Question

A. What are the key characteristics of a prototype business plan?

B. Opportunity means “ a chance with a commercial value “ provide the module for assessing a business opportunity

Answer 1

What Is A Prototype?

A prototype is a rudimentary working sample, model, mock-up or just a simulation of the actual product based on which the other forms (MVP, final product, and variations) are developed.

The main motive behind prototyping is to validate the design of the actual product. Sometimes, creating a prototype is called materialization as it is the first step of transforming the virtual or conceptualized design into the real physical form.

It is the preliminary version of the actual product developed for:

• Validating the design of the product,
• Presenting to investors or licensees,
• Intellectual property protection,
• Removing kinks in manufacturing,
• Testing and refining the product.

Qualities Of A Good Prototype

Representation

A prototype is a rudimentary representation of the actual product. It represents how the product will look and/or work like.

Precision

More precise the prototype, better the response and feedback.

Functional

A good prototype performs the basic functions of the actual product (if possible).

Improvision

A good prototype is one which can be improvised on with minimum effort. This one of the most important aspect of prototyping as a prototype is subject to many improvisations.

Assessing a business opportunity.

Many of us are faced with business opportunities on a regular basis. Deciding what’s worth embracing, though, can be difficult. Whether you’re starting a new business or whether you’re trying to expand your current business with a new opportunity, it’s vital to know how to appropriately evaluate it.

As you look forward, here are some things to consider when deciding whether a business opportunity is worth embracing:

1. Market Size

One of the most important factors when evaluating a business opportunity is market size. Do a little market research. Figure out if there is a market for the opportunity — and how big that market is.

Before you move forward, you want to be sure the demand is there. You don’t need to appeal to a massive market, but it does help if you understand the market. Additionally, knowing how engaged the market is and how likely they are to pay for what’s being sold can help.

2. Relationships

Does the business opportunity come with some relationships? For example, do you have an “in” that can help you leverage the opportunity? If you know someone who is technically minded, that can help you with certain aspects of the opportunity. What are your relationships with potential investors or customers? When you have more relationships, the opportunity is likely to run smoother.

3. Ability to Manage Cash Flow

Next, you need to look at the ability to manage cash flow. Is there start-up funding for the business? What about ways to keep funding the business each month. Figure out how the cash flow will be managed, and take a look at the business plan. You want to make sure that the business is likely to sustain itself after a period of time.

4. Management Skillsets

What are the skillsets of those involved? If you are evaluating your own business opportunity, you need to be honest about what you bring to the table, and what you need to make up for. When looking for a business opportunity to invest in, or expand into, look at the management. What skills do they have? Are they appropriate and diversified? Do you trust the competence of the principals to make the opportunity a success?

5. Passion and Persistence

Even if there is a bit of a talent deficit, it’s possible, in some cases, to make up for that with passion and persistence. Are you working with people who will get the job done?

Do you trust that they have the passion to make things happen? Will they approach problems with a can-do attitude in order to solve them?

When dealing with your own startup, you need to make sure you have the passion and persistence for the opportunity. Will you push through even though things get a little dark? If you’ve done your research, and you are confident in your team and your plan, then being able to push through is vital.