ENTR 480 Study Guide - Summary Entrepreneurship Capstone PDF

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ENTR 480 STUDY GUIDE – this guide will help focus your study efforts for the test. It is NOT all inclusive. Some answers will come from your notes and not just the slides. ·

Know the seven lessons that Tiffany Sauder shared and the purpose of her company.

1-Only spend time with people who can help or spend money with you. 2-Be vulnerable first and ask questions.

3-Learn how to sell. This is not optional. 4-Don’t get greedy. You have to be something before you can be everything 5-Don’t try to do everything. FOCUS ON DOING A FEW THINGS PERFECTLY 6-A BRAND CANNOT ACHIEVE MORE THAN THE VISION OF IT’S LEADER. 7-Humans matter more than things. 100% of the time. · Know the Entity Types from Keith Bice’s presentation and the tax and liability differences. WHAT TYPE OF ENTITY:  Sole Proprietorship: It is an unincorporated business owned and run by one individual

with no distinction between the business and you, the owner. You are entitled to all profits and are responsible for all your business's debts, losses and liabilities. Forming a Sole Proprietorship.  Partnership: A legal form of business operation between two or more individuals who share management and profits. The federal government recognizes several types of partnerships. The two most common are general and limited partnerships. .  Limited Partnership: A limited partnership is a form of partnership similar to a general partnership, except that where a general partnership must have at least two general partners, a limited partnership must have at least one GP and at least one limited partner.  Limited Liability Partnership: A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities.  Limited Liability Limited Partnership: An LLLP is a limited partnership and as such consists of one or more general partners and one or more limited partners. Typically, while the general partners manage the LLLP, the limited partners' interest is purely financial. Thus, the most common use of a limited partnership is for purposes of investment, often through a number of private equity firms  Incorporation (S and C)  Limited Liability Company  Not for Profit Corporation ·

Know the types of Intellectual Property protection and what they cover from Brad Maurer’s

presentation. INTELLECTUAL PROPERTY: • Patents • Trademarks • Copyrights • Trade Secret • IP Strategy · Know the four DiSC Behavioral styles and characteristics of each of the four types. D - Dominating Direct, Results-Oriented, Firm, Strong-willed, Forceful I - Influence Outgoing, Enthusiastic, High-spirited, Lively S - Steadiness Even-tempered, Accommodating, Humble, Tactful C - Conscientiousness Analytical, Reserved, Precise, Private, Systematic ·

Know the types of funding sources and when and why to use. ●

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Bootstrapping ○

100% control of the business

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Binds you to the business

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May be all that is necessary

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Can be structures as either debt or Equity

Friends, Family, and Fools ○

They know you and want you to succeed

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Can be creative in how you structure

Crowd-Funding ○

Can tailor to your needs

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Can generate more money than you need

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Can generate interest in your product

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Can use to test and validate demand via pre-orders

Accelerators and Incubators ○

Safety net

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Investor access

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Gives you hard deadlines

Lenders ○

You keep ownership of the company

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Can structure with lower payments during tighter Cash Flow periods (at Higher Rates)

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Angel Investors ○

Willing to invest early

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Usually well connected to potential customers, suppliers and investors

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Can provide experience to supplement founder

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Usually Minimal Due Diligence with a Simple Contract

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Long Term Player

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No Obligation to Repay

Venture Capitalists ○

They Inject Cash that Can Unleash and Accelerate The Company’s Growth

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Reputable VC can Open Doors on Lenders, Customers & Other Investors

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Able to Bring Expertise to your Company

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No Obligation to Repay

Know the documents that a banker or investor request and what each is. 1. Business Plan: a document setting out a business's future objectives and strategies for achieving them. 2. Balance Sheet: It is a summary of the financial balances. Assets, liabilities and ownership equity are listed as of a specific date, such as as end of its financial year.

Unlike other financial statements, balance sheet is the only document that applies to single point in time of a business’s calendar year. 3. Income Statement: it is a financial statement that reports company’s financial performance over a specific accounting period. The financial performance is assessed by how business incurs its revenues and expenses. It shows net profit or loss over specific accounting period. 4. Cash Flow Statement: Financial statement that shows how changes in balance sheet accounts and income affect cash and its equivalents. 5. Cash Flow Forecast: A cash flow forecast is an estimate of the amount of money you expect to flow in and out of your business and includes all your projected income and expenses.

