ENT 360 Final Quiz SG
Too many financial details for an investor deck is considered a deck mistake
True
When a customer decides to interact with your product/service what are the first two things they are intrigued by?
Price and how it works
The slide deck outline included 11 main categories. Which one is missing? 1. Elevator Pitch 2. Momentum, Traction, Expertise: Your key numbers 3. Market Opportunity: Define market size & your customer base 4. Problem & Current Solutions: What need do you fill? Other solutions 5. ????? 6. Business Model: Key Revenue Streams 7. Market Approach & Strategy: How you grow your business 8. Team & Key Stakeholders (Investors, Advisors) 9. Financials 10. Competition 11. Investment: Your 'Ask' for funding, Basic use of funds
Product and service (your solution)
Which of the following sequences is true in terms of the Primary Financial Objectives?
Profitability, Liquidity, Efficiency, Stability
When you are raising money you need to
Raise more money than you think you need to hit those milestones
Which of the following is not part of the product development stages?
Revenue Generation
Which of the following is true?
Revenue= Profit + Expenses
What are the components of the Marketing Stew?
Scarcity, momentum, activity, passion
What are the types of risks investors worry about?
Team, Distribution, Market
A good strategy/method to use is when trying to identify the problems of your startup
The 5 Why Method
Which of the following represents a bad business pitch?
The Knowledge and Share the air
What is the maturity date?
The date by which investors can force a company to pay back debt if the company is not acquired
Why was The Knowledge pitch a bad one?
The product he was presenting did not work during the demo
When the Dollar Shave Club video was launched what happened
The website and servers crashed from extensive orders and demand
What prevents big companies from adopting the MVP?
The worry that employees will leave to start their own companies
When qualifying a buyer for a sale you need to check if:
They have the need or want, They have time to engage in purchase, They have the money
An example of design with good empathy is... (based on the lecture)
Tivo Remote Control
How much does it cost to file an expedited LLC Articles of Organization to the ACC?
$85
What are the three main financial statements?
- Cash flow statement - Profit and loss statement - Balance Sheet
Which of the following represent common deck mistakes? Select all that apply
- False/silly assumptions you can't back up or don't have data on - Too many slides, too much information - Belittling competitors
What is a pitch deck for? Select all that apply
- Give them enough to get excited about, but leave them wanting more - To give enough information to grab their interest, but not too much as to overwhelm them
Choose all that apply regarding a Sole Proprietorships
- No state filing required to form a sole proprietorship - Easy to form and operate - Owner remains personally liable for lawsuits filed against the business.
The benefits of an LLC include (choose all that apply)
- Not required to hold annual meetings or record minutes - Help separate your personal assets from your business debts - Independent legal structures separate from their owners.
When pitching an investor, remember to
- Sell the dream - Listen to what they ask - Lead the conversation - Let them know why they are a perfect match for you
What to Include in Your Operating Agreement?
- The members' voting powers - Rules for holding meetings and taking votes - The members' rights and responsibilities - The members' percentage interests in the LLC - How profits and losses will be allocated
What are the main goals of the financial sheets you send the investors?
- Understanding how costs and sales relate to each other - Provide a series of assumptions for your financial projections
When preparing a pitch deck make sure to include
- What problem are you trying to solve? What is the size of the market? - What is the market of your product? What is your solution? - Who is your team? - What is special about your product?
On your pitch deck, the goal of the Team slide is to
- Which roles are the keys to success in your company/space? - Highlight key team members and their prior positions, successes, domain expertise - Demonstrate relevant experience
Dollar Shave Club's CEO has background in comedy and theater
True
Entrepreneurship does not have to be high risk
True
A great design is where user goals meet
Business goals
Order the following according to the 7 Steps to Launch your Idea
1. Don't keep it to yourself 2. Seek the devil's advocate 3. Build a product that you would use 4. Test your idea 5. Start thinking about revenue models 6. Create a landing page (connection point) 7. Find your first client and get out to market
When designing you should consider the following. Order from highest importance to lowest importance
1. Functionality 2. Intuitiveness 3. Efficiency 4. Comfort 5. Delight
The market research process can be placed in 6 steps. Order them in the right flow.
