Podcast
Questions and Answers
What characterizes pro forma financial statements?
What characterizes pro forma financial statements?
- They project future financial outcomes based on forecasts. (correct)
- They are strictly used for assessing profitability.
- They reflect past performance of a business.
- They are only prepared on a monthly basis.
Which financial objective involves a business's capacity to meet its short-term obligations?
Which financial objective involves a business's capacity to meet its short-term obligations?
- Liquidity (correct)
- Profitability
- Efficiency
- Stability
In the context of financial management, what is one of the key aspects being managed?
In the context of financial management, what is one of the key aspects being managed?
- Achieving the highest rate of return (correct)
- Budgeting for employee training
- Building a brand reputation
- Selecting the corporate structure for taxation
Which of the following statements about business profitability is accurate?
Which of the following statements about business profitability is accurate?
What does the financial stability of a business require, in addition to earning a profit?
What does the financial stability of a business require, in addition to earning a profit?
What is a primary benefit of a heterogeneous founding team?
What is a primary benefit of a heterogeneous founding team?
Why might firms choose to perform activities in-house?
Why might firms choose to perform activities in-house?
How does homogeneity within a founding team contribute to new venture performance?
How does homogeneity within a founding team contribute to new venture performance?
What distinguishes offshoring from outsourcing?
What distinguishes offshoring from outsourcing?
What role do boards of advisors typically play in a new venture team?
What role do boards of advisors typically play in a new venture team?
What must be done before planning operations and marketing budgets?
What must be done before planning operations and marketing budgets?
Which of the following is NOT a method of collecting competitive intelligence?
Which of the following is NOT a method of collecting competitive intelligence?
What is the first step in using competitive intelligence for a new business?
What is the first step in using competitive intelligence for a new business?
How many critical success factors (CSFs) should be identified for effective competitive analysis?
How many critical success factors (CSFs) should be identified for effective competitive analysis?
What aspect of a marketing plan comes after establishing the overall marketing strategy?
What aspect of a marketing plan comes after establishing the overall marketing strategy?
What is the purpose of competitive intelligence in a new business?
What is the purpose of competitive intelligence in a new business?
Which of the following best defines entrepreneurial marketing?
Which of the following best defines entrepreneurial marketing?
When should underlying assumptions be reported in business planning?
When should underlying assumptions be reported in business planning?
What is the primary benefit of segmenting an industry before identifying customers?
What is the primary benefit of segmenting an industry before identifying customers?
Which of the following is NOT a rule for successful segmentation?
Which of the following is NOT a rule for successful segmentation?
What is considered a common base for market segmentation related to customer behavior?
What is considered a common base for market segmentation related to customer behavior?
How should a business approach target market selection?
How should a business approach target market selection?
Which statement best describes the importance of understanding target market trends?
Which statement best describes the importance of understanding target market trends?
Which of the following is indicated as a type of competitor in a competitor analysis?
Which of the following is indicated as a type of competitor in a competitor analysis?
What is often the first step in estimating the size of a target market?
What is often the first step in estimating the size of a target market?
What characteristic distinguishes direct competitors from indirect competitors?
What characteristic distinguishes direct competitors from indirect competitors?
Which milestone indicates that the product is ready for mass production?
Which milestone indicates that the product is ready for mass production?
What is a primary factor that can critically impact business location selection?
What is a primary factor that can critically impact business location selection?
When developing an operations plan, what aspect is NOT typically assessed?
When developing an operations plan, what aspect is NOT typically assessed?
Which challenge must businesses anticipate when moving towards mass production?
Which challenge must businesses anticipate when moving towards mass production?
What should be included in the remaining budget estimation for development?
What should be included in the remaining budget estimation for development?
Which item is likely considered intellectual property?
Which item is likely considered intellectual property?
What primarily distinguishes an operations plan from a marketing plan?
What primarily distinguishes an operations plan from a marketing plan?
Which of these aspects does NOT contribute to a company's sustainable competitive advantage?
Which of these aspects does NOT contribute to a company's sustainable competitive advantage?
What is the primary difference between a salary-substitute firm and a lifestyle firm?
What is the primary difference between a salary-substitute firm and a lifestyle firm?
What defines the 'window of opportunity' for a new business?
What defines the 'window of opportunity' for a new business?
Which of the following aspects is NOT part of product/service desirability?
Which of the following aspects is NOT part of product/service desirability?
Which statement best describes the nature of opportunities compared to ideas?
Which statement best describes the nature of opportunities compared to ideas?
What is the primary focus of the feasibility analysis prior to a business plan?
What is the primary focus of the feasibility analysis prior to a business plan?
Which of the following correctly identifies a gap in the marketplace?
Which of the following correctly identifies a gap in the marketplace?
Which trend does NOT typically create opportunities for new businesses?
Which trend does NOT typically create opportunities for new businesses?
What is true about entrepreneurial firms?
What is true about entrepreneurial firms?
Flashcards
Industry Segmentation
Industry Segmentation
Dividing a market into smaller groups based on shared traits, like age or location.
Target Market Selection
Target Market Selection
Identifying the specific group of people a business intends to sell to.
Target Market Size
Target Market Size
Determining the size of the target market, often using existing data or conducting research.
