Quiz (2-5) [Bus 131]

Find and open the file, "BUS 131D Financial_Template V1.xls." Hopefully you recall your professor discussing this template and how to interpret it. If so, then which worksheet tabs in the workbook did he advise you to begin with to determine your project's ROI? Select the best that apply. (ID-017):

- "Sales Plan" - "Staffing Plan"

In discussing his concept of Customer Development, Steve Blank describes 4 Phases while building a company (check all that apply) (ID-010):

- Customer Validation - Customer Creation - Customer Discovery - Company Building

SunWork identified and uses several personas in their business model. Identify all that apply (ID-002):

- Environmentalist Ellen - Retired Robert - Engineer Ashok - DIY Dan

In constructing my Value Proposition Canvas I should (ID-016) (select all that apply):

- Gather my team in a room and brainstorm on the customer needs first. - Gather my team in a room and brainstorm on the customer needs first after some initial research.

In mapping your sales process you need to address the following questions (select all that apply) (ID-019):

- How does your target customer become aware that they have a problem or opportunity? - How will the target customer learn that you have a solution for them? - After the customer knows about you, what is the education process that enables them to analyze the value of a purchase from you? - How do you make the sale? - How do you collect the money?

Full Life Cycle Use Case was discussed in which lecture week? (select all that apply) (ID-018):

- I can also find it in the Aulet book on page 83 - Week 5 Lecture

In the Water Filtration example of "Disciplined Entrepreneurship" page 145, the internal corporate engineering and external engineering firms had what roles? (ID-004):

- Influencer - Veto

Both Nancy and Christina placed significant importance on winning early customers, Why? Select all that apply. (ID-017):

- It begins to build the revenue stream. - It shows prospective investors that all of your assumptions are likely correct. - It created a test bed for refining your value proposition and business plan. - It helps to keep you focused and disciplined. - It shows that Dogs will eat the dog food.

Why do you need to know the sales cycle length of your product? Select all that apply. (ID-005):

- It is important to the cost calculation. - It is important to the scheduling of production, and timing expectations of revenue and cash flow.

In the FAQs Bill Aulet interviews the following students (select all that apply) (ID-018):

- Julia Lazaro - Scott Sunbore

Using this spreadsheet (BUS 131D Financial_Template V1.xls) my professor told us that our team project report would have to produce two financial metrics for the final report, and a 3rd item for the Appendix. What are they? Select all that apply. (ID-018):

- Net Present Value, NPV. - Breakeven Point to the nearest quarter. - The Spreadsheet Analysis Printouts.

Christina Ellwood described the ideal beachhead segment as (select all that apply) (ID-011):

- Same time frame - Same product - Same sales cycle - Defendable - Same channel - Same reason to buy or motivations - Repeatable Sales Model

In discussing his concept of Customer Discovery, Steve Blank describes 4 Phases (check all that apply) (ID-004):

- Test the Solution - State Hypothesis - Test the Program - Verify or Pivot

Three conditions for a Minimum Viable Business Product are (select all that apply) (ID-020):

- The customer gets value out of the use of the product. - The customer pays for the product. - The product is sufficient to start the customer feedback loop.

What should you be aware of in your initial segmentation (ID-009) (Select all that apply)?

- The size of the market? - Can you scale or pivot to other markets? - Analysis Paralysis? - Can you define your end user? - Can you define the customer benefits?

In the professor's career survival story, what was the key reason he knew his manager's business plan was flawed? (select all that apply) (ID-016):

- There was no means to protect the IP. - The organizations overall focus needed to be on the $3M flagship product and not a small consumable revenue stream. - An axillary repeat business consumable business is dependent on a barrier to entry by competitive substitutes.

Referring to step 19 in your text book "Disciplined Entrepreneurship," and the file "BUS 131D Financial_Template V1.xls," what worksheet cells could you access (without additional modifications) and use to calculate a simple COCA? (select the best few that apply) (ID-020):

- Unit Sales in tab "Sales Plan" cells E7 through T7. - Marketing Expenses in "P & L by Qtr" cells E15 through T15 - Sales Expenses in "P & L by Qtr" cells E16 through T16

An example of a Long-tail Business Plan was first discussed in which week and slide # (ID-018):

- Week 6, slide 35 - Week 13, slide 14

According to Steve Blank, the Value Proposition answers the question (select all that apply) (ID-009):

- What customer pain you are solving. - What customer gain are you creating. - What are you building and for who.

