Question 1: Business Canvas Project

PlantPal: testing a minimum viable product

Units 1 and 2
10 points
About 25 minutes

You can use a calculator on this question, just like on exam day.

Questions about the business project you built during the course: you pitch your product, explain how you tested a hypothesis to make a decision, and explain whether a common challenge for entrepreneurs, such as getting outside funding, threatens your idea. Practice questions here use a made-up sample project. On the exam: Question 1 of 4 (official name: Business Canvas Project Exam-Day Validation), Section IIA: 25 minutes, 15% of the score. Covers Units 1–4 and Skill Categories 1, 2 and 4. Section II has 4 free-response questions in 90 minutes (40% of the score). The exam is fully digital in Bluebook, and only a 4-function calculator is allowed (handheld or the built-in Desmos 4-function calculator).

The question and its sources

This is a practice version of Question 1. On the real exam, you answer about the Business Canvas Project you built during the course. Here, answer about the sample project below, which a made-up student built.

Sample Business Canvas Project: PlantPal

Student entrepreneur: Sofia, a high school senior.

Product: PlantPal is a 3D-printed self-watering planter. A reservoir at the bottom holds about two weeks of water, and the soil draws up water as it dries out.

Target customer profile: renters ages 20–30 who live in city apartments, are new to caring for plants, travel often for work or school, and buy houseplants to make their homes feel more welcoming.

Customer problem (validated in Unit 1): In an online survey of 80 apartment renters, 55% said a houseplant had died in their care in the past year. The most common reasons were forgetting to water and overwatering.

Minimum viable product (MVP): Sofia built a one-page website with photos of her prototype, a description and a 'Pre-order' button. Pre-orders cost nothing until the product shipped. She shared the page in two online groups for apartment renters.

Hypothesis: At least 10% of people who visit the pre-order page will pre-order PlantPal at $28.

Round 1 (three weeks): price $28, with a clear window to see the water level. Afterward, Sofia interviewed 8 visitors who didn't pre-order; 6 said the price was too high for a planter, and none mentioned the window.

Round 2 (two weeks): price $22, with no window (cutting her cost from $13 to $9 a planter). Results for both rounds are in Table 1.

Decision: Sofia will launch the windowless PlantPal at $22 and order a first batch of 50 planters.

Supply chain: One 3D-printing shop across town prints every PlantPal for $9 each, with a minimum order of 50 and a two-week wait. A second shop quoted $12 each, with a one-week wait.

Source: Hypothetical sample project written for this practice question

Table 1. Results of Sofia's pre-order page

Round	Price	Page visits	Pre-orders
Round 1	$28	640	51
Round 2	$22	410	49

Source: Hypothetical data written for this practice question

Suggested time: 25 minutes

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Part (A)

3 points

Pitch PlantPal. Cover four things: what the product is; who the target customer is; the problem, need or want it's meant to address; and why customers would find it valuable.

Your answer to part (A)

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Part (B)

1 point

Businesses typically test hypotheses about product-market fit before launching. Describe one purpose of a minimum viable product (MVP) in product development.

Your answer to part (B)

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Part (C)

4 points

Explain how Sofia tested a hypothesis about product-market fit for PlantPal. Cover four things: the hypothesis; the research method Sofia used; the evidence that came back; and how that evidence changed Sofia's decisions.

Your answer to part (C)

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Part (D(i))

1 point

Relying on suppliers may be a problem for entrepreneurs with a new idea. Describe one factor a business considers when choosing a supplier.

Your answer to part (D(i))

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Part (D(ii))

1 point

Explain why relying on a single supplier does or does not represent a challenge to the viability of PlantPal. Your response should include evidence from the canvas that supports your explanation.

Your answer to part (D(ii))

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