CREATING AND MANAGING NEW VENTURES
MFG 479, Section 001 Fall 2008
1. Instructors: Brent Strong, 265 CTB, 422-7878, strong@byu.edu John Richards, 579 TNRB, 422-1663, john.richards@byu.edu T.A.: TBA T.A.: TBA
2. 3.
Class Times – Tuesday, 12:00-2:50 pm, Room – 250 CTB Textbook – Essentials of Entrepreneurship and Small Business Management (5th Edition), Zimmerer and Scarborough Learning Objectives By the end of the course, students should be able to— 1. 2. 3. 4. 5. 6. 7. Participate effectively on an entrepreneurial founding team. Evaluate business ideas, opportunities, and plans. Plan a new business financially. Understand and apply entrepreneurial terminology to the entrepreneurial and investment ecosystems. Formulate strategies to overcome common start-up business challenges. Prepare effectively a written business plan. Make an effective oral business plan presentation.
4.
4.
Grading Total possible points are 1,000 and are distributed as follows:
Monthly Business Ideas (3 @ 20 each) ................................................... 60 points Assignments Team composition ....................................................................... 5 points Team product/service declaration ............................................... 5 points Strategic Plan (discuss ―9 Steps‖) ............................................ 10 points Type of Entity (and why) ........................................................... 5 points Action Plan ............................................................................... 10 points Founding Capitalization Table .................................................. 10 points Guerilla Market Analysis .......................................................... 10 points Marketing Plan (Sales, Competition, etc.) ............................... 10 points Integrated Financial Workbook (B/S, I/S, C/F) ....................... 10 points Funding Plan ............................................................................... 5 points Location – details and justification ........................................... 10 points Management Section ................................................................. 10 points Mid-Terms (2 @ 100 each) ................................................................... 200 points Final Business Plan ............................................................................... 300 points Final Oral Presentation .......................................................................... 300 points Peer evaluations ...................................................................................... 40 points Total Points ........................................................................................ 1,000 points
Final grades will be determined on a curve with the break points at the discretion of the instructors.
5.
Business Plan (the real Final Exam) Students will form teams and each team will have selected a business product or service (an opportunity). Teams must consist of 2-4 students (absolutely no 1-person teams and 5-or-more-person teams are allowed only with expressed permission). Teams may consist of BYU students not in the class and even non-BYU students as long as at least half of the team is matriculated BYU students (undergraduate or graduate). The plan must represent a feasible business – in other words, a plan that could be, or is, seriously considered for establishment in the next 12 months. The format for the business plan will be the same as for the Business Plan Competition sponsored by the Center for Entrepreneurship (see its web site). Sample business plans can be reviewed in person at the Center for Entrepreneurship, 474 TNRB. A simple search on Google also will render many business plan templates. All business plans will be due on the date indicated on the Class Schedule below. START EARLY since writing a business plan requires a large amount of preparation and time. ASSIGNMENTS: Students will have an assignment which will help prepare a section or sections of the business plan due on many class days – consult the Class Schedule below. Although these assignments must be submitted individually (not as a team), it is recognized that on some assignments the submissions from members of the same team will be identical except for the submitter’s name – this is approved. Business Plan Competition. BYU holds a renowned Business Plan Competition (BPC) each year. We strongly encourage you to enter the competition. Previous students of this course material have won the $25,000 grand prize. If you desire to participate in the BYU BPC, then those taking this class will be well aligned for the competition. The instructors will help you in any reasonable way to meet the deadlines. This class has been designed to help students participate in the competition. See http://bpc.byu.edu/ for more information.
6.
Work Submissions You must follow these requirements – Submit all work (except the printed final Business Plan) via email attachment using only Microsoft Word, Excel, and PowerPoint compatible files for word processing, spreadsheet/workbook, and presentation documents, respectively. Except for the final Business Plan, paper submissions are not accepted (a Word or PDF version of the Final Business Plan is required). All content in submissions must be attached to an email to the all the instructors and the T.A. in one of the approved formats. Content is never in the body of the email. The subject line of the email on submission messages and file name of document must match exactly using the following conventions – LNameFName_Month#_IdeaDescription (for business ideas) LNameFName_AssignmentName (for all other assignments) Examples Subject Line SmithJohn_Month1_Vapoorizer SmithJohn_CapTable SmithJohn_Vapoorizer File Name SmithJohn_Month1_Vapoorizer.doc SmithJohn_CapTable.xls SmithJohn_Vapoorizer.ppt
Do not combine other communications to the instructor or T.A. in the body of the email that have submission attachments. Email with attachments for submissions must go to all instructors and the T.A. If these guidelines are not followed exactly, then you will not receive credit for the submission until correct.
7.
