PowerPoint 1

Question 1

Which are the Steps for a Business ?

Answer 1

• Idea
  Funding – own savings
• Prototype
  Funding – “family, friends and fools”
• Development
  Funding – Business Angel
• Scale up, …
  Funding – Venture Capital, … investment banks

Question 2

What’s SWOT analysis ?

Answer 2

Strengths Weaknesses Opportunities Threats analysis
* Understand firm’s Strengths and Weaknesses
* Read the Opportunities and Threats from the broad and near business context

Question 3

Things needed to know about the customers/target market ?

Answer 3

Who? What needs?
* Characteristics - Know your customer
* Target size? And growth?
* Willingness to pay?
* Repeated buys/amounts?

Question 4

Things needed to know about the Competition ?

Answer 4

Who? How many?
* Dimension?
* Location?
* How different from your solution/unique value?

Question 5

Things needed to know about the GO-TO-MARKET ?

Answer 5

• Placement/Distribution
• Promotion/Communication

Question 6

Things needed to know about the Revenue Model ?

Answer 6

• Pricing (e.g., cream skimming, bundle discount, seasonal, two-part tariff, early bird)
• Assistance after sell: Consummables; Maintenance
• Additional/change features; Pack
• Avertising; Freemium; Clicks/views

Question 7

Things needed to know about the Team ?

Answer 7

• Human resources
  What fields? How many?
• Organization and communication

Question 8

Things needed to know about the Development plan ?

Answer 8

Chronology – milestones
* Main objectives?
* Strategies?

Question 8

Things needed to know about the Operations ?

Answer 8

Depending on product/service , target and marketing mix

Question 9

Which are the phases of the Development Plan ?

Answer 9

 Formulate business idea
 Prototype
 Hire personnel
 Raise (seed) funds
 Market testing
 Starting the operations
 Communication and distribution
 First sale
 Strategy redesign
 R&D

Question 10

Things needed to know about the Risk and Options ?

Answer 10

• What are the main risks and difficulties?
• What are the options?
• What is the exit option?

Question 11

What is the Financing needs ?

Answer 11

investment (non current assets and working capital) and and early losses

Question 12

What are the different types of assets ?

Answer 12

Non-current assets (e.g. Equipment, Patents)
Current assets (e.g. Inventories, Accounts receivable)

Question 13

What are the different types of Liabilities ?

Answer 13

Equity
Long-term debt (e.g. Loans)
Short-term debt (e.g. Accounts payable)

Question 14

How do you calculate the working capital ?

Answer 14

working capital = current assets - short-term debt

Question 15

What is the Income statement important for?

Answer 15

for supporting break-even analysis and operating cash-flow

Question 16

What are the different types of Revenues ?

Answer 16

Operating revenues (e.g. Sales, R&D)
Financial revenues (e.g. Interest, Fees)

Question 17

What are the different types of Costs ?

Answer 17

Operating costs (e.g. Materials, Wages)
Financial costs (e.g. Interest, Fees)

Question 18

How can we know if we having profit or loss ?

Answer 18

Profit = if Revenues > Costs
Loss = if Revenues < Costs

Question 19

What is used for Project Evaluation ?

Answer 19

Operating cash flow; investment, and residual value of project
* Break-even;
* Criteria: Payback period; Internal Rate of Return; Net Present Value

Question 20

What’s the Payback period ?

Answer 20

how many periods to recover investment

Question 21

What’s the Internal Rate of Return ?

Answer 21

points out the highest cost of capital; obtained as the discount rate that makes NPV=0

Question 22

What’s the Internal Net Present Value (NPV) ?

Answer 22

net cash-flow evaluation taking into account the actual cost of
capital