Your professor said on Wednesday that you have to define your "Core." So you get with your team. You read Step 10 in the book and review the lecture notes. You draft a statement for your product defining the CORE of your team and product. But how do you really know you have defined the right "thingy?" (hint: there are two answers, one really good one and one less good but still valid) (D-013):

- You could also study all of the possible competitive alternatives and honestly determine if they can or cannot reproduce what you believe your core is. - You'll test it by interviewing 20 customers and asking deep questions about why they so highly value your product.

In testing your key assumptions, one topic the book says you should first question is (ID-016):

- Your Gross Margin

Nancy emphasized creating a defensible solution is critical to securing your beachhead. For her new venture she is securing several patents. What percentage of their initial round of funding did she say they spent on legal fees for their IP? (ID-010):

70%

The single necessary and sufficient condition for business is (ID-004)?

A paying customer.

Osterwalder's book describes a Minimum Viable Product. Different authors probably have slightly different definitions, but in this book Osterwalder defines it as (ID-012):

A representation or prototype of a value proposition designed specifically to test the validity of one or more hypotheses; with the goal of validating the VP as quickly and cheaply as possible.

Charting and Calculating your next 10 customers is important because? (Select all that apply.) (ID-009):

All A, B, C & D. A) A reliable source of potential revenue. B) Validation that your product can sell. C) Validation of your sales process. D) Demonstrates to investors that you have a viable venture.

Three conditions define a market. Select one of them from the list below (ID-010):

Customers making up a market all buy similar products.

A Pivot referrers to a small change, such as deciding to price your product at $9.99 instead of $9.50 (ID-001):

False

A Value Proposition is the same thing as an Elevator Pitch? (ID-011):

False

Entrepreneurship is a solo sport requiring special natural skills (ID-002).

False

I only need to pay attention to the end user in a two-sided market (ID-006).

False

I should never create multiple personas (ID-014):

False

In Nancy's experience, she has realized that too much importance is placed on Business Plans. (ID-007):

False

In setting the price, the cost plus 10% is always a good starting point. (ID-013):

False

Most new solutions today don't have an installed base support issue and therefore the COCA is Marketing Expenses divided by Customers. (ID-013):

False

Nancy has had great success with Survey Monkey in her new venture. (ID-008):

False

Nancy said that their first round of funding came from friends who believe in her project. (ID-011):

False

Paying customers are so critical you can never go wrong (ID-005).

False

Regulatory agencies and standards bodies can be ignored most of the time. (ID-006):

False

Since investors want to see a quick return on their investment, the first year NPV is the most important financial metric. (ID-015):

False

SunWork started in the Bay Area and is now expanding to the Central Coast and Sacramento Area (ID-003):

False

The Business Model Canvas and Value Proposition Canvas are unrelated (ID-017):

False

The Economic Buyer is always a single individual (ID-002):

False

The Served Available Market is defined as the customers you actually sell to (ID-005):

False

The Value Proposition Canvas is a spreadsheet method to create single company value statement (ID-015):

False

The break-even value point should always be a positive dollar value. (ID-014):

False

The end-user profile and persona for the beachhead market are the same thing (ID-013):

False

Value Pricing is impossible to determine. (ID-014):

False

When your Professor discussed the Evaluation and Ranking Assessment for your Business Model this week he described a quantitative scoring scheme he wants you to use to evaluate your Business Model. (ID-020):

False

When Nancy Hartsoch described why SolFocus failed, there was one key point from your text book readings she said she failed to do. What was it? (ID-006):

Have an exit strategy.

The Total Addressable Market is a fancy word for (ID-003)

How big is the universe?

Who will be most the likely buyers? (ID-007):

I would calculate my Target Market.

Using this spreadsheet (BUS 131D Financial_Template V1.xls) my professor offered an observation concerning the spreadsheet tab "Staffing Plan," what is it? (ID-019):

If we needed manufacturing for our project we can get it by copying one of the other department structures and renaming it Manufacturing.

