Chapter 5

Question 1

what should entrepreneurs aim for when creating plan

Answer 1

Profiles the opportunity, Highlights the big picture, Details the start-up team or individual and key advisors, and Specifies the nature of risks and rewards

Question 2

what does this plan give the entrepreneur

Answer 2

A way to learn more about if a potential business opportunity is desirable and feasible, Ways to select, evaluate and fine-tune their start-up activities, Opportunities to anticipate and avoid demand and supply issues such as supply bottlenecks arising from a mismatch between resource and customer demand, Give confidence and improve perceptions of control, which can also promote task persistence and goal commitment, A reality check that helps avoid inbuilt cognitive biases, Credibility among external stakeholders, making it easier to access external finance.

Question 3

what works better than a plan to achieve succes

Answer 3

Early activities such as collecting customer information and defining the market opportunity

Question 4

consequences of writing a plan early

Answer 4

poor picture of reality (if market assumptions are unreliable or unproven.), business founders might subsequently end up inflexibly following a start-up trajectory that wastes time and money, may become inadequate for future needs, it implies planning is a one-off activity (its a process)

Question 5

Business Model Canvas (BMC)

Answer 5

a simple one-page visual storyboarding tool that structures an intuitive initial understanding of start-up feasibility

Question 6

9 keys for (bmc)

Answer 6

1. Channels – How will it reach its customers? 2. Cost structure – What are the costs in the business? 3. Customer Relationships 4. Customer Segments – Who is the start-up creating value for? 5. Key Activities – What are the start-up’s core business activities? 6. Key Partners – What help will the business receive from suppliers and partners? 7. Key Resources – Does the start-up need physical assets such as manufacturing facilities or vehicles? 8. Revenue Streams 9. Value Propositions – What value does the business deliver to customers?

Question 7

downsides bmc

Answer 7

The founder and their team’s motivations are missing, What roles they assume, how they relate to each other and how they intend to split the rewards, fails to account for industry attractiveness, does not consider why the entrepreneur is embarking on a start-up.

Question 8

industry attractiveness

Answer 8

a market may have rich customers who are easily parted from their money, but they may be found in an industry dominated by a possessive and vindictive competitor