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What are the negatives of being an entrepreneur
Answers: Not Structured
Lack of financial stability
We also discuss several other topics like mgf 1106 study guide
Shorter working hours
Choose the advantages of being an entrepreneur from the list below
Answers: Ability to think big
Do what you enjoy
Freedom If you want to learn more check out aquifed
On average how many hours does a self employed person work every week
No stop work, 24/7
Does not work. Like a boss
In this class, my goal is to make everyone an entrepreneur
Entrepreneurship does not have to be high risk
Research completed in 2009 determined that the average age of a successful entrepreneur in highgrowth industries such as computers, health care and aerospace is
Answers: 25 If you want to learn more check out the golgi complex is composed of about six flattened membranous sacs called
40 We also discuss several other topics like prenatal development can be divided in to three parts. which of the following statements about these three parts is not correct?
What company started the Antenna Balls?
Answers: Wal mart
Jack in the Box
Who invested in the Green Fresh Patch pitch?
Answers: Kevin O'leary
Mark Cuban If you want to learn more check out the art of public speaking final exam
Which of the following are good strategies for coming up with new ideas?
Answers: Search for a Better Way
Get Inspired by History
Head Into the Weird Places
Attack Practical Problems If you want to learn more check out ksu kronos
Let Your Subconscious Do the Work
All the above
Perhaps the greatest factor that determines whether or not an entrepreneur will be successful isn't the business idea itself, but rather
rs:availability of a lot of funding to push the idea forward
lack of competition from the market
having great team member and co-founders
the entrepreneur's willingness to try (and keep trying) to turn the idea into reality.
A good strategy/method to use is when trying to identify the problems of your startup
Answers: The CCC method
The 5 why method
The Triple S challenge
The Quinzy Problem Finder method
Understanding your customers should only be done in the intial stages. Once the customer is identified then you stop doing market research.
Entrepreneurs's passion is a great indication of the quality of the idea
The market research process can be placed in 6 steps. Order them in the right flow.
Identify the research purpose
Collect data from the market
Evaluate already collected data
Analyse already collected and evaluated data
Interepret the analysed data
Disseminate the final product from market research to all decision makers in your company
Which of the following is not a question you need to answer when doing market research?
Who are target customers for your company?
How often those customers will purchase specific products or services? How much they are willing to pay for that products and services to you? How much does it cost to run your marketing campaign?
What is the price of the specific product or services that your competitors offer on the market?
Select the possible sources of information for market research
Answers: Current customers
Magazines and journals
Order the following according to the 7 Steps to Launch your Idea
Don’t keep it to yourself
Seek the devil’s advocate
Build a product that you would use
Test your idea
Start thinking about revenue models
Create a landing page (connection point)
Find your first clients and get out to market
Which of the following is not part of the product development stages?
Answers: Problem/Solution Fit
Scale and Growth
A good example of product market fit given was:
The slide deck outline included 11 main categories. Which one is missing?
Momentum, Traction, Expertise: Your key numbers
Market Opportunity: Define market size & your customer base
Problem & Current Solutions: What need do you fill? Other solutions ?????
Business Model: Key Revenue Streams
Market Approach & Strategy: How you grow your business
Team & Key Stakeholders (Investors, Advisors)
11. Investment: Your ‘Ask’ for funding, Basic use of funds
Selected Answer: Product and service (your solution)
What is a pitch deck for? Select all that apply
:To give enough information to grab their interest, but not too much as to overwhelm them
To answer all possible questions, and close immediate investment
Give them enough to get excited about, but leave them wanting more To tell a story in a visual sense with at least 25 slides
When the Dollar Shave Club video was launched what happened
Answers: The website and servers crashed from extensive orders and demand Nothing really, it went undetected for 3 weeks
The video had to be re-editted because of an audio error
They hired a logistics person to manage the orders
Which of the following represent common deck mistakes?
Answers: Too many slides, too much information
False/silly assumptions you can’t back up or don’t have data on Creating a story
Which of the following represented a bad business pitch?
Answers: Dollar Shave Club
Share the Air
Dollar Shave Club's CEO has background in comedy and theater Selected Answer: True
The Go Greek Yogurt pitch deck was great but what was missing?
Answers: Financial Projections
Overview of the team
Their distribution and strategy
Nothing was missing
Why was The Knowledge pitch a bad one?
Answers: The presenter did not know how to answer questions
The product he was presenting did not work during the demo
He talked too much about the financial projections
He made really bad assumptions
On your pitch deck, the goal of the Team slide is to
Answers: Highlight key team members and their prior positions, successes, domain expertise
Demonstrate relevant experience
Show the size of your team
Which roles are the keys to success in your company/space?
Too many financial details for an investor deck is considered a deck mistake Selected Answer: True
How many legal business entities were discussed in the lecture? (excluding non-profits) Selected Answer: 5
After your form and publish your LLC you must obtain a number from the IRS. What is that number called?
Selected Answer: EIN
What to Include in Your Operating Agreement?
the members' percentage interests in the LLC
the members' rights and responsibilities
the members' voting powers
how profits and losses will be allocated
description of the owner personal assets and liabilities
rules for holding meetings and taking votes
Choose all that apply regarding a Sole Proprietorships
Answers: Owner remains personally liable for lawsuits filed against the business. No state filing required to form a sole proprietorship.
