Glossary

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Michael Laverty and Chris Littel et al.
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Glossary Entries
Word(s)	Definition	Image	Caption	Link	Source
absolute capacity	highest volume of units that a machine can produce within a specified time period
accounting	system of recording and classifying a company’s financial transactions and summarizing and communicating those transactions in the form of financial statements
accounting equation	assets = liabilities + equity
accounts payable	account that includes vendors that the company owes money to
accounts receivable	account that includes customers that owe the business money
action plan	organized, step-by-step outline or guide that pulls together the ideas, thoughts, and key steps necessary to help set the stage for entrepreneurial success
adaptive model	method of entrepreneurial problem solving that seeks solutions in ways that are tested and known to be effective
advertising	mass communication that allows companies to reach a broad audience through TV, radio, newspaper, Internet, magazines, and outdoor ads
advisory board	group of advisors that helps an organization make strategic decisions about the business, and brings certain knowledge and experience that can bring a new perspective on issues without having the actual authority to vote or govern
anchoring strategies	in the ethical context, the process of making ethics a foundation (anchor) of your business so that decision makers act keeping in mind key ethical considerations
angel investor	wealthy, private individual seeking investment options with a greater potential return than is generally available with traditional publicly traded stocks
antitrust laws	prevent companies from abusing position or power in the market through exclusion or limitation of competitor access to the market
ask	specific amount of money or type of assistance requested in a pitch
assessment	lean problem-solving process phase in which the entrepreneur experiments and analyzes the potential process and its capabilities
assets	items a business owns and derives future use from
B corporation	business that meets a very high standard of social and environmental performance, public transparency, and accountability to balance profit with social purpose
balance sheet	financial statement that summarizes a company’s financial condition according to the accounting equation
balance sheet	financial statement that summarizes a company’s financial condition according to the accounting equation
bartering	exchanging goods or services for other goods or services instead of for cash
baselining	internal comparison of actual outcomes with expected outcomes
benchmarking	comparing one’s own company’s performance with an industry average, a leader within the industry, or a market segment
bootstrapping	funding strategy that seeks to optimize use of personal funds and other creative strategies (such as bartering) to minimize cash outflows
born global	venture seeking to be a global company from its inception
brainstorming	generation of ideas in an environment free of judgment or dissension with the goal of creating solutions
brand	image a company promotes and the connotations it fosters of itself and its products
brand advocate	someone who is a fan of your products and passes on the word to others
brand strategy	image a company conveys to its customers
breakeven point	level of operations that results in exactly enough revenue to cover costs
build-measure-learn loop	step-by-step approach on how to maneuver a startup, how to change course if necessary, how to persevere, and how to accelerate the expansion of a business
bundling	bundle of products that is discounted to encourage customers to buy in bulk
burn rate	rate at which cash outflow exceeds cash inflow
business accelerator	organization formed by an alliance of business professionals who assist entrepreneurs in their startup or early stage businesses in exchange for an equity investment in the entrepreneur’s company
business ethics	conduct by which companies and their agents abide by the law and respect the rights of their stakeholders, particularly their customers, clients, employees, and the surrounding community and environment
business failure	ending a business due to the lack of goal attainment, which can include low levels of revenue and profit, or not meeting investors’ expectations
business incubator	organization formed by a consortium of established professionals or organizations assisting startup or early stage businesses that provides office space, financial support, technical support, or advisors whose specialized skills in management and marketing complement the technical talents of the entrepreneur
business lifecycle	stages companies go through: birth, growth (or expansion to new markets and products), maturity, decline, death or rebirth
business model	plan for how venture will be funded; how the venture creates value for its stakeholders, including customers; how the venture’s offerings are made and distributed to the end users; and the how income will be generated through this process
business model canvas	developed by Osterwalder and Pigneur, used to develop a business model for a venture, including nine blocks that are mapped out to address customer segments, customer relationships, channels, revenue streams, value propositions, key partners, key activities, key resources, and cost structure
business model innovation	occurs when an existing business fundamentally changes their business model
business plan	formal document that typically describes the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives
business purpose	reason the entrepreneur forms the company and determines who benefits from it, whether it is the entrepreneur, customers, or some other entity
business structure	legal organization of a business; also called entity selection
buyback clause	legal agreement regarding an exit by a founding team member prior to the harvesting of the venture
C corporation	corporation taxed the corporate level, and then again on the owners’ personal income tax returns if corporate income is distributed to the shareholders as dividends
