Pre-Assessment

What is the most appropriate length for a full business plan? 5 to 10 pages 15 to 25 pages 30 to 45 pages 50 to 75 pages

15 to 25 pages

Most entrepreneurs do not end up building the exact company they start out to build because: They aren't very well organized and don't stick to their original business plan Their mentors, advisors, partners, and investors often give then conflicting advice They pivot several times in order to gain traction based on feedback they receive from their customers about their products, pricing, packaging, and service None of the above are correct because most successful entrepreneurs do build the company they set out to create

They pivot several times in order to gain traction based on feedback they receive from their customers about their products, pricing, packaging, and service

What are the three main types of teams successful entrepreneurs build? A brain trust, core team members, strategic partnerships Friends, family members, mentors Vendors, consultants, marketing experts Investors, accountants, business advisors

A brain trust, core team members, strategic partnerships

A sound execution plan consists of which of the following components: A detailed description of your mission, values, and goals for your business A handful of important goals you want to achieve during the next 12 months, and the steps you will take to achieve them A 3 year income statement detailing revenue, cost of goods, expenses, and profits or losses A detailed sales and marketing strategy for growing your business during the next 3 years

A detailed sales and marketing strategy for growing your business during the next 3 years

What is a "propelling event?" An infusion of capital to grow your business Landing the first big customer for your business A process of goal setting that once achieved thrusts the entrepreneur to higher levels of goal setting following each round of success An event that causes you to rethink and reinvent your organization

A process of goal setting that once achieved thrusts the entrepreneur to higher levels of goal setting following each round of success

What is a substitute product? A product you offer that is similar to another product you offer A product your competitor offers that is the same as your product A product that is different from your product but meets the same need for the customer A revision of your product that replaces an earlier version

A product that is different from your product but meets the same need for the customer

A well-defined and well-publicized VALUES statement does which of the following? It helps you attract people who share your belief system It provides a code of conduct for your team members It helps team members, customers, partners, suppliers, and investors understand the culture you are trying to create. A strong VALUES statement does all of the above

A strong VALUES statement does all of the above

And industry is very attractive when: You have a large number of customer groups or niches for your products Customers can easily switch from one company to another You can reach potential customers through a variety of lower cost marketing strategies All of the above

All of the above

One of the best ways to create additional revenue once your core business is working is to: Find additional products to sell to your existing customers that better solve a complete need or whole problem they are experiencing Hire and train a strong sales force to sell your product or service Obtain additional funding to quickly scale your business to new locations All of the above

All of the above

The main advantage of creating strategic partnerships to grow your business is: It allows you to stay focused on what your organization does best It keeps your costs structure low especially during your early growth phase It allows you to grow more quickly than if you performed all the required functions your business needs by yourself All of the above are advantages of strategic partnerships

All of the above are advantages of strategic partnerships

Linking key GOALS with critical SUCCESS ACTIVITIES will help to: Increase the probability that you will achieve your goals Take "organizational slack" out of your company Ensure the team members work on the most important tasks All of the above are benefits of linking GOALS with SUCCESS ACTIVITIES

All of the above are benefits of linking GOALS with SUCCESS ACTIVITIES

Your VISION statement might include which of the following issues? The types of products or services you will sell The various customer groups who will buy your products The quality of service you will provide to your customers All of the above could be included in a VISION statement

All of the above could be included in a VISION statement

The main reason for preparing a more formal presentation is to: Explain the problem you are addressing, your product or service, your business model, your sales and marketing plan, and your financial projections Create new partnerships with people and companies that can help you grow To close a funding arrangement you are exploring with the person or investment group All the above

All the above

Writing a business plan is important to your new venture because: It is essential if you apply for grants, competitions, loans or investments It forces you to answer critical questions that will expand your knowledge of your market, competitors, business model, and financial plan It helps you determine if your new business is feasible and if you want to proceed All the above

All the above

Two of the most effective ways to tell other people about your business are: Letters and direct mailings An elevator pitch and a formal presentation Giving speeches and conducing workshops throughout your community Emails and giving away free products

An elevator pitch and a formal presentation

The most attractive industries to enter are those that: Have been around for decades and do more than $10 billion in annual sales Are fairly new, have a 10 percent annual growth rate, do between $50 million and $1 billion in sales, and have a number of customer niches Are shrinking in size which means there is opportunity to pick up the slack Have stabilized and are not growing or shrinking

Are fairly new, have a 10 percent annual growth rate, do between $50 million and $1 billion in sales, and have a number of customer niches

The main goal in giving an elevator pitch is to: Make a quick, on-the-spot sale to improve your cash flow Have the person agree to mentor you through your startup Arrange an appointment to meet again and provide more information about your business Close a funding arrangement you have been working on with the person

Arrange an appointment to meet again and provide more information about your business

Another good way to create additional revenue for your growing business is to: Find new market niches for your existing product line Use your growing resources to develop new and related business opportunities Both "A" and "B" are correct None of the above

