Question 1

What should the first few sentences of the executive summary of the business plan show?&#10;A) Your five year financial projections&#10;B) The vision of what you wish to create and the market position you wish to achieve&#10;C) The ideal investment amount being requested&#10;D) The venture's go-to-market strategy

Accepted Answer

The first few sentences of the executive summary should clearly state the vision and goals of the business, as well as the market position it aims to achieve. This will help investors understand the purpose of the venture and whether it aligns with their own goals and values. Financial projections, investment amounts, and go-to-market strategies can be included later in the executive summary, after the initial vision and market position have been established.

Question 2

What is the purpose of the solutions section of the business plan?&#10;A) To describe the product and service portfolio&#10;B) To describe the staging of that portfolio&#10;C) To describe any IP that is in the business&#10;D) All of the above

Accepted Answer

The solutions section of a business plan is meant to describe the company's product and service portfolio, as well as the staging of that portfolio, and any intellectual property (IP) that the company has. This section is crucial in outlining what the company offers and how it plans to differentiate itself from competitors. It is important to cover all of these aspects in order to provide a comprehensive overview of the company's solutions.

Question 3

What is the standard format observed in most funded business plans?&#10;A) Having only annual revenues and expenses for five years&#10;B) Having a decent balance sheet&#10;C) Monthly breakdowns of revenues and expenses for the first two years of operations and then annual projections for Years 3, 4 and 5&#10;D) None of the above

Accepted Answer

Monthly breakdowns of revenues and expenses for the first two years are important in order to show investors a realistic projection of cash flow and financial performance. Annual projections for Years 3, 4, and 5 can be included to give a longer-term view of the business's growth potential. A decent balance sheet is also important, but it is not the only factor that investors look for in a business plan. Having only annual revenues and expenses for five years may not provide enough detail for investors to assess the feasibility and potential of the business.

Question 4

With regard to the business model section of the business plan, an investor wants which of the following questions answered?&#10;A) Is there solid, recurring revenue in this business?&#10;B) Does the team have the chops to execute?&#10;C) Is the team taking advantage of agile supply chains?&#10;D) All of the above need to be answered.

Accepted Answer

The business model section of a business plan is designed to answer key questions about how the company intends to make money, its revenue streams, and its operational strategy. This includes whether there's solid, recurring revenue (A), if the team has the capability to execute the plan (B), and whether the business is leveraging efficient supply chains (C). Therefore, an investor would be interested in all these aspects to assess the viability and potential success of the business.

Question 5

What is the operations, production, and supply section of a new venture business plan typically referred to as?&#10;A) The front end of the venture&#10;B) The organizational element of the venture&#10;C) The back end of the venture&#10;D) None of the above

Accepted Answer

The operations, production, and supply section of a new venture business plan is typically referred to as the "back end" of the venture, as it deals with the internal processes and logistics of the business. This section often includes information on the company's manufacturing or production processes, supply chain management, inventory control, and other similar topics.

Question 6

Your channels, pricing, promotion, sales, and branding strategies should be included in what section of your business plan?&#10;A) Business model&#10;B) Market analysis&#10;C) Go-to-market&#10;D) Organization

Accepted Answer

The channels, pricing, promotion, sales, and branding strategies all pertain to how the product will be introduced to the market and how it will be marketed to potential customers. This falls under the go-to-market section of the business plan, which outlines the specific tactics and strategies the company will use to enter the market and generate sales. The business model section typically covers the overall revenue and cost structure of the company, while the market analysis section provides an overview of the industry and target market. The organization section details the company's internal structure and management team.

Question 7

Which of the following is NOT a major section of a new venture's business plan?&#10;A) Executive summary&#10;B) The business model&#10;C) Organization/team&#10;D) All of the above are major sections of the plan

Accepted Answer

All of the options listed (Executive summary, the business model, and organization/team) are major sections typically included in a new venture's business plan.

Question 8

What is one thing you should always remember about the solutions section of your business plan?&#10;A) Investors don't care about the time needed to get the first product or service to the market&#10;B) Investors do not need you to describe your product/service portfolio; they can figure it out&#10;C) Investors do not like to invest in onesies,&#10;D) Investors always like to invest in onesies&#10;E)g. a single product or service

Accepted Answer

It is important to remember that investors do not like to invest in onesies, meaning a single product or service. This section of the business plan should detail the full portfolio and how it addresses the identified problem or need in the market. It should also discuss the potential for future product or service development. A and B are incorrect statements, as investors do care about the time to market and do want a clear understanding of the product/service portfolio. D is also incorrect, as investing in a single product or service is not typically preferred by investors.

Question 9

What is a major development milestone that involves a prototype of a product, system or service called?&#10;A) The alpha version&#10;B) The beta version&#10;C) The first commercial release&#10;D) None of the above

Accepted Answer

The major development milestone that involves a prototype of a product, system or service is the alpha version. This is the initial phase of testing where the product is tested on a limited scale to identify any flaws or defects. The alpha version is usually tested internally by the development team before progressing to the beta version. The beta version is the second phase of testing where the product is tested by external users. The first commercial release is the final version of the product that is released to the market.

