Entrepreneurship

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• Publisher: QuickStudy Reference Guides
• Year: 2018
• Print ISBN: 9781423225393
• eBook ISBN: 9781423237297
• Topic: Business
• Subtopic: Business General
• Index: Business

Strengthen skills, know where to start and reduce your risk. Growing in universities as a separate degree in itself, any business major or inspired self-starter will find a barrage of tools that create a road map to the American Dream. With a focus on doing it "lean", this 6-page guide by our author, successful entrepreneur and well-connected Babson College graduate can help steer the course. Suggested uses:
• Students – quick reference tool for a major in entrepreneurship or business
• Professors – supplemental reference for courses that focus on aspects of business and entrepreneurship
• Personal – start your own business - for people who want to work for themselves and feel there is a better way to providing a service or product that they feel is meaningful, fulfilling and profitable
• Consultants – provide as a supplemental reference and/or promotional give-away for entrepreneurship and start-up presentations, courses, conferences, training and the like

Terminology

Accelerator: An organization that supports a start-up business and may provide a new location

Acquisition Cost: The total cost of acquiring an asset, including purchase price, transportation costs, testing costs, etc.

BATNA: Best alternative to a negotiated agreement; a strategy to use when negotiations fail

Book Value: The difference between the original acquisition cost and the accumulated depreciation

Bootstrapping: Using existing resources rather than borrowed money; stretching funding

Break-Even Point: The point where a start-up business’s income equals its expenses

Burn Rate: The rate at which a company spends its capital until it reaches profitability

Business Incubator: A public or private entrepreneurial organization that supports wannabe entrepreneurs

Business Plan: A written document describing aspects of a business venture necessary to raise money

Competitive Advantage: The way a firm implements customer benefits to keep it ahead of competitive firms

Copyright: The exclusive legal right given to the creator of a literary or an artistic work to use that work

Corporation: A legal entity that is formed by filing documents with a state government and acts as an artificial person to carry out business

Cost-Benefit Analysis: A decision-making process in which the costs of taking action are compared to the benefits

Creaction: Babson College term for acting and creating evidence in the entrepreneurial process; coined by Schlesinger

Creative destruction: The process by which new products or technologies make current products obsolete

Creativity: The quality or ability to produce an idea or opportunity that is novel and useful

Crowdfunding: Funding a business through collective, private investments over the Internet

Current Ratio: The value of current assets divided by current liabilities

Design Patent: A 14-year patent for a new, original, and ornamental design for an article of manufacture

Differentiation Strategy: A strategy that firms use to provide unique or different products to consumers

Direct Marketing: Selling goods or services to consumers without intermediaries

Due Diligence: The process of investigating a business to determine its value

E-Myth Revisited: A book by Michael Gerber that helps entrepreneurs organize and be better managers

Early Adopters: A customer adoption segment that purchases after pioneers

Economic Value: What start-up ventures create out of useful ideas for the benefit of everyone

Economies of Scale: The idea that it is cheaper to mass-produce a product

Effectuation: An entrepreneurial approach that emphasizes creating opportunity by leveraging existing resources

Elasticity: An economic term that describes the relationship between changes in two variables (price vs. sales)

Elevator Pitch: A brief, carefully constructed explanation of the merits of a business opportunity

Entrepreneur: A person who owns or starts a business and is willing to risk loss in order to make money

Equity: Ownership of business

ESOP: Employee stock option plan; a method for employees to purchase the business they work for

ETA: Entrepreneurial thought and action; a Babson College term for the prediction and creaction process

Executive Summary: The most important section of the business plan, running one to two pages; provides an overview of the business, its business model, its market, and its goals

Factoring: A transaction where a business sells its accounts receivables to a third party at a discount for cash

Fast-Track Program: A provision in the Small Business Innovation Research (SBIR) program that combines phases into a grant; at the Kauffman Foundation, FastTrac is a mentoring program that fosters the sharing of ideas

Feasibility: Examination including finances of a business idea to determine how viable and realistic it is

Financials: Key statements are the balance sheet, the income statement, and the statement of cash flows

Fixed Costs: Costs that do not change with an increase or decrease in the amount of goods produced

Franchising: A form of business organization in which an already successful firm licenses its trademark and methods of doing business in exchange for a fee and ongoing revenue

Gazelle: A fast-growing company with annual growth of 20% or greater

Green Entrepreneurship: Running a firm in a manner that saves or improves the environment

Hypotheses: The educated guesses startup entrepreneurs make using a business model canvas, which are then tested and refined during the customer development process.

Improvisation: The act of creating action without pre-planning or preparation

Income Statement: A financial statement that reflects the operations of a firm over a period of time

Incubator: An entrepreneurship center, public or private, that allows collaboration of start-up businesses

Industry Analysis: An analysis used along with the feasibility analysis to consider entry costs and the competitive picture

Initial Public Offering (IPO): The first-time public sale of stock listed on an exchange

Innovation: The process of creating something new

Intellectual Property: Creations that are protected under copyrights, trademarks, and patents

Iteration: I...

Table of contents

• History of Entrepreneurship
• Entrepreneurs
• Venture Value Creation
• Innovation & Creativity
• Niche Products & Services
• Intrapreneurship
• Creation of a Start-up Business
• New Business Planning
• Small Business Marketing
• Funding & Financial Viability
• Business Operations
• Exit from Venture: “Harvest” the Business
• Resources
• Terminology
• The Entrepreneurship Map
• New Venture Foundation