Entrepreneurship WS2024-2025 Past Paper PDF

Introduction to Entrepreneurship WS 2024/2025 Dr. Dinah Murad 1  Plan for the Semester Date Topic 15/10/24 Introduction and Business Ideas 29/10/24 Business Models and Value Proposition...

Introduction to Entrepreneurship WS 2024/2025 Dr. Dinah Murad 1  Plan for the Semester Date Topic 15/10/24 Introduction and Business Ideas 29/10/24 Business Models and Value Proposition 12/11/24 Customer: Market Research and Validation 26/11/24 Business Planning and Strategy 10/12/24 Financial Planning and Fundraising 7/1/25 Operations and Execution 21/1/25 Innovation, Risk Management, and Scaling 30/1/2025 Exam (60 minutes, multiple choice) 12:00-13:00 med2market – scientific marketing consulting 2 7/01/25 Operations and Execution ¤ Recap ¤ How to implement your business plan? ¤ Execution ¤ Your task for next time ¤ Key Learnings 3 7/01/25 Operations and Execution ¤ Recap ¤ How to implement your business plan? ¤ Execution ¤ Your task for next time ¤ Key Learnings 4  Recap ¤ Focus on understanding customer needs, preferences, and behaviors to create tailored products and services. ¤ Identify essential resources and activities needed to deliver value and align them efficiently with business goals. ¤ Leverage strategic partnerships to fill capability gaps, enhance scalability, and optimize key processes. ¤ Define clear revenue streams and pricing strategies to monetize value effectively across different customer segments. ¤ Plan and manage cost structures by understanding key cost drivers and optimizing operational efficiency. ¤ Explore diverse funding options like bootstrapping, crowdfunding, and venture capital to support growth and financial stability. ¤ Continuously test and validate assumptions about customers, solutions, and market needs to mitigate risks and improve success chances. 5 Petra Beha The Business Model Canvas Designed for: Designed by: Date: Version: BANK XY Key Partnerships Key Activities Value Propositions Customer Relationships Customer Segments - CUSTOMER SERVICE AND SUPPORT - INDIVIDUAL CONSUMERS CRETAIL SECURE AND RELIABLE BANKING ONLINE CUSTOMER SUPPORT REGULATORY BODIES (EZB BANK RISK MANAGEMENT - - - FINANCIAL PRODUCT DEVELOPMENT SERVICES BANKING) (OTHER CONSULTATIONS / ADVISORS - - FINANCIAL INSTITUTIONS - FINANCIAL PRODUCTS (SAVINGS PRIVATE BANKING (LOANS+ MORTGAGES + ACCOUNTS ( - - BANKS) - INVESTMENT MANAGEMENT ACCOUNTS + LOANS + INVESTMENTS) - SMALL ENTERPRISES - PAYMENT PROCESSORS (APPLE - MARKETING AND CUSTOMER - PERSONALIZED FINANCIAL ADVICE - CORPORATIONS + BUSINESSES WALLET + PAYPAL) ACQUISITION - 24/7 BANKING SERVICES (ATMs + - TECHNOLOGY PROVIDERS - ONLINE AND MOBILE BANKING ONLINE BANKING SERVICE - CUSTOMER SUPPORT - SECURITY Key Resources Channels - FINANCIAL CAPITAL - PHISYCAL BRANCHES - TECHNOLOGICAL INFRASTRUCTURE - ONLINE BANKING PLATFORMS / BANKING MOBILE BANKING APPS ) CYBERSECURITY + SYSTEM) - EMAIL AND NEWSLETTER - EMPLOYEES (BANKERS - DIGITAL MARKETING FINANCIAL ANALYSTS Cost Structure Revenue Streams - INTEREST INCOME FROM LOANS - OPERATIONAL COSTS (SALARIES MAINTENANCE) - FEES (ACCOUNT +TRANSACTIONS + SERVICES) - TECHNOLOGY INVESTMENTS - INVESTMENT INCOME - MARKETING AND ADVERTISEMENT - COMMISSIONS FROM THIRD-PARTY PRODUCTS Copyright Strategyzer AG This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ The makers of Business Model Generation and Strategyzer or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA. strategyzer.com Munkhzul Otgonmunkh, Noémie Leuba, Mizuki Shibuya  In Essence Customer needs are the driver to products and services Continuously test and validate assumptions about customers, Business Goals have to be aligned solutions, and market needs to with customer value proposition mitigate risks and improve success chances. Strategic partnerships for gaps and enhance scalability 8 7/01/25 Operations and Execution ¤ Recap ¤ How to implement your business plan? ¤ Execution ¤ Your task for next time ¤ Key Learnings 9  Meet Alex and Jamie Alex and Jamie are friends from school. Alex studied economics and works in controlling. Jamie studied event management and his parents are both artists. Their Vision: Helping artists monetize their talent through online workshops and events. Their challenge: Turning a dream into a business Visual by DALL-E 10 Starting with a vision Setting SMART goals: Launch a beta version in six months. Visual by DALL-E 11 Structuring Your Business Plan - Vision, Goals, Metrics Example Vision GOALS Google Chrome Objective: Specific „We want to habe 20m Goals Measurable users in Year 1 after Achievable launch“ Relevant Metrics Time-bound Doerr, J. (2018), "Measure What Matters." 