ESB prep

Franchise

A licensed business that has established operations, products, services, and branding, requiring more money upfront but has less risk.

B2C

Business to customer; when a customer makes a purchase from a business.

B2B

Business to business; when a business makes a purchase from another business.

Sole Proprietorship

A business structure where an individual is responsible for all aspects and is easy to create.

C Corporation

A type of corporation best for international businesses, having limited liability but is double taxed.

Limited Liability Corporation (LLC)

A business structure that shields the owner from liability and is an excellent option for single owners.

SWOT Analysis

A framework for evaluating a company’s Strengths, Weaknesses, Opportunities, and Threats.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including target customers.

Value Proposition

A single compelling message that explains why a business is better than others, indicating value.

Direct Competition

A business that sells the same or similar products or services as another business.

Indirect Competition

A business that sells similar products that could meet the same need as another business.

Customer Acquisition Cost (CAC)

The formula used to determine a company’s cost to acquire a new customer, calculated by dividing marketing expenses by the number of new customers.

Minimum Viable Product (MVP)

A product that is developed with the minimum features necessary to satisfy early users and gather feedback for future development.

Distribution Channels

The pathways through which products or services flow from the manufacturer to the consumer, including direct and indirect channels.

Burn Rate

The monthly rate at which a company consumes its cash reserves before it reaches profitability.

Angel Investor

An individual who provides financial support for a startup in exchange for ownership equity or convertible debt.

Crowdfunding

A method of raising capital through the collective efforts of a large number of individuals, often via online platforms.

Sales Process - Closing

The step in the sales process where the customer decides to purchase the product.

Business Plan

A comprehensive document outlining a business’s goals, strategies, financial projections, and market research.

Fulfillment Centers

Facilities that receive, process, and fulfill customer orders on behalf of a business.

Quality Control

The process of ensuring that a company's products meet quality standards through internal and external checks.

Equity

The value of an ownership interest in a business, calculated as assets minus liabilities.

business life cycle

1. Startup - The initial phase where a business idea is developed and launched. 2. Growth - This phase involves an increase in sales and expansion of the business. 3. Maturity - At this stage, sales stabilize, and the focus is on maintaining market share. 4. Decline - The business may start to experience a decrease in sales and profits. 5. Renewal or Exit - The business can either innovate and revive itself or consider exiting the market.

Five Steps of Human centered design

Step 1: empathize (listen to what the customers want)

Step 2: Interpret (interpret what they said)

Step 3: Ideate (form ideas to solve the problem (brainstorm)

Step 4: Prototype

Step 5: Test and evolve

Copyright

Protects creative works such as art, literature, and music

Patent

protects an invention form being copied

Trademark

protects brand names, logos, and business names

Sales process

1.    Prospecting: the step  of the sales process where potential customers would be identified

2.    Approach is the step of the sales process where you would contact potential clients

3.    The presentation step is where the presentation would be shown to the customer

4.    The objection is the step of the sales process where you answer the customers concerns

5.    The closing step is where the customer would decide to purchase the product

6.    Follow up

Elements of a Marketing Plan

      A delivery plan outlines how products or services will be sold and delivered to costumers

      Situation analysis is an analysis is an element that utilizes a SWOT analysis

      A budget outlines marketing cost

      Strategies and tactics are actions needed to execute the marketing plan

      Offer or message shows customers that value of a company

      The four Ps that makes up a company’s marketing mix are product, price, place, and promotion.