capital	money raised for operating a business
capital expense	major purchase of a functional asset that is expected to last longer than three years or that still has financial value after being fully depreciated
capital improvements	major repairs or improvements that add to the life of an asset by improving its longevity, increasing its value or productivity, or extending its usefulness
capitalism	system in which individuals, people, and companies have the freedom to make decisions and own property as well as benefit from their own efforts, with government playing a secondary role in oversight
career entrepreneur	someone who takes on the daily management as the owner of the venture, accepting, and perhaps enjoying, the daily risks and rewards of managing and building the venture
cash flow	money collected by the business through revenue and funding versus money disbursed by the business through expenses
cash management	management of cash inflows and outflows to support cash needs of the venture
causal research	identification of cause-and effect-relationships between two or more variables
charitable organization	nonprofit company founded for altruistic purposes
clarify	first step of the creative process, which involves recognizing the existence of a gap between the current state and a desired state
close	step in the sales process in which the salesperson asks for and gets the sale
closed group	formal, structured group of individuals who have a strict process or specific criteria that applicants must meet before being accepted as members
code of conduct	formal statement that provides guidance on how ethical conduct is demonstrated
collateral	something of value pledged to secure a loan
communication skills	skills entrepreneurs use to pool resources for the purposes of investigating solutions leading to innovative problem solving and competitive advantage
company culture	shared beliefs, values and assumptions held by people regarding how to behave or conduct themselves within the context of fitting into an organization
competitive advantage	describes your venture’s unique benefits that poise it for growth
competitive matrix	shows how and why a startup has a clear if not measurable competitive advantage for relevant features/benefits by weight according to customers, such as price and quality in relation to competitors
conflict of interest	when an individual or organization has interests in multiple areas that come into conflict with each other
conjoint analysis	survey tool in which respondents must rank, choose, or a rate a number of “conjoint,” or linked, features or benefits
contribution margin	gross profit from a single item sold
copyright	grants the creator of a work the exclusive right to reproduce the work, typically for a specified period of time
copyright	grants the creator of a work the exclusive right to reproduce the work, typically for a specified period of time
corporate entrepreneurship	development of new ideas, opportunities, or ventures through formal research and development processes that focused on the corporation’s strategy and goals
corporate narrative	story about how a successful company grew from something small into something broad and powerful, serving thousands or even millions of people; it may have marketing purposes, and it may serve as an inspirational story for leaders and employees
corporate social responsibility (CSR)	practice in which a business views itself within a broader context, as a member of society with certain implicit social obligations and responsibility for its own effects on environmental and social well-being
corporation	complex business structure created by filing the appropriate documents with the state of incorporation
cost of goods sold	cost required to produce the product or service
cost-led pricing	easiest way to price a product by taking the cost of making the product and marking it up to create profit
creative destruction	theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment
creative destruction	theory developed by Joseph Schumpeter stating that entrepreneurial innovation is the disruptive force that creates and sustains economic growth, though in the process, it destroys established companies and disrupts employment
creativity	development of original ideas
creativity	development of original ideas
credit	lending of funds in exchange for a promise to repay
creditworthiness	lender’s assessment of how reliable a company is in repaying a debt
critical thinking	complex analysis of a problem or issue with the goal of solving the problem or making a decision
crowdfunding	financing with investments of small amounts of money from a large number of people
crowdsourcing	teams of amateurs and non-experts working together to form a solution to a problem
customer empathy map	portrayal of a target customer, the most promising candidate from a business’ customer segments, which explores the understanding of that person’s condition from their perspective to understand his or her problems and needs
customer-led pricing	pricing led by what the customer is willing to pay
customers	people the business will be serving, including potential customers from one or more market segments
data analysis	process of analyzing data and modeling the data into a structure that leads to innovative conclusions
debt financing	borrowing funds that must be repaid, usually with interest
debt service	repayment of a loan, including principal and interest
decision tree	flowchart diagram used to explore the outcomes of different decisions
decisiveness	ability to make a quick, effective decision, not letting too much time go by in the process
Delphi method	group decision-making process that includes a diverse group of people who are located at different locations and willing to respond to a series of questionnaires to assist in providing ideas, information or solutions to a defined question or problem
demand	need or desire for the outputs, the product or services
demographics	statistical factors of a population or group, such as information about age, gender, income, race, or ethnicity
