ELE 4040 Quiz 2
What key activities do our value propositions require? (Business Model Canvas question)
Key Activities section
Balance Sheet
Summary of what a company owns and owes at A POINT IN TIME.
Which customer needs are we satisfying? (Business Model Canvas question)
Value Propositions section
Which one of our customers problems are we helping to solve? (Business Model Canvas question)
Value Propositions section
What is the goal of a successful pitch to investors?
build credibility
What is the most important document to start-up/early stage entrepreneurs?
statement of cash flows
What is an incubator?
• Mentorship-focused - Coaching from experienced entrepreneurs. •Early-stage companies looking for help in turning ideas into reality. •A major role is to put founders in touch with other entrepreneurs in a shared workspace.
What are key elements of a good pitch?
•Problem •Solution •Market •Competition •Business Model •Summary financials that match your business.
Clemson football coaches, Dabo Swinney, Danny Ford, Frank Howard, Red Parker, and Charley Pell have what in common?
All graduated from Alabama
Difference between a traditional plan and a Business Model Canvas.
Business model canvas is better for start-up businesses.
Which ways that companies reach customers is the best? (Business Model Canvas question)
Channels section
Who are your key suppliers? (Business Model Canvas question)
Key Partners section
Why are financial statements important to an entrepreneur?
Helps the entrepreneur deal w/ reality
Between the Traditional Business Plan format and the Business Model Canvas format, which is the best?
It depends on your business and your audience
Customer relationships? (Business Model Canvas question)
Key Activities section and Key Resources section
Our distribution channels? (Business Model Canvas question)
Key Activities section and Key Resources section
Who are your partners? (Business Model Canvas question)
Key Partners Section
A typical business model canvas will be approximately 30 pages long T/F
false
Statement of cash flows
measures the cash coming in and cash going out over a period of time. (like the income statement)
An income statement provides the exact same information as
none of these
Limited liability concept
the maximum amount a person participating in a business can lose or be charged in case of claims against the company or its bankruptcy.
3 Major sections of the balance sheet
1.) Assets - the company's belongings that have future economic value. 2.) Liabilities - things that the company owes to other parties. 3.) Owner's Equity - What is left after you've paid everyone else
What are the 3 standardized financial statements?
1.) Balance sheet 2.) Income statement 3.) Statement of cash flows
A well-thought-out business plan puts everyone on the same page because it:
1.) Cuts down on confusion 2.) Minimized surprises
Why start with a business plan? (5 points)
1.) Develop a game plan 2.) Provide Clarity of Purpose 3.) Avoid Mistakes 4.) Counterbalance Emotions 5.) Raise Capital
What are reasons for a new venture to start with a business plan?
1.) Develop a game plan 2.) Provide clarity of purpose 3.) Avoid mistakes 4.) Counterbalance emotions 5.) Raise capital
What 3 reasons is profit and loss, "napkin finance", important?
1.) Financial health of a company 2.) Shows area of weakness 3.) Informs decisions on changes
What are the 4 reasons balance sheets are important?
1.) Helps get credit 2.) Shows performance over time 3.) How much earned 4.) How much owned
Some of the factors that might affect the choice of a business structure include
1.) Number of owners 2.) Fundraising needs and intentions 3.) Need for management flexibility 4.) Limited liability 5.) Tax matters
What are 4 factors that affect the choice of a business structure?
1.) Number of owners. 2.) Fundraising needs and intentions. 3.) Need for management flexibility. 4.) Level of interaction with the public.
When choosing the best business structure for your company, some of the goals would include:
1.) Paying the minimum amount of taxes 2.) Providing limited liability 3.) Avoiding unnecessary future expenses to convert to another structure
Reasons financial statements matter in the business world.
1.) Provide a standardized view for investors 2.) Allows companies to be compared w/ each other 3.) Tracks performance over time 4.) Can determine ability to raise capital
Why do financial statements matter?
1.) Provide a standardized view of the company's performance 2.) For public companies, allows shareholders, investors, and employees to evaluate performance 3.) Tracks performance 4.) Professional investors and creditors expect to see them 5.) Basis for filing taxes using GAAP under the IRS 6.) Required by SEC for public companies 7.) Allows for confident use of the company's financial data 8.) Provides an indication of value
Which of these business structures provide complete limited liability?
1.) S-Corporation 2.) C-corporation 3.) Limited liability company (LLC)
What does the basic process of developing a business plan entail?
1.) Setting goals. 2.) Explaining objectives. 3.) Mapping a plan for success.
Investors analyzing START-UP COMPANIES will likely analyze financial statements in this order
1.) Statement of cash flows 2.) Use of funds 3.) Balance Sheet 4.) Income statement
When raising capital, a business plan can provide what information for investors?
