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BUAD 293                                       ENTREPRENEURSHIP   

BUAD 293                                       ENTREPRENEURSHIP                                            

BUSINESS PLAN PROPOSAL – TEAM ASSIGNMENT
Check Moodle for Due Date

You must hand in an outline of your business idea early in the semester.  This initial outline should describe your product/service idea, how you arrived at the idea, and what you feel the market potential is for this proposed venture. 

Preparation

Begin by reading Chapters 1-3 of your textbook.

  • When developing your business idea, keep the following requirements in mind:
  • The idea must be a business startup, not a buyout or existing business.  If you are seriously planning to buy an existing business, or if you are involved in an existing business, you should discuss this with your instructor.  You may do a business plan for an existing business only with approval of your instructor and permission from the business.
  • If the business idea is seasonal, you need to find another complementary business to support the months your business is not in operation (how will you support yourself when the business is not operating?). Also, the business can not be a hobby, but rather must show a reasonable expectation of being profitable.
  • You may do a business plan for a franchise, but the franchise rights must be available for the geographic region you want to operate your business in.  Otherwise, the franchisor will not cooperate in providing information.  Check with your instructor for advice regarding pursuing a franchise.
  • The idea must not have been used for project credit in any other class.  If you wish to build upon a previous project, or use the same idea concurrently in another class, you must obtain the permission of your instructor.
  • The business idea must be both legal and ethical.  Don’t waste your time on an idea that is likely to be turned down.  If in doubt, consult with your instructor in advance of submitting your proposal.
  • You are to work in a group on this project and try to look for team members with strengths in areas where you may be weaker, and who share an interest in the business idea or industry. You are not permitted to work on your own on this project.

Instructions

  1. You are going to have to choose one business idea and prepare a Business Plan Proposal for approval by your instructor.  Keep in mind that you may not be able to justify the viability of your idea as a business venture until you have completed the entire business plan.  Your grade will not reflect whether or not the business is forecast to make a substantial profit.  Rather, it will evaluate the analysis presented on the feasibility of your idea once your plan is completed and assess whether the forecasts prepared were realistic.

  2. Complete the following Business Planning exercises that are provided at the end of this assignment.  Make sure to include these completed exercises (need to be TYPED) with your Business Plan Proposal as you are graded on them.

  3. Exercise #1:  Opportunity Selection
  4. Exercise #2:  Focusing on Your Business Idea
  5. Exercise #3: Business Model Canvas
  6. Exercise #4:  Description of Your Business
  7. Exercise #5:  Identifying Information Needs
  • You are now ready to prepare your Business Plan Proposal worth 10% of your final grade.  The proposal should be a 4-6 page summary of your business idea.  It should be typed, double-spaced and have a cover page identifying the team members who will be working on the project.  This document should address the following points:
  1. Description of your business idea (Refer to Business Planning Exercise 2 & 3)
  2. Discussion of why your business will be successful and the strengths of your business idea (for example, does it satisfy a market gap, does it fulfill a new market trend, is it an innovation on a previous successful idea, are you confident it will have enough sustainability through its position in the product life cycle, what is its competitive advantage)?
  3. Identification of some of the challenges and risks of your proposed business idea and how your team will overcome these weaknesses?
  4. Description of the team and ability/competence of the team members proposing this business. What will your roles be in the company, what are your skills, experience and education, who else will be supporting your management team? You need to make sure your idea fits with the skills and expertise of your management team.
  5. Projection of your estimated start-up costs and the realistic identification of where these resources will be obtained. The sources of financial capital will fall into three categories:
  6. Funds provided by the founders in the form of Equity (secret investors or silent partners are not permitted)
  7. Funds provided from lenders (banks and other lenders) in the form of Debt  (the Bank of Mom & Dad is not permitted)
  1. During the Business Plan Presentation you may seek Venture Capital by pitching your business idea to the Judges. You must also tell them how much of your business equity (as a percentage) that you are prepared to give them in exchange for their investment. Remember that there is no guarantee that they will invest any amount in your business.