design patent	protects product design
design thinking	method to focus the design and development decisions of a product on the needs of the customer, typically involving an empathy-driven process to define complex problems and create solutions that address those problems
design thinking	method to focus the design and development decisions of a product on the needs of the customer, typically involving an empathy-driven process to define complex problems and create solutions that address those problems
develop	stage in which the entrepreneur takes the list of ideas generated and tests each solution for feasibility
diffusion chasm	most critical point of adoption, which often occurs at the end of the early adoption phase, before the early majority steps in and truly confirms (or not) the diffusion of an invention
digital marketing	online marketing
direct mail	connecting to consumers via email or through printed mailed pieces
disclosure	sharing the needed facts and details about a subject in a transparent and truthful way
disruptive innovation	process that significantly impacts the market by making a product or service more affordable and/or accessible often by smaller companies in an industry
disruptive innovation	process that significantly impacts the market by making a product or service more affordable and/or accessible often by smaller companies in an industry
disruptive technology	technology that once introduced, displaces established patterns, processes, and systems previously accepted as normal or accepted methods
divergent thinking	process of generating as many ideas as possible, even when those ideas do not seem logical; the list of ideas can be conflicting, diverse, and disparate
diversity	inclusion of many types of employees, regardless of differences (race, religion, gender, disability, LGTBQ, socioeconomic, cultural)
donation	financial gift intended to support an organization’s general operations
down time	time when production is not occurring due to repair, restocking inventory, or unscheduled work
due diligence	conducting the necessary research and investigation to make informed decisions that minimize risk
due diligence	conducting the necessary research and investigation to make informed decisions that minimize risk
e-commerce	electronic transactions, particularly over the Internet, for the exchange of goods and services
early adopters	people who like to try new things and can be found at the onset of the adoption process for a product
early stage	company lifecycle stage in which the product or service has begun development
economic factors	inflation, interest, employment, and currency exchange, rates, (among many other factors) that impact the business owner’s pricing of goods or services, the demand for such services, and the cost of production
economic nexus	virtual connection with a state based on sales volume or number of transactions
elevator pitch	abbreviated pitch, a memorized talk that can get you into the door to put your full pitch deck on display
empathy	human ability to feel what other humans are feeling, which in the context of creativity, innovation, and invention is essential to beginning a process of human-centric design
enterprise risk management	integrated cross-disciplinary approach to monitoring risk
entrepreneur	someone who identifies an idea that no one else has acted on or identified; small business ownership and franchising are also entrepreneurial options
entrepreneurial contest	any entrepreneurial competition other than a pitch competition; contests may entail submitting business models, long-form prospectuses, or forms tailored to contest specifications
entrepreneurial journey	your exploration to discover if entrepreneurship is right for you
entrepreneurial marketing	set of unconventional practices that can help start-ups and younger firms survive in competitive markets
entrepreneurial mindset	awareness and focus on identifying an opportunity through solving a problem, and a willingness to move forward to advance that idea
entrepreneurial opportunity	point at which identifiable consumer demand meets the feasibility of satisfying the requested product or service and meets the following conditions: significant market demand, significant market structure and size, significant margins, and resources to support the venture’s success
entrepreneurial problem solving	process of using innovation and creative solutions to close the opportunity gap by resolving complex societal, business, or technological problems
entrepreneurial process	set of decisions or actions that can be outlined and followed as a guide to developing or adjusting a venture
entrepreneurial spirit	describes a quality of those individuals who are productive self-starters focused on making changes happen
entrepreneurial venture	any business, organization, project, or operation of interest that includes a level of risk in acting on an opportunity that has not previously been established
entrepreneurial vision	idea of what an entrepreneur wants a venture to become, what it will look like, what the driving forces are, and what values and culture should surround it
environmental entrepreneurship	entrepreneurial ventures focused on identifying an environmental problem and creating a product or process to solve that problem
equity	owner’s interest in the assets of the business
equity crowdfunding	raising of capital through the online sale of securities to the general public
equity financing	funds provided in exchange for a share of ownership in a business
ergonomics	study of how work is performed
escalation of commitment	tendency to continue with a predetermined action based on the past efforts and contributions to the project rather than an analysis of the current realities that disclose a new solution or approach is necessary
ethics	standards of behavior to which we hold ourselves in our personal and professional lives
ethnographic research	use of personal observation of the subject by being immersed in the subject’s environment
evaluate	stage in which the final solution is assessed
