Deck 9: Planning for Entrepreneurs

Question 1

What is the difference between planning and a plan?

A)Planning is action oriented; plans are stable.
B)They are the same because plans are never final.
C)Planning answers questions; plans document the answers.
D)Planning is flexible; plans do not change.

Answer 1

C

Question 2

What information did Bark 'N Leash respond to when they conducted a major marketing campaign?

A)They needed to do more advertising than their competitors.
B)They had learned from research that pet owners did not have time to find a dog walker.
C)They had been advised to do so by a marketing professional.
D)From previous experience, they knew that marketing campaigns worked.

Answer 2

B

Question 3

What areas would be explored under the "I" phase of TRIM planning?

A)deciding whether equipment should be loaned or leased
B)deciding what trends support the business or product idea
C)determining the cost of acquiring a customer
D)determining the market size

Answer 3

B

Question 4

What areas would be explored under the "R" phase of TRIM planning?

A)who needs to be on the start team
B)the assets needed to start the business
C)the benefits of your product
D)knowing who your customer will be

Question 5

What competitive information did Bark 'N Leash gain from talking with family and friends?

A)there was too much competition in the area
B)people were flooded with advertising and marketing for dog-walking services
C)professionalism was often lacking in competitors
D)people were not willing to pay for dog-walking services

Question 6

What areas would be explored under the M-phase of TRIM planning?

A)deciding whether equipment should be loaned or leased
B)deciding what trends support the business or product idea
C)determining the cost of acquiring a customer
D)determining the market size

Question 7

Which of the following did Bark 'N Leash investigate as part of the planning?

A)financial costs of franchises offering the same service
B)services, staff, pricing, location, schedules of local competitors
C)a similar service in another part of the country
D)willingness of local veterinarian offices to refer their clients

Question 8

What is the primary value of planning?

A)it discovers the answers to your questions
B)it forces you to take action
C)it gives you a picture of reality
D)all of these

Question 9

What competitive strategy did Bark 'N Leash learn from observing posts of competitors' Facebook and Instagram sites?

A)establishing locations
B)learning about competitor weaknesses in customer service, marketing, and operational skills
C)learning the different areas where dog walking was allowed
D)hours of service

Question 10

To what can be attributed as a main cause of success of Bark 'N Leash?

A)analysis of the market before defining the business
B)minimal competition in the area
C)heavy demand for her service
D)business experience in a similar industry

Question 11

What competitive information did Bark 'N Leash gain from talking with family and friends?

A)unhappy or neutral customers of walking services did not have time to find a new service
B)most customers were happy with their dog-walking service
C)most service providers offered prompt and regular service
D)there were many alternatives for service in the target market area

Question 12

The act of envisioning the future actions and methods of your business is called which of the following?

A)actioning
B)planning
C)creative daydreaming
D)visioning

Question 13

Lianna is deciding how customers will learn about her product.What area of TRIM planning is Lianna focusing on?

A)team
B)resources
C)idea
D)market

Question 14

How should one go about testing a product?

A)test it through the Small Business Administration
B)run a simulation test in a focus group
C)collect data, gather feedback, and test models in the real world
D)just start the business in order not to lose time

Question 15

Santiago is paying close attention to writing a statement that expresses how his product solves a specific need.What area of TRIM planning is Santiago addressing?

A)team
B)resources
C)idea
D)market

Question 16

TRIM stands for which of the following?

A)team, resources, idea, market
B)trial, research, implementation, marketing
C)trial, research, investigation, markets
D)testing, research, implementation, management

Question 17

What attention to professionalism became a surprising selling point for Bark 'N Leash?

A)late-night appointments
B)all employees were trained in pet CPR
C)early-morning appointments
D)all employees knew all the dog names

Question 18

Which of the following is an example of the dedication to a level of professionalism practiced by Bark 'N Leash?

A)a strong market research background
B)the impressive credentials of the dog walkers
C)a resume is provided explaining the background of the assigned walker
D)a thoughtful intake survey asking questions about the dog's habits and background

Question 19

How did Bark 'N Leash determine how often her competitors were used?

A)by talking with the owners of competitive stores
B)by observing the frequency of activity on Facebook and Instagram
C)by observing customers going in and out of the stores
D)by checking with the local Chamber of Commerce

Question 20

What areas would be explored under the "T" phase of TRIM?

