ENT 3003 Exam 3

what does a strong network do?

helps you collaborate, create, take action with limited resources, and navigating uncertainty

2 factors about having and building a network being apart of the Entrepreneurship Method

existing network connects to resources you have available to you and network that you build relates to enrolling stakeholders

2 main ways to differentiate ourselves

human capital or social capital

human capital

skills and knowledge, what we know and who we are

social capital

refers to our personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other. it is a source for ideas, support, reputation, new knowledge, and resources

what does network building develop?

mutual learning, information exchange, social capital

where does social capital work through?

a large range of channels, found everywhere like community, schools, clubs, etc. basicially anywhere that provides the opportunity to interact socially

three dimensions of social capital

structural dimension, relational dimension, and cognitive dimension

structural dimension (social capital(

incluees 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

relationship dimension

what your contacts represents, such as trusting relationship

cognitive dimension

includes norms, visions, values, interpretations, and beliefs you may share with others which provides a good foundation for working well together toward a common goal

three main varities of social capital

bonds, bridges, linkages

bonds

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

bridges

links that go further than simply sharing a sense of identity; for example, making connections with classmates or colleagues who may have different backgrounds, cultures, or other characteristics

linkages

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

benefits to social capital

creates a sense of shared value among the people who are connected in the network

how can personal bonds to family and friends be restrictive?

Forming connections with people who are too similar to ourselves can prevent us from having an open mind to alternatives, as they are less likely to challenge our ideas, which may deprive us of valuable feedback and information

informal networking

unstructured, free-flowing communication

formal networking

meeting in a formal setting

three main advantages to networks

private information, access to diverse skillsets, and power

private information

type of information that is not available to the general public

diverse skillsets

highly diverse network gives you broader perspective and enables you to trade information and skills with people who have different experiences and backgrounds from your own

access of power

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

different types of roles people in our personal networks can play

First, they can help you progress by offering information and instruction, especially when trying to learn complex tasks and can refer you to others. Second, people can help protect your venture by giving you advice when you are confronted with high-risk situations or are going through a rough patch. Third, people can provide personal and emotional support by listening to your concerns, empathizing, and offering advice. Finally, people can become your role models

three types of support provided by networks

career support, psychosocial support, and role modeling

psychosocial support

emotional support, counseling, friendship, personal feedback

what stops students from networking effectively?

impression management and lack of confidence

impression management

paying conscious attention to the way people percieve you and taking steps to be percieved in the way you want others to see you

implicit bias

attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious way

lack of confidence and fear of failure

plays a part in student’s reluctance to make connections

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.

co creation

strategy that focuses on bringing people together to initiate a constant flow of new ideas that help to create ventures and transform businesses for the better in an uncertain and unpredictable world

first step to finding self-selected stakeholders

think about the people you already know: family and friends, people you have met at work, and people you encounter in school and social activities

key to building network

enrolling people in the idea not just selling them on it

one of the best ways to form a range of diverse connections

shared activities because builds trust and passion outside of a formal environment

how to develop a really useful network?

make an effort to meet other individuals in your geographic location

startup incubator

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

startup accelerator

organization that provides tailored support for existing startups by helping scale business through focused programming

founding team

group of people with complementary skills and a shared sense of committment coming together in founding an enterprise to build and grow the company

goal of founding team

build and grow the company and provide economic and social returns for themselves, employees other owners, and potential investors

why having a partner is essential

bring diverse skillset, friend on the startup journey, they can take over, find the blind spots

lead entrepreneur

creates the vision, has full belief in the venture, has the motivation and passion to perserver, inspire team members, and make judgements and decisions during difficult times

create a vision questions

core values, purpose, and mission?

as the venture gains more traction, two additional questions?

strategy and goals?

what do the members of the most successful teams possess?

experience, skills, and abilities to manage complex problems, cope with pressure, and overcome obstacles to achieve rapid growth

where is diversity also found

people’s career paths and goals, viewpoints, educational backgrounds, and life experiences

homogeneous teams

members possess the same or similar characteristcs— such as age, gender, ethnicity, experience, and educational background

heterogeneous teams

group of people with a mix of knowledge, backgrounds, skills, and experience

advantages to homogeneous teams

members more likely to feel included because of shared background. because of this, they can communicate more effectively and avoid misunderstandings

disadvantages to homogeneous teams

stifle creativity and information processing

advantages to heterogeneous team

greater mix of experiences, skills, ethnicities, and backgrounds. this aids decision making because problems can be conceptualized in new ways

what matters more than than demographic diversity?