evaluation	lean problem-solving process phase in which behaviors are analyzed to assess success
executive summary	initial section of a business plan document that summarizes the key elements of the entire plan
expeditionary marketing	marketing designed to move established companies and their products into new markets and territories
expenses	costs incurred in the normal course of business operations
external environment	outside the enterprise and encompasses customers, industry trends, and competition
fail-safe point	identified point that triggers the entrepreneur to consider what actions are needed to bring the venture back to a healthy position and whether this action is reasonable and feasible
fairness	impartial, unbiased compliance with rules and standards of what is right, just, and equitable
fear of missing out, FOMO	need to keep up with peers and the personas they represent in social settings, particularly on social media
feasibility analysis	feasibility analysis is the process of determining if a business idea is viable; it includes testing the viability of your product or service, evaluating your management team, assessing the market for your concept, and estimating financial viability
financial analysis	forecasts revenue and expenses; projects a financial narrative; and estimates project costs, valuations, and cash flow projections
financial risk	starting a new business with insufficient funds to sustain operations over an extended period of time
financial statement	output of an accounting system that is used to make financial decisions
financial viability	long-term financial sustainability of an organization to fulfill its mission
financing	raising money to fund the startup and operation of a business
financing activities	section of the statement of cash flows that shows where new infusions of cash are coming from
fixed assets	major purchases with a long life, such as buildings, land, and so on
fixed costs	costs that do not change, regardless of the amount of sales
flat organization	organizational structure where owners, executives, or key decision makers interact directly with staff at all levels, with very few if any mid-level managers
focus group	gathering of people, typically six to twelve participants, who come together to discuss a topic presented by a moderator, who usually poses questions and collects qualitative data that can be used to answer questions or define research further
for-profit business	business structure designed to create profits that are distributed to the owners
founders’ agreement	written document that addresses contractual topics such as division of equity, compensation, contributions to the venture, and commitments to the venture with timelines included
framework	structure or outlined process that can be used to accomplish entrepreneurial goals through problem solving, idea generation and validation, and brainstorming
franchising	form of licensing that allows the business (franchisor) to share its business model to expand through various distributors (franchisees) for a fee
funding sources	monetary resources used by the entrepreneur in the operation of the initial startup and early business
funds	financial resources for acquiring assets
Gannt chart	bar chart used to organize and plan sequential steps in a process
general partnership	business created when two or more individuals or entities agree to work together to operate a business for profit
gig economy	market system in which independent contractors fill a variety of positions
Global Entrepreneurship Monitor (GEM)	organization that researches entrepreneurship around the world
go-or-no-go decision	determination to proceed with or abandon a plan or project
grant	financial gift intended to fund a specific goal or project
gross profit	selling price of a product or service minus its direct costs
guerrilla marketing	creative approaches to marketing that seek to gain maximum exposure through unconventional means
hackathon	event, usually hosted by a tech company or organization, which brings together programmers and workers with other degrees of specialization within the company, community, or organization to collaborate on a project over a short period of time
harvest	point at which the venture is sold, at which time the investors receive a return on their investment
hindsight bias	belief that, in retrospect, the outcome was predictable when the outcome wasn’t predictable due to various uncontrollable factors
hubris	overinflated belief in oneself
human resources	people hired by the entrepreneur to perform various duties in the business, provide customer service, or produce the goods
human-centered design	focuses on people during design and development
hybrid group	group of individuals who have a loose and flexible set of criteria for membership and function within a very broad set of guidelines; certain criteria may be required of regular members, but guests are frequently accepted with no long-term commitment expected
iceberg principle	writing principle useful for preparing contest documents and pitch decks; following this principle, each word or sentence in the submission or presentation should be backed up with a wealth of supporting information and details that go unspoken in the pitch or proposal, but which you have at the ready should an investor take interest in the details and your knowledge of them
ideate	stage of the creative problem-solving process leading to the detailing and formation of idea generation by the entrepreneur
ideation	purposeful process of opening up one’s mind to new trains of thought that branch out in many directions from a stated purpose or problem
implement	means to enact the plan and test for success
income (profit-and-loss) statement	financial statement that describes how much a company earned while the business was operating and what costs were incurred to generate those revenues
incremental innovation	innovation that modifies an existing product or service
independent contractors	(also, freelancer) people or businesses that provide work similar to an employee without being part of the payroll for the contracting business, and who pay their own taxes and pay for their own benefits