A)who needs to be on the start team
B)the assets needed to start the business
C)the benefits of your product
D)knowing who your customer will be

Question 21

When you finish your Vivid Vision, you should share it with your:

A)attorney
B)accountant
C)friends, family, and anyone interested in seeing it
D)loan officer

Question 22

Why are "before and after" sketches useful?

A)They show the effect of the company's product or service on the customers" lives.
B)They show the potential for profitability.
C)They show what can be accomplished with the initial investment.
D)They show the status of the company in one year's time.

Question 23

A gallery sketch is characterized by which of the following?

A)a large sketch plan that indicates all major components of the idea
B)a color version of a napkin plan
C)several plans placed on a wall for easier viewing
D)a back-of-the-napkin plan that several people work on

Question 24

Which of the following should be included in the business plan?

A)the answer to critical questions such as the availability of resources
B)the company vision
C)timelines for important goals
D)all of these

Question 25

Vivian decides to engage in a Vivid Vision exercise.She imagines where her company will be in 3 years.Afterward, she places the notes from her Vivid Vision in her top desk drawer where she can refer to them frequently.What suggestion would you have for Vivian that would help her process?

A)Revisit the vision every 6 months to make sure you are still on track.
B)Share the vision with other founders, but keep it secret in case the vision is not fulfilled.
C)Share your vision with others to make the vision more real.
D)Focus on a shorter time period, about a year, so that the timeline is more realistic.

Question 26

What is important in a plan to support ethical practices?

A)a nondisclosure agreement
B)the company's plan to define, reward, and provide training in ethical behavior
C)a statement of ethical practice in the mission statement
D)none, since ethics cannot be something you plan for

Question 27

Which of the following are part of the nine components of the business model?

A)value proposition
B)financial forecast
C)customer profiles
D)website specifications

Question 28

Sean decides to engage in a Vivid Vision exercise.He imagines where his company will be in 10 years.He imagines press releases, his products, leadership style, communications, and customer service.What suggestion would you have for Sean that would help his process?

A)Include the plan for attaining customers in the visioning, not just the service itself.
B)Map out major goals and the people who will help you in this vision.
C)Focus on a shorter timeframe to make the visioning realistic while still stretching into the future.
D)Identify the mentors who will advise you along the way.

Question 29

A sketching out of the basic TRIM issues on any available paper would be called:

A)a first draft
B)an ineffective business plan
C)a back-of-the-napkin plan
D)a sketch

Question 30

Why are back-of-the-napkin plans effective?

A)They are inexpensive.
B)They help clarify and communicate ideas.
C)They are associated with socialization.
D)They are flexible.

Question 31

The Customer section of the business model canvas in the book lists the market size.How was this estimated?

A)the size of the U.S.Indian population, including students in the United States
B)the size of the student population
C)the number of food explorers
D)the number of millennials

Question 32

Anthony writes notes that answer the questions, "what will customers say about me in three years?" "what will the marketing be like?" and "how will the company be run on a day-by-day basis?" These questions are part of the:

A)Vivid Vision Checklist
B)the Then Question Checklist
C)the marketing plan
D)the financial plan

Question 33

What would an investor find impressive in the founding team of India in a Box?

A)a mix of skills including computer engineering, nutrition, food establishment experience, and marketing
B)Indian names and background
C)an intern who may not stay with the company
D)a dedication to the food industry

Question 34

What is done through the Vivid Vision exercise?

A)The entrepreneur tries to imagine what the business will look like 3 years into the future.
B)The entrepreneur's plan is set to a colored image.
C)The entrepreneur's plan is formalized.
D)The entrepreneur tries to imagine what the business will look like in 10 years.

Question 35

This process is a type of visual plan that is especially useful for identifying gaps in the business.

A)back of the napkin
B)business model canvas
C)key component model
D)customer relationship model

Question 36

In the business brief for India in a Box, the owner placed the following under Actions Taken:

A)product, co-packers, supply chain, sales
B)startup plan, business loans, founding team
C)product, market suppliers
D)legal setup, product, target market description

Question 37

Killian decides that he needs a few days away from it all to think out his ideas.He takes up an offer from a friend to spend a few days in his mountain cabin.During this time, Killian imagines what his business will look like in 3 years.He pictures his customers using his product and coming into his facility.Killian is engaging in a practice called:

A)Strategic Planning
B)Vivid Vision
C)Detailing
D)Business Model Canvas

Question 38

What is NOT the goal of the Vivid Vision exercise?

