Question # 1

After rereading the opening case, identify all of the effective or smart
moves Zac Schau and his co-founders made in the early days of
building Pure Fix Cycles.
Answer: - It’s all began in 2010, when Zach Schau and some friends started
shopping for a bike. Zach was a senior at the University of Wisconsin. The
University of Wisconsin is located in Madison, Wisconsin, one of the most
bike-friendly cities in the United States. Schau, along with friends Austin
Stoffers, Michael Fishman, and Jordan Schau (younger brother), had been
following the bicycling craze in Europe, and in particular admired some of
the Italian brands, such as Bianchi. Schau found several bikes he liked, but
they were all in the $1,000 range, which exceeded his budget. He wondered
why bikes were so expensive.
The solution: build a fixed-gear, single-speed bike, or “fixie.” Fixies have
been trendy among city riders for some time, but hadn’t yet popped up on
college campuses. Instead of having a multisprocket gear shifter mounted
near the rear wheel, fixies have a single gear, like most children’s bikes.
Since the bikes have few highly technical moving parts, there isn’t much that
can go wrong. And while they may take a little more effort to ride at times
than a multigear bike, they’re cheaper to build and more reliable. The three
friends, along with Schau’s brother, Jordan, who was a student at Columbia
University, mocked up a design for a fixed-gear bike, which was simple,
affordable, and “cool,” at least in their minds.

"It blew our minds," Zach Schau says. They entered their company in a
university business-plan competition and walked away with $7,000, which
they used to put in a larger, second order. The bikes sold out in two weeks.
"We kept doubling our order, and we'd sell out even before we received the
bikes," Schau says. "We had no grasp of the demand, and never had enough
bikes."
 Question # 2
Assume that you are the dean of a business school and that you are
interested in more entrepreneurship courses being offered in your
school. Surprisingly to you, some professors are resisting the idea
of offering these courses on the basis of their view that
entrepreneurship is a skill that can only be learned through
experience. Using materials in this chapter, make an argument that
entrepreneurship can be taught.

Answer: - There are many examples of entrepreneurs that launched

successful firms without prior entrepreneurial or business experience. Zach
Schau and his founding team at Pure Fix Cycles is an example. So, it’s not
fair to argue that entrepreneurship can be learned only through experience.
Second, the four-step entrepreneurial process. The key factor is
motivation.” The teachers need to be motivated in order to teach important
parts of entrepreneurship to students and students need to be motivated in
order to understand the importance of the entrepreneurship skills and learn
them. “Entrepreneurship can, partially, be taught.” But without imagination,
innovation and a thirst to meet the unknown people will not be able to
become true entrepreneurs.

Question # 3

Jose Reyes is a computer science student in his last

semester. He just completed a class on how to build
smartphone apps. The last day of class, Jose’s professor
pulled him aside and told him that he has excellent aptitude
for building smartphone apps and that he should pursue
doing so instead of taking a job with an existing company
following graduation. Jose really respects his professor and
is now thinking about doing what he recommended. He is
confident that he can build successful smartphone apps and
has thought previously about being an entrepreneur. The
downside is that he isn’t especially passionate about building
smartphone apps. If Jose asked you for advice, what would
you tell him to do?
Answer: - There are many examples of entrepreneurs that
launched successful firms without prior entrepreneurial or business
experience. Zach Schau and his founding team at Pure Fix Cycles
is an example.