Easy to form and operate.
Owner reports business profit and loss on their business tax return. What is a vesting schedule in an operating agreement?
Basically allow you to “trial” a hire or partnership without an immediate equity committment.
Instead of each getting our shares % immediately, it gets given to us regularly over some period
The process by which an employee accrues non-forfeitable rights over employer provided stock incentives or employer contributions made to the employee's qualified retirement plan account or pension plan.
The owners of an LLC ordinarily make financial contributions of cash, property, or services to the business to get it started. In return, each LLC member gets a percentage of ownership in the assets of the LLC.
How much does it cost to file an expedited LLC Articles of Organization to the ACC? Selected Answer: $85
Which is true about an Operating Agreement
Every LLC is required to have an operating agreement
An LLC operating agreement expires at the end of the fiscal year and needs to be renewed
An operating agreement allows you to structure your financial and working relationships with your co-owners in a way that suits yourbusiness.
An operating agreement must be filed with the state to be valid
The benefits of an LLC include (choose all that apply)
Answers: Independent legal structures separate from their owners. Ability to issue stocks and accounts
Help separate your personal assets from your business debts.
Not required to hold annual meetings or record minutes.
What does LLC stand for?
Limited Liability Company
Which of the following represents the three big ideas about branding beyond beautiful.
Answers: Rise Above Commoditization
Develop a color pallette and design
Answer the one big question
Tell a great story
For the big idea #1: Ride Above Commoditization which of the following apply?
Answers: Define all audiences, investors, markets and media
Do not bore anyone into buying your product
Pick a color, graphic style, imagery
Differentiate your products and your communications
An example of design with good empathy is... (based on the lecture)
Answers: Dish Network DVR
Tivo Remote Control
A brand is what you say it is, and what others feel, think, say about you. Selected Answer: False
Place these in the proper order
A great design is where user goals meet ...
Answers: Investor goals Business goals
None of the above
When designing you should consider the following. Order from highest importance to lowest importance
An example of downstream audience is...
Answers: End-user Investors
An example of upstream audience members is...
Design is making things look pretty.
Selected Answer: False
What are the three main financial statements?
Answers: Balance Sheet
Break Even Sheet
Profit and Loss Statement
Cash Flow Statement
When you have an idea or prototype, you can raise money from...
Friends and Family
Which of the following show the correct process of financial management
Selected Answer: All below:
Preparation of historic and fincancial Statements
2. Preparation of Forcasts
3. Preparation of Pro Forma Financial Statements
4. Ongoing analysis of financial results
Which of the following is true?
Answers: Profit= Revenue - taxes
Revenue= Profit + Expenses
Expenses= Revenue + Profit
Profit= Expenses - Revenue
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?
Selected Answer: 23%
Formula: $3 invest / (10 pre + 3 invest (aka post)) = 23% dilute
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?
Selected Answer: 11.1%
Formula: 1 / (1 + 9) = 11.1% equity
When dealing with profit and loss (PNL) analysis which of the following is true?
Answers: Gross profit = Sales - Costs of Goods Sold
Net Profit = Sales - Expenses - Taxes
Gross Profit + Operating Expenses = Net Profit
EBT + EBIT = Gross Profit
Which of the following sequences is true in terms of the Primary Financial Objectives? Selected Answer: Profitability, Liquidity, Effeciency, Stability
A financial Statement is a written report that...
Answers: reflect past performance and are usually prepared on a quarterly and annual basis.
describes a firm’s financial health
estimates the firm’s future income and expenses
creates an itemized forecasts of a company’s income, expenses, and capital
Which of the following represents some of your operational costs
Answers: Raw materials and equipment
Marketing and advertising costs
Premises (Rental or Mortgage)
Utility bills –gas, electric, telephone, postage etc
The "need to sell enough product to cover costs" represents
Answers: Financial projections
Break even point
What are the main goals of the financial sheets you send the investors?
Answers: Understanding how costs and sales relate to each other. Give an exact overview of how much money will be made over the next years. Provide a series of assumptions for your financial projections
Allow the investor to understand your exit strategy
When preparing a pitch deck make sure to include ...
Selected Answers: 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?
What are the types of risks investors worry about?
Price or cost
What is equity financing?
In exchange for money, investors recieve an interest rate based on their funding level
It is equivalent to a convertible note but on the east coast
In exchange for money, share of the company are sold to investors.
In exchange for money, investors receive a conversion rate for the future value of the company
If you need funding for your initial stage, you should be going after...
Answers: Angel investors
Friends and Family
When you are raising money you need to...
Answers: Raise enough money to get you to the milestones you need to hit Raise more money than you think you need to hit those milestones Avoid large dilution and ask for chunks of small money rounds Plan for about 2-3 rounds of upcoming funding
When talking to investors you are selling...
Answers: Your dream and vision
The pitch deck
The financial projections
When pitching an investor, remember to ...
Answers: Sell the dream
Listen to what they ask
Lead the conversation
Let them know why they are a perfect match for you
Have the slides from your pitch deck running in the background Have a lead investor
How much return are investors looking for?
What is the maturity date?
The date when the company has sold enough products to raise funding.
The date by which investors can force a company to convert their shares in the company
The date by which investors can force a company to pay back debt if the company is not aquired
The date by which the company is ready to raise another round of funding at a higher valuation