SBE 330 Week 4 Discussion Question 2 – Evaluating the Product Development Process

Document Content and Description Below

Week 4 DQ 1: Product Development and the Business Plan Which section or sections of a business plan submitted to venture capitalists are the strongest and which sections are traditionally the weake... st? Identify and discuss at least two weak sections of traditional business plans. The strongest section of a business plan submitted to venture capitalists pertains to the technical considerations and is typically "placing too much emphasis on the technology relative to the other issues." (Textbook, p. 300). The sections of the business plans that usually contain problems are the marketing plan, management team, technology plan and financial plan. The marketing and finance areas tend to be the weakest. The textbook reading tells us that 'less than half of the plans examined provide a detailed marketing strategy and just one-half include any sales plan. Three-quarters of the plans fail to identify or analyze competitors. Most business plans contain only basic financial forecasts, and just 10% conduct any sensitivity analysis on the factors." (Textbook, p. 302) Once there is a clear understanding of the market and technical inputs for a business plan, the financial estimate will be answered easier with risk and uncertainty still to be determined. [Show More]

Last updated: 10 months ago

Preview 1 out of 1 pages