infrastructure	all resources the entrepreneur will need in order to launch and sustain a business venture
initial public offering (IPO)	process by which a company lists its ownership shares on a public stock exchange
innovation	new idea, process, or product, or a change to an existing product or process
innovation accounting	assesses whether the changes made to the product are creating the desired results
innovative model	method of entrepreneurial problem solving that uses techniques unknown to the market and that bring competitive advantage to an organization
insurance	spreading risk over a large number of people (policyholders)
intangible resources	assets that cannot be seen, touched, or felt, such as intellectual property, patents, designs, and processes
integrity	adherence to a code of moral values implying trustworthiness and incorruptibility because there is unity between what we say and what we do
intellectual property	legally protected result of creative work to turn a unique idea into a product or service
internal environment	comprises the factors inside the enterprise, such as employees, and internal practices and processes
intrapreneur	employee who acts as an entrepreneur within an organization, rather than going solo
introductory offers	using lower initial prices to attract new customers and build a customer base before prices return to their standard amount
invention	truly novel product, service, or process that, though based on ideas and products that have come before, represents a leap, a creation truly novel and different
inventory management	business operations that include managing the quantity of inventory units in stock, scheduling and cataloguing replacement inventory, organizing shelf location for unit storage, paying for inventory received, and processing, fulfilling, packaging, and shipping customer orders
investing activities	section of the statement of cash flows that shows major purchases of equipment or facilities
iterations	small changes to the current version of a product to make it better fit consumer needs
iterative development	process in which inventors and innovators continuously engage with potential customers in order to develop their products and their consumer bases at the same time
jingle	short song or sound that brands a product or company and helps to promote it
joint venture	temporary partnership in which two different enterprises combine for the purpose of mutual benefits such as sharing of expenses and to work toward shared goals and the associated potential revenue
lateral thinking	free and open thinking in which established patterns of logical thought are purposefully ignored or even challenged
lean model canvas	developed by Ash Maurya as a derivation of the original business model canvas; this canvas differs by addressing unfair advantages, problems, solutions, and key metrics rather than customer relationships, key partners, key activities, and key resources
lean pitch	verbal delivery of an idea or business plan as a request to a group of investors by an entrepreneur
lean plan	brief business plan shown to potential investors and employees that is a fast and effective way to set, manage, and evaluate goals and strategies in a business
lean process	systematic process for the maximizing of continuous improvement and the minimization of surplus or unused material in the production of a process
lean startup	methodology entrepreneurs use this method to help them innovate by continuously testing their products and getting feedback from customers in real time
legal risk	risk stemming primarily from a breach of contract, a regulatory violation, and/or the commission of a tort
liability	company’s debt to another party
licensing	contract in which one enterprise gives permission to another entity to manufacture and sell its products for a royalty
lifestyle business	business that provides incomes similar to other forms of employment
lifestyle venture	business whose founders’ primary focus is the lifestyle they will attain through becoming entrepreneurs, rather than a primary interest in financial rewards
limited liability company (LLC)	hybrid of a corporation and a partnership that limits the owner’s liability
limited liability partnership (LLP)	business arrangement for professional partnerships, such as law firms or accounting firms, in which partners are licensed professionals, with limited liability for financial obligations related to contracts or torts, but full liability for their own personal malpractice
limited partnership (LP)	business arrangement that has at least one general partner and one or more limited partners
line of credit	lending of funds in exchange for a promise to repay
line of credit (LOC)	agreement between a bank and a depositor in which the bank makes available a maximum amount of money the depositor can borrow at any time during the term of the loan; the borrower pays a fee during the term, whether or not there is an outstanding balance, and also pays interest when there is a balance on the loan
linear thinking	logical, step-by-step process
liquidity	measure of a company’s ability to cover its immediate and short-term (i.e., due within one year) debts and obligations
loss leader pricing	using a below-standard price to attract customers in the hope that they will purchase other, more profitable goods and services
market analysis	analysis of the overall interest in the product or service within the industry by its target market
market analysis	analysis of the overall interest in the product or service within the industry by its target market
market opportunity	unmet need within a target demographic
market research	collection and analysis of data related to a business’s target market
marketing	umbrella term given to those activities that companies use to identify consumers and convert them into buyers
marketing mix	basic set of possible strategies and approaches that marketers use to reach their target market
marketing plan	formal business document that used as blueprint for how a company will achieve its marketing and business goals
