Entrepreneurship Notes (Creation of Startups) Introduction
An Entrepreneur Pursues An Opportunity Regardless of Limited Resources
Entrepreneurs try to avoid risk, and they are not people who love to take risks. Entrepreneurship also has different profiles ranging from designers to marketers. They do not need to be knowledgeable about the type of business. Ideas are also overrated because success is often related to execution and factors beyond the concept. Entrepreneurship is the pursuit of opportunity beyond controlled resources.
The Necessary Components to Succeed in Entrepreneurship are: The Heart, Head, Hands and Environment
Entrepreneurship – Business success requires passion and inspiration (heart), knowledge of processes and how to complete things (head), taking action by interviewing customers, selling, and more (hands), in addition to having a public of mentors and classmates for good support and advice (environment) Entrepreneurship.
The 80/20 rule is that 80% of the results come from 20% of the effort
This rule applies across many parts of business and life for all-purpose. 20% of customers usually provide 80% of the revenue/profits, 20% of the book’s text offers 80% of the lessons learned, and 20% of the effort and tasks that a startup can do produce 80% of the results. The key to time management within a company is to find these impactful tasks and avoid being perfectionists about the remaining 100% results.
Once You Have Proven Competency in the Market, You Should Look for Investment
A potential investor will ask many questions about the business if they only go to him with an idea. Even if you only have one prototype, there is a considerable risk for the investor since it is not sure whether or not there is a demand in the market for the client. The more we can eliminate the risk for the investor, the better received our proposal will be. They are seen from the investor’s perspective – How reliable is there a demand for this product/service? What is going to be require? That someone else will be able to improve and compete only?
Customer Need Is Any of How The Customer in the Market Does not Adequately Meet their Expectations
Customers need it if they haven’t satisfice it enough.
Gaps in the Market are An Opportunity to Attract New Customers that Have Not Yet Been Captured
Customers who have not been identifier correspond to market gaps. Recent developments correspond to trends. And customers who have not met their needs represent needs.
Staff Adaptation and Market Potential are the Two Main Categories for Filtering an Idea
The two key dimensions align around how investors evaluate a business – with the (entrepreneurship) Entrepreneurs themselves and how well adapt they are to the company and the market. Or with the fit (passion, driving, skills and experience in the field) and the viability and value of the market or business.
Interviews are the Preferred Early Method
The interviews will provide us with the visions of more significant action and an understanding of the real needs and frustrations, assuming that the questions are structured plainly so as not to bias the interview.
Surveys cannot discover frustration needs because they will have in advance a hypothesis that they need to validate or not.
Google can be great for measuring the market but not for validating needs and frustration. The data is very general and often outdated.
Attention groups are like interviews but liable to what the group thinks.
A Good Question for a Potential Customer During Market
Open-ended questions allow the interviewee to share their best stories because they open the opportunity to dig deeper as they learn from the different needs and frustrations that may be of interest.
The other questions lead to partial and difficult-to-evaluate results.
The essential Considerations in Choosing a Customer within the market
- Needs and frustrations.
- A high desire to pay for a solution.
- Moderate size focus on a long potential.
- A target customer within the market.
- A tool to make sure the company is align.
- A person who provides information that serves to make decisions within the company.
A Proposed Value
- Indicates the proposed value of the product.
- It indicates the benefits that can be provide to the target customer and how they will be granted.
- It is a statement of how value will be create for investors.
Business strategy is the plan that consists of creating and capturing value and making it sustainable over time
Strategy is how sustainable value is capture. All companies have some degree of competition because customers are solving their needs in a way today. Even if that need is to entertain themselves. The strategy goes beyond the idea and is about execution and commercialization.
The Competitive Advantage Consists of Simply Satisfying the Customer’s needs Throughout their Priority.
A company should not look for competitors in all dimensions since deals will have to be made to make the company sustainable over time. The key is to determine what is most important for the target customers and the best margin need for those dimensions.
The Acronym MVP Defines a Minimum Viable Product
MVP is commonly define as Minimum Viable Product – sometimes it can be referred to as Minimum Viable Proof – that is. The initial way in which what is being offer is tested. This varies depending on whether a product, service or application is being develop.
An MVP Develops
- Through sketches to verify that all are align correctly.
- It was determining new features that adequately impact customer needs.
- Isolating the assumptions that need to be test.
When Starting with a Product, the Way to Acquire Customers is Through Direct Sales
Direct selling is a recommend strategy to go out and sell. Others, such as word of mouth, referrals or reviews, are not the best initial strategy. However, they are valuable later. Being selective about the type of customers target and how to keep them is also essential.
Reasons to own a Customer Captive
- It is more expensive to find new customers than to keep existing ones.
- Losing existing customers can have a negative impact and have the opposite effect.
- Existing customers can provide critiques, referrals, and word of mouth.
A Short Proposal Can Given To
- Potential partners and suppliers.
Components Of a Short Proposal
- Your vision.
- Presentation of the company.
- Framing of the Problem.
The Most Crucial Component to Use During a Presentation is the Company’s Vision, Details, and the Problem to be Solve.
The vision and presentation of the company should be include, and the Problem to be solve. The other components may be, to a greater or lesser extent, relevant, depending on the specifications of the business.