| Small Business Facts | Things Entrepreneurs Say (>> Issue Spot) | Business Modeling | Capitalization | Business Entities |
|---|---|---|---|---|
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What is 50%
Before the Pandemic, what proportion of new businesses survive after 5 years
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What is apply for trademark protection through the USPTO. (Bonus: and clarify difference between Copyrights and Trademarks)
"I want to protect my company name. Can you help me copyright it"
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What is Disneyland
This national company's value proposition is: "The Happiest Place on Earth"
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What is Kickstarter?
A way to do pre-sales of products or goods, in order to raise capital
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What are LLCs, Partnerships, and S Corporations
These entities can have "pass-through" taxation
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What is (1) Biggest creator of net new jobs, (2) Most of U.S. Exporters, others from the SBA FAQ
One way that small businesses contribute to the US Economy
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What is no one, except maybe the founders can work for free - CA EDD presumes all are employees who must be paid minimum wage (narrow intern and non-profit volunteer exceptions)
"Oh none of our workers are paid in our new tech business -- everyone works for free until we raise revenue"
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What is "Channels"
A Business Model Canvas cell that describes how the customer relationships will be created or maintained
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What is Securities Regulation
This body of regulatory rules are called the "Blue Sky Laws"
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What are Contributions, Distributions, and Decisionmaking (or Management)
The three key terms that LLC founders need to agree upon
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What is (1) Not protecting IP, (2) Making legal mistakes that will scare off investors, (3) Not being able to enforce agreements, others from the SBA FAQ
Three risks that entrepreneurs take when they can't afford an attorney
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What is YES - have to file articles of incorporation and a tax exempt application.
"I think we're a non-profit tax exempt corporation -- but I don't think we've filed anything. Is that a problem?"
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What is 9 (Bonus if can name at least 5 cells)
The number of different components in a Business Model Canvas
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What is Value (or Valuation)
Using a convertible note makes it possible to raise capital before anyone can figure out what the company's ______ is.
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What are any two of: business-savvy courts, investors like DE because of legal predictability, filings are fast, laws are generally forgiving of leadership mistakes
Two reasons that entrepreneurs choose to incorporate in Delaware
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What is 59%
The approximate portion of small businesses NOT owned by white men (w/in 5%)
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Can't just do this on a handshake. LLC's need to be registered with the State of California Secretary of State's office (Bonus -- it's Limited Liability COMPANY)
"Yep, my partner and I shook hands on it. We're officially a Limited Liability Corporation in California."
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What is the most important use of the Canvas is for internal planning. (Bonus: when you go for investors you'll use a written Business Plan, an iteration of a BMC addressed to a particular audience)
The entrepreneur says: "I don't need to do a Canvas -- I won't be going for investors this year."
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What is Venture Capital (or a Venture Capitalist)
An investor, often an institution, that invests in companies looking for 10-15X return.
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What are any 3 of lack of formalities, commingling of funds, incomplete filings, violation of fiduciary duties, intentional acts, personal guarantees, criminal wrongdoing
Three reasons that a corporate liability shield might be pierced
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What is 21% nationally (or 39% in CA)
The approximate portion of small businesses owned by immigrants (w/in 5%)
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What is under work for hire doctrine, employers have ownership of all of employee's inventions, unless made off hours, without company resources, and only the work is not in same industry (check)
"I'm a Google software engineer by day, but at night I'm building the next great gaming app for my new startup!"
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What is the "Assets" or "Resources" Cell. (Bonus: if Company MAKES IP it could go anywhere -- Value Prop, Activities, other cells)
This is where Intellectual Property usually goes in the Business Model Canvas
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What is a Social Purpose Corporation (or Benefit or B Corporation)
If a founder has a social mission, she might want to form this kind of entity to let investors know her company has "a second bottom line"
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What is "Calgold.ca.gov"
Name of the state website where an entrepreneur can find out what permits are needed
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Single person or married couple: Sole proprietorship; 2+ people: a Partnership
If you don't affirmatively form an entity, this is what the law will treat you as.
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