Focus on the product.

Imitative Strategy

An overall strategic approach in which the entrepreneur does more or less what others are already doing.

Incremental Strategy

Taking an idea and offering a way to do something better than it is done presently.

Innovative Opportunities (Disruptive Innovation)

Something that breaks the existing framework.

Creative Culture

A set of shared norms, values, and orientations of a group of individuals, prescribing how people should think and behave in the organization. Encourages new ideas, embraces change, looks to unlikely sources of opportunity.

Innovation

Implementation of a creative idea or opportunity leading to profitable and effective outcomes.

Entrepreneurial Alertness

A special set of observational and thinking skills that help entrepreneurs identify good opportunities; the ability to notice things that have been overlooked, without actually launching a formal search for opportunities; and the motivation to look for opportunities.

Creativity

A process introducing an idea or opportunity that is novel and useful, frequently derived from making connection among distinct ideas or opportunities.

SCAMPER

A creativity tool that provides cues to trigger breakthrough thinking.

Feasibility

The extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business.

Feasibility Study Scope

Examines the strengths and weaknesses of your business opportunity. It consists of careful investigation of five prime areas: The business idea, the product/service, the industry/market, the financial projections (profitability), the plan for future actions.

Pilot Test

A preliminary run of a business, sales effort, program, or Web site with the goal of assessing how well the overall approach works and what problems it might have.

Common pitfalls of a business idea

Identifying the wrong problem, quickly judging ideas, stopping after the first idea, failing to gather support, follow non existent rules

Steps of a feasibility study

The business idea, product, market, financial projects, future action plan