12 Creating a Roadmap Visual by DALL-E 13 Roadmap Crucial for aligning stakeholders: everybody needs to know when and where you stand. Milestones Deadlines Deliverables https://bordio.com/blog/project- milestones/ 14  Example Roadmap Development Tesla's Master Plan Tesla's roadmap stands out for its ambitious, long-term vision: Shift to sustainable energy Production of a ordable electric vehicles Expansion beyond traditional automotive industry This roadmap demonstrates Tesla's commitment to transformative goals that extend far beyond conventional business objectives 15 ff  Building a Business Model Revenue Streams: Subscription fees for artists, event ticket sales. Value Proposition: Simple tools for artists to host and monetize events Visual by DALL-E 16 example: Business Model Canvas Subscription Artists Guests Event Ticket Sales Merchandising 17 Research & Validation Alex conducts market research: Key finding: 70% of artists struggle to monetise digital content Visual by DALL-E 18  Market Definition: Personae & Customer Segments Paul, 36 years. College Luis, 59, painter. Sophia, 21, Sculptor teacher in economics. Likes spending time painting Lives still with her parents Lives with his husband, alone in his studio in a small who are sponsoring her work. Adopted 2 kinds. village. Trying out many different styles in order to find her Art fan and art collector. Lacks technical skills but has signature art. Likes new kind of art an audience and fans of his Big fan of Banksy. presentation. oil paintings. Tech-savvy, but needs Considers to buy and sell art. marketing help. Visuals by DALL-E 19 example: Business Model Canvas Monetize digital art for artists Two segments: Artists: struggling to monetise their offer new art events and art, in particular experience digitally for art fans digitally Art fans: digitally offered art is boring, not relevant Subscription Artists Guests Event Ticket Sales Merchandising 20 Prototyping the Platform ¤ Jamie sketches initial ideas, Alex refines with feasibility insights. ¤ First MVP: Basic video hosting with payment integration. Visual by DALL-E 21 Prototyping A prototype is not a finished product, but rather a quick and easy implementation. Limit yourself to the essential features of your product that you want to validate. See the next page for examples of prototypes. Test your prototypes directly with potential customers to get first feedback and a feeling for what works and what doesn‘t. You can find hints on user testing in the Excursion. Ultimately, it is all about making your idea tangible in order to better understand and develop it. 22 From Idea to Product There are different development stages of prototypes: Just an idea Desk research, first interviews Problem Solution Fit Low Fidelity Prototype: Invest minimal effort to get first feedback, like a simple paper sketch. At first you only test single assumptions about user guidance and functionality or design. Minimum Viable Product (MVP) is a more mature version that already contains the essential core functions of functionality and design. High fidelity prototype is a mature version and comes close to the finished product. 23 What a MVP really is.. 24 https://pbs.twimg.com/media/Bya3nBvCQAASBGi.png:large Advice Do not lapse into perfectionism with the first prototype. Be smart, save yourself time and test one assumption after another. It‘s a process! It can make sense to build several variants of a prototype from the beginning and to repeat user tests to get an accurate picture of the finished product. After the user tests, try to get email addresses and consent to keep your customers informed about your progress, do further tests with them and validate genuine interest. 25 If you’re not embarrassed by the first version of your product, you’ve launched too late. Reid Hoffmann 26  Inspiration for prototypes Comic Photo sequence Storyboard Role play Service Wizard of Oz: Offer automated service manually Explanatory video (e.g. Simpleshow) Sketches Advertising poster, brochure, etc. Physical product Product packaging Operating instructions What kind of Model (paper, plasticine, 3D printing etc.) solution do you focus on? Sketches Wireframe or mockup (e.g. with Moqups, Balsamiq, Mockingbird) Website Landingpage with CTA Click-Dummy (e.g. with Mockplus, Adobe XD) Sketches Placing in the App Store Mobile App Wireframe or mockup (e.g. with Marvel, UXpin, Dribble) Click-Dummy (e.g. with Mockplus, Adobe XD) 27 Link collection Best Prototyping Tools You are looking for ways to build your prototype? We've collected a few good tools to help you build your product. First: Wireframes Make your own website https://balsamiq.com/ https://www.wix.com/ https://www.figma.com/ https://www.weebly.com/ Find the perfect name https://www.squarespace.com/ http://www.naminum.com/ Build the best design Free stock footage http://www.canva.com/ http://unsplash.com/ https://www.sketch.com/ http://pixabay.com/ http://pexels.com/ 28  Gathering Feedback Insight of Focus Groups (qualitative market research) with 10 artists: „We love it, but need more customisation options“ Visual by DALL-E 29 7 basic rules for user tests 1. Do not explain the prototype! 