Entrepreneurship 340 Final

Structural dimension

The components of your network, such as the types of social ties you may or may not have and the degree to which these ties may be formal or informal.

Relational dimension

What your contacts represent, such as trusting a relationship.

Cognitive dimension

The norms, visions, values, interpretations, and beliefs.

Bonds

Connections with people who are just like us, such as family, friends, and others who have a similar cultural background or ethnicity.

Bridges

Links that go further than sharing a sense of identity.

Linkages

Connections to people or groups regardless of their position in an organization, society, or other community.

Private information

The type of information that is not available to the general public.

Access to diverse skillsets

A highly diverse network of contacts gives you a broader perspective on certain situations and enables you to trade information and skills with people who have different experiences and backgrounds from your own.

Power

People in senior or executive positions who can provide expert advice and introduce you to other powerful people in their network.

Impression management

Paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you.

Lack of confidence

Fear of failure, worry about not asking the 'right' questions, and insecurity about themselves plays a part in students' reluctance to make connections with others.

Self-selected stakeholders

The people who 'self-select' into a venture in order to connect entrepreneurs with resources in an effort to steer the venture in the right direction.

Startup incubator

An organization that helps early stage entrepreneurs refine an idea and help transition from an idea to viable business model.

Startup accelerator

An organization that provides tailored support for existing startups that have already built an MVP by helping to scale and grow their business through focused programming designed to accelerate sales and establish a presence in the market.

Mission

What do we want to achieve?

Vision/Purpose

Why do we exist?

Core values

What do we believe in?

Characteristics of a founding team

Determination, Resilience, Tenacity, Commitment, Curiosity, Work ethic, Humility.

Value of team diversity

Diversity is often thought of as: age, gender, race, and ethnicity; it is also found in: people's career path and goals, viewpoints, educational backgrounds, life experiences, etc.

Groupthink

A phenomenon in which people share too similar a mindset, which inhibits their ability to spot gaps or errors.

Revenue model

A key component of the business model; it identifies how the company will earn revenue and generate profits.

Unit sales revenue model

Measures the amount of revenue generated by the number of units sold by a company.

Advertising revenue model

Relies on the amount of revenue gained through sales of advertising products and services.

Data revenue model

Generate revenue by selling high-quality, exclusive, valuable information, called data assets.

Intermediation revenue model

Methods by which third parties, such as brokers or intermediaries, can generate money.

Licensing revenue model

Earning revenue by giving permission to other parties to use protected intellectual property in exchange for royalties or fees.

Franchising revenue model

the owner of an existing business (franchisor) sells the rights to another party (franchisee) to operate under the name of that business using preestablished processes and procedures

Subscription revenue model

charging customers to gain continuous access to a product or service

Professional revenue model

providing professional services on a time and materials contract

Utility and usage revenue model

charging customers fees on the basis of how often goods or services are used

Freemium revenue model

mixing free (mainly web-based) basic services with premium or upgraded services

Cost of goods sold (COGS)

the direct cost of producing a product

Operating expenses

the costs of running your business, including rent, utilities, administration, marketing/advertising, employee salaries, and so on

Income statement

a financial report that shows revenue, expenses, and profit for a period of time (month, quarter, or year)

Competition-led pricing

copy the prices suggested by other businesses selling the same or very similar products and services

Customer-led pricing

ask customers how much they are willing to pay and then offer your product at that price

Loss leader

the practice of offering a product or service at a below-cost price in an attempt to attract more customers

Introductory offer

encourage people to try your new product by offering it for free or at a heavily discounted price for a certain number of days or to the first 100 customers

Skimming

a form of high pricing, generally used for new product or services that face very little or even no competition

Psychological pricing

intended to encourage customers to buy based on their belief that the product or service is cheaper than it really is

Fair pricing

the degree to which both businesses and customers believe that the pricing is reasonable

Bundled pricing

a form of psychological pricing, packaging a set of goods or services together; sold for a lower price than if they were to be sold separately

Reasons startups fail

Lack of financing/investors, running out of cash, COVID pandemic, poor timing, legal challenges, lack of a business model, etc.

Deviance

when an entrepreneur defies legal and ethical boundaries, leading to mismanagement of the venture

Inattention

when an entrepreneur becomes sidetracked from the core business

Lack of ability

the entrepreneur is overextended and lacks the skillset to get the job done

Process inadequacy

the wrong processes are set up in the organization, so communication breaks down among employees and things begin to fall through the cracks

Uncertainty

the lack of clarity about future events can cause entrepreneurs to take unreasonable actions

Exploratory experimentation

a method whereby market tests are conducted to get early feedback and acquire important learning and information

Signs of fear of failure

Failing makes you worry about what other people think about you, your ability to pursue the future you desire, that people will lose interest in you, how smart or capable you are, disappointing people whose opinion you value, and more.

Building grit

Courage, Conscientiousness, Perseverance

Resilience

the process of overcoming adversity

Equity financing

the sale of shares of stock in exchange for cash

Seed-stage financing

small modest amounts of capital are provided to entrepreneurs to prove a concept

Startup financing

the money is provided to entrepreneurs to enable them to implement the idea by funding product research and development

Early-stage financing

larger funds are provided for companies that have a team in place and a product or service tested or piloted but yet show little or no revenue

Angel investor

investor who uses their own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family

Venture capitalist

investor who generally invests in early stage and emerging companies because of perceived long-term growth potential

Entrepreneurial investors

entrepreneurs who have already successfully started and operated their own businesses, which they may or may not still be running

Corporate angels

individuals who are usually former business executives, often from big multinationals, looking to use their savings or current income to invest

Professional angels

doctors, lawyers, dentists, accountants, consultants, and the like who use their savings and income to invest in entrepreneurial ventures

Enthusiast angels

independently wealthy retired or semi-retired entrepreneurs or executives who often invest their personal capital in startups as a hobby

Debt financing

borrowing money to start a business that is expected to be paid back with interest at a designated point in the future

Due diligence

a rigorous process carried out to evaluate an investment opportunity prior to being finalized

Initial public offering (IPO)

a company's first opportunity to sell stocks on the stock market to be purchased by members of the general public

Entrepreneurial marketing

a set of processes adopted by entrepreneurs based on new and unconventional marketing practices to gain traction and attention in competitive markets

Marketing mix

the combination of elements that a company uses to promote its product, including price, product, promotion, and place

Price

the amount that the customer is expected to pay for the product, its perceived value, and the degree to which the price can be raised or lowered depending on market demand and how competitors price rival products

Product

anything tangible or intangible (ex. service) offered by the company

Promotion

all the ways in which companies tell their customers about their offering

Place

where the product is actually sold to your target market (ex. online, retail stores, catalogs, pop-up events)

Brand strategy

a long-term plan to develop a successful brand

Smile acronym

Suggestive - gives a hint of what type of brand it is; Memorable - it will be familiar to your customers; Imagery - visually evocative, creates a mental picture; Legs - carries the brand, lends itself to a theme and wordplay; Emotional - empowers, entertains, engages, enlightens

Scratch acronym

Spelling-challenged - you have to tell people how to spell it; Copycat - similar to competitors' names; Restrictive - minimizes future growth; Annoying - hidden meaning, forced, frustrates customers; Tame - flat, uninspired, boring, nonemotional; Curse of knowledge - only insiders get it; Hard-to-pronounce - not obvious, relies on punctuation

Types of influencers

Mega- or celebrity influencers - over 1 million followers; Macro-influencers - 100,000 - 1 million followers; Micro-influencers - 10,000 - 100,000 followers; Nano-influencers - fewer than 10,000 followers

Influencer marketing strategy

Define goals; Set a budget; Choose a type of campaign; Find the right brand influencers; Promote your campaign; Track the success of the campaign