Review questions
1. What are the stages described in the model of the entrepreneurial process?
What are the factors that give birth to a new enterprise and influence how it develops from an idea to a viable enterprise?
2. Explain the rationale behind the statement, "A first class team with a second class idea is better than a second class team with a first class idea."
3. The three crucial components of a successful venture are the opportunity, the entrepreneur / management team, and the resources needed to start the company. Explain the interrelation of these items.
4. Why is the statement, "My startup has no competition," always wrong? How can you find out about your competitors?
5. Discuss the limitation of first mover advantage in an emerging market where intellectual property protections are not a major factor.
6. How can a business separate its target customers into categories of importance?
7. Explain the relationship between your broad strategy, business model, and operating/tactical plan.
8. Discuss some check points an entrepreneur should confirm before expanding a product mix.
9. Explain why it is important to break down the revenue model into categories.
10. Why is the marketing done by entrepreneurs different from marketing done by established companies?
11. What is guerrilla marketing, and what are the main categories of guerilla marketing?
12. What is the difference between price skimming and penetration pricing, and when will a skimming strategy be best? Why?
13. Describe the pros and cons of a dual job strategy at the early stages of the venture.
14. Generally speaking, what are the benefits of the business planning process?
15. What would be a counter-argument to the critique that business plans are obsolete soon after they are finished?
16. Explain why it is important to construct pro forma financial statements for new ventures.
17. Briefly describe the principle of the build-up method and its advantages.
18. What is the importance of building integrated financial statements?
19. Explain how VCs can harvest their investments. What ways do they prefer and what do they avoid?
20. Describe some of the reasons that entrepreneurs fail to manage their companies' growth.