Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
60 Cards in this Set
- Front
- Back
|
What is the Hellman six?
|
1. Dont be afraid of financial numbers
2. Decide on whether you want to be rich or king 3. Dont write a business plan but start something real 4. Check out your investors before taking their money 5. Spend your own money as needed but think before spending family savings 6. CIMITYM: cash is more important than your mommy |
|
|
Where do Canadians get their startup money?
|
approximately 50% use supplier credit, personal savings, credit cards, retained earnings and business credit cards
approximately 30% use leasing and bank loans 20% get loans from friends and family and government lending agencies |
|
|
What are the 10 cash flow surprises that could kill your start-up?
|
1. Not documenting cash-flow projections
2. Being on budget but out of cash 3. Being profitable but broke 4. Seasonal sales fluctuations 5. Unanticipated expenses and emergencies 6. New businesses dont get normal terms 7. Sales volumes dont always keep up with marketing expenses 8. Even good c |
|
|
What are the characteristics of friend and family investors?
|
- main source of capital is personal wealth and is often small
- Easiest access for founders. Networks of core founders are tapped - Little to no value typically added to start up. Often no business skills added |
|
|
What are the risks of friend and family investors to the founder?
|
-May send unprofessional msignal
-lax standards may enable founders to pursue marginal ideas -Playing with fire |
|
|
What are angel investors main source of capital?
|
Personal wealth (medium to large)
|
|
|
How does one access angel investors?
|
Through intermediates, third party networking and impersonal searches.
|
|
|
What values do angels add to a start up?
|
- may have broad business experience
- can have role on founder's board -social capital - more financial capital than friends and family |
|
|
What are the risks to a starup from angels?
|
- less constructive discipline, oversight and assistance than VCs
-Can be difficult to manage -may introduce complications that later turn off potential investors |
|
|
What is the main source of a VC's capital?
|
Limited partners (very large amount of capital)
|
|
|
How is the ease of access to a VC?
|
Hardest of the three (angels and family other 2). Use angels and professional contacts
|
|
|
What value does a VC add to a startup?
|
-predictable financial capital (compared to angels)
social capital -reputational benefits -board direction and regular communication |
|
|
What are the wealth risks to founders from VCs?
|
-Demand equity which dilutes founders stakes
-liquidation preferences affect exits -forced vesting of founders equity stakes -forced equity reallocations among teams |
|
|
What are the control risks to founders from vc's?
|
-oard seats
-protective provisions and supermajority voting rights with preferred stock -differing risk levels than founder can cause conflict staging of funds -drag along rights can affect exit |
|
|
What are the five key concepts that founder's should consider in building their public presence?
|
1. authenticity
2. consistency 3. targeted focus 4. quality 5. respect for loyalty |
|
|
What are the key factors that led to Eaton's demise?
|
1. Lack of strategic vision
2. unwise expansion 3. inability to respond coherently to recession, competition 4. Lack of strong personal commitment in heirs |
|
|
What are the main elements one needs to consider in naming one's business according to the government of Canada?
|
1. Is the name distinctive?
2. Can customers identify and remember it? 3, Does it describe or reflect your product or service? 4. Does it align with your business values? 5. Are you legally allowed to use it? |
|
|
What is the Apple approach?
|
A pproach customers with a warm personalized welcome
P robe to understand the problem P resent a solution L isten for issues E nd with an invitation to return |
|
|
What is the Made to Stick "SUCCES" model for pitching?
|
- make it simple
- make it unexpected - make it concrete - make it credible - make it emotional - bring in stories |
|
|
What are Atkinson's 10 steps to a more persuasive pitch?
|
1. be passionate about the idea
2. use imager 3. use lists of 3 4. solve a puzzle 5. combine the 3 and the puzzle 6. look for an us vs. them or some other barrier 7. Pause for emphasis 8. Use contrastive pairs 9. Move purposefully 10. Practice |
|
|
What is the value proposition?
|
It is the bundle of products and services that create value for a specific customer segment
|
|
|
What is the process of persuasion?
|
process a person behaves by when given a persuasive message. Person must act in the affirmative at each stage for the message to cause action
|
|
|
What is the order of the process of persuasion?
|
1 pay attention to message
2 comprehend message 3 believe message 4 remember message 5 behave accordingly 6 action |
|
|
What is osterwalder's business model canvas?
|
How the organization creates, delivers and captures value
|
|
|
What are the elements of osterwalder's business model canvas?
|
- key partners
-key activities - key resources -value proposition - customer relationships -channels - customer segments - cost structure - revenue streams |
|
|
What makes fear advertising effective?
|
If you not only make them fear the severity and likelihood of a threated even but also outline a solution and feel capable of implanting it
|
|
|
What are the 4 steps of the attracting customers according to the lean start-up search and execution?
|
1. customer discovery
3. customer validation 3. customer creation 4. company building |
|
|
Describe step 1 of the search and execution protocol
|
Customer discovery: founders translate company ideas into business model hypotheses, test assumptions about customers needs and then create a "minimum viable product" to try out their proposed solution on customers.
|
|
|
Describe step 2 of the search and execution protocol
|
Customer validation: start up continues to test all other hypotheses and tries to validate customers interest through early orders or product usage. If there is no interest, the start-up can "pivot" by changing one or more hypotheses
|
|
|
Describe step 3 of the search and execution protocol
|
Customer creation: the product is refined enough to sell using its proven hypotheses. the start-up builds demand by rapidly ramping up marketing and sales spending and scales up the business
|
|
|
Describe step 4 of the search and execution protocol
|
Company building: business transitions from start-up mode with a customer development team, searching for answers, to function departments executing its mode
|
|
|
What are the 3 focus points in a value proposition according to the HBR?
