Question

Nan presents her plan for a slip-on shoe that is water repellent, inexpensive, and highly fashionable. She believes that the market for the product is "everyone in the city of Seattle." Because of this, she forecasts that she will capture 40% of the market.
What is the business plan error that Nan is incurring?

a. too much fluff in the presentation
b. no clear product benefits
c. the exaggerated hockey stick
d. There is no error. This is a reasonable estimate.

Answer 1

Answer:

c. the exaggerated hockey stick

Explanation:

Based on the information provided within the question it can be said that the business plan error that Nan is incurring is the exaggerated hockey stick. In the context a business, "a hockey stick" explains a startups growth as a linear steady growth at launch until it hits a certain tipping point and has a growth explosion. It seems though, that in this scenario Nan is exaggerating the initial growth aspect of the startup as saying that they can capture 40% of the market, which is an extremely high value.