Imagine you invented a new type of car seat for children, which is lighter and safer than the car seats currently on the market. You have a business plan and have won two business plan contests based on your idea. You also have a working prototype. You’d like to find an angel investor to fund the launch of your firm. Describe how you’d go about finding an angel investor in the area in which you live. Make a list of the specific steps you’d take, and the specific people you’d talk to, to try to locate an appropriate angel investor.
> Why isn’t choosing a legal entity a one-time event?
> What is an example of a business that wouldn’t be suitable for franchising?
> What is mediation and how do entrepreneurs use it to resolve disputes?
> A friend of yours just completed a First Screen analysis for an e-commerce site that she hopes to launch to sell horse riding supplies, including saddles, tack, lead ropes, and feed buckets. She’s disappointed because she rated 10 of the 25 items include
> How can entrepreneurial ventures avoid legal disputes?
> When should your friend, who is considering launching a consulting firm to provide financial services to small businesses, think about the ethical climate she wants to establish in her venture?
> Why is it important for a business plan to follow a conventional structure rather than be highly innovative and creative?
> What are the differences between historical financial statements and pro forma financial statements?
> What is the purpose of an assumptions sheet?
> Why is the “Management Team and Company Structure” section of a business plan often touted as one of the most important sections?
> What is the purpose of the “Operations Plan” section of a business plan?
> What is the purpose of “The Economics of the Business” section of a business plan?
> What are the rules of thumb for determining whether franchising is a good choice for a particular business?
> What is the difference between a concentrated and a fragmented industry?
> Why should the executive summary, which is one of the first things that appears in a business plan, be written last?
> Marshall Hanson, the founder of Santa Fe Hitching Rail, a chain of nine steak restaurants in New Mexico, is considering expanding his menu, which is currently restricted to steak, hamburger, potatoes, and fries. He has just read a book about entrepreneur
> What is a business plan?
> How does rivalry among existing firms have the potential to suppress an industry’s profitability?
> How can the threat of new entrants suppress an industry’s profitability?
> What are the five forces that determine an industry’s profitability?
> What are the four primary categories of environmental trends?
> Identify three sources of competitive intelligence that entrepreneurial firms should feel comfortable using to better understand their competitors.
> Why is it important for firms to collect intelligence about their competitors?
> What are the advantages and disadvantages of establishing a franchise system?
> What is meant by the term competitive intelligence?
> What is the purpose of a competitor analysis?
> What is a global industry?
> Identify three start-ups, other than those discussed in the chapter and listed in Table 2.2, which were started to solve a problem. Briefly describe the problems the three start-ups are solving and how they are going about doing so.
> What is the primary opportunity for new firms in a mature industry?
> What are the characteristics of a mature industry?
> What is the primary opportunity for new firms in fragmented industries?
> How does the bargaining power of buyers have the potential to suppress an industry’s profitability?
> How does the bargaining power of suppliers have the potential to suppress an industry’s profitability?
> Study the popular social networking site LinkedIn. What growth strategies has the company employed? What are the most appropriate growth strategies for this firm to use going forward? Why?
> What are the differences among an individual franchise agreement, an area franchise agreement, and a master franchise agreement?
> Tracy Gibbons owns a sports apparel company in Columbia, SC. She just attended a seminar, where one of the speakers said, “Participating in business partnerships can help firms lessen the impact of the managerial capacity problem.” Tracy’s not sure what
> Pam Tarver just opened an information technology consulting company and has thought for a long time about what to name it. She finally settled on the fictitious name Infoxx. Search the USPTO database to determine if the name Infoxx is available. Is it? I
> Pam Tarver just opened an information technology consulting company and has thought for a long time about what to name it. She finally settled on the fictitious name Infoxx. Search the USPTO database to determine if the name Infoxx is available. Is it? I
> If you launched a start-up venture before graduating with your degree, why would you or why would you not offer stock options to your employees?
> A friend of yours with whom you went to high school and now university as well is talking to you about his interest in becoming an entrepreneur. In a way, this does not surprise you in that Jackson, your friend, has always wanted to be his own boss. Howe
> Lauren Mitchell is achieving some success with the real estate firm she launched two years ago. A rebounding local economy has helped as has the fact that she is well connected with those heading the chamber of commerce in the city in which her firm is l
> You have been approached by a close family friend who is putting together a limited liability company to purchase a condominium complex near Cocoa Beach in Florida. He is asking you, along with a number of family members, to each invest $10,000 in his co
> Kimberly Smith, a friend of yours, is a freelance journalist. She writes articles on business topics and sells them to business periodicals, newspapers, and online sites. She just read an article about the advantages of organizing as a subchapter S corpo
> The “You Be the VC 5.1” feature focuses on Prynt, a company in the smartphone industry. What environmental trends and business trends favor Prynt’s unique approach and service?
> Basis of differentiation is part of the Barringer/Ireland Business Model Template. This term was defined in the chapter as “what causes consumers to pick one company’s products over another’s.” What is Apple’s basis of differentiation?