For example, Canvsly’s Android and iOS apps are a great example of this
technique. The app was created by Amit Murumkar. He realized that there
wasn’t enough space on his refrigerator for all of his child’s artwork. Some of
it had to be removed over time to make space for new paintings and
drawings. But he didn’t have a good way to save the old artwork. He also felt
sad that his own artwork was never saved. Then he thought about all the
other parents that must have a similar issue. He found a problem he was
having, realized that other people had the same problem and created a
solution.
Question # 4
One question that is often asked by people thinking about
launching an entrepreneurial venture is “what should
first-time entrepreneurs know before they launch?” Based on
information featured in Chapter 1, what should entrepreneurs
know before they commit to launching their firm?
Answer: -
Entrepreneurial firms’ innovations have a dramatic impact on a society. Think
of all the new products and services that make our lives easier, enhance our
productivity at work, improve our health, and entertain us. For example,
Amgen, an entrepreneurial firm that helped pioneer the biotechnology
industry, has produced a number of drugs that have dramatically improved
people’s lives. An example is NEUPOGEN, a drug that decreases the
incidence of infection in cancer patients who are undergoing chemotherapy
treatment. In addition to improved health care, consider smartphones, social
networks, Internet shopping, overnight package delivery, and digital
photography. All these products are new to this generation, yet it’s hard to
imagine our world without them. However, innovations do create moral and
ethical issues with which societies are forced to grapple. For example, bar-
code scanner technology and the Internet have made it easier for companies
to track the purchasing behavior of their customers, a fact that raises privacy
concerns. Similarly, bioengineering has made it easier to extend the shelf life
of many food products, but some researchers and consumers question the
long-term health implications of bioengineered foods.

Question # 5

Assume you have a friend who is thinking about starting a business to

sell jewelry that she has been making only for friends for several years.
She is coming to talk to you because she knows that you are pursuing
a degree in entrepreneurship. Your friend says, “I am worried that I may
lack the skills to effectively operate a business if I decide to establish
one.” Given your knowledge of “execution intelligence” as discussed
in this chapter, what advice would you give to your friend about how to
successfully operate a firm on an ongoing basis?

Answer: - Validate Your Startup Idea

Great, you've got an idea. But don't quit your day job yet. Before you go all
in, you need to know other people will actually want your product. (No, your
friends and family don't count.) Doing interviews with potential customers is
another option. Show them a working demo of your product, ask what they
like and what they don't, how much they'd pay for it, how often they'd use it,
and so on. If you want to test the market's interest before building anything,
build a landing page that describes your product or service. Ask people to
submit their email addresses in exchange for early access; a free
subscription, membership, or product; a discount, product updates, or some
other compelling offer. Then promote the video on social, paid search, etc.,
and see how many visitors convert to sign-ups.

Question # 6
A friend of yours with whom you went to high school and now
university as well is talking to you about his interest in becoming an
entrepreneur. In a way, this does not surprise you in that Jackson, your
friend, has always wanted to be his own boss. However, in discussing
his interest to start his own real-estate firm, Jackson tells you that a
substantial income is the primary reason he is thinking about
becoming an entrepreneur. He asks you if wanting to earn a significant
amount of money isn’t the main reason most if not all entrepreneurs
start their firms. In light of information included in this chapter, how
would you respond to Jackson’s question?

Answer: - Being your own boss, calling all the shots, hustling to hit your
goals -- for many people, entrepreneurship is the ultimate career goal. But
as awesome as running your own business sounds, it's also incredibly
difficult. Entrepreneurs are also more anxious than other people and
experience more day-to-day stress. After all, when you're responsible for the
bottom line, every setback falls on you personally.

Starting a company can be one of the most rewarding, exhilarating, and

interesting opportunities you'll ever get. If you're aware of the risks and you're
still dead-set on being an entrepreneur, use the strategies and advice in this
guide.

Prepare for the future.

As the world changes, people need different products. As
an example, the rise of Uber, Lyft, and other ride-sharing apps created a
demand for a third-party app that will tell you the cheapest fares at that exact
moment. You want to get ahead of the curve. Read trend predictions for your
industry or market, or check out universal trend forecasting publications like
Trend Hunter and Spring wise. Then ask yourself, "If these predictions come
true, which tools will be necessary?"
Make something better (or cheaper).

You don't always need to develop

something brand-new. If you can offer an existing product at a lower price point,
better quality, or ideally, both, you'll have plenty of customers. Better yet, there's
clearly an existing demand. As you go about your day, make a list of everything
you use. Then review the list for something you could improve.