Creating a business plan
Answers
- When defining the problem your company solves, you should look at it through the perspective of _.
- your customers
- your ad agencyyour suppliers
- your employees
- What is a profit pool?
- the return your investors make when you sell your company
- the profit dollars available in a given market
- a measure of how much profit you make
- how much of your profits are taxable
- What does the “T” in SWOT stand for?
- Teams
- Training
- threats
- taxes
- The threat of substitutes is the risk you face when _.
- your customers can use a different product to solve their problem
- your employees are absent and you use lower skilled workers
- your suppliers swap out cheaper components in your product
- you use the wrong numbers in your financial projections
- The product development roadmap describes _.
- how your competitor’s product has evolved over time
- how your research and development process works
- how you’ll build your product over time
- the routes you’ll use to distribute your product
- When you describe your points of differentiation versus competitors, thosedifferences must be _.
- aspirational
- your weaknesses versus competitor
- spelled out in writing
- substantial and meaningful
- What does the sales section of your business plan explain?
- the profit margin you earn on each sale
- how much revenue you’ll earn each year
- your FOB delivery terms for each sale
- how you’ll sell your product to your customer
- A brand is a _.
- marketing campaign
- promise
- sales plan
- logo
- What must your production plan explain?
- what kind of staffing you need to make your product
- whether you’ll insource or outsource production
- all of these answers
- how your production matches your strategy
- What is the most expensive form of compensation?
- equity
- bonus
- cash
- perks
- What is one way to exit your business?
- short sale
- bank refinancing
- acquisition
- mass layoffs
- Your financial forecast should be _.
- built based on unit drivers
- optimistic and exciting
- built top down
- extremely precise
- What is a moon chart?
- only required if you’re in the aerospace industry
- a measure of your financial performance
- a way to compare your business to your competitors
- a map of the moon
- When choosing suppliers, you should select the one that is _.
- the highest reliability
- the best fit with your business model
- the lowest cost
- the highest quality
- Your financial forecast should be _.
- extremely precise
- built top down
- optimistic and exciting
- built based on unit drivers
- Which of the following is not a type of revenue model?
- Recurring
- positive amortization
- one time fee
- cost plus margin
- Which of the following affects how you support your product?
- how demanding your customers are
- how often your product breaks down
- how many product returns you receive
- all of these answers
- What must your production plan explain?
- all of these answers
- what kind of staffing you need to make your product
- whether you’ll insource or outsource production
- how your production matches your strategy
- What is the most important thing your product delivery plan should focus on?
- choosing between government and private shipping companies
- speed of delivery
- low cost shipping options
- how you get your product into your customers’ hands
- What’s a warning sign that your financial plan isn’t accurate?
- a hockey stick forecast
- market research inaccuracy
- capital requirement ratios
- high-level unit drivers
- What does your value proposition describe?
- how your employees are paid
- how your product benefits your customer
- how much your company is worth
- the beliefs and values of your company
- What are two things you must know about your capital on hand?
- your burn rate and runway
- your FDIC protection and overdraft limit
- your interest rate and yield
- your equity value and book value
- What does the sales section of your business plan explain?
- the profit margin you earn on each sale
- how you’ll sell your product to your customer
- your FOB delivery terms for each salehow much revenue you’ll earn each year
- Why should you have expert advice when it comes to HR and legal issues?
- so that you can impress investors
- it’s less expensive than doing it yourself
- to prevent major regulatory and legal issues from harming your business
- because you don’t have time to do it on your own
- What is a warning sign that your financial plan isn’t accurate?
- market research inaccuracy
- capital requirement ratios
- high-level unit drivers
- a hockey stick forecast
- What is the most important thing your product delivery plan should focus on?
- low cost shipping options
- how you get your product into your customers’ hands
- speed of delivery
- choosing between government and private shipping companies
- Contingency plans should be created once you’re sure one of your financial risks is a certainty.
- FALSE
- TRUE
- Patents are the absolute best way to protect your market.
- FALSE
- TRUE
- What does your value proposition describe?
- how your product benefits your customer
- how your employees are paid
- how much your company is worth
- the beliefs and values of your company
- What are two things you must know about your capital on hand?
- your interest rate and yield
- your burn rate and runway
- your FDIC protection and overdraft limit
- your equity value and book value
- Why should you have expert advice when it comes to HR and legal issues?
- to prevent major regulatory and legal issues from harming your business
- because you don’t have time to do it on your own
- because it’s less expensive than doing it yourself
- so that you can impress investors
- Your go-to market strategy explains how you’ll get your product to your customers.
- FALSE
- TRUE
- Financial assumptions don’t really matter as long as they’re generally reasonable.
- TRUE
- FALSE
- Which option affects how you support your product?
- how many product returns you receive
- how demanding your customers are
- all of these answers
- how often your product breaks down
- Pricing decisions impact revenues but not profits.
- FALSE
- TRUE
- Members of your advisory board should always have deep expertise in your industry.
- FALSE
- TRUE
- Understanding market trends has no impact on risks your business faces.
- TRUE
- FALSE
- What is a moon chart?
- a measure of your financial performance
- a chart that is only required if you’re in the aerospace industry
- a way to compare your business to your competitors
- a map of the moon
- What is not a type of revenue model?
- positive amortization
- recurring
- one time fee
- cost plus margin
- When choosing suppliers, you should select the one that is _.
- the highest reliability
- the lowest cost
- the best fit with your business model
- the highest quality
- What should the leadership section of your business plan cover?
- the organization’s leadership philosophy
- a description of which leaders you admire
- the structure and roles of the leadership team
- your overall business strategy
- You can expect new employees to be fully effective within a few days of joining your company.
- TRUE
- FALSE
- The way you define your product must explain benefits to your customer.
- FALSE
- TRUE