Chapter 3 - Recognizing Opportunity - Vocabulary.pdf

Chapter 3: Recognizing Opportunity Vocabulary 1) Online Business: is a business that conducts business by means of the Internet. Online businesses have the potential to attract a huge number of customers because anyone with an Internet connection can purchase from this type of busi...

Chapter 3: Recognizing Opportunity Vocabulary 1) Online Business: is a business that conducts business by means of the Internet. Online businesses have the potential to attract a huge number of customers because anyone with an Internet connection can purchase from this type of business. 2) Services: are intangible things that businesses do for us that enhance our lives. Insurance, tourism, banking, and education are all considered services. So are accounting, printing, dry cleaning, personal training, childcare, and tax preparation. 3) Outsourcing: is hiring people and other companies to handle tasks that a business cannot do or chooses not to do itself. 4) A Strategic Alliance: is a partnership among companies. It is a partnership formed with another company for the purpose of supplying a product or service. 5) A Corporate Venture: is formed within a company. Large companies find that they must act like entrepreneurs to innovate and remain competitive. 6) Innovation: a new way of doing things. Creativity is the activity that results in innovation, which is finding new ways of doing things. Although everyone approaches creativity slightly differently, there are some definite patterns to the process. 7) A Niche: is a small specialized market. You can find a good business opportunity by recognizing an unfilled market niche. 8) Brainstorming: is when you think freely to generate ideas. During brainstorming, ideas are not judged as good or bad. Even those that seem silly should be given a fair hearing initially. 9) Demographics: is a personal characteristic that describes a population by age, gender, income, ethnic background, education, and occupation, among others. It is important for entrepreneurs to understand demographics and demographic trends. 10) A Trade Magazine: offers current, industry-specific news. Trade magazines often contain articles and advertisements about new products, services, or business concepts. They offer current, industry-specific news and access to the latest information on customers and market trends. 1 ENTREPRENEURSHIP: BUILDING A BUSINESS 11) A Specialty Magazine: is a periodical that targets people with special interests in sports, camping, fashion, and a variety of other areas. 12) Trade Show: is where vendors and manufacturers introduce new items and promote established products and services. At a trade show, you can see exhibits and demonstrations of goods and services. These shows can be a source of spin-off ideas. 13) Values: are the beliefs and principles you choose to live by. Our values define who you are, shape your attitudes and your choices, and help you identify your priorities. Values are usually influenced by family, religious beliefs, teachers, friends, society, and personal experiences. 14) Goodwill: is an extremely valuable business asset. 15) A Franchise: is a legal agreement to begin a new business in the name of a recognized company. 16) The Franchisee: is the buyer of a franchise. 17) The Franchisor: is the seller of a franchise. 2 ENTREPRENEURSHIP: BUILDING A BUSINESS