Business Plans Flashcards
- Explain the three mentioned reasons why it is necessary to have a business plan according to
the lecture.
- It is a roadmap and basis for funding decisions.
- An intensely focused activity. It requires honest thinking about your business concept.
- The more mature a business, the more you need a structured plan.
- What are the four key objectives and the three key instruments of EXIST according to the
lecture?
Key Objectives of EXIST
1. Establish a culture of entrepreneurship in university teaching, research and administration.
- Translate the findings of academic research into economic value
- Promote the huge potential for business ideas and entrepreneurs at universities and research institutions.
- Increase the number of innovative business start-ups and create new jobs.
Key Instruments of EXIST
1. Entrepreneurship Culture
2. Start-up Grant
3. Research Transfer
- Name a typical structure of a business plan.
▪ Cover page and table of content
▪ Executive summary
▪ Business description
▪ Business environment analysis
▪ Market analysis
▪ Competitive analysis
▪ Marketing plan
▪ Operations plan
▪ Financial plan
▪ Management team
▪ Industry background
▪ Attachments and milestones
- What are the four sections of the EXIST business plan template? (Gründerstipendium)
- Executive Summary
- Business Idea
- Market/Competition
- Operational Planning
- What are the three definitions mentioned in the lecture for pricing (Simon, 2004; Piercy et al.,
2010; Ingenbleek et al., 2003)?
- The price is a key factor for profits
- It has high strategic impact.
- It can be determined in three ways; cost-based, competition-based, value-based
- Explain GbR, GmbH and UG according to the slides in the lecture.
GbR is a type of business entity in Germany known as a “partnership under civil law” or “civil law partnership.” It is formed when two or more individuals or entities join together to conduct a business without establishing a separate legal entity.
GmbH (Gesellschaft mit beschränkter Haftung):
GmbH is the German term for a “company with limited liability.” It is a separate legal entity that offers limited liability protection to its owners. In a GmbH, the liability of the shareholders (known as “Gesellschafter”) is limited to their investment in the company.
UG, also known as “Unternehmergesellschaft mit beschränkter Haftung,” is a German business entity introduced in 2008. It is often referred to as a “mini-GmbH” or “entrepreneurial company with limited liability.” UGs are similar to GmbHs but have lower capital requirements, making them more accessible to small businesses and startups.
- What is the definition of Risk according to Vaughan (2008).
Risk is a condition in which there is a possibility of an adverse
deviation from a desired outcome that is expected or hoped for.
Risk = consequences * likelihood
- Explain the Van Westendorp-Method using your own words and point out the four main
questions
It’s a market research technique used to determine the acceptable price range for a product or service.
- At what price would you consider the product/service to be too cheap, indicating low quality or value?
- At what price would you consider the product/service to be a bargain, offering great value for the money?
- At what price would you consider the product/service to be getting expensive, but you would still consider buying it?
- At what price would you consider the product/service to be too expensive, and you would not consider buying it?
- Name the five points of the Consequence Scale including the explanations.
[1]. Irrelevant—the risk doesn’t impact changes in the company’s goals
and objectives
[2]. Minor—the risk can be treated with existing resources
[3]. Moderate—the impact of risk can be treated, but additional resources
are required
[4]. Major—treatment of the risk will require significant additional resources from other sectors or sources
[5]. Significant—the risk might cause the company to fail achieving its goals and in some cases can prove to be fatal to the company
- Name the five points of the Likelihood Scale including the explanations.
[1]. Rare—the risk might occur only in extraordinary circumstances. Such a
risk has occurred somewhere else and might occur once in every 5+ years. Probability of occurrence is lower than 5%.
[2]. Unlikely—the risk might occur at some point, for example, once in 5
years. Probability of occurrence is 5–30%.
[3]. Possible—the risk might occur at some point, for example, once in 3
years. Probability of occurrence is 30–70%.
[4]. Likely—the risk might occur, at least once during the year. Probability of
occurrence is 70–95%.
[5]. Almost certain—the risk is expected to occur in the majority of cases,
occurs often during the relevant year. Probability of occurrence is 95–100%.
- Name the three options to treat risks including the explanation, mentioned in the lecture.
- Risk avoidance includes taking proactive measures, such as requiring clients to cover purchased goods with credit through a collateral, or not
undertaking any activities at all, which is expected to be damaging. - Risk reduction includes taking concrete measures to minimize the consequences of a specific risk, such as installing alarms to secure assets from eventual thefts, or installing fire alarms.
Risk anticipation, in literature, also known as the self-insurance strategy, where entrepreneurs leave aside some amount of money in order to
cover damages if a risk occur.
- Name the steps of the Linear causation approach.
- Analyse
- Plan
- Do
- Check
- Act
- Name the steps of the Linear causation approach in an entrepreneurial context.
- Market Research
- Segementation
- Positioning
- Business Plan
- Financing and Staff
- “Go-Live”
- Name and explain the five principle of effectuation according to Sarasvathy (2009)?
