What would be the best definition of a business model?
Framework how a company creates delivers and extracts value
How will the business model create value?
unmet needs will be met in an existing market
On what terms does the business model focus in terms of a business service or product?
What are the four parts of a business model?
Offering, customers, infrastructure, financial viability
The offering addresses_____
The value generated for customers
Within a business model, customers refer to____?
The segments of the market your offering intends to serve
Infrastructure can be thought of as ____
All the resources
Which of the following would be included when describing the infrastructure?
The revenue and the cost structures would be included in which part of the business model?
How is the section on financial viability more than a financial model?
It explains why customers would give you money
***Which of the following is necessary for an effective customer value proposition (CVP)
It must offer better...
Which of the following is necessary for an effective CVP?
It must be measurable in monetary terms
Which of the following is necessary for an effective CPV?
Ability to perform over a considerable amount of time
A CVP requires that you think about your business from the perspective of what group?
What is required to create a successful CVP?
an understanding of what customers
The first step in creating your CVP?
uncovering what your customer really needs
What problem did ikea solve for customer in its CVP?
lack of attractive low cost furniture
What problem did FedEx solve for customers in its CVP?
The lack of easy, door-to-door
To develop a good CVP products must not only fulfill a need but also a ____
Fit into customers lifestyles
Which of the following allowed TATA cars to be successful?
Their low cost cars
***What are the most beneficial ways to develop a business idea
Collect data, test business model,
What is the future one envision for a business what one plans to do and how one plans to do it is?
WHat is the primary value of a plan?
it records the answers to a questions, it helps crystallize ones though ,helps on take the 1st step towards a business venture
TRIMS start for
Teams, resources, idea, market
What areas would be explored under the "I" phase of TRIM planning?
Deciding what trends would support
What areas would be explored under the M-phase of TRIM planning?
Determining the market size
What question might you ask yourself when trying to determine your T when using TRIM Framework?
Who needs to be on the team from the beginning
Lin- how customers will learn about her product. What area of TRIM planning is Lin focusing on?
***Which of the following should be included in the business plan?
The answer to critical questions, the company vision, timelines for important people
Which is true of back-of-the-napkin plans?
They help clarify and communicate ideas
A gallery sketch is ____
Sketch plan that indicates all major components
Why are "before and after" sketches useful?
Effect of companies and product or service of their life
Word of mouth is an example of ____
A visual plan that is especially useful for identifying gaps in the business idea is called the
Business model canvas
This process is a type of visual plan useful for integrating various components of the business?
Business model canvas
Which of the following would be considered a feasibility study?
The size of the market
Which of the following is the main purpose of the feasibility study?
To help the entrepreneur reach a "go" or "no" goal
The key to feasibility study is___
To produce a feasibility study, what action is needed?
Testing information gathering
What type of plan are traditional investors and banks likely to require?
A traditional business plan
Revenue can be described as which of the following?
Money from the sale of goods or service
A business model
Focuses on how the product or service will serve a market need
Which of the following is true about a revenue model?
It is a key component of the business model
Which of these question will not provide information for the revenue model?
How will my service add value to my customers
If a company has more than 1 revenue stream, what the entrepreneur ask in relation to revenue?
How much each revenue stream contribute to total revenue stream
Different revenue streams may affect which of the following?
Who your customers will be
Revenue model measures the amount of revenue generated by the # of item sold by the company?
What can be sold as unit sales?
Digital products, food and beverages, software support offered by the hour
Which of the following would be considered an intangible
Why is the razor-and-razor blade model also known as the printer-and-ink model?
printer is sold at a low cost but the ink is priced at much higher
Intermediation revenue is associated with
The use of third parties (or "middlemen")
Airbnb is considered an intermediations revenue model because
Charge commission for connecting home renters & homeowners
Which of the following is the role of the broker in an intermediation revenue model?
Organize transactions between buyers and sellers
What are the two revenue sources of Airbnb?
Commission from the homeowner and a booking fee from visitors
Which of the following might be used with permission in a licensing revenue model?
All of these (copyrights patents and trademarks)
This revenue model mixes free basic services with premium or upgrade services
freemium revenue model
What is the main reason customers are attracted to direct cross-subsidies?
It eliminates the upfront cost of a product or service
Profit will depend primarily on which of the following?
Both the revenue and costs
What is the first key driver of revenue?
The four elements of revenue are
Customers, frequency selling, process and price
When someone states, "I don't have money to start a business," what fact might one consider?
Most businesses start without any formal investment
What % of startup businesses start without any formal investment?