5. Never defend the prototype! The test scenario should be as realistic as possible, in order to obtain actually If your test persons ask questions or find problems, that‘s great! You should not useful information. In the scenario, the prototype should not be explained in order see it as an attack, but as valuable information. „The user doesn‘t understand“ to find out which problems occur during use. doesn‘t apply, but you have to adapt your prototype accordingly. 2. The prototype must be self-explanatory! Your prototype must speak for itself. Therefore small usage hints should be 6. Answer questions with questions. built into the prototype e.g. on the display. Always answer questions from your test subjects with counter-questions. You learn the most from them. Example: „How can I log in here?“ you can ask as an 3. We fail as early and as much as possible. answer „How would you log in now if we were not here? The goal of your user test is to quickly uncover errors and problems in the prototype. These are then analysed and implemented in the new prototype. Afterwards a new iteration cycle can be started. 7. We do not need many users to understand what is 4. The „Kill your Darling“ mindset. not working. According to a study by Jakob Nielsen, 85 percent of problems can already be You have to be prepared for ideas to be completely or partially discarded after found by testing with five people. Test with about 10-15 people in total, adapt the the iteration because the customer does not need it. Even if you have already prototype accordingly and test again. According to Nielsen, more tests are not invested a lot of time and energy in your idea, you must be prepa- red to drop it. necessarily better. 30 „Digital Innovation Playbook“, Dark Horse Innovation Examples GYM-FRIDGE Idea: healthy take-away food in the gym Prototype: The founders printed their menu and asked people coming out of the gym which dish they would take away directly for $4.50. The gym owner found this so interesting that he invited them for a conversation. 31 https://www.facebook.com/trojantrainingsystems/photos/this-is-how-a-gym-fridge-should-look-/1080856715324604/ https://de.postermywall.com/index.php/art/template/db4007fb82c6cfb6e20b8a4391ebdf05/restaurant-healthy-food-menu-flyer-poster-ani-design-template Examples MOMENTS OF HAPPINESS Idea: theme-oriented gift boxes Prototype: With a simple but beautifully designed shoe box filled with the first gift ideas, the founders went on the streets and asked people about the design and content. In this way they were able to determine which gift themes were actually needed by and for which target groups. After adjust- ments, they tested the willingness to pay. https://unsplash.com/photos/3l19r5EOZaw 32 Examples AIRBNB Idea: platform for private accommodations Prototype: To rent out their room, the founders created a simple landing page with pictures of the room. They offered it as a sleeping place with air mattresses on the floor and shared it in Craigslist. They not only rented their room quickly, but also got inquiries from other cities, if it was also available there. 33 https://hackernoon.com/how-airbnb-hacked-craigslist-for-viral-growth-24l35eg Adjusting the plan Monetize Two segme offer new art nts: Artists: Subscription Artists Visual by DALL-E 34 Funding the Dream ¤ Alex pitches to investors: Raises €50,000 seed funding. ¤ Key: Emphasizing market demand and clear financials. Visual by DALL-E 35 Building the team Hire a developer and a marketing specialist. Shared vision drives collaboration. Visual by DALL-E 36  Preparing for beta-Launch & beta-Launch day Final testing and quality assurance. Marketing campaign begins: Social media ads and email outreach. 30 artists sign up in the rst week. Challenges: Server downtime, user onboarding issues. 37 fi Early Wins Feedback: "This makes hosting events so easy!" Artists earning revenue motivates the team. Visual by DALL-E 38 7/01/25 Operations and Execution ¤ Recap ¤ How to implement your business plan? ¤ Execution ¤ Your task for next time ¤ Key Learnings 39 Execution transforms vision into reality Visual by DALL-E 40  Monitoring Performance ¤ Key metrics (remember?) ¤ Development Costs ¤ Operational Costs ¤ CAC (Customer Acquisition Costs) ¤ Customer Retention Costs ¤ Product Costs ¤ Customer Support Costs ¤ Expansion Costs ¤ Marketing & Sales ¤ Taxes, Insurance ¤ Financial Costs ¤ Weekly dashboard reviews Visual by DALL-E 41  Addressing Challenges "What additional challenges might arise in launching CreativeSpace, and how would you address them?“ ¤ Identifying the Challenges: ¤ Technical Challenge: Limited development skills for platform features. ¤ Market Challenge: Convincing artists to adopt a new platform. ¤ Operational Challenge: Balancing budget constraints with required features. ¤ Assigning Responsibilities: ¤ Technical Challenge: Alex and Jamie hire a skilled developer to prototype essential features.\n - Market Challenge: Jamie leverages her network in the art community to secure early adopters.