|
1 all benefits
2 favourable points of difference 3 resonating focus |
|
|
What are the four elements of the "all benefits" focus?
|
- consists of all benefits customers receive from a market offering
-answers the customer question: why should we purchase your offering? -Requires detailed knowledge of own market offering -has the potential pitfall of diluting list with benefits that mean nothing to the customer |
|
|
What are the four elements of the "favourable points of difference" focus?
|
-emphasizes advantages compared to the next best alternative
-answers "why should we purchase yours over theirs" -requires knowledge of own offering and next best alternative -has potential pitfall of assuming certain qualities are more valuable to the customer |
|
|
What are the four elements of the "resonating focus"?
|
-1 or 2 points of difference and perhaps one point of parity that offer long term customer value
-answers what is the most worthwhile about your offering" -requires knowledge of superior value in own offering vs competitors -pitfall: requires customer value research |
|
|
what are 3 engines of growth?
|
A word of mouth: primarily rely on lots of satisfied customers to actually tell family and friends about product
B Side effect of product or service usage: your customers will be primarily exposed to you product or service when they see other using it B Funded adverts: customers are best lured by aid advertising |
|
|
What are the 4 c's of lending?
|
1 Cash flow - ability to repay the cash you are borrowing
2 Collateral - value of assets you are willing to pledge for assurance you will repay loan 3 Commitment - amount of money you are committing to your business 4 Character - personal credit score and history with the financial institution |
|
|
What are the ways of increasing your chance of securing a loan?
|
- having strong management and staff
- showing steady business growth potential - showing reliable projected cash flow - offering collateral - having a strong personal credit rating - Always making payments and never missing one |
|
|
What should you do when interviewing an introvert?
|
-consider your own temperamental style and hot it might be affecting the introvert (overwhelming or matching?)
-allow more time for silence and slow building answers -include non-verbal, non instant action elements |
|
|
What should you do when interviewing an extrovert?
|
Consider own temperamental style and its affect on extrovert (dampening or firing up?)
-Be aware of the "woo" and take a little time to focus on content of energetic words -include non-verbal, non-instant action elements |
|
|
What are some characteristics of the highly creative?
|
-embody more contradictory personality traits than most
-are intellectually playful -relentlessly curious, sensitive and non-conformist -tolerate ambiguity -explore their dark sides to build their art |
|
|
What are some ways to reduce homosocial reproduction in hiring?
|
fight excessive skill and demographic matching
-values match is more important -build diverse hiring team -question your assumptions -monitor your emotions -postpone who do you know game -get work product prior to the meeting -go multi-media |
|
|
What are the key elements in building your selection process?
|
1 Analyze key competencies required for job
2. Consider your values, vision, goals, market, etc..... know how to best probe for match here in selection process 3. Consider hands-on portion where person actually does job |
|
|
What is the definition of power?
|
Power is the capacity to alter others' states by providing or withholding resources and administrying punishments
|
|
|
What are the 5 types of power?
|
1 referent (admiration)
2 expert 3 reward 4 coercive (punishment) 5 legitimate (positional) |
|
|
What does research show the powerful show more of?
|
-single mindedness in decision making
-action and disinhibition -depersonalization of others |
|
|
What are some things that went wrong at the gap?
|
-founder executive turnover
-cost cutting focus on market share at expense of fashion -fast expansion -like competitors sprung up -resting on past success -chasing after rivals -cut quality -lost touch with customers |
|
|
What are some common innovation killers?
|
1 Paralysis of success
2 Complacency 3 No longer innovating with constraints or for survival 4 Founders make mistake of keeping all cool work to selves |
|
|
What are the 6 building blocks of an innovative culture?
|
1 Resources
2 Processes 3 Success 4 Values 5 Behaviours 6 Climate |
|
|
What is noted about reward and creativity in new product development?
|
- pair extrinsic (cash) rewards and internally rewarding creativity training, innovations can be enhanced
-Targeted training is informative and increases feelings of efficacy |
|
|
What are the 3 key lean principles?
|
1 Initial ideas are hypotheses to be tested
2 gather customer feedback on minimum viable products, test, tweak and retest 3 "Agile development" develop product iteratively and incrementally |
|
|
What are the 5 whys?
|
- investigative method of asking "why?" 5 times to understand root problem
- assumes at root of every tech problem is a human error - ties rate of progress to learning, not just to execution |
|
|
How do you execute process of 5 whys?
|
- ensure everyone affected by problem is a room when analyzing problem
- needs environment of trust and empowerment - be prepared to face up to unpleasant truths - be small and specific |
|
|
What is the Andon cord?
|
A cord on the Toyota production line that stops production so that any worker who spots an issue can report and deal with it
|
|
|
What is the legal definition of a board member in Canada?
|
- An individual elected by the shareholders to supervise the management of a corporation
-Together all directors of a corporation are referred to as the "board of directors" |
|
|
What is required to be a director?
|
- at least 18 years old
- of sound mind - an individual - not in bankrupt status |
|
|
What do good boards offer?
|
- financial and legal accountability
- diverse perspectives - professionalism - balanced advice - comfort to customers, shareholders, and employees |
|
|
What are the special challenges for social ventures and their Boards?
|
-Why are we here?
-Struggle between making money and helping people |
|
|
What do you manage so that you make your board work for you?
|
1. Size around 7 max
2. Diversity - helps broaden perspective 3. Independence - not all big shareholders or beholden 4. Values - must be in line with organizations core values Reputation - helpful to org to have credible member 6. Chair - key in directing performance of Board |
|
|
What are the 5 roles of a board?
|
- Overall business strategy
- CEO oversight - Succession planning - Integrity of financial reports - Keen eye on organizational culture |
