16 slides
Which of the following is NOT a creative thinking exercise entrepreneurs use to generate ideas?
Challenge the usual
Think backward
Judge each Idea as Realistic or Not
Draw Idea Maps
Sharon is thinking about opening a bakery. She knows she wants to set her own hours, reduce her stress and make a profit. But she still has a lot to think through.
Which of the following would NOT be a good early step?
Immediately finding a storefront property for her business, putting down a deposit, and signing a lease
Contacting a mentor who has experience in the restaurant industry
Creating an initial elevator pitch with her limited information and starting to ask around for advice
Beginning to estimate her target market for her business
Sharon realizes that she needs additional research before she approaches potential investors. What kind
of research should she do to effectively evaluate her potential business opportunity?
Discuss the situation with her cousin who has shopped at the local bakery a few times
Discuss the situation with her cousin who has shopped at the local bakery a few times
Conduct market research to
determine whether her business idea is a business opportunity that meets a consumer need or want
Analyze a national chain that sells pies and model her new business after it. This will save time and money that would otherwise be spent on independent research and planning.
What are the four parts of a SWOT Analysis?
Sales, Work ethic, Organization, Training
Strengths, Weaknesses, Opportunities, Threats
Strengths, Weaknesses, Obstacles, Threats
Strengths, Weaknesses, Options, Threats
George and Miguel are considering opening up a shoe store but first need to do market research.
Which one of these is NOT part of the market research process?
Identify research objectives and write down the questions they want answered
Conduct research--both primary and secondary--to hear from people first hand and determine if there is a need for their business
Draw conclusions and make decisions for their business based on the research results
Start promoting their shoe store to people in the neighborhood
George and Miguel want to know more about their local and online competitors and about the retail industry.
What is the best way for them to find all of this information?
Go online to find trade associations, listings of local and national competitors, and any information on financials.
Explore websites of other shoe retail businesses and take notes
Try to think of friends, family members or acquaintances who have experience in retail and ask them about it.
All of the above
Which of these is NOT part of a consumer profile?
Demographics
Polygraphics
Psychographics
Buying Patterns
Regina is looking to start a knitting business and completes a target market profile to include in her business plan. Identify which item in her target market profile is in the wrong category and where it should be moved
"In a typical week will spend $10-$15 on non-food items" …she should move this from Buying Patterns to Demographics
"Willing to spend a little more for good quality products" …she should move this from Buying Patterns to Psychographics.
"Don't spend money on unnecessary items" …she should move this from Demographics to Buying
Patterns.
Everything is in the correct category
Regina is creating her competitive analysis. She understands why it's important to know her direct competitors, but she's not sure why indirect competitors matter. She asks you if indirect competitors are important to know about.
What should you say?
Yes. Indirect competition is important to understand, since the different product fulfills the same customer need
Yes. Indirect competition is important. Indirect competitors are competitors who compete in areas other than money, such as in hiring
No. Indirect competition isn't something to worry about because they sell different products
No. Indirect competition is only important to understand if things change and it becomes direct competition.
Which of the following is a fixed expense for Maria's sandwich food truck?
Salaries for her employees
Truck insurance
Advertising
All of the above
Which of the following is a start-up expense for Maria's food truck?
Kitchen appliances and other equipment needed to conduct her business
Cell phone bill
Gas
All of the above
Pete wants to write a business plan for Pete's PB&J Cupcake Cart. He needs to identify all expenses associated with making a peanut butter and jelly cupcake for a Economics of One Unit.
What is the most accurate way of determining his expenses?
Estimate the cost to buy all of the ingredients at the store, and divide that by an estimate of how many cupcakes he can make with that
Go through the detailed process of making the cupcake step by step, measuring the ingredients he uses and calculating the cost per ingredient
Go online and find a competitor's expenses
None of the above
Pete's disappointed with the projections of how much his cupcake cart will make in the first month.
What could he do to try to improve his net profit?
Increase the prices
Increase the number of cupcakes he sells
Decrease his fixed expenses
All of the above