\n - Operational Challenge: Alex rebalances the budget and presents a compelling case to investors. ¤ Example: ¤ Technical: The initial prototype struggles with scalability. The developer proposes cloud- based hosting, which Alex approves after cost analysis 42 Resource Allocation Overview Resource allocation is strategically selecting and assigning available resources to a task or project to support business objectives. In the context of accounting, allocation deals with assigning people and their skills to projects, also known as engagements. Visual by DALL-E 43 Be prepared 44  Managing Feedback Loops ¤ Regular Surveys to track user satisfaction (KEY!) ¤ rapid updates based on feedback - remember Kodak-story Visual by DALL-E 45 Key Wins - celebration of milestones Example ¤ 500 users within 6 months ¤ Artists report a 30% income increase Visual by DALL-E 46  Handling Competition ¤ Attention: yes - there is always competition - your solution might be the only one using a certain idea or technology, but there might be other solutions for the customers’ problems ¤ New competition might emerge ¤ Response: ¤ know the market ¤ know the competition ¤ understand and sharpen your USP Visual by DALL-E 47  Reward & Celebrate Why is it important to celebrate your success? 1.Motivation: Boosts employee morale and enthusiasm. 2.Engagement: Encourages active participation and dedication. 3.Retention: Reduces turnover by fostering loyalty. 4.Culture: Reinforces positive workplace values. 5.Performance: Drives higher productivity and quality work. 6.Recognition: Validates effort, making employees feel valued. 7.Teamwork: Promotes collaboration and strengthens relationships. 8.Innovation: Encourages creative problem-solving. 9.Goal Achievement: Reinforces successful milestones. 10.Customer Impact: Leads to better service and satisfaction. Visual by DALL-E 48 Reflecting on the Journey ¤ Lessons Learned from implementation to execution ¤ Vision & Adaptability are key ¤ Execution requires continuous adaptation and pivoting ¤ compare the original idea with the actually working business model ¤ was the market size estimation realistic? ¤ timing as planned ¤ realistic budget? ¤ what was not foreseen? ¤ Resilience and flexibility help overcome unexpected challenges. ¤ Listening to market demands drives innovation. ¤ Continuous monitoring and adjustment maintain relevance. 49 Do you have a minute for me? Login data for the course "Introduction to Entrepreneurship (B3X1)": URL: https://evaluation.zeq.uni-tuebingen.de/evasys/online/ Codewort: CALD5 Participation is possible until and including Sunday, 12/01/25 (24:00) 50 Your task for 21/01/25 -Option 1 Create a Tweet for creativespace (our business of Alex & Jamie) ¤ Summarize the discussed business idea in max. 280 characters ¤ Think about: ¤what problem to solve ¤how to solve it ¤why it’s unique ¤Let me know in your email if you would be willing to show your tweet to the class yes! Your homework fits into an email and must not exceed 280 characters ;) 51 Your task for 21/01/25 -Option 2 Create an MVP (presentation, cartoon, totally up to you that describes and explains the business of Alex and Jamie. You can use whatever tools you prefer. Try to find everything on ONE slide. Working in Teams of up to 4 is ok. 52  Take Home Messages ¤ Vision and Goals: A clear vision supported by SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) provides direction and focus for business implementation. ¤ Business Planning and Roadmaps: Roadmaps align stakeholders, define milestones, and ensure everyone knows when and where the project stands. ¤ Prototyping and MVPs: Start simple with prototypes or MVPs (Minimum Viable Products) to test assumptions and gather feedback early. Avoid perfectionism; iteratively improve based on user feedback. ¤ Resource Allocation: Strategic allocation of resources is key to achieving business objectives efficiently. Assign tasks based on skills and priorities. ¤ Feedback Loops: Regularly gather and act on feedback from customers to refine the product, improve satisfaction, and ensure market relevance. ¤ Execution and Monitoring: Execution transforms vision into reality. Regularly monitor performance metrics like customer acquisition costs (CAC), operational costs, and customer retention rates to guide decision-making. ¤ Celebration of Milestones: Celebrating achievements motivates teams, builds a positive culture, and fosters innovation. ¤ Handling Challenges: Be prepared to address challenges like technical issues, budget constraints, and market competition through adaptability and teamwork. ¤ Competition Awareness: Understand the market and competitors, continuously refine your Unique Selling Proposition (USP), and prepare for emerging competition. ¤ Reflecting on the Journey: Evaluate the journey from planning to execution: Compare initial ideas with actual outcomes. Assess the realism of your market size, timing, and budget predictions. Learn from unforeseen challenges and adapt accordingly. 53 Next time - 21/01/25 ¤ Innovation, Risk Management, and Scaling 54