A)an image of what the business will look like 3 years into the future
B)a step-by-step plan of how the vision will be reached
C)major goals required to accomplish the vision
D)an image of what the business will look like in 10 years

Question 39

This process is a type of visual plan that is especially useful for integrating the various components of the business:

A)back of the napkin
B)business model canvas
C)key component model
D)customer relationship model

Question 40

A two to three page document outlining the company's value propositions, customers, and milestones is referred to as a:

A)back of the napkin
B)visioning
C)business brief
D)feasibility study

Question 41

This planning tool helps entrepreneurs test the possibilities of an initial idea to see if it is worth pursuing:

A)the business brief
B)the back-of-a-napkin plan
C)the feasibility study
D)the market research study

Question 42

What length does Guy Kawasaki recommend for a pitch deck?

A)five slides
B)seven slides
C)10 slides
D)15 slides

Question 43

What would be considered under Critical Risks?

A)financial assumptions
B)distribution strategy
C)competitor retaliation
D)developmental strategy

Question 44

Which of the following would be most appropriate to present in a collegiate competition for entrepreneurial funding?

A)concept plan
B)feasibility plan
C)pitch deck
D)business model

Question 45

The distinction of a feasibility study is its ______.

A)formality
B)completeness
C)complexity
D)speed

Question 46

What is the typical length of a business plan?

A)8 pages
B)less than 10 pages
C)20 to 40 pages
D)over 40 pages

Question 47

How many years did the financial projection cover in the business model canvas for India in a Box?

A)one year
B)three years
C)five years
D)10 years

Question 48

Which of the following would be most appropriate to present in an application for angel funding?

A)concept plan
B)feasibility plan
C)pitch deck
D)business model

Question 49

Which of the following would be most appropriate to present in a collegiate competition for entrepreneurial funding?

A)concept plan
B)feasibility plan
C)pitch deck
D)business model

Question 50

A feasibility study is created by what action?

A)documenting important parts of your business
B)testing, information gathering, and analysis
C)well-defined financial forecasts
D)meeting with the founders who will agree on the plan of action

Question 51

What distinguishes a business plan from other forms of business planning?

A)Nothing, they are all business plans.
B)It is a bit shorter than the pitch deck.
C)It is a more formal document.
D)It does not include a financial forecast.

Question 52

What is described in the business concept of the business plan?

A)the industry, structure, products, services
B)a description of potential customers, plan implementation
C)the overall implementation plan
D)the operations and management

Question 53

Which of the following is typically NOT an element of the feasibility study?

A)determining if it will be attractive to investors
B)Determining the existence of a long-term market
C)determining if it is doable-can one continue doing it for a long time
D)understanding the problem being addressed by the product or service

Question 54

What is meant by the term venture concept? 

A)a two to three sentence description of what the problem the product or service addresses, the market, and the value proposition
B)the revenue model
C)the startup requirements
D)the position of the company in the competitive environment

Question 55

Which of the following is the main purpose of the feasibility study?

A)to establish a base for further planning
B)to help investors know whether or not to fund the company
C)to help the entrepreneur reach a "go" or "no-go" decision
D)to solidify the image and purpose of the business

Question 56

What is described in the Marketing Plan section of the business plan?

A)the industry, structure, products, services
B)a description of potential customers and competitors
C)the overall description of customers and the implementation plan
D)the operations and customer service

Question 57

According to the business model brief of India in a Box, which of the following activities would be possible with $250K in seed funding?

A)expansion to the United States
B)expansion to India
C)bring manufacturing in-house with partners in India
D)hire more employees

Question 58

Which of the following would be considered in a feasibility study?

A)financial projections
B)the size of the market
C)the founding team
D)the three year plan

Question 59

A document of no more than 10 pages, this tool answers essential questions with data from interactions with potential customers, suppliers, distributors, and others.

A)the business brief
B)back of the napkin
C)feasibility study
D)business model

Question 60

What is included in the Financial Plan section of a business plan?

A)the industry, structure, products, services
B)a description of potential customers and competitors
C)income and cash flow, balance sheets, and financial projections
D)financial projections only

Question 61

Jason thinks it would be a good idea to start his presentation with a joke in order to break the ice during a business plan presentation.What should Jason be aware of?