Question 10

What is a key milestone that needs to be spelled out in the solutions section of your business plan?&#10;A) Completion of the alpha version of your solution&#10;B) Completion of the beta version of your solution&#10;C) Completion and release of version 1.0&#10;D) All of the above

Accepted Answer

All of the above are key milestones in the development process of a solution that should be detailed in the solutions section of a business plan. They mark significant stages of product development from initial testing (alpha), to external user testing (beta), to the official launch (version 1.0).

Question 11

With regard to a written business plan, what are potential investors are ideally looking for?&#10;A) A 5 page business plan&#10;B) A 20-25 page business plan&#10;C) A PowerPoint presentation only&#10;D) A 100-page business plan

Accepted Answer

The answer of With regard to a written business plan,...

Question 12

In your solutions section of a technology-focused business plan which of the following do you want to do?&#10;A) Stress your organizational team&#10;B) Emphasize your go-to-market strategy&#10;C) Show robust financial projections&#10;D) Show your IP strategy

Accepted Answer

The answer of In your solutions section of a technology-focused...

Question 13

A good executive summary for a new venture business plan should contain which of the following?&#10;A) Information showing a solid growth market&#10;B) Information confirming a well-defined customer who needs what you sell&#10;C) Information on the team suited to execute the plan&#10;D) All of the above

Accepted Answer

The answer of A good executive summary for a new...

Question 14

In the financial projections of the business plan, what does an investor want to see?&#10;A) Hard five year numbers&#10;B) A granular, bottoms-up projection of revenues&#10;C) A one year P&L statement&#10;D) A two year cash flow statement

Accepted Answer

The answer of In the financial projections of the business...

Question 15

The final checklist for the market analysis section of your business plan would include which of the following?&#10;A) Evidence that you have a target market that is healthy and growing&#10;B) Evidence that you deeply know customers' needs&#10;C) Evidence that you can beat the guys next door&#10;D) All of the above

Accepted Answer

The answer of The final checklist for the market analysis...

Question 16

The title page of a venture's written business plan should include what?&#10;A) The name of the business and contact information&#10;B) Industry insight&#10;C) Niche market&#10;D) Agenda

Accepted Answer

The answer of The title page of a venture's written...

Question 17

In a new venture business plan, investors want to see evidence of which of the following?&#10;A) A well-defined robust market&#10;B) A distinct product or service solution&#10;C) A sensible business model&#10;D) All of the above

Accepted Answer

The answer of In a new venture business plan, investors...

Question 18

In the organization section of the new venture business plan, which of the following should the entrepreneur do?&#10;A) Describe the management team&#10;B) Outline the staffing plan for the venture&#10;C) List and describe the Board of Advisors/Directors&#10;D) All of the above

Accepted Answer

The answer of In the organization section of the new...

Question 19

The target market, customer profile, and competitive analysis would be included in what section of the business plan?&#10;A) Business model&#10;B) Solutions&#10;C) Market analysis&#10;D) Go-to-market

Accepted Answer

The answer of The target market, customer profile, and competitive...

Question 20

What is the golden rule to remember when it comes to pitching a business plan to an investor?&#10;A) The venture founder is in control.&#10;B) He or she who has the money rules!&#10;C) He or she who has the venture idea rules!&#10;D) None of the above

Accepted Answer

The answer of What is the golden rule to remember...

Question 21

For your venture project, what do you think will be the most difficult questions asked by investors for a) the market analysis section, b) the business model section, and c) the team section? What will be your responses to these questions?

Accepted Answer

The answer of For your venture project, what do you...

Question 22

The most important section of your plan when trying to get an investor to review it is the:&#10;A) Business Model&#10;B) Executive Summary&#10;C) Exit Strategy&#10;D) Business Model

Accepted Answer

The answer of The most important section of your plan...

Question 23

What is the typical development plan of a technology intensive firm?&#10;A) Sigma, Beta, Launch&#10;B) Alpha, Beta, Launch&#10;C) Beta, Alpha, Launch&#10;D) Alpha Sigma, Launch

Accepted Answer

The answer of What is the typical development plan of...

Question 24

When looking at financials for your venture investors are also looking for a(an):&#10;A) Exit Potential&#10;B) Executive Summary&#10;C) Organization Structure&#10;D) Marketing Strategy

Accepted Answer

The answer of When looking at financials for your venture...

Question 25

In what order does an investor typically read a business plan?&#10;A) Executive Summary, Business Model, P&L&#10;B) Exit Strategy, Executive Summary, Go-to-Market&#10;C) Business Model, P&L, Exit Strategy&#10;D) Executive Summary, Business Model, Team

Accepted Answer

The answer of In what order does an investor typically...

Question 26

The _________ section of your plan includes a segmentation grid, customer use cases, and customer needs&#10;A) Market&#10;B) Solution&#10;C) Go-to-Market&#10;D) Operations

Accepted Answer

The answer of The _________ section of your plan includes...

Question 27

We always talk about the need for a tight, integrated business plan. Can you give an example from your venture project on how that integration plays out between:
a. Your target industry niche and your team section of the plan?
b. Your proposed business model and the sales section of your plan?
c. Your proposed business model and the solutions/product strategy section of your plan?

Accepted Answer

The answer of We always talk about the need for...

Deck 11: Writing the Business Plan