BSM Final questions well answered
already passed
What is a Growth stage of a business? - correct answer ✔✔- After a successful start-up; multiple
opportunities available; recognition that there are more orders, revenue, customers; decisions
not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more people and
processes"
Issues faced by a business in Growth stage? - correct answer ✔✔Risks. People, processes,
prioritizations, pace, and imitation.
What pitfalls can there be within the growth stage? - correct answer ✔✔Marketing, finance,
team/structure, and operations.
How long can a business stay in the growth phase? - correct answer ✔✔A business can stay in
this phase indefinitely, some would maybe even like to stay in this phase... growth is not linear.
Stage 1 to Stage 2 key issues - correct answer ✔✔move from viability (1) to getting more
resources for growth (2)
Stage 1 to Stage 2 top management - correct answer ✔✔micro manage (directly) to direction or
delegation (2)
Stage 1 to Stage 2 Mgt style - correct answer ✔✔Individualistic (personal) to coordination
Stage 1 to Stage 2 Organizational Structure - correct answer ✔✔Unstructured to functional
,Stage 1 to Stage 2 product or market research - correct answer ✔✔Instinct (1) to mainly
improving existing products, scaling and some developing and researching new products (2)
Stage 1 to Stage 2 Systems - correct answer ✔✔simple, day to day (1) to systematic control
reports, analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source - correct answer ✔✔owners and friends (1) to Banks, retained
earnings, new partners (2)
Stage 1 to Stage 2 Profits - correct answer ✔✔Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments - correct answer ✔✔Equipment financing (1) working
capital (Current Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market - correct answer ✔✔single (1) to broader (2)
Changing importance of factors - correct answer ✔✔Stage 1: Owner, Cash, Product, crucial
relations (one significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? - correct answer ✔✔Yes-> Success Growth (pursuit of further or
new growth by owners. Intimately involved.
No-> Success Disengagement (owner takes a step back and management takes over), owner
focuses on their interests, professional managers are more important
, Why entrepreneurs don't scale? - correct answer ✔✔- Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
Challenges/Needs of Growing Business - correct answer ✔✔- Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth - correct answer ✔✔1) Being better is more important than being bigger (move
away from from revenue thinking...) Every business does not have to grow but every business
does have to continuously improve its customer value proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders, culture, and
processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions can be excellent
6) Needs diversity of thinking.
Grow to Greatness - Edward Hess - correct answer ✔✔- Thirty four CEOs had prior work
experience in their business's industry
- Twenty-eight CEOs had no prior start-up experience
- Forty companies were self-funded by the founder, family, and friends
already passed
What is a Growth stage of a business? - correct answer ✔✔- After a successful start-up; multiple
opportunities available; recognition that there are more orders, revenue, customers; decisions
not based on survival.
- "When it stresses people or processes. Then you have to upgrade or add more people and
processes"
Issues faced by a business in Growth stage? - correct answer ✔✔Risks. People, processes,
prioritizations, pace, and imitation.
What pitfalls can there be within the growth stage? - correct answer ✔✔Marketing, finance,
team/structure, and operations.
How long can a business stay in the growth phase? - correct answer ✔✔A business can stay in
this phase indefinitely, some would maybe even like to stay in this phase... growth is not linear.
Stage 1 to Stage 2 key issues - correct answer ✔✔move from viability (1) to getting more
resources for growth (2)
Stage 1 to Stage 2 top management - correct answer ✔✔micro manage (directly) to direction or
delegation (2)
Stage 1 to Stage 2 Mgt style - correct answer ✔✔Individualistic (personal) to coordination
Stage 1 to Stage 2 Organizational Structure - correct answer ✔✔Unstructured to functional
,Stage 1 to Stage 2 product or market research - correct answer ✔✔Instinct (1) to mainly
improving existing products, scaling and some developing and researching new products (2)
Stage 1 to Stage 2 Systems - correct answer ✔✔simple, day to day (1) to systematic control
reports, analysis, comparisons (own and social) (2)
Stage 1 to Stage 2 Finance source - correct answer ✔✔owners and friends (1) to Banks, retained
earnings, new partners (2)
Stage 1 to Stage 2 Profits - correct answer ✔✔Negative or barely (1) to positive returns (2)
Stage 1 to Stage 2 Major Investments - correct answer ✔✔Equipment financing (1) working
capital (Current Assets - Current Liabilities), finding new locations (2)
Stage 1 to Stage 2 Product market - correct answer ✔✔single (1) to broader (2)
Changing importance of factors - correct answer ✔✔Stage 1: Owner, Cash, Product, crucial
relations (one significant customers, supplier or technology)
Stage 2: Managers, systems, formal research, wider network
Owner(s) wants to grow or? - correct answer ✔✔Yes-> Success Growth (pursuit of further or
new growth by owners. Intimately involved.
No-> Success Disengagement (owner takes a step back and management takes over), owner
focuses on their interests, professional managers are more important
, Why entrepreneurs don't scale? - correct answer ✔✔- Loyalty to comrades
- Task orientation
- Single-mindedness to one product/idea
- Working in isolation
Challenges/Needs of Growing Business - correct answer ✔✔- Structure
- Finance
- Human capital
- Administration
- Business focus
- Market Situation
- Marketing
Smart growth - correct answer ✔✔1) Being better is more important than being bigger (move
away from from revenue thinking...) Every business does not have to grow but every business
does have to continuously improve its customer value proposition better than competitors.
2) Not Grow or Die but improve or die
3) Growth is a complex experimental learning process, depends on people/leader/culture
4) Growth is outcome of a comprehensive internal corporate system, leaders, culture, and
processes.
5) Scaling is the foundation of organic growth and small strategic acquisitions can be excellent
6) Needs diversity of thinking.
Grow to Greatness - Edward Hess - correct answer ✔✔- Thirty four CEOs had prior work
experience in their business's industry
- Twenty-eight CEOs had no prior start-up experience
- Forty companies were self-funded by the founder, family, and friends
