Chapter 2 Link with the Right Steps Flashcards
(23 cards)
What is the primary benefit of linking business and finance strategies?
It helps to make your business stronger and leaner.
What are the three components that need to be linked to become capital efficient?
- Opportunity
- Business strategy
- Financial strategy
How does linking help entrepreneurs in decision-making?
It helps them evaluate the impact of decisions by understanding the relationships between different areas of the business.
True or False: Strong CEOs are untrained and inexperienced.
False
What challenges do entrepreneurs face compared to established companies?
- New ventures
- New trends
- Inadequate cash flow
- No established markets or vendors
- Limited resources
What is a key skill that billion-dollar entrepreneurs possess?
Sales/marketing and financial management.
What should entrepreneurs do to react to inaccurate sales projections?
Test the link between sales and investment in marketing drivers.
Fill in the blank: Early money is ______ money.
expensive
What is a crucial factor when raising venture capital?
The stage of a venture and key milestones.
What was a critical move that Steve Shank made for Capella University?
He spent funding only on essentials related to getting accreditation.
What is the risk associated with the product-development process?
Not knowing when the product will be ready, its appearance, competitors’ actions, and the nature of competitive advantage.
What is the first step to link business and finance?
Develop projections based on your plan.
What should entrepreneurs do to reduce needs during implementation?
Pick alternative implementation plans that capture potential while reducing needs.
How did Sam Walton differentiate his stores from competitors?
He opened stores in small towns while competitors focused on urban markets.
What is the significance of redoing a business plan with capital efficiency?
It allows for reconsideration of business based on capital needs and impacts.
Who is an example of an entrepreneur who maintained control while raising capital?
Mark Zuckerberg.
What should entrepreneurs focus on to grow without capital?
Designing a business model that grows with little capital.
What is the purpose of testing your concept with real customers?
To gain real feedback and reduce risk.
What did Don Kotula do to successfully grow Northern Tool?
He tracked orders from ads and adjusted marketing based on results.
Fill in the blank: The top skills of billion-dollar entrepreneurs are ______ and financial management.
sales/marketing
What is a common mistake made by entrepreneurs seeking funding?
Using the regular route without a proven track record.
What does it mean to bootstrap in the context of a startup?
Postpone expenditures and invest only what is necessary.
True or False: Entrepreneurs should avoid testing their strategies.
False
