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Documents for Businesses
What are some primary Documents used for Businesses? List of business documents: Documentation of Bylaws, Non-Disclosure Agreement, Minutes of Meeting, Business plans, etc.
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Corridor Principle - Entrepreneurship
What is the Corridor Principle in Entrepreneurship? The Corridor Principle states that the mere act of starting a venture enables entrepreneurs to see other venture opportunities they could neither see nor take advantage of until they...
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Compensation within a Startup - Cash and Equity
How should you structure Compensation within a Startup? How much debt should the company incur? How much equity should the company sell? This may include incentives on top of a base salary, so that your employees do well financially as...
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Central Driving Forces Model - Explained
What is the Central Driving Forces Model? The central driving forces model is an entrepreneurial-based model that considers the positives and negatives of three areas of the venture; founder(s), opportunities, and resources. The model...
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Carveouts to Anti-Dilution Protections
Antidilution provisions protect investors from subsequent down rounds of investment. What are Carveouts to Anti-Dilution Protections? Anti-dilution provisions are clauses built into convertible preferred stocks to help shield investors...
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Capitalizing or Funding a New Business
What are the options for funding a New Business? How does funding affect the capital structure? Retained earnings, debt capital, and equity capital are three ways companies can raise capital. Using retained earnings means companies don't...
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Affinity Diagram - Applied in Entrepreneurship
What is an Affinity Diagram as it is used in Entrepreneurship? The affinity diagram organizes a large number of ideas into their natural relationships. It is the organized output from a brainstorming session. Use it to generate,...
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Window of Opportunity
What is the Window of Opportunity? How does the window of opportunity relate to exploiting an entrepreneurial opportunity? The "window of opportunity" states the accurate time for a firm to enter into a new market and grab an opportunity...
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Wicked Problems in Entreprneurship
What are Wicked Problems in entrepreneurship? A business problem might be wicked if it includes: Stakeholder disagreements. Complex roots of the problem. A lack of precedent for the problem. Difficulty solving the problem or identifying...
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What is Growth in a Startup_
What is Growth in a Startup Venture? There's an initial period of slow or no growth while the startup tries to figure out what it's doing. As the startup figures out how to make something lots of people want and how to reach those...
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What is an Operational Analysis?
What is Operational Analysis of a startup venture? How is an operational analysis carried out? The process of operational analysis involves gathering data from various sources, such as customer feedback, employee surveys, and financial...
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What is an Early Stage Startup_
What is an Early Stage Startup? An early-stage startup begins with a scalable idea that attracts funding. This phase covers the time before securing your first Series A funding round. There are several imprecise terms used to describe...
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What is a Cottage Industry_
What is a Cottage Industry? A cottage industry is a small manufacturing business that is owned and operated by an individual or a family, typically operating out of a home rather than a purpose-built facility. Cottage industries are...
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What is a Business Founder_
What is a Business Founder? The founder is someone who first started their company. They thought of the original idea for a product or service and started the company to offer that product or service to their customers. A founder does...
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Website URLs and Social Media Handles for Business
Why are Website URLs and Social Media Handles important for a Business? Having social media handles will help your business communicate with your customers in real-time and provide timely support. And this way, you can build trust and...
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Voting Rights - Preferred Shares
What are Voting Rights of Preferred Shares? Preferred typically have no voting rights, whereas common stockholders do. Preferred stockholders may have the option to convert shares to common shares but not vice versa. Preferred shares may...
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Vision Statement in a Business Plan
What is the Vision Statement in a Business Plan? A vision statement is a written declaration clarifying your business's meaning and purpose for stakeholders, especially employees. It describes the desired long-term results of your...
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Venture Capital Method - Business Valuation
What is the Venture Capital method of business valuation? “Venture Capital Method” for determining a company's valuatio involves multiplying the company's projected revenue with its projected margin and industry price-to-earnings to...
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Venture Capital
What is Venture Capital? Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or...
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Values Statement in the Business Plan
What is the Values Statement in a Business Plan? The values statement highlights an organization's core principles and philosophical ideals. It is used to both inform and guide the decisions and behaviors of the people inside the...
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Value Streaming Map - Explained
What is the Value Streaming Map? Value stream mapping is a technique — developed from Lean manufacturing — that organizations use to create a visual guide of all the components necessary to deliver a product or service, with the goal of...
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Value of Dividends Method - Business Valuation
What is the Value of Dividends Method of Business Valuation? This method relies on the idea that a stock is only worth what it will provide to investors in future dividends. If a business does not currently distribute dividends, the...
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Validated Learning in a Lean Startup
What is Validated Learning in a Lean Startup? This is the process of testing your assumptions and hypotheses about your product, market, and customers, and learning from the feedback and data you collect.
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TOWS Analysis
What is the TOWS Analysis? The TOWS analytis is a derivative of the SWOT analysis that focuses upon external threats and opportunities. TOWS and SWOT are acronyms for different arrangements of the words: Strengths, Weaknesses,...