Both "A" and "B" are correct

Why do most organizations need various types of strategic partnerships? Most organizations need inputs like raw materials, parts, supplies, financial services, legal services, etc. Most newer high tech organizations no longer need strategic partnerships Most organizations need help selling their products through sales reps, distributors, brokers, retailers, affiliate partners, etc. Both "A" and "C" are correct

Both "A" and "C" are correct

Which of the follow is a SMART goal? Start raising money to launch my new venture Complete a first draft of my business plan by March 1 Find some mentors to help me grow my business Identify groups of potential customers for my product

Complete a first draft of my business plan by March 1

In order to give a great presentation you should: Prepare one hour of material with 25 to 30 slides that cover the details Write out and read your full presentation so you don't leave anything out Don't bore people with financial data, assumptions, or return on investments made Customize your presentation to the audience you are addressing so it will be relevant to their needs and interests

Customize your presentation to the audience you are addressing so it will be relevant to their needs and interests

An effective goal setting process used by successful entrepreneurial includes which of the following steps? Creating your mission, defining your values, and clarifying success activities for your venture Setting attainable goals, creating short-term plans, working with passion and tenacity, and enjoying success and increased confidence Setting attainable goals, creating a prototype of your product, raising funds for your venture, and taking your product to market Establishing your values, setting critical goals, delegating assignments, following up

Establishing your values, setting critical goals, delegating assignments, following up

What is a "Success Activity?" Winning funding from a major competition Actions or steps necessary to achieve your critical goals Gaining a new skill that is essential for the success of your venture Building your credibility by obtaining a college degree

Gaining a new skill that is essential for the success of your venture

Which of the follow is a potential harm in writing a full business plan? Using the plan to raise funding for your new venture Holding firm to the plan and not making adjustments during implementation Entering the plan in various events and competitions Testing your commitment to launch and build your venture

Holding firm to the plan and not making adjustments during implementation

Which of the following is NOT true of the executive summary of your business plan? It is a general introduction to the industry you are entering It should be 2 to 3 pages in length It may be the only section of your plan that interested parties read in detail It is a miniature or condensed version of your overall business plan

It is a general introduction to the industry you are entering

Pursuing multiple streams of revenue for your business will be helpful because: Business brokers are more interested in selling companies with multiple revenue streams It reduces the vulnerability of having a single product or service and enhances the probability that your business will do well in the long run It means you don't have to work as hard as your business continues to grow Actually, pursuing multiple revenue streams is not a sound practice because it distracts you from your core product or service and spreads you too thin

It reduces the vulnerability of having a single product or service and enhances the probability that your business will do well in the long run

Which components of the entrepreneurial planning process provide long-term strategic direction for your company? Mission, vision, goals Values, goals, success activities Vision , values, goals Mission, vision, values

Mission, vision, goals

Which of the following statements is true about your execution plan? It remains relatively stable over time with only minor modifications It changes annually and sometimes quarterly or even monthly Neither "A" nor "B" are true Both "A" and "B" are true

Neither "A" nor "B" are true

SMART goals are: Specific, measurable, attainable, relevant, and time phased Loosely defined targets or outcomes you want to purse Goals that are set your "Brain Trust" of advisors Simple objectives that anyone on your team can achieve

Specific, measurable, attainable, relevant, and time phased

You have more control over your business when: The inputs you need are only offered by one supplier that dominates the market It is difficult to switch from one supplier to another one There are many suppliers and vendors that offer inputs in your industry The inputs you need are very unusual, rare, and unique

There are many suppliers and vendors that offer inputs in your industry

What is the major purpose of a VALUES statement? To explain your "Why" or purpose for building your venture To outline where you want your business to be in five years To describe the way in which you will operate your business To clarify the critical objectives you want to achieve in business

To describe the way in which you will operate your business

What is the major purpose of a MISSION statement? To explain your "Why" or purpose for building your venture To outline where you want your business to be in five years To clarify the objectives you want to achieve during your first year in business To describe the values you will follow as you build your business

To explain your "Why" or purpose for building your venture

Preparing and practicing an "Elevator Pitch" is important because: People decide to invest in your business based on the strength of your elevator pitch You need a method for quickly telling customers about your competitors weaknesses It is required to get a grant, loan or line of credit from a bank or private lender You need to quickly tell people who you are, what your business does, and how customers benefit from using your product or service

You need to quickly tell people who you are, what your business does, and how customers benefit from using your product or service

What is one thing you never want to include in a written business plan? Your conclusion that no competition exists for your product of service A realistic assessment of the size of the market you are pursuing Information about distribution channels and the sales cycle for each The assumptions you used to generate your financial projections

Your conclusion that no competition exists for your product of service

Which of the following is generally NOT a component of a written business plan? Your executive summary Your personal long-term career goals Your sales and marketing plan Your financial projections and assumptions

Your personal long-term career goals