> What are the differences between a product and trademark franchise and a business format franchise? Provide at least two examples of both types of franchise arrangements.
> If you were considering the possibility of launching a Web site that you’ve developed in order to sell sports apparel for petite women, what are some specific actions you could take to collect feedback regarding the usability of your Web site?
> How could Jamie Heywood and Ben Heywood, the co-founders of PatientsLikeMe, the subject of case 1.2 in Chapter 1, have utilized library and Internet research to flesh out their business idea?
> d.light, which operates as a for-profit social enterprise, is the focus of Case 6.2. What, if any, special factors should be kept in mind when writing a business plan for a for-profit social enterprise?
> Assess the industry attractiveness for the industry in which Tyto Care, the firm featured in the “You Be the VC 3.1” feature, competes.
> Assume you have a friend who is thinking about starting a business to sell jewelry that he has been making only for friends for several years. He is coming to talk to you because he knows that you are pursuing a degree in entrepreneurship. Your friend sa
> Why are the resources a firm possesses a critical part of its business model?
> What is a business model?
> What is a concept statement?
> What is the purpose of a First Screen analysis?
> What are the main reasons that many U.S. franchise systems are expanding into global markets? Do you think this expansion will continue to gain momentum or decline over time?
> What is the purpose of day-in-the-life research?
> What is a product/service feasibility analysis?
> Why is “no criticism” the number-one rule for brainstorming?
> What is a new-venture team?
> What is financial feasibility analysis?
> How does creativity contribute to the opportunity recognition process?
> One question that is often asked by people thinking about launching an entrepreneurial venture is “what should first-time entrepreneurs know before they launch?” Based on information featured in Chapter 1, what should entrepreneurs know before they commi
> What is creativity?
> What is organizational feasibility analysis?
> How does an extensive social network provide an entrepreneur an advantage in recognizing business opportunities?
> For U.S. citizens, what are the main issues that should be considered before buying a franchise in a foreign country?
> Why do most start-ups focus on relatively small target markets to begin with rather than larger markets with more substantial demand?
> In what ways does prior industry experience provide an entrepreneur an advantage in recognizing business opportunities?
> What is meant by the term opportunity recognition?
> What is industry/target market feasibility analysis?
> What is gumshoe research in the context of product/service feasibility analysis?
> What are the two ways that entrepreneurs assess the likely product demand for the proposed product or service they are analyzing?
> What are the qualities of an opportunity, and why is each quality important?
> Jose Reyes is a computer science student in his last semester. He just completed a class on how to build smartphone apps. The last day of class, Jose’s professor pulled him aside and told him that he has excellent aptitude for building smartphone apps an
> What is an opportunity?
> How can an entrepreneur tell if a product opportunity gap exists?
> What is the purpose of the Franchise Disclosure Document (FDD)? Are there any regulations regarding when the FDD must be provided to a prospective franchisee? If so, what are they?
> What is a product opportunity gap?
> What is a trade secret? Provide an example of a trade secret. How might the trade secret you identified help a firm establish a competitive advantage in the marketplace?
> What is meant by the phrase copyright infringement? Would you characterize copyright infringement as a minor or as a major problem in the United States and in other countries? Explain.
> What is moral hazard and how might it affect entrepreneurial firms?
> In the context of copyright law, what is meant by the term derivative work?
> How does a firm’s growth rate affect its ability to attract and retain talented employees?
> What is sustained growth? Why is it important?
> What is a trademark? How can a trademark help a firm establish a competitive advantage in the marketplace?
> Assume that you are the dean of a business school and that you are interested in more entrepreneurship courses being offered in your school. Surprisingly to you, some professors are resisting the idea of offering these courses on the basis of their view
> What are the six steps in applying for a patent?
> What are the two primary issues to consider when conducting an organizational feasibility analysis?
> What is the purpose of an assignment of invention agreement? Is it a good idea for firms to ask their employees to sign assignment of invention agreements?
> Give an example of a design patent. How can having a design patent provide a firm a competitive advantage in the marketplace?
> What is a business method patent? Provide an example of a business method patent. How can having such a patent provide a firm a competitive advantage in the marketplace?
> What are the major differences between utility patents and design patents? Provide an example of each.
> What are the two primary purposes of conducting an intellectual property audit? What risks does a company run if it doesn’t periodically conduct an intellectual property audit?
> What is a trade secret? Provide an example of a trade secret. How might the trade secret you identified help a firm establish a competitive advantage in the marketplace?
> What is meant by the phrase copyright infringement? Would you characterize copyright infringement as a minor or as a major problem in the United States and in other countries? Explain.
> In the context of copyright law, what is meant by the term derivative work?
> What is a brand? Provide an example of a brand that you buy frequently and describe the mental image that pops into your mind when you hear or see the brand’s name.
> After rereading the opening case, identify all of the effective or smart moves Kirsten Blowers made in the early days of building Riffraff.
> Franchising is a safe investment.” What would you think if you saw this statement in a magazine or on a blog?
