Chapter 1 B

Question 1

What are 2 characteristics that enable entrepreneurs to identify ideas and oppotunities?

Answer 1

• Opportunity recognition
• Entrepreneurial alertness

Question 2

opportunity recognition

Answer 2

Searching and capturing new ideas that lead to business opportunities. This process often involves creative thinking that leads to discovery of new and useful ideas.

Question 3

entrepreneurial alertness

Answer 3

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.

Question 4

4 Step model of entrepreneurship.

Answer 4

1. Feel : Recognize you want to do or make something throught a business
2. Check: Assess waht you know and who you know to determine your product or services and your customers.
3. Plan: Offer you product or service to your customers and see if you get any sales.
4. Do: If you get enough sales, keep going, If not, go back to check.

Question 5

causal model of entrepreneurship

Answer 5

1. Feel: Decide if you have a great idea and want to go into businesss to make it happen.
2. Check: Assess your ability to understand it and creatie it yourself. Get help if needed, THen assess the technical feasibility of the idea.
3. Plan: If the idea is feasible, plan for making and selling it, checkin with potential customers to make sure thy will buy it. If you get enough interest, keep foing, If not, go back to check.
4. Do: make the product or service and the company to sell it and get into the market.

Question 6

What are some sources of business ideas for entrepreneurs?

Answer 6

• Work and personal experience
• A similar business
• Chance
• Family and friends
• Education or expertise
• Idea sites

Question 7

Define creativity

Answer 7

A decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.

Question 8

What does SCAMPER stand for and what is it used for.

Answer 8

Used for recognizing business oppportunities.
* Subsitute
* Combine
* Adapt
* Magnify or modify
* Put others to uses
* Eliminate
* rearange

Question 9

A process for organizing creative thinking developed by Graham Wallas.

Answer 9

1. Preparation: Exploring the problem or opportunity from all directions.
2. Incubation: Thinking about the problem or opportunity in a not-conscious way, putting it on the back burner, so to speak
3. Illlumination: The lightbulb comes on , and ideas begin to flow.
4. Verification: Testing of the idea and reducing to its most exact form.

Question 10

Define RBI screen

Answer 10

RBI stands for “Really Big Idea” and is a fast technique for making initial assessments (called screens) of prospective business ideas based on five questions. These questions are meant to be answered in only a few words, and scoring each answer from 1-5, from awful to great.

Question 11

RBI screen questions

Answer 11

• **People: Who are you? ** What is your relevant experience or knowledge?
• Offering: What are you offering? What is the product or service or experience?
• Value proposition: What do they care? WHy will it be important to users/buyers?
• Distinctive competencies: Do you have any key or core science/technology or feature? Does your idea have someting special compared to competition that is valuable to your customers or buyers?

Question 12

What is the purpose of the RBI screening?

Answer 12

To think up as many ideas as possible, do a little work fleshing themout and evaluate the results to find out the most promising ideas as well to quickly realize which ideas arent going to work out.

Question 13

What is the general step after the RBI screening?

Answer 13

Testing an idea for feasibility

Question 14

Define feasibility

Answer 14

The extent to which an idea is viable and realistic and the extent to which you are aware of internal (to your business) and external (industry, market, and regulatory environment) forces that could affect your business.

Question 15

Define business models

Answer 15

Business models are a way to identify and organize key information on a business and how it achieves its goals. Business models can be analytic tools (like a business model canvas) or a way to do business (like the “razor and blade” business model).

