summary session 18-19

                                                                                                                                                Gabriela Hartanto

                                                                                                                                                2301851471/LC02

Summary entrepreneurship week 9

Unique Marketing Issues

                The first step in selecting a target market is to study the industry in which the firm intends to compete and determine the different potential target markets within that industry.This process is called market segmentation.The next step is to establish a unique position in that market-one that differentiates the entrepreneurial firm from its competitors.The term position mean emphasized that a firm’s position in the marketplace determines how it is situated relative to its competitors.From a marketing perspective,this translates into the image of the way a firm wants to beperceived bt iys customers.Importantly,position answers the question,”Why should someonein our target market buy our good or service instead of our competitor’s?” Also important to these three steps is the development of a product attribute map,which illusstrates a firm’s position in its industry relative to its major rivals.It is sitioning strategy and helps a firm develop its marketing plan.

                A firm’s marketing mix is the set of controllable,tactical marketing tools that it uses to produce the response it wants in its target market.Most marketers organize their marketing mix around the 4P’s : product,price,promotion and place (or distribution).In the context of the marketing mix,a product is a good or service the firm offers in the market it has chosen to serve.Technically,a product is something the firm sells that takes on a physical form,while a service is an activithy or a benefit the firm provides that does not take on a physical form.The most important attribute of the product a firm sells is its ability to create value for customers.Price is the amount of money customers are willing to pay to purchase a product.Typically,entrepreneurs use one of two methods to set the price of their product.With cost-based pricing,the list price for a product is determined by adding a markup percentage to the product’s cost.When using value-based pricing,the list price for a product by estimating what consumers are willing to pay for a product and then backing off a bit to provide a cushion.

                A firm’s sales process depicts the steps it goes through to identify leads and close sales.The seven-step sales process includes the following steps :

·         Step 1 : Prospect for (or gather) sales leads

·         Step 2 : Make the initial contact

·         Step 3 : Qualify the lead

·         Step 4 : Make the sales presentation

·         Step 5 : Meet objections and concerns

·         Step 6 : Close the sale

·         Step 7 : Follow up

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summary session 16-17

Summary session 16-17

Getting Financing or Funding

                Commonly,entrepreneurs discover that trying to operate their business without borrowed funds or invested capital is difficult.Because of this,entrepreneurs need to understand the different approaches available to them to gain access to the amount of capital needed to successfully support their ventures in the pursuit of organizatonal success.For three reasons cash flow challenges capital investment needs, and the reality of lengthy product development cycles most new firms need to raise money at some point during the early part of their life.Firm growth can generate cash flow problems,typically because of the lag between the need to spend capital to generate additional revenue and the time required to earn positive returns from those investment.

                Personal funds,friends and family,and bootstrapping are the three sources of personal financing available to entrepreneurs.It is very common for entrepreneurs to use their own funds to invest in their ventures while simultaneously provinding their “sweet equity” or hard work to keep the firm going.

                The three steps involved in properly preparing to raise debt or equity financing are as follows : Determine precisely how much money is needed,determine the type of financing or funding that is most appropriate and develop a strategy for angaging potential investors or bankers.Cash flow statements are helpful to efforts to detrmine the amount of capital a firm requires at a point in time.

                Business angels,venture capital,and aninitial public offering (IPO) are the three most important sources of equity funding available to entrepreneurs.Business angels are individuals who invest their personal capital directly in start-up ventures.These investors tend to be highnet-worth individuals who generally invest between $10.000 and $500.000 in a single company.Venture capital is money that is invested by venture capital firms in start-up and small businesses with exceptional growth potential.

                The sources of debt available to entrepreneurs include commercial banks,SBA guaranteed loans and other sources such as vendor credit,factoring,peer-to-peer lending and crowdfunding,histrocially,commercial banks have been reluctant to loan funds to entrepreneurial ventures,largely because they are risk averse and because lending  to smaller firms is less profitable for them compared to lend to large,established organizations.

                Leasing and SBIR and STTR grant programs,along with othher types of grant programs,are examples of creative opportunities entrepreneurs can pursue to obtain financial resources.A lease is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.The major advantage of leasing is that it enables a company to acquire the use of assets with very little or no down payment.The SBIR and STTR grant programs are important sources of grant-stage funding for technology-based ventures.

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Gabriela Hartanto (LC02/2301851471)

Summary week 8 session 15

Summary session 15

Building a New-Venture Team

                A new-venture team is the group of people who move a new venture from an idea to a fully functioning firm.Company founders,key employees,the board of directors,the board of advisers,lenders and investors,and other professionals are the primary elements involved with forming a new-venture team.A heterogeneous founding team has members with diverse abilities and experiences.A homogeneous founding team has members who are very similar to one other.The personal attributes that affect a founder’s chances of launching a successful new firm include level of education,prior entrepreneurial experience relevant industry experience,and the ability to network.Networking is building and maintaining relationships with people who are similar or whose friendship could bring advantages of the firm.

                A skills profile is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist.Finding good employees and effective new-venture team members is challenging.Founders may draw from their personal networks to find the needed talent or may ask existing employees for referrals.

                A board of directors is a panel of individuals who is elected by a corporation’s shareholders to oversee the management of the firm.It is typically made up of both inside and outside directores.An inside director is a person who is also an officer of the firm.An outside director is someone who is not employed by the firm.When a high-quality individual agrees to serve on a company’s board of directors,the individual is in essence expressing an opinion that the company has potential (why else would the individual agree to serve?).This phenomenon is referred to as signaling.

                The primary reason that new ventures turn to consultants for help and advice is that white large firms can afford to employ experts in many areas,new firms typically can’t.Consultants can be paid or can be part of a nonprofit or goverment agency and provide their service for free or for a rediced rate.       

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Gabriela Hartanto

2301851471 (LC02)