Case 3.3: Business Plan for Room for Dessert

Questions

1. On a scale of 1-5, rate RFD as a business.

2. On a scale of 1-5, rate the RFD business plan.

3. What makes the RFD business plan a good plan?

4. Who is the plan written for (“elevator pitch”)?

5. As a venture capitalist, how would you obtain realistic, “non selling” information about the business, and an honest evaluation of the risks and uncertainties of the business?

6. What is the purpose of a business plan?

7. How does the founder retain control of the firm (maintain a high proportion of equity ownership)?

8. In the business plan, how realistic have the founders been in describing potential risks?

9. Evaluate the business itself, using a POCD approach.

10. Why aren’t the terms of the deal specified in the plan?

11. What is the market opportunity for RFD? Do customers currently exist, or will the venture serve a new market? What are the alternative competitors, and how does RFD differentiate itself from the competition?

12. What are the economics for RFD? How does the business plan provide an accurate or inaccurate evaluation of the potential economics of the business?

13. What is the business’ operating model?

14. What needs to be done before the business can be launched?