Please view the attached PowerPoint and help to answer these…

MajorDangerWaterBuffalo9 Please view the attached PowerPoint and help to answer these…Please view the attached PowerPoint and help to answer these questions:What are 3 major areas Mr. Sims identifies for a risk inventory?What do you prepare for investors when they are looking to invest? (Please list 10 of the 26 items)Identify  5 sources of cash into businesses and whether it is debt or equity?How do investors look at manage risk by investing in phases?    And please describe why this is important.Image transcription textIf we believe the primary ethic in business is to be sociallyresponsible then what is: Social Responsibility”? Milton Freedomstates: “There is one and only one social responsibility … Show more… Show moreImage transcription textBusiness has one primary (Business Model) function: to create arevenue generating consumer. Management has one primaryfunction: to create a solution to a financially based pro… Show more… Show moreImage transcription textWhat iS an entrepreneur? Entrepreneurs are individuals whorecognize opportunities where others see only chaos andconfusion. “It is not the strongest of the species that s… Show more… Show moreImage transcription textThe Entrepreneurial Process Question: Have you developed asolution and are looking for a problem, 0R have you identified aproblem and are developing a solution? (FYI — openin… Show more… Show moreImage transcription textWhat sets entrepreneurs apart from others in business is not ahigh tolerance for risk. It is the ability to assess and manageidentified risks. … Show moreImage transcription textEntrepreneurial Don’ts Don’t confuse the “value of creating” with”creating value”. Don’t confuse the price to buy and the cost to use- your customer won’t. Don’t confuse efficiency with ef… Show more… Show moreImage transcription textInvestor Characteristics to Consider >Will usually have aspecific geographic focus. >Will always have a specific marketfocus (expertise). >Will usually have a specific “fina… Show more… Show moreImage transcription textHow do you find and choose the right investment partner? 1.Determine size and staging of financial needs 2. Determine typesof investment needed (debt/equity) 3. Identify potenti… Show more… Show moreImage transcription textSources of Funding 1. Self-funded (cash/debt) 2. Private investors(debt/ equity) 3. “Angels” (equity) 4. SBA Loans (debt) 5.Commercial Lenders (debt) 6. Venture Capital (equity) … Show moreImage transcription text* How Potential Investors Evaluate Investment Opportunities.What are the questions you must be prepared to answer? … Show moreImage transcription text1. The most important requirement is a large market opportunityin a fast growing sector. Is there an analysis that includesevaluating market growth, market size, competition, a… Show more… Show moreImage transcription text8. What are the market dynamics, i.e. Is this the replacement of anexisting product – a better, cheaper, faster model? 0R Will this be anew piece of functionality facing as yet unqualified ma… Show more… Show moreImage transcription text4. How does the company plan to increase the value it gets from acustomer? Is it through additional product designs or more users,and how does that affect pricing and gross margins? T… Show more… Show moreImage transcription textB = Optimal price to achieve maximum sales volume A and C =same sales volume at two different price points A = Premiumprice or direct sales C = Discount price or distributor … Show more… Show moreImage transcription text12. Is there a current barrier to entry that must be overcome? 13.Can a barrier to entry be created to protect market position? 14.Is the opportunity being presented by a sales-oriented… Show more… Show moreImage transcription text24. Is there identified risk reduction with each round of requiredfunding by achieving pre-established milestones and timelines? … Show moreImage transcription text21. How long will it take to deliver first product? How much initialinventory will be needed at what cost? 22. What is the proposedpre-money value being presented and what is the foun… Show more… Show moreImage transcription text17. Are there well established channels through which to sell theproduct? What is the distribution strategy? A direct sales force isusually very expensive to structure and to maintain. 1… Show more… Show moreImage transcription text”FULLY LOADED” MARGIN EXAMPLE $1.00 In Sales$0.50/$1 Net 00 Profit =50% $1.00 Gross $0.50 Cost Profit-$0.25 1& OE Margin $0.50 =$0.25 Gross Minus … Show more… Show moreImage transcription text17. Are there well established channels through which to sell theproduct? What is the distribution strategy? A direct sales force isusually very expensive to structure and to maintain. 1… Show more… Show moreImage transcription text25. Investors will analyze both the revenue model achievementand the expense projection performance. 26. How muchinvestment will be necessary to achieve cash flow brea… Show more… Show moreImage transcription textSeed investment = Need $100,000 – Seek funding in riskreduction steps Phase 1: complete design: Date to beaccomplished and funding needed for this phase = $5,… Show more… Show moreImage transcription text24. Is there identified risk reduction with each round of requiredfunding by achieving pre-established milestones and timelines? … Show moreImage transcription text21. How long will it take to deliver first product? How much initialinventory will be needed at what cost? 22. What is the proposedpre-money value being presented and what is the foun… Show more… Show moreImage transcription textWhy might an investor decide to make an investment in youropportunity? What questions will they ask? … Show moreImage transcription textd. Have you created a “risk inventory”? Risk Management AnalysisMarket Risk(s) Competition Competitive comparative cost/benefit ratio Competitive pricing pressure Credit Risk(… Show more… Show moreImage transcription text2. Having made the initial decision to invest, what are the obviousrisks and how will they be managed? a. Are your financialprojections believable? In the review the investor will … Show more… Show moreImage transcription texte. Are there currently other investors that have committed? Who?How much? f. Have you (and your founding team) personallyinvested? g. Does the investor believe you can execute … Show more… Show moreImage transcription texta. The more complicated the explanation needed when presentingthe opportunity, the less likely they are to invest. Can you explainyour business model in one paragraph? b. How much f… Show more… Show moreImage transcription texte. Can you structure a risk-reduction investment plan withmeasurable goals and timelines? f. Have you structured yoursupply chain and identified the possible weakest links … Show more… Show moreImage transcription textYou will notice I never used the term “Strategy”. There are onlythree possible strategies that address effectiveness (revenuegeneration) and efficiency (profitability) §n_d that mus… Show more… Show moreImage transcription textg. Can you recruit the projected human resource needed? 3. Is thefounder willing to accept upgrading the management team ifnecessary? 4. Is the location conducive to recruiting th… Show more… Show moreImage transcription textSIMPLE GROSS MARGIN/ NET MARGIN EXAMPLE $10.00 InNet Profit Minus Margin Sales Net Interest on Gross Profit debt& Profit Net Profit/Sales= Margin taxes=25% $1… Show more… Show more BusinessBusiness – Other