Deck 4: Lean Commerce and Sustainable Enterprise Movements Are an Opportunity Sea Change

Question 1

Entrepreneurs who not only succeed at developing a great business concept but also attract the right investors are usually bad listeners.

Answer 1

False

Question 2

When is it a good idea to hire an outside professional to write the business plan?

A) When money is available for the task
B) When time to market is a critical factor
C) When the lead entrepreneurs are deeply involved with other pursuits
D) When no one on the team is willing to take the lead in writing the document
E) It is not a good idea to hire an outside professional to write the business plan

Answer 2

E

Question 3

The length of a business plan correlates closely with the complexity of the business model or opportunity.

Answer 3

False

Question 4

Professional investors will discount the potential of an opportunity if they are initially presented with a dehydrated business plan.

Question 5

Action steps to be established in developing a business plan include all of the following except:

A) Segmenting information.
B) Creating an overall schedule.
C) Creating an action calendar.
D) Creating a budget for the process.
E) Doing the work and writing the plan.

Question 6

A dehydrated business plan is often developed by entrepreneurs who are too busy to write a complete business plan.

Question 7

The entrepreneurial team should accept orders and customers that will generate a positive cash flow, even if it means they are forced to postpone writing the business plan.

Question 8

It is considered bad form to tailor your business plan to the likes and dislikes of specific investors.

Question 9

The right investor can make the difference between an average and a good or great venture.

Question 10

If a venture intends to use the business plan to raise capital, it is important for the team to do what?

A) Put the business plan on hold and service the customer
B) Put the customer off until you have met with the investor
C) Do the planning and write the plan itself
D) Seek advice from the key investor

Question 11

Seasoned investors may ask questions to see if they can provoke an argumentative or defensive response from the business plan presenters.

Question 12

The business plan for a high potential venture shows the business's ability to do all of the following except:

A) Create or add significant value to a customer or end-user.
B) Solve a significant problem, or meet a significant want or need for which someone will pay a premium.
C) Have robust market, margin, and moneymaking characteristics.
D) Raise financing to seize the opportunity.
E) Fit well with the founder(s) and venture team.

Question 13

It is okay to have unnamed venture team members in your business plan as long as they are critical to the operation.

Question 14

A good reviewer also can act as a sounding board in the process of developing alternative solutions to problems and answers to questions investors are likely to ask.

Question 15

Since business plans are obsolete at or before the printer, it is best not to invest a significant amount of time and some money in preparing the plan.

Question 16

When speaking with venture capitalists, the entrepreneurial team should be prepared to discuss the details of ongoing talks with other venture capitalists.

Question 17

The business plan should identify several alternative sources of financing.

Question 18

The skills to write a business plan are not necessarily the ones needed to make a venture successful.

Question 19

The business plan becomes the point of departure for prospective investors to begin their due diligence to ascertain potential and various risks of the venture.

Question 20

The business plan is the business.

Question 21

The "Manufacturing and Operations" section of your business plan should include all of the following except:

A) Operating cycle.
B) Geographic location.
C) Regulatory and legal issues.
D) Key personnel.
E) Strategy and plans.

Question 22

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

Question 23

The business plan should be thought of as:

Question 24

Preparing an effective business plan for a start-up can easily take up to how many hours?

A) <20
B) 50
C) 100
D) 150
E) 200+

Question 25

What should a complete business plan include?

Question 26

The first section in the body of the business plan is usually an executive summary. Many investors, bankers, managers, and other readers use the summary to determine quickly whether they find the venture _______________.

A) viable
B) of interest
C) capable of generating profits
D) able to survive and ultimately go public
E) worth backing

Question 27

All of the following suggestions for preparing your business plan are valid except:

A) Hook the readers with a compelling opportunity.
B) Prioritize the points you are making.
C) Articulate the size of your market.
D) Include evidence of customers.
E) Do not discuss competitors.

Question 28

Too often, entrepreneurs become so obsessed with selling to prospective investors that they fail to do what?

Question 29

This section of the business plan should include pertinent information that is too extensive for the body of the business plan but that is necessary.

Question 30

What is a dehydrated business plan, and when and why can it be an effective tool?

Question 31

It is recommended that this section of the plan be completed before any other.

A) Manufacturing and Operations Plan
B) Venture Team
C) Financial Plan
D) Design and Development Plans
E) Market Research and Analysis