team committment and cognitive comprehensiveness

cognitive comprehensiveness

a process in which team members examine critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of action

what is entrepreneurial team effectiveness positively related to?

team-level cognitive comprehensiveness

drawbacks to heterogeneous teams

can find it difficult to communicate and understand each other

group think

when people share too similar of a mindset, it inhibits their ability to spot gaps or errors

what does healthy conflict build?

clarity

one way of preventing groupthink and promoting healthy conflict

use of a devil’s advocate to challenge assumptions and encourage different perspectives

revenue

income gained from the sales of goods or services

difference between business model and revenue model

A business model describes how venture will create, deliver, and capture value in 3 ways: by fulfulling unmet needs in an existing market, delivering existing products and services to existing customers with unique differentiation, or serving customers in new markets. revenue model is a key component of the business model about how company will earn revenue and generate profits

revenue model

identifies how the company will earn revenue and generate profits; how entrepreneurs will make money and capture value from delivering on the customer value proposition

how will your business have a better chance of surviving in terms of revenue?

if you have a clear strategy for generating revenue

questions apart of revenue strategy

how much are my customers willing to pay? how many customeres do i need? how much revenue can be generated through sales? if I have more than one revenue stream, how much does each stream contribute to the total?

how do companies operate in terms of revenue models

some companies operate using one primary model, others use a combo of models

how is each type of revenue model characterized?

by different ways in which revenue is generated and that affects who your customers will be

10 types of revenue models

unit sales, advertising, data revenue, intermediation, licensing, franchising, subscription, professional, utility and usage, freemium

unit sales revenue model

measures the amount of revenue generated by the number of items sold by a company

two types of unit saes

physical goods and intangibles

razor and razor blade model

generates revenue by offering a physical cost at low cost to encourage sales of the more expensive product that you need to use the physical product (printer and ink catridges)

advertising revenue model

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

how has the ad revenue model evolved?

encompasses the digital world

what is meaningful advertising revenue dependent on?

attracting traffic or developing a dominant niche

cost per click advertising model

charges advertisers a fee every time a user clicks on their ad. intended to attract traffic to the advertiser’s business while generating income for ad service

cost per action advertising model

advertisers pay only when a click converts to an actual sale of their product or service

data revenue model

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

how can data be sold?

in raw form or in the form of insights

how does ai help monetize data?

marketing campaigns, customer experience, business operations

how can companies create additional revenue streams in terms of data?

selling data that may be valuable to others

what happens when more data gets passed around between third parties?

higher the likelihood of data breaches or leaks

intermediation revenue model

different methods by which third parties, such as brokers, can generate money

brokers

people who organize transactions between buyers and sellers and then take a percent of that

licensing revenue model

way of earning revenue by giving permission to other parties to use protected intellectual property in exchange for royalties or fees

franchising revenue model

describes the processes where an owner of an existing business sells the rights to another party to operate under the name of that business using preestablished processes and procedures

subscription revenue model

invovles charging customers to gain continuous access to a product or service

professional revenue model

provides professional services on a time and materials contract (charge by the hour, fixed fee for projects posted online by freelancers)

utility and usage revenue moel

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

freemium revenue model

amount of revenue gained by mixing free basic services with premium or upgraded services

what is the freemium model most viable for?

web or app-based companies because of the low marginal cost of providing the service for free users

what is key to a sustainable revenue model involving free?

earning enough money on some part of the business to pay for the costs of supporting the free side of the business

direct cross subsidies

pricing a product or service above its market value to pay for the loss of giving a product or service for free or below its market value

how does cross-subsidization attract customers?

eliminating or reducing the upfront cost of a product or service and makes up the loss with subsequent charges

key drivers of revenue

customers, price, frequency, selling process

customers questions

how many customers will come into your shop? how much are they willing to pay to stay? how much will you attract customers to your location?

purchase frequency questions

how often will customers come into your shop? what incentives can you offer to keep them coming back?

selling process questions

how many hours will you operate a week? what kind of upselling or cross-selling opportunities can you find?

price questions

what are the factors that increase the value of your product? if you raise or lower prices what will be the impact on your customer base?

how to determine revenue drivers when business hasn’t begun

actively testing assumptions and hypotheses

cost drivers, two types to take into consideration

cost of goods sold and operating expenses

COGS

the direct cost of producing a product

why must there be a balance between reducing costs and satisfying customer?

ensure that you are not devaluing the product to the extent that it would reduct your customers’ willingness to buy it at all