marketing strategy	company’s game plan for how it will reach consumers and convert them into paying customers
mature stage	company lifecycle stage in which the business has reached commercial viability
mergers and acquisitions	when two companies combine, or one buys the majority stake of the other
milestone	significant decision point or significant accomplishment
minimum viable product (MVP)	early version or prototype of a product that may not be polished or complete but that functions well enough that you can begin to market it or test it with potential users
mission statement	statement of an organization’s reason for being that defines its primary long-term goal, explains what the venture will do, what value it will provide to the end customer, and how it will accomplish that action
mission statement	statement of an organization’s reason for being that defines its primary long-term goal, explains what the venture will do, what value it will provide to the end customer, and how it will accomplish that action
moonlighting	earning income from a source outside of one’s primary employ
need awareness	occurs when the entrepreneur notes a gap between societal or customer needs and actual circumstances
nepotism	hiring family and close friends because of personal relationships rather than for their skill sets
net income	revenue minus expenses
networking	process of establishing and maintaining bilateral relationship with other people to exchange information, ideas, products or services, and money
Nominal Group technique	group decision-making process that requests multiple rounds of responses and discussions of response
noncompete agreement	formal agreement that the person signing the document will not work for another organization that is a direct competitor of their current employer during employment and usually for a specified length of time after employment ends
nondisclosure agreement	formal agreement that the person signing the document will not sharing proprietary information with outside sources
nondisclosure agreement (NDA)	contract that carries harsh financial penalties should one party to the agreement disclose what they know of the proprietary information
North American Industry Classification System (NAICS)	standard used by US federal agencies to collect, analyze, and report statistical information about businesses
not-for-profit organization (NFPO)	business structure that is usually dedicated to furthering a particular social cause or for advocacy related to a common shared interest by using its surplus revenues to achieve its ultimate objective
observation	lean problem-solving process phase in which the entrepreneur studies the challenge and notes all facets of the challenge requiring solution
odd numbers strategy	psychological pricing strategy that uses odd numbers in the prices to make a product’s price point more attractive to consumers
offering	actual product or service, its value proposition, and how you will reach and communicate with your target customers
open group	informal, loosely organized group of individuals who have no formal process for joining or leaving the group, and who focus on a specific activity or social cause
open innovation	searching for and finding solutions outside of the organizational structure
operating activities	section of the statement of cash flows that shows day-to-day activities of the business, such as purchasing supplies, paying rent, and receiving cash from customers
operational capacity	number of units that can reasonably be expected to be produced within a specified time period
operational expenses	expenses associated with daily, ongoing activities of the business, such as inventory, office supplies, wages, insurance, and utilities
operational reserve	difference in unit capacity between absolute capacity and operational capacity
opportunity screening	process used to evaluate innovative product ideas, strategies, and marketing trends, focusing on financial resources, skills of the entrepreneurial team, and competition
opportunity-identifying perspective	method for identifying a problem and determining how it could be translated into an opportunity to create a new venture
outsourcing	hiring an outside company or third party to perform a specific task, job, or process, or to manufacture goods
pain point	problem that people have with a product or service that might be addressed by creating a modified version that solves the problem
partnership	business entity formed by two or more individuals, or partners, each of whom contributes something such as capital, equipment, or skills
patent	legal grant of protection for an inventor over the rights, usage, and commercialization of an invention for a set time period
penetration pricing	pricing below that of a competitor’s price
people	company’s human resources
personal selling	using face-to-face interactions to communicate and influence a customer to make a purchase
PEST	framework that can be used to distinguish political, economic, sociocultural, and technological factors influencing access to needed resources
petitioner problem solvers	problem solvers who see a problem and ask others for solution ideas
physical environment	where a service takes place or a product is manufactured
pioneering innovation	one based on a new technology, a new advancement in the field, and/or an advancement in a related field that leads to the development of a new product
pitch	formal presentation in which you ask for something and that is delivered (usually) to potential investors in a startup
pitch competition	competition that may have cash prizes or mentorship opportunities for winners; you are expected to present your business idea in the form of a presentation, usually with a pitch deck
pitch deck	slide presentation that you create that gives a quick overview of your product and what you’re asking for
pivoting	crucial change done to test a hypothesis regarding the basic product, its growth potential, and business model; if something is not working, then a change or a “pivot” needs to take place
place	channels or locations—physical or digital—where products can be found by customers
