Prepared captain_muudey

Review a bout entrepreneurship

Chapter two
1. strategic management: is crucial for small businesses because it helps
them set clear goals, make informed decisions, and effectively allocate
resources. It enables small businesses to analyze their internal and
external environments, identify opportunities and threats, and develop
strategies to achieve a competitive advantage
2. A Major Shift... from financial capital to intellectual capital
 Human
 Structural
 Customer

3. Core Competencies Unique set of skills, knowledge, or abilities that a

company develops in key areas such as superior quality, customer
service, innovation, team-building, flexibility, responsiveness, and others
that allow it to vault past competitors
4. What are the steps in the strategic management process
 Step 1: Develop a vision and translate it into a mission
statement
 Step 2: Assess strengths and weaknesses
 Step 3: Scan environment for opportunities and threats
 Step 4: Identify key success factors
 Step 5: Analyze competition
 Step 6: Create goals and objectives
 Step 7: Formulate strategies
 Step 8: Translate plans into actions
 Step 9: Establish accurate controls

5. Vision and mission

 Vision – an expression of what an entrepreneur stands for and believes in;
the “sixth sense that tells us why we make a difference in the world”
 Mission – addresses question: "What business are we in Sets the tone for
the entire company and guides the decisions people make
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6. Competitor Analysis
 Direct competitors
a. Offer the same products and services
b. Customers often compare prices, features, and deals among these
competitors when they shop
Significant competitors
c. Offer some of the same or similar products or services
d. Product or service lines overlap but not completely
Indirect competitors
e. Offer same or similar products in only a small number of areas
7. Strategy A “road map” that guides a company through a turbulent
environment as it seeks to fulfill its mission, goals, and objectives
8. Balanced Scorecard A set of measurements unique to a company that
includes both financial and operational measures
Chapter 6

9. Feasibility Study Not the same as a business plan Serves as a filter,

screening out ideas An investigative tool

10.Elements of a Feasibility Analysis

 Industry and Market Feasibility
 Product or Service Feasibility
 Financial Feasibility
11.Business Prototyping Entrepreneurs test their business models on a
small scale before committing serious resources to launch a business that
might not work
12.A Business Plan Is…
 a systematic evaluation of a venture’s chances for success
 a way to determine the risks facing a venture
 a game plan for managing a business successfully
 Attracting lenders and investors who will provide needed capital

13.Three Tests Every Business Plan Must Pass

 Reality Test
 Competitive Test
 Value Tes
Prepared captain_muudey

Chapter 9
14.Definition of Marketing: The process of creating and delivering desired
goods and services to customers; involves all of the activities associated
with winning and retaining loyal customers “Secrets”
 Understand target customers’ needs, demands, and wants before competitor
can
15.definition of Guerrilla Marketing Plan: Unconventional, low-cost,
creative techniques that allow a company to wring a big “bang” from its
marketing bucks
 Pinpoint the target markets a company will serve

16.Market research - the vehicle for gathering the information that serves
as the foundation for the marketing plan
17.Collect the Data: a system of gathering data on individual customers
and then developing a marketing plan designed specifically to appeal to
their needs, tastes, and preferences
18.Data Mining: A process in which computer software that uses statistical
analysis, database technology, and artificial intelligence finds hidden
patterns, trends, and connections in data so business owners can make
better marketing decisions and predictions about customers’ behavior
19.Guerrilla Marketing Principles
 Find a niche and fill it
 Use the power of publicity
 Don’t just sell; entertain – “entertaining”
 Connect with customers on an emotional level
 Build a consistent branding strategy
 Embrace social networking
19. The Marketing Mix:
 Product
 Place
 Price
 Promotion
20.The “Secrets” to Successful Financing: Choosing the right sources of
capital is a decision that will influence a company for a lifetime
21.Three Types of Capital
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 Fixed - used to purchase the permanent or fixed assets of the business

(e.g., buildings, land, equipment, etc.)
 Working - used to support the small company's normal short-term
operations (e.g., buy inventory, pay bills, wages, or salaries, etc.)
 Growth - used to help the small business expand or change its primary
direction
22.Equity Capital: Represents the personal investment of the owner(s) in
the business
23.Sources of Equity Financing
 Personal savings: The most common source of equity capital for starting
a business
 Friends and family members
 Angels
 Partners
 Corporations
 Venture capital companies
 Public stock sale
23. The Registration Process

 Choose the underwriter

 Negotiate a letter of intent
 Prepare the registration statement
 File with the SEC
 Wait to “go effective” and road show
 Meet state requirements
24.
Prepared captain_muudey