A)Keep the jokes to one or two so that the audience is not distracted.
B)Jokes would be considered fluff, irrelevant information for the plan communication.
C)Jokes should be saved for the end of the presentation.
D)In general, it is a good idea and recommended as part of warming up to the audience.

Question 62

What would be the best part of developing a business plan?

A)clarifying concepts with team members and partners
B)knowing whether your business should or should not get started
C)gaining experience in pitching your product or service
D)understanding all the components of your business

Question 63

Why do you want to remove any fluff from your business plan?

A)You do not want to sound decorative.
B)It is best to use indirect language.
C)Fluff can take away from the main message.
D)Your audience may be excellent writers.

Question 64

Nan presents her plan for a slip-on shoe that is water repellent, inexpensive, and highly fashionable.She believes that the market for the product is "everyone in the city of Seattle." Because of this, she forecasts that she will capture 40% of the market.What is the business plan error that Nan is incurring?

A)too much fluff in the presentation
B)not including the market risks
C)the exaggerated hockey stick
D)There is no error.This is a reasonable estimate.

Question 65

Why would someone write a business plan just for themselves?

A)It helps question the validity of one's ideas, markets, and customers.
B)It helps generate more ideas.
C)It documents opportunities.
D)It helps launch the idea faster.

Question 66

Why do some argue that a business plan is not worth the effort?

A)The plan is based on untested assumptions.
B)It takes too long.
C)It requires specialized skills that entrepreneurs may not have.
D)It is redundant after all the other plans.

Question 67

What is included in the Industry, Marketplace, and Competitor Analyses section of the business plan? 

A)customer surveys and results
B)industry analysis
C)financial assumptions
D)market risks

Question 68

In a study by William Gartner from Clemson University, what was the importance of a business plan?

A)It increases the likelihood that entrepreneurs will actually set up their businesses.
B)The business plan was required for the business to move ahead.
C)The business plan almost guaranteed success.
D)The business plan had no impact on the business.

Question 69

What is included in the Executive Summary section of the business plan?

A)the offering; what you expect from the audience
B)a brief summary of the entire business plan
C)the product and market description only
D)a company overview

Question 70

What is included in the Financial Plan section of the business plan? 

A)bank statements
B)breakeven analysis
C)investment requirements
D)contingency plans

Question 71

Which of the following is recommended when presenting your plan?

A)Give the best-case scenario for your business in order to attract others.
B)Be conservative in your financial and market forecasts.
C)Be certain that you can capture 30% to 40% of the targeted market.
D)Be certain that you can capture at least 50% of the targeted market.

Question 72

What is included in the Company Overview section of the business plan?

A)a brief description of everything included in the plan
B)the entry, growth, and exit plan
C)competitive analysis
D)product pricing

Question 73

What would be considered in the Offering section of a business plan?

A)contingency plans
B)market incentives
C)product descriptions
D)investment requirements

Question 74

Ultimately, what is the most important element of a business plan?

A)The ability to have a document to use in your presentations.
B)The formalization of your plan.
C)The exploration, experimentation, and market research that went into creating it.
D)Knowing why you need the plan.

Question 75

Of the following, what is the best time to write a business plan?

A)When you have the data to prove your concept.
B)When you have the founder team.
C)When you have adequate time.
D)At any time in the formation of the business.

Question 76

Who is the primary audience of a business model canvas?

A)friends and family
B)team members and advisors
C)investors
D)banks and early funders

Question 77

What is included in the Development Plan section of the business plan? 

A)bank statements
B)developmental expenses
C)company organization
D)the marketing plan

Question 78

According to IdeaLab, how important were business plans in the success of the company?

A)Those who had good business plans tended to have more successful businesses.
B)They were more important than timing.
C)They were ranked as the least important of the five success factors.
D)They were the second in the importance rank of the five success factors.

Question 79

What is included in the Company Overview section of the business plan?

A)target market strategy
B)industry analysis
C)competitive advantage
D)marketplace analysis

Question 80

Where, in the order of entrepreneurial activity, do business plans occur?

A)at the onset of the business idea
B)after the feasibility study and pitch deck
C)after the business model but before the feasibility study
D)after the business model but before the pitch deck.