1. Identify the research purpose 2. Collect data from the market 3. Evaluate already collected data 4. Analyze already collected and evaluated data 5. Interpret the analysed data 6. Disseminate the final product from market research to all decision makers in your company
Which of the following show the correct process of financial management
1. Preparation of historic and financial Statements 2. Preparation of Forecasts 3. Preparation of Pro Forma Financial Statements 4. Ongoing analysis of financial results
To sell anything you need to follow the 4 steps of sales. Arrange these steps in the proper order.
1. Qualification 2. Report 3. Education 4. Closing
Place these in the proper order
1. Study 2. Empathize 3. Prototype
If the pre-money valuation of a company was $8 million and an investor is interested in investing $1 million. How much equity would the investor own in the company after the round of funding?
11.1% (1M + 8M = 9M -> 1M/9M = 11.1%)
If the pre-money valuation of a company was $10 million and an investor is interested in investing $3 million. How much dilution does the founder take after the round of funding if he was 100% owner?
23% (10M + 3M = 13M -> 3M/13M = 23%)
Research completed in 2009 determined that the average age of a successful entrepreneur in high-growth industries such as computers, health care and aerospace is
40
How many legal business entities were discussed in the lecture? (excluding non-profits)
5
On average how many hours does a self employed person work every week
60-70
How much return are investors looking for?
8-10x
Which of the following are good strategies for coming up with new ideas?
All of the above
Which is true about an Operating Agreement
An operating agreement allows you to structure your financial and working relationships with your co-owners in a way that suits your business.
Which of the following represents the three big ideas about branding beyond beautiful
Answer the one big question, Tell a great story, Rise Above Commoditization
Who invested in the Green Fresh Patch pitch?
Barbara Concoran and Mark Cuban
The "need to sell enough product to cover costs" represents
Break even point
For the big idea #1: Ride Above Commoditization which of the following apply?
Differentiate your products and your communications / Pick a color, graphic style, imagery
After your form and publish your LLC you must obtain a number from the IRS. What is that number called?
EIN
An example of downstream audience is...
End-user
The great success of Angry Birds is a good example of which traction channel?
Existing Platforms
A brand is what you say it is, and what others feel, think, say about you.
False
Design is making things look pretty.
False
Eli is an accredited lawyer and can be asked for legal advice
False
Entrepreneur's passion is a great indication of the quality of the idea
False
In this class, my goal is to make everyone an entrepreneur
False
It is okay to sell something as long as you can close the sale, regardless of if you believe in or use that product/service.
False
Understanding your customers should only be done in the initial stages. Once the customer is identified then you stop doing market research.
False
What prevents someone from making a decision? (select all that apply)
Fear
Choose the advantages of being an entrepreneur from the list below
Freedom, Do what you enjoy, and Ability to think big
When you have an idea or prototype, you can raise money from...
Friends and Family
If you need funding for your initial stage, you should be going after
Friends and family
When dealing with profit and loss analysis which of the following is true?
Gross profit = Sales - Costs of Goods Sold
Which of the following is not a question you need to answer when doing market research?
How much does it cost to run your marketing campaign?
What is equity financing?
In exchange for money, share of the company are sold to investors
A good example of product market fit given was:
What is a vesting schedule in an operating agreement?
Instead of each getting our shares % immediately, it gets given to us regularly over some period
Select the possible sources of information for market research
Internet, Current Customers, Magazines and journals, Surveys
What company started the Antenna Balls?
Jack in the box
One of the ways to create traction in your business is "business development". Select the company below that represents a good example of using that channel.
Kayak.com
Which of the following represents some of your operational costs
Loan repayment, wages, raw materials and equipment, taxes, Marketing and Advertising costs, Premises (rental or mortgage), Utility Bills
An example of upstream audience members is..
Media
What does MVP stand for?
Minimum Viable Product
What are the negatives of being an entrepreneur
Not organized, Lack of financial stability, and Not structured
The Go Greek Yogurt pitch deck was great but what was missing?
Nothing was missing
When talking to investors you are selling
Your dream and vision
A financial Statement is a written report that...
describes a firm's financial health
What does LLC stand for?
limited liability company
Perhaps the greatest factor that determines whether or not an entrepreneur will be successful isn't the business idea itself, but rather
the entrepreneur's willingness to try (and keep trying) to turn the idea into reality.