Exam 8: The Business Plan

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

Developing a business plan sets the mood for internal relationships and negotiations.

It is acceptable to have unnamed management team members in your business plan as long as you can demonstrate they are critical to the operation.

If a team is starting a venture that will not need startup capital,then it is appropriate to hold off on the business plan while they establish a base of sales.

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

Describe how listening and asking questions is an important aspect of the business plan presentation.

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.

What aspect of the plan would be of least interest to venture capital investors?

The business plan should identify several alternative sources of financing.

Why is it important to develop a business plan?

Your team is in the middle of writing your business plan to present to a key investor next month.In the process,a sales opportunity arises that will provide some positive cash flow.You should:

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

During a business plan presentation,entrepreneurs can become so focused on selling the idea to the investors that they fail to ask great questions and do little serious ________.

When presenting a plan for a business that involves highly technical material,investors will expect a full description of those applications and processes within the plan.

The entrepreneurial team should tailor their business plan to the likes and dislikes of the target investor group.

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

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

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

Venture capitalists can be expected to say no quickly when they believe a venture or a team is not a fit with their investment objectives.

What are three questions the team should ask after investors have had a chance to review the business plan? Mentioned in the text: What have we missed? Where are we vulnerable? How would you knock us off? How would you modify our strategy? What would you do differently? What do you believe has to happen to make this highly successful?