Deck 6: Screening Venture Opportunities

Question 1

The venture opportunity screening exercise creates the foundation for the development of ________.

Answer 1

the complete business plan

Question 2

What are the five anchors that are consistent with ideas that turn into superior businesses?

Answer 2

First,superior opportunities create or add significant value to a customer or end-user.Second,they add that value by solving a significant problem,removing a serious pain-point,or meeting a significant want or need--for which someone is willing to pay a premium.Third,the need for the product is pervasive,the customer urgently wants it,and is willing to pay for it.Fourth,superior opportunities have robust market,margin,and moneymaking characteristics that will allow the entrepreneur to estimate and communicate sustainable value to potential stakeholders.Finally,they are a good fit with the founder(s)and management team;they have collective domain experience that matches the opportunity.

Question 3

Equal salaries and stock ownership in a plan point to naïve assumptions about tasks,roles,and responsibilities.

Answer 3

True

Question 4

Name three sources of information that entrepreneurs can use to develop their venture opportunity profile.

Question 5

Saying no to lots of opportunities is strategy for increasing the odds of new venture success.

Question 6

________ refers to the gaps in an industry or market into which your opportunity falls.

Question 7

With regard to screening new venture opportunities,why is time the ultimate ally and enemy of the entrepreneur?

Question 8

The opportunity must be placed in the context of both a competitive environment and an existing ________ that the entrepreneur believes can be improved upon and altered in a way that creates value.

Question 9

What will investors expect to see in a venture that is not expected to be harvested?

A) Buyout agreements.
B) Durable profits.
C) Proof of high demand.
D) Trade alliances.

Question 10

The single largest factor contributing to stillborn ventures and to those who will ripen as lemons is lack of focus on profitability and cash flow.

Question 11

Completing the Venture Opportunity Screening Exercise is designed to clear up the uncertainties and risks associated with that venture concept.

Question 12

When researching an opportunity,it is essential to communicate with ________ and document their responses.

Question 13

First-time entrepreneurs tend to overestimate sales and delivery dates.What do they tend to underestimate?

Question 14

Which of the following is not an aspect of new venture success?

A) Failing quickly
B) Relieving pain
C) Discount pricing
D) All of the above are important aspects of new venture success.