Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/47

Click to flip

47 Cards in this Set

  • Front
  • Back

What is Wasserman's Founder's dilemma about?

It's about the problems founders face when they choose entrepreneurship as a career path.

Wasserman: How are these problems affecting founder's decisions

These career direction questions mix personal, career and market issues.

Wasserman: Who may be better suited to be founders ?

People with early founder influences.


People who's motivation are Power, autonomy, people management and financial gain. Females tend to value altruism

Wasserman: When should a founder found

Early if : golden handcuffs get too strong, family handcuffs become too strong, too specialized, too reliant on employer resources.




Later: Build more human capital, build more social capital, build more financial capital.

Wasserman: Where do you see founders start to release handcuffs

Career :Employer's slow growth, employer changes strategy, being laid off or fired


Golden:, severance payments from layoff, Inheritance


Family: spouse starts to work, children grow up emigrate to region that fosters entrepreneurship.

Why should founders face these dilemmas

Because potential founders should avoid following their passions without making rational assessments of their circumstances.

What is the Financial Capital Theory

The likelihood of launching depends on how much money you got.


Doesn’t help you succeed

Social Capital Theory

Launch depends on social capital


It’s true but only one factor :You can last longer and getbetter talent

o Human Capital theory

Launching depends on what you’ve done? Yes its true

Location of entrepreneurs

Culture vs Structure


3Ts

What is Thorton's say on what the sociology of entrepreneurship is about ?

He argues that he can integrate to schools of thinking (supply:individual traits, demand: context of entrepreneur inception), which extends research implications



Thorton: how does he integrate these two schools ?

Ecological Theory: outside forces and uncouncious actions as outside forces


Institutional: integrates two schools. actors rational


Multilevel

Why does integrating these two schools matter in the name of entrepreneur research

Because much of the research is lacking on the demand side entrepreneur reasearch of through these theories this gives a boost to understanding how entrepreneurs are born.



Thorton: Where are ventures founded?

PArt of the Heterogenerity theory: while there are regions that are incubators for ventures, sometimes they can be overused making to many organization competing for the same resources, hence arguing the point that environments may not lead to successful ventures.

Correlations with a growth mindset

Higher income


Greater career achievements


Lower divorce rates

Gompers: What is performance persistence

The concept and argument that people with a track record of startup success are more likely to succeed than those who are starting for the first time.

Gompers: How is this performance persistence proven proven ?

Assuming success means going public, research suggests that VC backed entrepreneurs have 30 % more chance of success if they go public in the next venture. First timers have 18 %. Second timers who have failed in the past have 20 %

Gompers: If so Why is there performance persistence.

Skill : market timing, industry selection


Perception of performance persistence



What is Design thinking

a business theory tat Innovation happens by understanding the user through direct obervation of wat people need and what they want. It's a user-centered focus to innovation. The goal is to get feedback.

Who are design thinkers

Empathetic


Integrative thinkers


Optimistic


Experimenters


Collaborators



How do you do design thinking

Iterative Process or prototyping, testing , then refining through a human centrered approach

Why is Design thinking an important school of thinking?

Because design goes beyond aesthetics. Designs must now provide needs and appeal to our emotions

Problem Based Aproach

Identify


Analyse


identify decision criteria


develop solutions


choose and execute

Tradional Based Approach

Segment market


Select Beach head


Aullet?

What is market segmentation

Dividing a broad market into a segments of potential consumers that share similar characteristics

How to do market segmentation

1.Brainstorm: Talk to potential customers to get a better idea if you've done good market segmentation.


Best if you are the user because you'll have a deep understanding of the problem you're trying to solve.


identify potential industries for the idea and focus on who will benefit in each industry and focus on end users.


2. Narrow. List 6-12 market opportunities.


3. Primary Market Research: if you end up winning in a segment, make sure your solution ahs adjacent market opportunities that your business can scale.

Why do we do market segmentation



So that we can identify market opportunities and prepare to focus on the best market opportunities.

When to do market segmentation

It's the first step of the traditional approach

Who should the market segmentation focus on

end user and not the customer.

how to select a beachhead Market

1. Start by selecting a small beachhead: you want a market you can dominate in a short amount of time


2: Have your beach head to meet three conditions: 1.customers all buy similar products 2. they have similar sales cycles 3. there is word of mouth between customers

What is the end user profile ?

making a detailed description of customer

Why is end user profile important

critical to understand that you build a business that is based around the customer you are serving

Decision making units

Champion: person who wants the customer to buy the product


Primary economic buyer: person with authority to buy product


Influencer: People who have sway or direct control over decisions of the primary economic buyer



Why do Step 4: calculating TAM

It allows you to gain perspective on the quality of size of your beach head market

How to calculate TAM

Defining beach head and end user profile is enough to calculate.


determine how many end users exist that fit profile with bottoms up. Then use top down analysis to complement.


Determine how much revenue you could get in a year. You are looking for between 20-100 million a year



Why create step 5 : Persona

makes your target customer tangible so all members of founding team have absolute clarity and focus to make the same target customer happy.

What is step 6: Full life cycle use case

determines where your product fits into your persona's value chain. Determine how the end user determines they have a need for you product, and how they interact with your product and so on.

How to create a Full life Cycle case

create a visual repesentation of how the activties in your products value chain



What is Step 7 :High level Product specificaton

Basicially is a visual representation of your product. and focuses on the benefits of the features of the product. This helps you see the product from the customer's vantage point.

Quantify value proposition

framed by persona's top priorities


Have as is state and then a possible state


Visual diagram is best to illustrate it

What is Step 9 ?

Identifying next 10 potential customers: find 10 more customers besides your persona but that fit end user profile. That would be done through bring them through the past steps. Validate their similarity and willingness to buy your product through a letter of willingess to buy solution




This ensures that your descrips and assumptions hold true

What is step 10

Defining your Core which is what value can you offer that is better than your competitors


Examples: Network effect, Customer service, Lowest cost, User experience, Lowest Cost

How is Core different to other confused aspects

Competitive Position: Core is how you are building capability to differentiate from competitors that allows you increase your competitive position


First mover advantage: Usually goes away as new companies find new markets. First mover advantage helps gain cores.


Suppliers: Can help but usually only a trap along the way for your competitors.

Competitive Positioning chart

How well you fulfill your persona's top 2 priorities through your core capabilities vs how well your competitors do

toughest competitor is usually

the customer's status quo. sometime we focus on start ups that have developed similar ideas to us and we focus on how we can beat them, while the true competitor is usually the untapped market that hasn't been introduced to your product. you should focus on them rather than your competition

How to make a competitive Position chart

make x 1 and y 2 axis chart

DMU

point is to identify all the people invovlved in the decision process to acquire the product for the end user. these include Champions, end users, primary economic buyeys, primary and secondary influencers, veto and purchasing departments