New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Nicolas Hills


Nicolas Hills
GPA 3.88

Ronald Frazier

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Ronald Frazier
Class Notes
25 ?




Popular in Course

Popular in Entrepreneurship

This 11 page Class Notes was uploaded by Nicolas Hills on Thursday September 17, 2015. The Class Notes belongs to ENT 3413 at Florida State University taught by Ronald Frazier in Fall. Since its upload, it has received 109 views. For similar materials see /class/205695/ent-3413-florida-state-university in Entrepreneurship at Florida State University.




Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/17/15
Answers 2252011 10900 AM CHAPTER 5 o Its operations staffing growth and financial plans therefore a business plan assumes a feasible a business 2 Many businesses have launched on the strength of a feasibility analysis alone to get traction and feedback from the market Particularly true of Internetrelated businesses where it is easy to create a presence in the market and get quick feedback from customers and end users 3 i Is there a customer or a market of suf cient size to make the concept viable ii Do the capital requirements to start based on estimates of sales and expenses make sense iii Can an appropriate startup or founding team be assembled to effectively execute the concept 4 1st step of a feasibility analysis is to draft a description of the business in the manner of the business concept Discuss i Problem or pain the market ii Product or service begin offered iii First customer iv Value proposition for that customer v Way the value will be delivered to the customer yamAggregation of all the companies in a value chain that support a common area of business 6 The insirl z 9 is comprised of the customers described in the concept and the competitors for those customers Knowing who the first customer is and the size of the niche can help to determine if the business can survive and grow to add additional customer niche Extra info 7 With the industry context defined and the market indentified the product or service can be described in a way that provides a bene t to the customer Wo being able to solve a problem customers have it is unlikely that a new product or service will be successful 8 Founding or management team is the catalyst that will give the business traction Examining the capabilities and experience of the team will reveal any gaps that will need to be filled i Hiring personnel or outsourcing extra info 9 Quick look is an effective way to choose among several business ideas i r de ned by the customers i Those who pay ii EndUsers iii Those who actually use product or service Way to define a profile of the first customer Extra info 11 Good prod uctservice definition is critical to providing the customer with what he or she wants 12 If the conditions are right i Entrepreneur can launch the business in a limited way to test the waters ii Than complete a comprehensive business plan to prepare for growth and the possible need for outside capital CHAPTER 6 13 Entrepreneurs identify their primary customers by recognizing a need or pain in the market 14 Overview of the Industry Analysis i How is the industry described Every industry possesses a particular character highly competitive friendly etc Characterized by demographics such as size revenues etc 39 Is the industry growing Measured by sale volume number of employers units produced etc Growing industry means more opportunities for new ventures to enter and survive 39 Where are the opportunities Does the industry provide opportunities for new businesses w strategies involving new products etc 15 It s generally wise to by looking at secondary sources ofinformation to gather background data 16 Stages of the industry life cycle i Birth ii Growth and Adaptation iii Differentiation and Competition iv Shakeout v Maturity and Decline Paragraph that you need to read 17 Porters 5 forces i Barriers to Entry ii Supplier Bargaining Power iii Threat of Substitutes iv Buyer Bargaining Power v Intensity of Competitive Rivalry 1 Economies of Scale o This means that their costs to produce have declined relative to the price of their goods and services 2 Pest analysis o Serves to examine the environment in which the new venture will operate and ensure that the entrepreneur s strategies are aligned with the trajectory of the industry and the markets in which the new business will compete o Examines specific aspects of the macroenvironment o Political 0 Government Regulatory and Legal o Economic 0 Cost of capital Inflation Customer purchasing power Employment rate o Sociocultural 0 Demographics and Cultural o Technological o RampD and rate of change 3 It is important to remember that for a new company the goals of market research are c Identify and profile the costumer o Estimate potential demand from that costumer o Identify subsequent costumer segments and needs to grow the company 4 Target market research provides some of the most important date that one needs to decide who the first costumer is o The first costumer is the one who most needs the benefits of the entrepreneurs product or service o The first costumer may not be the biggest market but rather an unserved niche that enables the entrepreneur to enter a market with no direct competition for a time 5 Research Process o In order O O O 0 Assess your information needs Research secondary sources first Measure the target market with primary research Forecast demand for the produce or service 6 The Internet is a good starting point for gathering secondary data 7 The most important date that entrepreneurs can collect on potential customers are primary data derived from Observation Online or inperson surveys Phone surveys Interviews And informal focus groups 8 Structured interviews Although personal interviews are more costly and time consuming than 0 O O O O surveys they have many advantages They provide more opportunity for clarification and discussion The interviewer has an opportunity to observe nonverbal communication and hence assess the veracity of what the interviewee is saying The response rate is high Interviews permit openended questions that can lead to more indepth information They provide an opportunity for the entrepreneur to network and develop valuable contact in the industry Where time and money permit structured interviews are probably the best source of valuable information 9 Costumer Profile Age Income level Education Buying habits when where how much Where these costumers typically find these types of products and services How they would like to purchase these products and services Chapter 7 1 Putting the customer at the center of the business o A Every