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Know the reasons why start-ups fail and the timeframe they most often fail from Len Janssen’s presentation. 80% of startups fail in the first 5 years ● No market need ● Ran out of cash ● Not the right team ● Get Outcompeted ● Pricing/ Cost Issues ● Poor Product ● Need/Lack Business Model ● Poor Marketing ● Ignore Customers ● Product Mis-timed ● Lose Focus ● Disharmony on Team/investors ● Pivot gone bad ● Lack Passion ● Bad Location ● No-financing/ Investor Interest ● Legal Challenges ● Don’t use network ● Burn out ● Failure to pivot ·

Know what working capital is.

Working capital is a measure of both a company's efficiency and its short-term financial health. Working capital is calculated as: Working Capital = Current Assets - Current Liabilities ·

Know how to use your Unique Defendable Advantage according to Len Janssen.

Name it, enhance it, defend it, and capitalize on it ·

Know all the reasons why startups are risky according to Len Janssen. ●

High Rate of Business Failures for Start-ups

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Difficult to test a new product idea without selling it

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Easy to be over-optimistic in the business plan

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Competitor Response is often aggressive

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Easy to underestimate the effort and persistence required to be successful

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Idea people aren’t usually the best managers

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Unpredictability of cash burn rate.

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Know why it is important to know your audience when making a pitch to investor/banker. ●

You want something from them

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If you don’t understand them, how can you communicate with them….. ○

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In ways they will understand.

They are important to the success of your venture.

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Know the four common employment types and what hiring mistakes to avoid per Andrea Brummett. 1. Direct Hire - Permanent or fixed-term, full-time or part-time employees 2. Apprentices or Interns 3. Employment agency staff (temp staff) 4. Contractors and subcontractors From the E-Myth know:

o The three entrepreneurial types and what distinguishes each. ● The Entrepreneur ● The Technician ● The manager

o What is the entrepreneurial myth? The myth that most people who start a small business are entrepreneurs.

o What are the three phases of a business and what distinguishes each.

1-Infancy: • The technician phase • You are the business! • You start to have more work than you can do • You fill your day with “work” • Avoid the challenge of learning how to grow a business

2-Adolescence: • You decide to hire someone o Someone with experience o Someone that will let you do want what you want to do o Someone that will do what you don’t want to do • You tell them your secret . . . that you don’t know what you are doing! • You start using another management style: • Management by Abdication o Sooner or later things will start to go wrong o You will ask “how did that happen?” o You have three choices: • Get small again • Go for broke • Go into Adolescent Survival Mode

3-Maturity: • Understand that your work is creating the support that your business needs to grow • Have a clear idea of where you want your company to be in the future Work every day to close the gap between what the company is and what you think it should be. o The difference from working on your business and in your business. - Technicians tend to work in business: - What work must be done? - Sees business in terms of getting “income” - Construct parts to build a whole - The future is modeled from present day’s work - Entrepreneurs work on the business - How must work be done? - Sees business in terms of how to get “profit” - Sees whole and then divides into parts - Present day is modeled from their vision · From Kyle Lacy’s presentation know: o The 5 Persona Journey Stages 1-AWARENESS

2-CONSIDERATION 3-PURCHASE 4-USAGE 5-REPURCHASE

o The Quantitative and Qualitative data to optimize the customer journey. Quantitative • Churn Analysis • Sales & Marketing KPIs Qualitative • Win/Loss Reviews • Customer Surveys • Product Usage o What is customer churn. ●

Customer churn refers to when a customer (player, subscriber, user, etc.) ceases his or her relationship with a company.

● existing customers that cancelled their subscription o The Elements of the Experience First

1.Pick your most important target persona first. 2.Build your target persona journey stages. 3.List all experiences within each stage. 4.Pick the top 3-4 experiences for each stage. 5.Apply tactics to each of the experiences. 6.Apply KPIs to each of the tactics. o The Elements of the Marketing Persona Development ● Name and Job title ● Demographics: eg: age, gender, salary, location, education and family ● Goals and Challenges ● Values and Fears...