Which of the following criteria is not a consideration in narrowing down to my beachhead target market (ID-008):

Is the segment an early majority of sufficient size?

Christina Ellwood's described a Market Traction New Product Adoption Curve. The third step on the curve is important because (ID-012):

It is the first revenue generating sale base on the merits of the product.

The first most important step is market segmentation. What is true about this step (ID-003)?

It must be from the prospective of the target customer and will be refined as more is learned about the market.

The SunWork Business Model is based on identifying what problem? (ID-001):

Lower tier electricity customers could not justify solar.

You should determine the Decision Making Unit (DMU) by (ID-003):

Making lots of contacts inside the company and asking probing questions.

The key difference between the Business Model Canvas and Porter is (ID-015):

Porter is all about which of five key competitive forces has the most power.

In the final revenue analysis which is more important to really know? (ID-008):

SOM

Mapping the Sales Process to Acquire a Customer (SPAC) differs from the Process to Acquire a Paying Customer (PAPC) HOW? (ID-015):

SPAC deals with the HOW and WHEN from the customer's perspective whereas PAPC deals with the HOW will you lower costs from the businesses' perspective over time.

A Champion is (ID-001):

Someone in an organization pushing for change and indicating a strong favor for your solution.

In the "How do you know you have a great idea" portion of Nancy discussion, what was the key point she was trying to make? (ID-009):

Sometimes you just have to go with your gut.

In the Business Model Canvas there is a unique special relationship often pictured between the Value Proposition and the Customer Segment (ID-006):

The Customer Care and Channel Delivery between VP & Segment

The key reason that selling to Early Adaptors cannot be leveraged to enter the Early Majority space is (ID-019):

The Early Majority are pragmatists, need reference customers similar to themselves, and don't accept the Early Adopter opinions.

In which Value Proposition video did the presenter discuss "Social Pressure" (ID-020):

The PokeMon Go Value Proposition Canvas?

The Professor illustrated a Full Life Cycle Use Case in his survival story survival example. What do the columns represent and what do the rows represent and why do we care? (ID-017):

The columns represent the task steps; the rows represent the "possible actors" in the process; and the path linkage illustrates a weakness in the business model.

In the first few weeks of class I suggested that it was important to have someone on your team that had inside knowledge on the customer and type of problem the customer was experiencing. How did SunWork handle this issue? (ID-005):

The founders worked in the industry.

SunWork serves two markets: Home Owners & Nonprofits. Roughly speaking, of their installed base, which is larger? (ID-004):

Their Home Owner market share is much greater than their nonprofit market share.

There are many different kinds of business models. The book describes 17 general categories. What seems to be one common thread through all of these general models? (ID-010):

They all deal with various ways to capture revenue.

TAM means what? (ID-007):

Total Available Market.

How would you estimate the order of magnitude of the SAM for an Android Game (ID-008):

Total number of active Android users with the right level of OS to support the game's features

I have used SWOT in previous classes and I will insist that my team uses it to evaluate our Business Model (ID-014):

True

The book recommends calculating COCA from the top-down. (ID-016):

True

It is time to chart your competitive position. In creating your chart your focus is on (ID-012):

Your persona's priorities

A new venture project can begins with (ID-001):

[All of the above.] - A technology breakthrough. - An idea that popped into your head. - A passion you have that motivates you. - A need in market segment that caught your attention.

One set of criteria for your ideal beachhead segment is (ID-002):

[All of the above] - Same channel. - Actually purchase your solution. - Same purchasing time frame. - Same product features. - Same reason to buy or motivations. - Same sales cycle.

An end user profile should include one or more of the following (ID-012) (select all that apply):

[All of the above] - What is their gender? - What is their age range? - What motivates them? - Who is their hero? - How do they spend their time outside of work? - How do they spend their time at work? - What makes them special or identifiable? - What websites do they belong to? - What is their story?

A good Value Proposition statement never contains one or more of the following (ID-019):

[all of the above make a good value proposition statement.] - a single target customers. - emotional of social status needs. - A time frame specifying the period for which the VP is valid. - a competing value proposition. - specific gains for the target customer. - none of the above are found in a good value proposition statement.

A DMU is a (ID-011)

a decision making unit.

My segmentation and research begins with (ID-007):

none of the above.