Remember: The objective of this proposal is to stimulate the interest of the reader to the extent that they will want to review the full business plan.

Make sure to include the TYPED Business Planning Exercises in your Proposal.  Your instructor will return your proposal as quickly as possible, stating whether your idea has been approved.  If you have questions about the proposal or the possibility that the idea may not be approved, you should discuss this with your instructor prior to the proposal due date.

BUSINESS PLANNING EXERCISES – NEEDS TO BE TYPED

BUSINESS PLANNING EXERCISE #1

Opportunity Selection

The Business Concept

Meeting needs is the basis of all business. You can devise a wonderful new machine, but if it doesn’t address some real and important need or desire, people won’t buy it, and your business will fail. Even Thomas Edison recognized this fact when he said, “Anything that won’t sell, I don’t want to invent.”

Typically, entrepreneurs get their original business inspiration from one of four sources: 1) previous work experience; 2) education or training; 3) hobbies, talents, or other personal interests; or 4) recognition of an unanswered need or market opportunity. Occasionally, the impetus comes from the business experience of a relative or friend.

As you refine your business concept, keep in mind that successful businesses incorporate at least one of these elements: something new, something better, underserved or new market, new delivery or distribution, and increased integration.

Your business should incorporate at least one of these factors—more than one if possible. Ideally, you can bring a new or better product or service to an identifiable but underserved market, perhaps using a more efficient distribution channel. Evaluate the ways your business concept addresses the elements described above. Your concept should be strong in at least one area. If not, you should ask yourself how your company will be truly competitive.

What criteria does your team want to use to evaluate your business ideas?

Identify your top three opportunities and use a decision matrix to decide which one business idea are you going to pursue and why?

CriteriaWeightBusiness Idea 1Business Idea 2Business Idea 3
 Adds up to 100%1-10Weighted Score1-10Weighted Score1-10Weighted Score
        
        
        
        
        

BUSINESS PLANNING EXERCISE #2

Focusing on Your Business Idea

Many people begin their businesses too hastily.  They open their doors without having a firm grip on what products or services they will offer or without determining why their business will be unique.

Instructions:  Think carefully about your answers to the following questions as they relate to your new venture idea.  Remember, well thought out answers will help you develop your final business plan. Review the worksheet on page 6 of the Successful Business Plan.

  1. What is your industry? What are the trends and characteristics of this industry?
  • What are the features of your product or service (what does it do)?
  • What are the benefits of your product or service (what will this product or service provide for your customers, what is in it for the customer)?
  • What is your market gap (what need in the market place will your business fill)?
  • Who will your target customers be?
  • What is your competitive advantage (what will make your business better than your competition)?

BUSINESS PLANNING EXERCISE #3  Business Model Canvas template

Use this Business Model Canvas template to visualize a strategy for the development of a new organization or to analyze an existing business. The text fields in this template are editable. You can also clear the fields and print this template to create hand-outs of this Business Model You template.

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For more information about the Business Model Canvas, visit: https://www.toolshero.com/strategy/business-model-canvas/

BUSINESS PLANNING EXERCISE #4

Description of Your Business

Developing a well-written, concise, and complete description of your business is one of the first tasks that you must complete before you can develop a business plan.  Describing your business idea will help you clarify your thinking. Think of yourself riding up 50 floors in an express elevator. You have 90 seconds to explain to the occupants what your business is all about.

Instructions:  Draft a brief description of your proposed business. Make sure to define your market, describe your focus, promote your management team and differentiate yourself from the competition.  Think of your audience as a potential source of investment capital.  Limit your description to 90 seconds to 2 minutes.

https://www.mindtools.com/pages/article/elevator-pitch.htm

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

BUSINESS PLANNING EXERCISE #5

Identifying Information Needs

Identify the sources of information you need to complete your plan, where you are going to obtain the data, a time frame to realistically achieve these goals, and which team member is responsible for securing this information. Be as detailed and specific as possible.

  Information Needed  Information SourceTarget Completion Date. Team Member Responsibility.
   
   
   
   
   
   
   
   
   
   

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