For Prof. MGK
lfaroy
entr_550_week_2_entrepreneurial_exercise.docx
Week 2 Exercise
Page 3 of 4
Entrepreneurial Exercise
Name
ENTR 550: Week 2 Assignments
Prof. Forbes
Entrepreneurial Exercise
|
Evaluation Criteria |
A |
B |
C |
|
Market size |
Large |
Large |
Large |
|
Market growth rate |
High |
High |
Low |
|
Creates significant customer value |
Yes |
Yes |
No |
|
Well-defined target market |
Yes |
Somewhat |
No |
|
Customer-felt need |
Strong |
Strong |
Weak |
|
Customer satisfaction with current alternatives |
Unhappy |
Happy |
Happy |
|
Access to customers |
Easy |
Easy |
Easy |
|
Ability to command a premium price |
Yes |
Yes |
No |
|
Presence of valuable intellectual property |
Yes |
No |
Yes |
|
Competitors |
Many |
Many |
Many |
|
Barriers to entry |
No |
No |
No |
|
Cost to enter market |
Moderate |
Low |
High |
|
Cost to scale up |
High |
Low |
High |
|
Time to first dollar |
Quick |
Quick |
Slow |
|
Red ocean or blue ocean |
Red |
Red |
Red |
|
Profit potential |
High |
High |
Low |
|
What does the customer think? |
n/a |
n/a |
n/a |
|
Voice of consumer (% of who will buy) |
n/a |
n/a |
n/a |
|
Personal fit |
Yes |
Yes |
Somewhat |
|
Can the opportunity obtain financing? |
Yes |
Yes |
Yes |
Opportunity A is a home daycare business.
Opportunity B is a bookkeeping/tax firm.
Opportunity C is a candlemaking/retail business.
FACTORS OF BUSINESS MODEL FOR OPPORTUNITIES A, B & C:
1) How will the enterprise make money?
The daycare business will make money by charging parents a fee that is competitive with other centers in their area. The bookkeeping firm will charge clients a flat fee or an hourly rate for services depending upon the difficulty, time constraints and volume of the work required. The candlemaking business will retail their candles to customers via craft fairs or in other small business outlets.
2) How will the enterprise create value?
The daycare will create value by assuring parents that their children are not only being cared for while they are at work, but also provide educational value with the care as well, with prepared curriculums. The bookkeeping firm will offer complimentary services such as tax planning or efiling of returns. The candlemaking company will provide quality candles that carry their scent and use quality materials. The candle company would also add value by marketing their candles as hand-poured.
3) For whom will the enterprise create value?
The daycare creates value for working parents. The bookkeeping firm creates value for small to mid-size businesses and individuals. The candle company creates value for anybody who burns candles.
4) What is the enterprise’s internal source of sustainable competitive advantage?
5) How will the enterprise position itself in the marketplace?
The daycare will position itself as a quality child care facility that is focused on giving your children the best possible care. The candle company will position itself as a company that offers quality, handmade candles at a reasonable price. The bookkeeping firm will position itself as a full service accounting firm for small to mid-size businesses.
6) Where is the money?
The daycare will be able to get additional money from state programs. The candle business and bookkeeping business will rely on the entrepreneurs and any investors they choose to obtain.
7) Who has the money?
Banks, investors, parents of the children you are going to care for, businesses you will take on as bookkeeping clients, and general public consumers that enjoy candles.
8) How do I get the money?
To get the money, you must market to your prospective customers. You could also present your business plan to a personal banker to try obtaining a loan.
9) What do I need to provide to get the money?
Most banks require a detailed business plan. You may also need to provide a presentation and have some documentation on finances.
10) How do I get it faster than anyone else?
I think in order to get it faster than anyone else, you have to be diligent about planning and going after it.
11) How do I get it time and time again from the same customer?
Quality customer service, which includes good follow-up and focusing in on what the customers want. You need to provide this quality type of customer service to gain repeat business.