Target Market Trends
Target Market Trends
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Competitor Analysis
Competitor Analysis
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Direct Competitors
Direct Competitors
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Indirect Competitors
Indirect Competitors
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Future Competitors
Future Competitors
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Salary-substitute firms
Salary-substitute firms
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Lifestyle firms
Lifestyle firms
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Entrepreneurial firms
Entrepreneurial firms
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Window of opportunity
Window of opportunity
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Opportunity
Opportunity
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Feasibility analysis
Feasibility analysis
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Product/service feasibility
Product/service feasibility
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Product/service desirability
Product/service desirability
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Critical Success Factors (CSFs)
Critical Success Factors (CSFs)
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Factor Score
Factor Score
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Competitive Analysis
Competitive Analysis
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Competitive Intelligence
Competitive Intelligence
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Entrepreneurial Marketing
Entrepreneurial Marketing
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Marketing Plan
Marketing Plan
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Points of Differentiation
Points of Differentiation
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Pricing Strategy
Pricing Strategy
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New Venture Team
New Venture Team
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Team Heterogeneity
Team Heterogeneity
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Team Homogeneity
Team Homogeneity
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Team Advantage for Ventures
Team Advantage for Ventures
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Growing New Venture Team
Growing New Venture Team
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Financial Statements
Financial Statements
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Liquidity
Liquidity
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Efficiency
Efficiency
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Financial Stability
Financial Stability
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Financial Management
Financial Management
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Operations Plan
Operations Plan
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Development Status and Tasks
Development Status and Tasks
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Challenges and Risks
Challenges and Risks
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Cost Remaining
Cost Remaining
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Operations Strategy
Operations Strategy
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Business Location
Business Location
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Facilities and Equipment
Facilities and Equipment
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Business Partners
Business Partners
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Study Notes
Entrepreneurship & New Business Development Study Notes
- Chapter 1: Introduction to Entrepreneurship - Three primary reasons people get involved in entrepreneurship are: desire to be their own boss, desire to pursue their own goals, and financial rewards.
- Chapter 2: Recognizing Opportunities and Generating Ideas - Three types of start-up businesses are: salary-substitute firms, lifestyle firms, and entrepreneurial firms. The core characteristics of successful entrepreneurs are passion for the business, product/customer focus and tenacity despite failure. Secondary characteristics are prior industry experience, prior entrepreneurial experience, social networks, and higher education.
- Chapter 3: Feasibility Analysis - A feasibility analysis should be conducted before writing a business plan to determine if the business opportunity is viable. The analysis involves assessing the product/service feasibility (desirability, demand) and industry/target market attractiveness. It also involves determining organizational feasibility (management expertise and resources.)
- Chapter 4: Writing a Business Plan - A business plan is a narrative outlining a new business' goals. Different audiences require different plans, with guidelines including sufficient content, a clear structure and roadmap to easily find information. The plan should highlight the three components for financial feasibility: Total start-up cash, financial performance of similar businesses and overall financial attractiveness. Red flags to consider with a business plan include founders with no personal risk, plans not well cited, financial expectations that are too aggressive, or poor planning in general.
- Chapter 5 - Part I: Analyzing the Industry - This chapter outlines the critical components of an industry analysis, including industry definition, size, growth rate and sales projections, characteristics, trends, and long-term prospects.
- Chapter 5 - Part II: Target Market Analysis - Analysis segmenting, selecting, analyzing and estimating the size of a specific target market are key to succeeding in a new business model.
- Chapter 6a: Product (or Service) Development Plan - This chapter focuses on the detailed plan for bringing a new product or service to market, including development tasks, challenges, timeline, associated risks, and how to mitigate them.
- Chapter 6b: Developing Effective Business Models - Understanding the essential operation of the company, encompassing its location, facilities, necessary equipment, operations model and procedures, and how these are important for success in the market is vital for generating a profitable business model.
- Chapter 7: Operations Plan - Details on operations, considering production, delivery, and customer relations in order to accomplish the business's goals.
- Chapter 8: Financial Projections - Involves evaluating, analyzing, forecasting and projecting the financial performance of a business, which is important to evaluate financial health. It involves historical financial statements, pro forma financial statements, including income statement, balance sheet, and cash flows, and financial objectives.
- Chapter 9: Building a New Venture Team - Essential elements of a successful team include expertise, management, resources, and how to deal with liabilities of newness.
- Chapter 10: Getting Funding or Financing - Includes the importance of funding, alternatives for raising capital, personal financing, equity capital, debt financing, business angels, and venture capitalists. Various funding options such as IPOs and commercial banks are also reviewed in the context of business operations.
- Chapter 11: Marketing a Product or Service - This chapter introduces entrepreneurial marketing, defining it in broad terms, and emphasizing the importance of a marketing plan. Discusses how a business strategy relates to its pricing, promotion, sales, customer relations, and distribution strategy.
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Description
Test your knowledge on the key concepts from the first three chapters of Entrepreneurship & New Business Development. Explore the motivations behind entrepreneurship, identify types of start-up businesses, and understand the importance of feasibility analysis. Prepare to assess entrepreneurial characteristics and evaluate business opportunities.
