Everfi Venture Lesson 3

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

Which of the following would NOT be a good early step for someone thinking about opening a bakery?

• Immediately finding a storefront property, putting down a deposit, and signing a lease

• Contracting 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

What kind of research should someone do effectively to evaluate her potential business opportunity?

• Conduct market research to determine whether her business idea is a business opportunity that meets a consumer need or want

• Discuss the situation with her cousin who has shopped at the local bakery a few times

• Discuss the situation with a family friend who has money and might want to invest in her idea.

• Analyze a national chain that sells pies and model her new business after it. This will save time and money.

What are the four parts of a SWOT Analysis?

• Sales, Work ethic, Organization, Training

• Strengths, Weaknesses, Obstacles, Threats

• Strengths, Weaknesses, Opportunities, Threats

• Strengths, Weaknesses, Options, Threats

George and Miquel are considering opening a shoe store but first need to do market research, Which of these is NOT part of the market research process?

• Identify objective and write down questions

• Conduct research - primary and secondary

• Start promoting their shoe store to people in the neighborhood

• Draw conclusions and make decisions for their business based on the research results

What is the best way to find out about local and online competitors and about the retail industry?

• Go online to find trade associations, listings of competitors, and any information on financials.

• Explore websites of other 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.

What is NOT part of a consumer profile?

• Demographics

• Polygraphics

• Psychographics

• Buying Patterns

Regina is looking to starting 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 should it be moved?

• In a typical week will spend 10-15 on non- food items - move 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 position

Are indirect competitors important to know about?

• No. Not 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.

• Yes. It is important to understand since the different product fulfills the same customer need.

• Yes. Indirect competition is important because indirect competitors compete in areas other than money, such as hiring.

Which of the following is a fixed expense for Maria's sandwich food truck?

• Salaries for employees

• Truck insurance

• Advertising

• All of the above