Entrepp 3-4

• Elements of a good idea

  Money

  Model

  Mentor
• 3 level of strategy

  • Corporate level
  • Business level
  • Functional level
• Corporate level strategy


  Formulated for the organization as a whole, deals with decisions related to various business areas in which the firm operates and competes
• Business unit level strategy

  Formulated to convert the corporate vision into reality
• Functional level strategy


  Formulated to realize the business unit level goals and objectives using the strengths and capabilities of the organization
• Personal branding is a term used to describe the image of one's self in the public's mind from previous choices made that will affect the future level of personal influence, which is part of self-awareness and self-mastery
• Raising capital


  When an investor or a lender gives a business funds to assist with starting, growing, and managing day-to-day operations
• Raising Funds


  Cash is the lifeblood of business. If you run out of it and lack access to additional resources, the games is over.
• Basic Ways and Simplest Ways to Raise Capital

  • Savings
  • Partnership
  • Loans
  • Customer's Advances
• Savings


  Discretionary funds from unspent money earned previously by the entrepreneur
• Partnership


  Includes investment from relatives, friends and acquaintances
• Loans


  Money advances, which may be sourced from individual informal channel or financial intermediaries like banks
• Customer's Advances


  Terms of sales advantageous to the seller, such as cash with order (CWO), asking for down payment (DP), cash on delivery (COD, or collecting franchise fee upfront
• More advanced ways to raised funds

  • Angel investor
  • Super angel
  • Venture capital
  • Private equities
  • Going public
• Angel investor


  Money invested by an outside individual to a firm
• Super angel


  Big amount of money invested by an outside individual to a firm
• Venture capital


  Amount of money invested by outside investors, typically over 10 individuals with none owning over 10% of investment pool forming themselves as a venture investing company
• Private equities


  Amount of money invested by outside investors, typically over 10 individuals, forming themselves as a private equity investment company, focusing on firms that already have revenues and profit
• Going public


  Amount of money invested via initial public offering (IPO) from the stock market
• Business model


  Refers to a company's plan for making a profit
• Business model


  In their simplest forms, can be broken into three parts:
• Everything it takes to make something

  1. Design

  2. Raw materials

  3. Manufacturing

  4. Labor
• Everything it takes to sell that thing

  1. Marketing

  2. Distribution

  3. Delivering a service

  4. Processing the sale
• How and what the customer pays

  1. Pricing strategy

  2. Payment methods

  3. Payment timing
• Offering Model


  Composed of what people in the marketing and sales departments typically handle - target market, value proposition, channel, customer bonding strategy and revenue model
• Target Market


  • The intended recipients of a firm's products or services
• Value Proposition


  • The relevant and unique benefit that the consumer gets from buying or owning the firm's product or services
• Channel


  • The distribution system where products or services will be made available to the customers
• Customer Bonding Strategy


  • The relationship as well as the solution that will be established with buyers and end users
• Revenue Model


  • The compensation a firm will get for providing its value proposition to support its intended profit
• Operating Model


  What people in the operations department, like supply chain and customer fulfillment, oversee - value chain, resources and processes, complementors, configuration and cost
• Value Network


  • The strategic linkage of extended supply chain for the firm to provide specific products or services to the customers
• Resources


  • The hard and soft assets deployed by the firm to carry out its value proposition for the customers
• Processes


  • The critical repetitive activities that are routinized by the company to deliver the value to the customers and to the company in a sustainable way
• Complementors


  • People or groups who will help both directly and indirectly, to enhance the value proposition
• Configuration


  • Rearrangement of resources, processes, activities and offerings that can help enhance the profit goal of the company
• Cost


  • The monetary consequences of the means to carry out the value proposition
• The 7 element of a strong business model

  1. Identify your specific audience
  2. Establish business processes
  3. Record key business resources
  4. Develop a strong value proposition
  5. Determine key business partners
  6. Create a demand generation strategy
  7. Leave room for innovation
• Diversified Business Models


  Combining multiple business model or using a variety of business models in a single company is called a ??
• Scalability 


  Refers to a company's ability to expand or grow with the same amount of resources.