1.) Teams members and their backgrounds 2.) how the company will make money 3.) The bad stuff that can happen 4.) The amount of money required
When founders ask for money, what do investors want to know?
1.) The team members. 2.) How you are going to make money. 3.) What bad stuff can happen? 4.) How much money do you really need?
There are 4 key financial statements/documents that a startup business should eventually develop. What are they?
1.) income statements 2.) Balance sheets 3.) Use of funds document 4.) Cash Flow statements
What is an accelerator?
1.) speeds up the growth of a new business 2.) Provide start-ups with •Office hours with experts/mentors •10-20 companies in shared office space •Potential for small investment •$15k to $50k in exchange for 5-10% equity 3.) Finance focused - a return on investment anticipated by investors. •For ideas that are fully realized. -Minimum Viable Product -Sales traction -Hockey-stick sales projection •Business runs on its own with support from resources from the accelerator.
Clemson issued the first class ring in 1896. In what year was the current ring design established?
1927
What structure is best for future fundraising with angels and venture capitalists?
C-corp
How are we integrating the ways we reach our customers based on their routines? (Business Model Canvas question)
Channels section
How do other companies reach customers now? (Business Model Canvas question)
Channels section
Through which of the channels do our customer segments want to be reached? (Business Model Canvas question)
Channels section
Which ways that companies reach customers are most cost-effective? (Business Model Canvas question)
Channels section
After transferring to Clemson from Anderson College, Margaret Marie Snider became the first woman graduate in 1957. What was her major?
Chemistry
What are the most important costs inherent to our business model? (Business Model Canvas question)
Cost structure section
Which key activities are most expensive?(Business Model Canvas question)
Cost structure section
Which key resources are most expensive (Business Model Canvas question)
Cost structure section
How are customers integrated with the rest of our business model? (Business Model Canvas question)
Customer relationships section
How costly are customers? (Business Model Canvas question)
Customer relationships section
How do we get, keep, and grow customers? (Business Model Canvas question)
Customer relationships section
Which customer relationships have we established? (Business Model Canvas question)
Customer relationships section
For whom are we creating value? (Business Model Canvas question)
Customer segments section
What are the customer archetypes? (Business Model Canvas question)
Customer segments section
Who are our most important customers? (Business Model Canvas question)
Customer segments section
What is a "Use of Funds" document?
Document that shows how the money is used in the company. Not required by SEC or IRS but expected by investors. (Start-up investors use it to analyze the company.... ON QUIZ)
A Limited Liability Company is an ideal structure to use if you want to raise money with Angel Investors. T/F
False
Methods and rules for developing financial statements are different based on the size of the company. Example: Apple ($2658 Sales) / EC&M ($11M Sales).
False
The C-Corp is the only corporate structure that protects its owner and shareholders from ALL types of liability claims. T/F
False
Using a set of traditional financial statements is the only way to run a company on a day-to-day business. Any other method is foolish. T/F
False
Revenue streams? (Business Model Canvas question)
Key Activities section and Key Resources section
Which Key resources are you acquiring from partners? (Business Model Canvas question)
Key Partners section
Which key activities do partners perform? (Business Model Canvas question)
Key Partners section
What key resource do our value propositions require? (Business Model Canvas question)
Key Resources section
What is a business plan?
Process of: •Setting goals. •Explaining objectives. •Mapping a plan for success. •Articulates why your idea is a valuable opportunity •Identifies resources required for success •Who will provide the leadership •How goals will be reached.
Income Statements
Report of earnings over A GIVEN PERIOD OF TIME (usually annually or quarterly). Shows expenses incurred to generate income and the cash flow statement adjusts based on it.
For what do they currently pay? (Business Model Canvas question)
Revenue streams section
For what value are customers willing to pay? (Business Model Canvas question)
Revenue streams section
What are the pricing tactics? (Business Model Canvas question)
Revenue streams section
What is the revenue model? (Business Model Canvas question)
Revenue streams section
Business structures that offer limited liability.
S-Corp, C-Corp, LLC
3 Major sections of the income statement.
Sales/Revenues - Cost of sales (or goods sold) = Gross profit Gross profit - Operating expenses = Income from Operations Income from Operations - Interest and Taxes = Net Income / Loss (profit or loss)
Credibility - What is it and why does it matter?
The quality, capability, or power to elicit belief. Quality in a person which renders that person worthy of credence. Credibility is needed to raise capital
What bundles of products and services are we offering to each segment? (Business Model Canvas question)
Value Propositions section
What is the minimum viable product? (Business Model Canvas question)
Value Propositions section
What value do we deliver to the customer? (Business Model Canvas question)
Value Propositions section