14 Understanding Rational Decision Making
REVISED EXECUTIVE SUMMARY OF A BUSINESS PLAN
WITH AN INVESTOR’S COMMENTS
Smartphone MBA
January 15, 2005
Seven Limited Partnership Interests for $50,000 each
Copy 12Executive Summary
Objective:This is a brief overview of some of the critical characteristics of a unique investment
opportunity. It covers the nature of the investment, who is behind the project, as well as the
expected returns on the project. All of the topics covered in the summary, as well as other
subjects not addressed here, are discussed in greater detail in the body of the business plan.
[1. Okay.]
What is the venture?
We are presently offering limited partnerships in a new educational subscription service to be
delivered via smartphones called Smartphone MBA.[2. Right.]An educational subscription
service developed specifically for smartphone owners does not yet exist. Smartphone MBA will
target an audience of over 2 million potential subscribers:
Current MBA students – students currently enrolled in an MBA program.
Graduates of MBA programs – executives who have already earned an MBA.
Prospective MBA students –people interested in enrolling in an MBA program.Who is doing this?
Pallav Srisuwanporn is the General Partner of this project as well as being the president of this
subscription service. He is a thirty-year-old graduate of the Stanford Business School. His
experience includes positions with the McGraw-Hill Companies, publishers of Business Week,
Aviation Week, [3. That’s impressive.]and other consumer and business communications. Mr.
Srisuwanporn was also Vice President of Planning and Finance of Condé Nast Publications.
Among the Condé Nast magazines were Vogue, W, GQ, Bridesand others. He is currently the
Senior Vice President of the Wiley Computer Publishing Division. [4. Well, this guy ought to
know what he’s doing.]
How much can I invest?
Seven limited Partnership Interests are being sold for $50,000 each. You can buy as many of the
Interests as you like. Once the project is underway you will have opportunities to contribute
additional capital.
What is the projected return?
Each of your limited Partnerships represents a 2.15% profit-sharing interest. All together the
seven interests will receive 15.05% of the profit-share. The General Partner accounts for an
84.95% share. The projected return over the next five years is: