Exploring Entrepreneurship Midterm Study guide

Collaboration

Working together to achieve a common goal.

Customer Discovery

The process of understanding customer needs and validating business ideas.

Design Thinking

A process for creative problem solving that focuses on the people for whom products or services are created.

Entrepreneurial Innovation

The introduction of new ideas, products, or processes in the business environment.

Lean Startup Method

A temporary organization that searches for a repeatable and scalable business model.

Pivot

A fundamental shift in business strategy to test a new approach.

Prototype

An early sample or model of a product used to test concepts.

Invention

The capacity and willingness to develop a product or process that has not been created before.

Target Market

A specific group of consumers at which a company aims its products and services.

Value Proposition

The promise of value to be delivered to customers.

Business Model Canvas

A strategic business template designed to enable an individual to understand a startup in a straightforward and structured way.

Business Plan

A formal document that outlines a business's goals, the strategy to achieve them, and the resources required.

Entrepreneur

An individual who creates a new business, bearing most of the risks and enjoying most of the rewards.

Entrepreneurship

The capacity and willingness to develop, organize and manage a business venture along with any of its risks to make profit.

Ethics

The principles that govern behavior, ensuring trust between business and customers.

Inventor

The originator of a new product or process.

Small Business

A privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation.

MVP (Minimum Viable Product)

A version of a new business/product that allows for the maximum amount of feedback, generated by the least amount of effort.

Feedback

Information obtained from customer discovery to improve a product or service.

Empathy

Understanding the motivations and desires of the target audience.

Innovation

The process of translating an idea or invention into a good or service.

Intellectual Property

Creations of the mind that have been fixed in a tangible form, such as inventions and literary works.

Opportunity

An idea with a plan that could make for a profitable business.

Competitive Advantages

Benefits offered by a company that are superior to those of competitors.

Value Proposition in Startup Mode

A conviction of a problem and business idea that needs to be tested with the intention of verifying, iterating, and/or pivoting.

Intellectual Property Benefits

It allows the creators to benefit from their work and encourages creativity and innovation.

Common Forms of Intellectual Property

Copyright, Patents, Trademarks, Trade secrets.

Trade Secrets

Considered as confidential information and must have economic value to the owner.

Patent

A U.S. patent gives you, the inventor, the right to 'exclude rights' from making, using, offering for sale, or selling an invention.

Patent Infringement

If someone infringes on your patent, you may initiate legal action.

U.S. Patent Territory

U.S. patents are effective only within the U.S. and its territories and possessions.

Patent Rights

Patents provide the owner with the exclusive right to choose what to do with the protected invention.

Patent Application

Patents must be applied for and are not guaranteed.

Design Patent

Protects the look, design, appearance of what has been created.

Utility Patent

Protects inventions processes, machines, and compositions of matter.

Plant Patent

Protects new varieties of plants.

Market Research

Processes and methods used to gather, analyze, and report findings.

Primary Research Data

Research is designed with a specific outcome in mind and can be collected in a variety of ways.

Secondary Research Data

Research has already been done, data has been analyzed, and can apply right away.

Customer Segment

The User: consumer, The Buyer: customer, The Influencer, The Decision Maker.

Demographics

Who your customer is, including age, gender, ethnic background, income, marital status.

Geographics

Where your customer lives, including city-dweller, suburban, rural, international/domestic.

Psychographics

Why your customers buy, including attitudes, beliefs, lifestyle, interests, hobbies, activities, social status.

Buying Behavior

How they buy; how they use a product, including needs vs wants, spending patterns, usage trends.

Customer Persona

A Customer Persona is built by compiling the information you know about your customer.

Customer Persona Canvas

Giving your persona a real name and role helps anchor them in reality.

Positive Trends

What are/have been positives in the greater environment or economy that have impacted the persona.

Opportunities

What are/have been some positive opportunities, events in the persona's work or private life.

Negative Trends

What are/have been negatives in the greater environment or economy that have impacted the persona.

Fears

What fears or concerns does the persona have for the future.

Minimum Viable Product (MVP)

Your business idea, in its simplest form

The Marketing Mix - The Four Ps of Marketing

A combination of factors that can be controlled by a company to influence the target market to purchase its products

Price

Amount a customer will pay; perception of a product's value

Selling price

Made up of Costs of Goods Sold (COGS) and Desired profit (or profit margin)

Product

The total product offering (including user experience)

Place

Locations where the product/service can be purchased; how did the product become available (distribution plan)

Promotion

Ways that a company may inform, persuade, remind a target market about their products/services

Types of Promotion

Advertising, Personal Selling, Direct Marketing, Social Media Marketing, Sales Promotions, Public Relations

Brand Name

Can you link your product to your name, so customers remember you

Slogan or catchphrase

Can you find a way to "stick" in the customer's mind

Logo

Can you create a visual symbol that is instantly recognizable

Trademarks

Protect the unauthorized use of a word, symbol, design, or combination of these...which identifies your organization, or its goods and services

Applying for Trademark Protection

One can apply for a trademark (typically regional or national) via the USPTO (United States Patent and Trademark Office)

Copyright

Refers to the legal protection one receives for literary and artist works (in the US), when provided in a fixed or tangible form of expression

Customer Channels

How will you communicate/distribute/sell your product?

Customer Relationships

A description of the experience between business and customers

Lean Startup Methodology

Build, Measure, Learn

Customer Goals

Functional Goals: Perform a task, solve a problem; Social Goals: Look good, gain power/status; Emotional Goals: Aesthetics, security, feel good; Basic Needs Goals: Communication, access

Value Proposition Canvas

Helps narrow down what problems or challenges are most significant and determine where is the best opportunity for impact.

Prototyping

An early sample or model that future designs are based upon, and which users can interact with.

Benefits of Prototyping

Present your future design to potential customers before the actual launch of the product; may help with developing marketing strategies and start pre-sales.

Factors to Consider Before Prototyping

Purpose and Goals: clearly define the purpose of the invention and establish specific goals for the prototype.

Feasibility

Assess the ability to produce a working version of the invention/prototype.

Technical feasibility

Can the invention be built with available resources?

Economic feasibility

Is the invention cost effective to produce?

Legal feasibility

Does the invention comply with the patents and regulations?

Environmental feasibility

How will producing the invention impact the environment?

Design Considerations

Pay attention to the design aspects of the prototype, including its size, shape, ergonomics, and aesthetics.

Testing Plan

Develop a testing plan to evaluate the prototype performance and gather feedback from users.

Prototyping Phases

Low Fidelity: Models that don't necessarily look real but provide an outline of the final design.

High Fidelity

Working models that look and work like the final design.

Common Prototyping Models

Sketches: Initial idea drawn on napkins with pencil, more formalized drawings using a ruler and ink.

Mockup

Visual rendering (high-quality) of the finished product, common for digital products.

Video Prototype

Create animations and simulations showing how the product or process will work.

Testing and Evaluating Your Prototype

Testing is critical to inventing and prototyping because it shows the inventor whether they have the optimal prototype.

Functionality Testing

Does the prototype work as intended? What features or components are missing that would make the prototype better?

End-User Testing

Requires people to use the prototype and provide feedback.

Iteration

Taking your idea and refining it to better meet the needs of your customer.

10 Ways to Pivot

Zoom-In: Focus on specific features your customers care about.

Customer Need

Your customer may not want/need your product.

Revenue Streams

Ways your company generates cash from customer segments.

Startup Costs

Initial expenses incurred during the startup phase.

Venture Capitalists

Investors who provide capital to startups in exchange for equity.

Cost to Produce

What is the cost to produce the goods or services?

Profitability

Does this generate the money needed to fund basic startup operations?

Asset Sale

Sale to customer and they become the owner of product.

Usage Fee

Customer uses your product and you retain ownership.

Subscription Fee

Client uses your infrastructure on monthly or weekly basis.

Lending/Renting/Leasing

Use your asset for a period of time as if it is theirs.

Licensing

Give clients use of intellectual property.