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11 Cards in this Set
- Front
- Back
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Gross profit |
total sales revenue minus total cost of goods sold. |
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COGS |
the cost of selling one additional unit of a tangible item |
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Opportunity cost |
the value of what must be given up in order to obtain something else. |
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Executive summary |
The executive summary has to be compelling and comprehensive. It may be the only part that many people will read. It will be the hook that either catches potential investors or loses their attention. |
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Business model |
a company’s plan to generate revenue and make a profit from operations Customer Segments (CS): the customers for whom the company creates valueMass market—large, broadly similar group of customersNiche market—narrow, specialized, specificSegmented market—groups with slightly different needs and problemsDiversified markets—segments that aren’t related and have very different needsMulti-sided markets—generally are composed of supplier and customer segments that are all servedValue Proposition (VP): the reason customers select the products/services Channels (CN): how the company reaches and communicates with customer segmentsOwn channels versus partnersDirect (sales force, Web sales, own stores) versus indirect (partner stores, wholesalers)Customer Relationships (CR): types established through consumer segments reachedPersonal assistanceDedicated personal assistanceSelf-serviceAutomated servicesUser communitiesCo-creationRevenue Streams (R$): how funds are generatedAsset salesUsage feeSubscription feesLending/renting/leasingLicensingBrokerage feesAdvertising feesKey Resources (KR): that which is critical to making the model functionPhysicalFinancialIntellectualHumanKey Activities (KA): critical actions for successProductionProblem solvingPlatform/networkKey Partnerships (KP): the particular suppliers and partners needed in the networkStrategic alliances between noncompetitorsCooperation (strategic alliances between competitors)Joint venturesBuyer–supplier relationshipsCost Structure (C$): all costs of operations |
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Competitive advantage |
core competency. It is whatever you can do better than the competition that will attract a sufficient number of customers to your business so it can succeed Quality. Can you provide higher quality than competing businesses?Price. Can you offer a lower price on a sustained basis than your competition, or does your higher price reflect quality and/or uniqueness?Location. Can you find a more convenient location for customers?Selection. Can you provide a wider range of choices than your competitors can?Service. Can you provide better, more personalized customer service?Speed/turnaround. Can you deliver your product/service more quickly than the competition? |
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Social entrepreneur |
a for-profit enterprise with the dual goals of achieving profitability and attaining social returns. the sale of products or services on a for-profit basis to benefit a social purpose. |
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Capitalism |
the free-market system, characterized by individuals and companies competing for economic gains, ownership of private property and wealth, and price determination through free-market forces. |
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Economy |
is the wealth and resources of a country or region, including its financial structure. |
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Voluntary exchange |
a transaction between two parties who agree to trade money for a product or service. |
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Foreign exchange |
the relative value of one currency to another |