Question 16

What are the components of how the businesss model canvas builds from the RBI screening

Answer 16

1. Customer Segments
2. Problem
3. Solution
4. Value proposition
5. Channels
6. Customer relationship
7. Revenues
8. Key resources
9. Key activities
10. Key partners
11. Costs

Question 17

Wich part(s) of the business model are connected with the RBI screening question called Offering

Answer 17

Solution

Question 18

Wich part(s) of the business model are connected with the RBI screening question called People

Answer 18

• Key resources
• Key partners

Question 19

Wich part(s) of the business model are connected with the RBI screening question called Value Proposition

Answer 19

Value Proposition

Question 20

Wich part(s) of the business model are connected with the RBI screening question called Distinctive Competencies

Answer 20

• Key activities
• Key resources
• Cost structure
• Revenue streams
• Channels
• Customer Relationships

Question 21

Wich part(s) of the business model are connected with the RBI screening question called customer

Answer 21

Customer segments

Question 22

Elaborate on the Customer Segments part of the business model canvas build?

Answer 22

• There is often more than one type of customer.
• Each type is called a customer segment
• and will have a different problem
• and need a solution and value proposition that fits his or her situation.
• THus you will likely end up needing multiple copies of the canvas, for each customer segment.

Question 23

Elaborate on the problem part of the business model canvas build?

Answer 23

• Also called a pain
• Ask what problem is your customers facing that you want to solve?
• A variant of pain is your customers’ dreams of better ways or things, called a gain.

Question 24

Elaborate on the solution part of the business model canvas build?

Answer 24

• This your offering,
• how you plan to handle the problme solving pains or to create new gains for your customers.

Question 25

Elaborate on the Value proposition part of the business model canvas build?

Answer 25

* also comes from the RBI screening * will differ for each customer segment * Asks what will make the solution the best fit to what the customer wants or needs?

Question 26

Elaborate on the channels part of the business model canvas build?

Answer 26

* Asks how will you get your product or service to the customer? * Selling directly is great because you can control the process but it can be expensive or hard to get going. * If youre selling through others you need to consider how you will arrange to be seen and heard by your customer.

Question 27

Elaborate on the customer realtionships part of the business model canvas build?

Answer 27

* Asks how will you take care of your most important resource, your customers? * While the product and service is part of loyalty, it's mainly how you treat and take care your cutomers that make the difference. * The best type of customers are those who buy again and again and reccoment you to their friends.

Question 28

Elaborate on the revenue part of the business model canvas build?

Answer 28

* Asks how do you make money solving the problem and selling to your customers and how many different ways can you get revenues? * Freemium models give you something and let you buy add ons. * Subscription modules have ongoing streams. * Big ticker items like cars offer additional services such as finacngin, extending warranties, and dealer services.

Question 29

Elaborate on the key resources part of the business model canvas build?

Answer 29

* Asks what great thing does your firm have that no one else does? * This will be a unique resources.

Question 30

Elaborate on the key activities part of the business model canvas build?

Answer 30

Ask what will be the most important activities in your business?

Question 31

Elaborate on the key partners part of the business model canvas build?

Answer 31

Ask which individuals and organizations can help make you succesful and able to deliver the promise in your value proposition.

Question 32

Elaborate on the cost part of the business model canvas build?

Answer 32

* Ask yourself what are all the costs? * Compare to profit potential

Question 33

What isa lowe-cost, low-risk way to test the fit of a solution and value proposition to customers?

Answer 33

The pilot test

Question 34

Define the pilot test.

Answer 34

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

Question 35

What are the pilot test steps

Answer 35

1. Deploy: Deploy a basic informational website describing the products or services you want to offer, and advertise it. 2. Track: Track the number of people who check out the site, where they came from, their demographics, and those who want to be informed. 3. Revise: Based on customer feedback, you fix what does not work and reinforce what does work. 4. Repeat: repeat until a highly accepted version of idea emerges.

Question 36

Define conversion rate

Answer 36

The measure of how many visitors to your website (or people who click on your online advertisement) are actually willing to make a commitment to the product or service promoted on the site.

Question 37

Define A/B testing

Answer 37

A way to check customer reaction to websites describing your product or service. Two versions (version "A" and version "B") of the site are posted and are served up randomly to prospective customers. The version of the website that gets the most commitments from customers is the one kept and the less attractive site is revised and the two versions tested until one revision gets consistently superior customer reactions.