What is the name given to the process of building a business with very little funding?
What us the advantage of angel investor funding?
You may gain advice and guidance
What are the "3 Fs"?
Family, friends, and fools
Which of the following is an advantage of bootstrapping?
Outside investors are likely to fund if you've been boot strapped
A company launching 100% through their bootstrapping would use this source of funding
The use of personal funds
What should a startup focus on when thinking about funding?
Focus on the money on hand
Crowdfunding can best be described as
Capital from a large audience usually through the internet
In reference to crowdfunding, a backer is best described as
A person who contributes support in a crowd funding venture
Crowdfunding and crowdsourcing would be both considered which of the following strategies?
Wikipedia encouraging its users to edit and update its free online encyclopedia is an example of
***Which businesses can use crowdfunding?
All of these- mostly photographers and filmmakers most retail and real estate and
How much money can be raised through crowdfunding?
From small amounts to amounts in the millions of dollars
Which is the typical profile of the crowdfunding backer?
24-35 with making at least 100000 In the US
What project falls outside of Kickstarter's rules?
Which the following could not be offered in a kickstarter campaign?
Participating in a cash award raffle
What made equity crowdfunding possible?
The JOBS Act, signed by President Obama
Crowdfunding can help you save money on marketing because it
Gives U of an idea of the level of the product
Which of the following is NOT a common crowdfunding mistake?
Setting a realistic funding goal
Equity financing is defined as___
The sale of shares of stock in exchange for cash
___ consists of small amounts of capital given to help prove a concept
____ is/ are provided to help implement an entrepreneur's research
How is a seed company valued?
On the anticipation of future growth
Sites such as ____ will help you find out how much businesses are worth in your industry
____ is the company value before it receives outside investment
___ is a short term loan that can be turned into equity when future financing is issued
Convertible debt can turn into ___ when future financing is issued
What qualifies someone as an accredited investor?
Net worth over 1 million or income over 200K
What is a typical investment range for angel investors?
Between $25,000 and $100,000
__ angles, often independently wealthy, tend to invest for pleasure
What type of angel is most likely to intervene if the business is not going well?
In short, VCs look for____, big markets, and innovative ideas
Who is involved in the due diligence process?
Angel investors and venture capitalists
What signals the end of the due diligence period?
When all issues of both parties have been resolved
When potential investors think about value add, what are they considering?
The value of the investor's advice and guidance
Which of the following is an important distinction between angels and VCs?
Angels carry out informal due diligence
A conceptual framework that describes how a company creates, delivers, and extracts value
Business Model Canvas
A type of visual plan that depicts the business on one page by filling in nine blocks of a business model
A formal document that provides background and financial information about the company, outlines your goals for the business, and describes how you intend to reach them
Customer Value Proposition (CVP)
A statement that describes exactly what products or services your business offers and sells to customers
A variety of services that for two customer segments with different needs and problems, and which bear no relationship to each other
Defines the revenue and cost structures a business needs to meet its operating expenses and financial obligations
Platforms that serve two or more customer segments that are mutually independent of each other
A small market segment comprising customers with specific needs and requirements
A type of approach that focuses on the product or service relative to the competition and how the offering is different from others on the marke
Product- Market Fit
An offering that meets the needs of customers
A type of CVP that describes why people will really like your product and focuses on the customers and what they really need and value
A marketing strategy that involves breaking customer segments into groups according to their different needs and problems
A planning tool that identifies the types of people needed for the team, the resources available and needed, the details of the idea, and the potential market for the product or service
A planning tool that allows entrepreneurs to test the possibilities of an initial idea to see if it is worth pursuing
The process of building or starting a business with very little funding or capital or virtually nothing at all
The process of raising funding for a new venture from a large audience (the "crowd"), typically through the Internet
The process of using the Internet to attract, aggregate, and manage ostensibly inexpensive or even free labor from enthusiastic customers and like-minded people
A type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family
A short-term loan that can be turned into equity when future financing is issued
A rigorous process which involves evaluating an investment opportunity prior to the contract being signed
Early Stage Financing
A stage of financing which involves larger funds provided for companies that have a team in place and a product or service tested or piloted, but has little or no revenue
The sale of shares of stock in exchange for cash
A stage of financing in which small or modest amounts of capital are provided to entrepreneurs to prove a concept
A stage of financing in which the money is provided to entrepreneurs to enable them to implement the idea by funding product research and development
Venture Capitalist (VC)
A type of professional investor who generally invests in early-stage and emerging companies because of perceived long-term growth potential