gazelle
small firm with great prospects for growth
entrepreneurial opportunity
an economically attractive and timely opportunity that creates value for interested buyers or end users
bootstrapping
doing more with less in terms of resources, and controlling other resources without ownership, i.e. bartering
social entrepreneurship
entrepreneurial activity whose goal is to find solutions to social needs, problems, and opportunities.
reluctant entrepreneur
someone who becomes an entrepreneur as a result of some sever hardship
corporate refugee
someone who becomes an entrepreneur to escape an undesirable job situation
four types of entrepreneurial motivation
personal fulfillment, personal satisfaction, independence, financial rewards
six descriptors of entrepreneurs
1communication and determnination
- Leadership
- Opportunity obsession
- tolerance of risk, ambiguity, and uncertainty
- creativity, self-reliance, and adaptability
- motivation to excel
opportunity recognition
identification of potential new products or services that may lead to promising businesses
entrepreneurial alertness
readiness to act on existing but unnoticed business opportunity
new market ideas
startup centered around providing customers with an existing product or service not available in their market
new technology ideas
startup involving new, or relatively new, technology, centered with providing a new product
new benefit ideas
startup centered around providing customers with new or improved products or services
serendipity
a facility for making desirable discoveries by accident
general environment
broad environment, encompassing factors that influence most businesses in a society
industry environment
environment that includes factors that directly impact a given firm and all of its competitors
competitive environment
environment that focuses on strength, position, and likely moves/countermoves of competitors
capabilities
a company’s routines and processes that can coordinate the combined use of its productive assets in order to achieve desired outcomes
core competencies
capabilities that provide a firm with a competitive edge and reflect its personality
feasibility analysis
a preliminary assessment of a business idea that gauges whether the venture envisioned is likely to succeed
porters five forces
Threat of entry, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, competitors
product oriented philosophy
belief that the product is the single most important thing, i.e. Build a better mousetrap
sales oriented philosophy
belief of pushing the product
customer oriented philosophy
belief that everything, from beginning to end, revolves around the customer
core product/ service
fundamental benefits sought out by customers
actual product/service
basic physical product or service that delivers those benefits
augmented product/service
basic product/service plus any extra benefits to the consumer that they prompt a purchase
customer profile
description of potential customers in a target market
direct forecasting
method in which sales is the estimated variable
indirect forecasting
method in which variables related to sales are used to project future sales
total assets =
debt + owner’s equity
debt-
money borrowed to invest into a company
owners equity
owners own money being used to invest into a company
income statement
aka profit and loss statement, sales-expenses=profit
gross profits
=sales sales-cost of goods sold
net income
=earnings that my distributed to owners or reinvested into the company
five factors that drive profits
- amount of sales
- cost of goods sold
- operating expense
- interest expense
- taxes
percentage of sales technique
method for forecasting asset requirements
retained earnnings
refer to the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It is recorded under shareholders’ equity on the balance sheet