Chapter 18 Adjust to Takeoff with Limited Cash Flashcards
(21 cards)
What are the two kinds of forecasters according to John Kenneth Galbraith?
The ones who don’t know and the ones who don’t know they don’t know.
Why is flexibility crucial in emerging industries?
Many billion-dollar entrepreneurs changed the direction of their ventures as the industry unfolded.
What did Sam Walton do for twelve years before finding the right retail growth strategy?
Tested various retail growth strategies.
What edge did Bill Gates find after starting his software company?
Licensing the MS-DOS operating system to IBM.
How did Travis Kalanick change the taxi industry?
Changed Uber from a limo rental service to a taxi-without-cabs service.
What is the main challenge for entrepreneurs in forecasting?
Mere mortals make errors in their forecasts.
What should entrepreneurs do with their initial business plan?
Treat it as a guide and be prepared to adjust.
True or False: The market will adjust to your product without the need for adjustments.
False.
What did Glen Taylor do to succeed in the wedding invitation card industry?
Adjusted to the market’s unmet needs and trends.
What is a common characteristic of new unproven businesses?
They do not perform logically or predictably.
What did Richard Burke say about a business plan?
It is only what one starts with.
What did Jill Blashack Strahan do to test her business ideas?
Participated in the Holiday Crafter’s Tour and experimented with themes.
Fill in the blank: Adjust to _______ when reality differs from expectations.
reality.
What common issue do start-ups face regarding assumptions?
Most assumptions will be wrong.
How did Lloyd Sigel determine the right retail price point for his BBQ products?
Conducted tests to find out what customers would pay.
What did Dick Schulze realize about Best Buy’s position in the market?
They were alone in the superstore format initially but faced competition from giants.
What was a key innovation of Best Buy’s Concept II store?
Elimination of sales commissions.
What did Tim Doherty learn from losing a client?
The importance of being available when clients need services.
What strategy should entrepreneurs adopt to minimize risks?
Adjust to fail small and win big.
Why is it important to monitor the business and compare reality with projections?
To adjust strategies and capture the venture’s potential.
What does the quote ‘when a map differs from the terrain, go with the terrain’ imply for entrepreneurs?
Be flexible and adapt to the reality of the market.
