Giving permission to other parties to use protected

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Giving permission to other parties to use protected intellectual property (patent, copyrights) 2 Ex. photoshop, apps 6. Franchising 1 Process whereby franchises are sold by 1 Mcdonalds, subway 7. Subscription 1 Payment for continuous access to product/service 2 Ex. gym 8. Professional 1 Services (big 4 accounting) 9. Utility and Usage 1 Pay as you go (zip car, electricity 10. Freemium 1 Spotify, indefinitely free but limited
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2 c. What are the different types of “free” revenue models? 1 Freemium: Spotify (indef. Free but limited) 2 Bait & Hook : Netflix (1month free trail – subscription) 3 Direct Cross-Subsides: Verizon (free – fee throughout years) 4 Multiparty Markets: FB d. Revenue & cost drivers Revenue Drivers 1 Revenue- Price, Frequency, Customers, Selling Expenses Cost Drivers 2 Cost of Goods Sold 3 Operating Expenses e. What are the most common pricing strategies? 1 1)Pricing Compare to competiton Involve the customer Be consistent w/positioning Start high 2 2) Pricing Strategies comp led pricing customer led pricing,
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loss leader intro offer skimming psychological pricing fair pricing bundled pricing 3) Calculating Prices Cost Led pricing Volume based pricing Value based f. What approaches do we use to calculate prices and how do they work? 1. Cost Led pricing 2. Volume based pricing 3. Value based 10) Bootstrapping for Resources (Chapter 12) a. What is boot strapping? 1 The process of building or starting a business with very little funding/capital or virtually nothing at all b. Crowdfunding vs crowdsourcing 1 Sourcing 2 internet to attract/manage inexpensive or free labor from enthusiastic customers/like minded(upwork) 3 funding 4 raising funds through new venture from the crowd (usu. Internet)(kickstarter)
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c. What are the advantages of crowdfunding? Cheap marketing Validation Relationship with customers Choice to give up equity or not money d. Types of crowdfunding 1 Investor 2 Patronage 3 Reward Based 4 Lending 11) Financing for Startups (Chapter 13) a. Equity vs. debt financing 1 Equity: you get money from investor & get share of comp. 2 Debt: you get interest when making a loan b. What are the venture lifecycle stages? Seed Stage Survival Stage Rapid Growth Stage Maturity Stage c. What are the stages of equity financing?
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1. Seed 2. Startup 3. Early stage 4. Late Stage 5. Mezzanine 6. Bridge d. What are the most common sources of funding for startups and what are the dynamics associated with them? i. Self-financing/family & friends ii. Crowdfunding iii. Angel investors iv. Venture capital firms v. Corporate investors vi. Government funding e. Angel investors vs. venture capitalists Angels: Wealthy individuals operating as an informal or private investor who provides venture financing for small bus. Types of Angels: entrepreneurial, corporate, professional, enthusiast, micromanagement Venture: Individual who joins in formal, organized firms to raise and distribute venture capital to new and fast growing ventures f. Valuation methods
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1 Comparable method 2 Risk Factor Method 3 Discounted Cash Flow (DCF) 4 Asset Based Valuation Method
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