planning fallacy	creation of a plan that is too optimistic and not aligned with conservative assumptions
political factors	stem from changes in politics, such as the policies of a new presidential administration or congressional legislation, as well as of state and local offices
positioning	(or value proposition) statement of how you want the customer to perceive your company, good, or service
pre-launch costs	cost of all the resources needed to open the business to the public
prejudice	way of thinking about or treating employees in a manner that favors or hinders one person or group over another, usually in a way considered to be unfair
premium pricing	charging a price above a competitor’s price
price	value that must be exchanged in order for a customer to receive a product or service
primary research	research that involves gathering new data
primary research	research that involves gathering new data
privately held corporation	company that does not allow members of the investing public to own stock; instead, it is owned by the founder’s family or friends, or a private group of investors
pro forma	financial statement that shows how much and where monies will be collected and spent in the early stages of business creation
problem-solution narrative	brief story of a sentence or two that states a problem affecting many people and offering a solution that is innovative, unique, insightful, or all of these
process	chain of procedures and/or activities required to provide the product to the customer
product	good or a service that creates value by fulfilling a customer need or desire
production time	amount of time that a machine is actually producing products that are to be sold; also called up time
profit margin	amount by which revenue exceeds costs, typically described as a percent
program services	basic offerings that a nonprofit provides to generate a portion of its revenue to sustain operations
projected cash flow	outline of preliminary expenses, operating expenses, and reserves
projection	forecast of the future operations of a business
promotion	process of communicating value to customers in a way that encourages them to buy
public corporation	quasi-governmental entity, a corporation owned or sponsored by the government
public relations	marketing that focuses on connecting with constituents by developing goodwill
publicly held corporation	entity in which members of the investing public own the stock
qualitative research	use of open-ended techniques such as observation, focus groups, and interviews to gain an understanding of customers’ basic reasons, opinions, and motivations
quantifiable manner	method to determine if a goal has been met or not
quantitative research	generation of numerical data through techniques such as surveys and questionnaires
quota	specific number of units allowed into a country; sometimes quotas are limited to one source, such as one country, and sometimes the limit is placed on aggregate quantity regardless of source(s)
real-time marketing	seeks to turn immediately available sales data into actionable and timely strategies that target the shifting landscape of consumer tastes and trends
relationship marketing	creates customer loyalty through personal interaction and strives for long-term engagement
resource dependence theory (RDT) model	creating networks with business partners through mergers, vertical integration, joint ventures, or engaging in joint political activities to slow dependency among member groups
resourcefulness	ability to discover clever solutions to obstacles
revenue	amount a business earns through product sales or providing a service
run rate	cost of running a business over a specified period of time
S corporation	“pass-through” entity, also known as a small corporation, where shareholders report and claim the business’s profits as their own and pay personal income taxes on it
sales promotion	incentives such as coupons and discounts that help attract customers and help them take action
sales strategy	plan that the entrepreneur uses to identify and engage a consumer, from prospecting to securing the sale and beyond
sample	group of people participating in market research
scientific method	most often associated with the natural sciences, outlines the process to discover an answer to a question or a problem
secondary research	research that uses existing data
secondary research	research that uses existing data
seed stage	company lifecycle stage in which the business is largely still an idea
segmenting	separating the total population by homogeneous groups of people that have similar tastes, backgrounds, lifestyles, demographics, and culture
self-performing	when employees do most of the work in a business
self-regulating problem solvers	problem solvers who are autonomous and work on their own, without external influence; they have the ability to see a problem, immediately visualize a possible solution to the problem, and seek to devise a solution
serial entrepreneur	entrepreneur who becomes involved in starting multiple entrepreneurial ventures
service mark	word, phrase, symbol, or graphic that identifies the origin or source of a service
serviceable available market, SAM	portion of the market that a business can serve based on its products, services, and location
shared economy	economy in which some assets are not in use, which may present an entrepreneurial opportunity
situation analysis	examination of the internal and external circumstances relevant to a particular business
situational opportunity	one that becomes available, depending on factors such as where you work, your family obligations, your idea or invention, your unique creative expression, or a recent career search or job change
skimming	high-pricing strategy that leverages the newness of a product in order to “skim” the most profits off the top at the beginning of a sale
SMART goals	well-structured and defined goals that are specific, measurable, achievable, realistic and timely
social business model canvas	modification of the business model canvas, designed for social entrepreneurship venues; new areas address impact measures around social impacts and its measurement, surplus, beneficiary segments and social and customer value propositions