Business large or small product or service is involved in product service or an improvement on an existing product or service is introduced it will have gone through a design and development process 2 Technology shortens product lifecycle o A A product lifestyle is analogous to an industry life cycle with periods of product development market introduction growth maturity and decline 0 1 Product lifecycles now could be as low as 90 days vs what it was 50 years ago 18 yrs 3 Innovation Strategies o A Companies are constantly striving to be continuously innovative in order to figure out new ways to generate revenue Companies usually have a very large budget to fund this type of innovation 4 Three fundamental strategies that have been incorporated into product design Will be asked to select the choice that is not one of these three 1 Design products right the first time 2 Shorten the timetomarket 3 Outsource some product development tasks 5 Intellectual Property Rights o 1 These are a group of legal rights associated with patents trademarks copyrights and trade secrets 2 Every business no matter how small has intellectual property rights associated with it a trademark on the name of the business or a product brand copyrights on advertising design patents on a device the entrepreneur has invented or trade secrets such as the company s customer list 6 Is the invention patentable Do not just memorize learn how to apply o 1 In order to be established by congress the patent must fall into one of these categories a Machine or something with moving parts or circuitry fax rocket photocopier laser electronic circuit b Process or method for producing a useful and tangible result Chemical reaction method for producing products business method c Article of manufacture furniture transistor diskette toy d Composition of matter gasoline food additive drug genetically altered life form e A new use or improvement for one of the above that does not infringe on the patents associated with them 7 Trade Mark Infringement o a Like patents trademarks can suffer from infringement counterfeiting or misappropriation 8 Copyright Protection o a Copyright protects original works of authors composters screenwriters and computer programmers o b A copyright does not protect the idea itself but only the form in which it appears which cannot be copied without the express permission of the copyright holder Example A computer programmer can copyright the written program for particular word processing software but cannot copyright the idea of word processing 9 Obtaining Copyright c a To qualify for federal copyright protection the work must be in a fixed and tangible form that is someone must be able to see or hear it Although it is not required by law to provide notice to a potential infringer and so that a potential violator cannot claim innocence because there was no notice the notice should use the word copyright or the symbol 0 and should provide the year and the complete name of the person responsible for the work 10 Soloists a In a quest for independence entrepreneurs will frequently attempt to make a new venture as a soloist This way they can retain sole ownership make all the key decisions and not have to share the pro ts This approach to starting a business is still common in small lifestyle businesses and among craftspeople and artisians b Due to a different economic climate now and days a lot of entrepreneurs are seeking partners to form a start up team with 1 One of the reasons that make teams more successful then solo operations is that the beginning high intensity effort of the startup can be shared 1 1 Finding the right team a One of the most critically important first steps an entrepreneur must undertake finding people with complementary skills This is a challenge because it is hard to tell what someone is going to be like until you see them in action throughout the start up b Everyone from investors to bankers to potential customers look at the founding team in order to determine whether its members have what it takes to execute their plans 12 Building a Board of Directors 3 questions will be coming from here a It is important to distinguish between boards of privately owned corporations and those of publically owned corporations 1 Private The entrepreneurial team owns all or the majority of the stock so directors serve at the pleasure of the entrepreneur who effectively has control of the company 2 Public Have legitimate power to control the activities of the company and liability for what they do or fail to do These members are elected by shareholders and represent the shareholders interest in the company b Inside Board members are typically the founder employees family members or retired mangers of the firm c Outside Board members are people with no direct connection to the business 13 The board of directors will usually meet about 5 times in person per year as well as meeting through teleconferences when necessary 14 Advisory Boards a Advisory boards are often used when a board of directors is not required or in the start up phase when the board of directors consists of the founders only b An effective advisory board can provide the new venture with needed expertise without significant costs and loss of control associated with a board of directors 15 One of the biggest mistakes cashstrapped entrepreneurs make is giving team members stock in lieu of salary or fees for example in the case of independent contractors Once someone has stock in the company it becomes much more difficult to terminate that position 16 Outsourcing 2 questions in this a Using independent contractors to undertake functions that the entrepreneur doesn t want to handle b Independent contractors IC own their own business and are hired by the entrepreneur to do a specific job Not responsible for how they do the work as long as it gets done l 39 J r J that 1 use on a regular basis include a Consultants manufacturers distributers and employee leasing firms c 96 of companies outsource their information technology services d Most companies will higher IC to do work in technological fields that grow to fast to keep up with e IC will also reduce the amount of benefits you would normally have to pay to have someone with their expertise employed to your company costs that can normally amount to 32 ofan employee s base salary 17 The consulting industry is one of the fastest growing industries in the United States and it can provide a variety of services for a new venture a Because they tend to be fairly expensive consultants are best used for critical onetime advising or problemsoling assignments 2252011 10900 AM 2252011 10900 AM


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.