Question

Laura and Mia have created a business plan in hopes of using it to raise funds so they can launch their business. They keep approaching banks and investors, but they can't even get an appointment to speak with anyone. Which of the following could be a potential problem? Question 11 options: Their executive summary is one page long. Their cash-flow statement shows seasonal fluctuations. They haven't clearly stated the benefits of their product. They have identified competitors.

Answer 1

Answer:

The correct answer would be C, They haven't clearly stated the benefits of their products.

Explanation:

When a new person wants to start a business, there can come a lot of difficulties in his way. Making space for himself in the market, grabbing investors' attention, presence of settled competitors, etc, can be some major barriers for him. But if your business plan is extraordinary and you have something which has not been launched by other companies and you have some innovative products to launch, then you can easily grab the attention of investors and banks who will happily be ready to give loans or invest in your business.

In this given scenario, Laura and Mia are new in market, and they are unable to get a reply of even appointment from the banks or investors. The only reason could be that banks or investors did not fully understand the benefits of product that they are going to launch. So if they want to get a quick reply, they need to make a fantastic proposal, stating the benefits of their new business, in order to get the investors' attention and interest.