Module 2 Flashcards
(23 cards)
Name three methods for generating business ideas and provide an example of each.
Brainstorming: Group session to list ideas (e.g., a team brainstorming app concepts).
Focus Groups: Collecting customer feedback (e.g., testing a new snack flavor with students).
Problem Inventory Analysis: Solving pain points (e.g., creating a parking app for crowded campuses).
A student notices that local farmers discard misshapen produce. What idea-generation method fits this scenario?
Problem Inventory Analysis – Identifying waste as a problem to solve (e.g., launching “ugly produce” discount boxes).
How does an opportunity differ from an idea?
An opportunity has proven market demand, revenue potential, and accessible resources, while an idea is just a concept without validation.
Give an example of an opportunity arising from:
a) Demographic shifts
b) Regulatory changes
What three elements must a business concept define?
Target market (e.g., college students).
Customer needs (e.g., affordable textbooks).
Marketing strategy (e.g., Instagram ads targeting students).
Define target market.
A specific group of consumers with shared characteristics (e.g., age, income) that a business aims to serve.
What is a marketing strategy in business concept development?
A plan outlining how a business will promote its product/service to attract and retain customers (e.g., social media ads, discounts).
Define customer needs in this context.
The specific problems, desires, or preferences of a target market that a product/service addresses.
Define bootstrapping.
Funding a business using personal savings or revenue, without external investors or loans.
What is an angel investor?
A wealthy individual who provides capital to startups in exchange for equity or convertible debt.
Define crowdfunding.
Raising small amounts of money from a large number of people, typically via online platforms (e.g., Kickstarter).
What does outsourcing mean in resource acquisition?
Hiring external parties (e.g., freelancers) to perform specific tasks instead of using in-house staff.
Define implementation in the entrepreneurial process.
The stage where a business plan is executed, including product launch, hiring, and operational setup.
What is liquidation as an exit strategy?
Closing a business and selling its assets to pay off debts or distribute remaining funds to owners.
Define licensing in harvesting.
Allowing another company to use your intellectual property (e.g., patent, trademark) for a fee or royalty.
Define market research.
The process of gathering data about consumer preferences, competitors, and industry trends to inform business decisions.
What is competitor analysis?
Evaluating rivals’ products, pricing, and strategies to identify market gaps or competitive advantages.
Define technical feasibility.
Assessing whether a business has the expertise, technology, and resources to produce its product/service.
What is financial feasibility?
Determining if a business idea is financially viable, including cost projections and funding availability.
Define market feasibility.
Evaluating whether enough customers exist to sustain the business and generate profit.
Define the Business Model Canvas (BMC).
A visual tool that outlines nine key components of a business (e.g., value proposition, revenue streams) on a single page.
What are key partners in the BMC?
External organizations or individuals (e.g., suppliers, distributors) critical to a business’s operations
Define value proposition in the BMC.
The unique benefit a product/service offers to customers, differentiating it from competitors.