social capital	goodwill that is created through helping someone else
social entrepreneur	entrepreneur who has an interest in solving a social, environmental, or economic problem
social entrepreneurship	entrepreneurial ventures focused on identifying a societal problem and creating a product or process to solve that problem
social media	online communication tool for entrepreneurs to connect with consumers, especially younger demographics
sociocultural factors	changes in how society is moving and the direction of that movement as it relates to a customer base and potential new markets
soft launch	(also, soft open) launching a venture for a limited time frame or audience to gain experience, insights, and feedback about the target market or consumer
sole proprietorship	business entity that is owned and managed by one individual that has very little formal structure and no mandatory filing/registration with the state
statement of cash flows	financial statement that explains the sources and uses of the company’s cash
status quo bias	pattern of relying on previous actions and results as the accepted pattern and outcome with a bias against change or new information or new results
storyboarding	process of presenting an idea in a step-by-step graphic format
strategic alliance	arrangement created by two entities to work on a project by sharing some of their strengths and resources, but not actually creating a new entity as in the case of a joint venture
supply	amount of a product or service produced
sustainability	practice of preserving resources and operating in a way that is ecologically responsible in the long term
sustainable strategy	strategy that can maintain an organization’s financial stability
SWOT analysis	strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses, opportunities, and threats related to business competition
SWOT analysis	strategic analytical tool used to help a potential venture or existing company identify its strengths, weaknesses, opportunities, and threats related to business competition
tagline	short and catchy positioning statement that quickly communicate some core aspect of the brand to the consumer
tangible resources	assets that have a physical form as they can be seen, touched, and felt
target market	specific group of consumers for which a company seeks to provide a good or service
targeting	selecting a customer group based on their ability and willingness to buy
tariffs	taxes or duties that are added to imported goods from another nation
tax-exempt status	treatment under U.S. tax law that removes the burden of taxes from nonprofit organizations
team creativity	process of a team creating an unexpected solution for an issue or challenge
technological factors	technological equipment and tools the enterprise needs to be sure it operates efficiently
theorist problem solvers	problem solvers who see a problem and begin to consider a path toward solving the problem using a theory
total available market (TAM)	total perceived demand for a product or service within the marketplace
total available market (TAM)	total perceived demand for a product or service within the marketplace
total cost of ownership	comprehensive cost of owning large capital items, including initial direct costs, operating direct costs, and indirect costs
trade association	group of companies or employees of companies in a specific industry, business structure, or social cause
trade secret	proprietary information, processes, or other internal knowledge that contribute to an organization’s competitive edge in a market
trademark	registration that provides the owner the ability to use a name, symbol, jingle, or character in conjunction with a specific product or service, and prevents others from using those same symbols to sell their products
truthfulness	underlying facts, reality, and evidence on a matter
unique selling proposition	marketer’s rationale as to why a product or service is different/better than the competitor’s products
user interface, UI	what a customer sees when they use your product; having a variant of a UI is not necessarily grounds for establishing a patent, but having unique design in the broader sense may help you to secure patent protection
utility patent	protects product ideas
validation	act of verifying that a product can be successful with a target audience
valuation	estimate of a company’s worth
value proposition	summary describing the benefits (value) customers can expect from a particular product or service
value proposition	summary describing the benefits (value) customers can expect from a particular product or service
value proposition canvas	one of the nine blocks on the business model canvas, this additional tool developed by Osterwalder and Pigneur is designed to illustrate a deeper dive into customer understanding and value creation of a business
variable costs	costs that fluctuate with the level of revenue
venture	startup company or organization that conducts business or is created to satisfy a need
venture capitalist	individual or investment firm that specializes in funding startup companies
vertical integration	strategy of gaining control over suppliers of raw materials and distributors of finished products to expand or control the relevant supply chain
viral marketing	marketing that uses engaging content in the hopes that viewers will share it on their personal and social media networks
vision statement	picture of what the venture will become in the future or what the venture will grow into
whiteboarding	type of graphing that permits the entrepreneur to plot each step in a process to build comprehension and detailing of the process
word-of-mouth (WOM) marketing	promotion in which a satisfied customer tells others about their positive experience with a good or service
work-for-hire agreement	agreement between an individual employee and a company states that ownership of innovations belongs to the company, even if an individual makes substantial contributions to the product
working capital	funds available for day-to-day operations