New Business Ideas Key to entrepreneurship is the ability to continually develop new business ideas. As an exercise to practice this talent, you will be asked to develop a new business each calendar month except the last during the term. Your ideas must be written and submitted in Word .doc form as explained in 6 (above). See the Class Schedule (below) for due dates. Each idea will be reviewed for practicality and originality. The write up should be concise – no more than 1 typewritten page. Graphics are encouraged where appropriate.
8.
Due Dates and Late Work All assignments are due on the day indicated in the Class Schedule below prior to the start of class on that day. Late work is penalized according to the college’s policies.
CLASS SCHEDULE
DATE
Tue, Sep 2
TOPIC
Course Introduction An Entrepreneur’s Story & the Entrepreneurial Quotient The Foundations of Entrepreneurship Inside the Entrepreneurial Mind: From Ideas to Reality Feasibility Analysis & Crafting a Winning Business Plan Forms of Business Ownership
READING
INSTRUCTOR
WRITTEN ASSIGNMENTS DUE
– – Chapter 1 Chapter 2 Chapter 4 Chapter 5 Chapter 3 Chapter 6 – – Chapter 9 Chapter 7 Chapter 8 Chapter 8 Chapter 10 – Chapter 11 Chapter 12 Chapter 13 – – Chapter 14 Chapter 15 Chapter 16 – –
Richards Richards Strong Strong Richards Richards Strong Strong Richards Richards Richards Strong Strong Strong Strong – Richards Richards Richards Richards Richards Strong Strong Strong – Richards
Management Section Monthly Business Idea
Tue, Sep 9
Tue, Sep 16 Business Model and Strategic Management Franchising and the Entrepreneur Tue, Sep 23 Team Formation [not in book] Capitalization [not in book] E-Commerce and the Entrepreneur Tue, Sep 30 Buying an Existing Business Building a Powerful Marketing Plan – Part 1 Tue, Oct 7 Tue, Oct 14 Tue, Oct 21 Tue, Oct 28 Tue, Nov 4 Building a Powerful Marketing Plan – Part 2 Pricing Strategies Exam 1 (Chapters 1-10 and special topics) Creating a Successful Financial Plan Managing Cash Flow Sources of Financing: Debt and Equity Fundraising Panel [not in book] Special Review of Financial Aspects [not in book] Choosing the Right Location and Layout Global Aspects of Entrepreneurship
Type of Entity (and why)
Strategic Plan (discuss “9 Steps”) Team composition
Founding Capitalization Table
Team product/service declaration Monthly Business Idea Guerilla Market Analysis Action Plan Marketing Plan (Sales, Competition, etc.)
Integrated Financial Workbook (B/S, I/S, C/F) Funding Plan Monthly Business Idea Location – details and justification
Tue, Nov 11 Building a New Venture Team and Planning for the Next Generation Exam 2 (Chapters 11-16 and special topics) Tue, Nov 18 REVIEW and TIPS for BUSINESS PLAN PRESENTATIONS (including sample plan and ppt presentation) [not in book] Tue, Nov 25 Tue, Dec 2 Tue, Dec 9 NO CLASS – FRIDAY INSTRUCTION Presentations Day #1 Presentations Day #2
* Business Plan is Final Exam for this course
Your plan Your plan Your plan
Students Students Students
FINAL WRITTEN BUSINESS PLAN
Tue, Dec 16 Presentations Day #3 (FINAL EXAM* DAY)
Creating and Managing New Ventures
ASSIGNMENT GUIDELINES
Team composition ................................................... 5 points Submit a Word document (.doc) with a simple list of your team. Include in tabular format name, major, email address, and indicate if the team member is a class member, BYU student, or non-student. OPTIONAL: provide 1 or 2 paragraphs summarizing the idea your team thinks it make its own. Team product/service declaration ............................ 5 points Submit the “final” (bad ideas can be changed later) declaration of your team’s idea by submitting a Word document (.doc) with 1 or 2 paragraphs summarizing your idea. Include also the team composition table from the previous assignment. Strategic Plan (discuss ―9 Steps‖) ......................... 10 points Submit a Word document (.doc) that lists the “9 Steps” from the lecture and textbook and provide the appropriate information under each of the 9 headings for your team’s business idea. Much of this work (as it develops over the semester) should be integrated into your business plan. Type of Entity (and why) ........................................ 5 points Submit a Word document (.doc) that declares which type of entity your business will be when launched (or what it is or will be if it exists already). Include an explanation of why you made the choice or why it is what it is. Action Plan ............................................................ 10 points Submit a Word document (.doc) as an action plan for how you will get the remainder of the project completed. Founding Capitalization Table .............................. 10 points Submit an Excel workbook (.xls) that is a founding capitalization table based on your “founding round” for the company. If the company exists, submit a current capitalization table with accurate history on how shares/unit/percentages were obtained. Guerilla Market Analysis ....................................... 10 points Submit a Word document (.doc) that analyzes the
product or service market (demand, size, pricing, etc.). Marketing Plan (Sales, Competition, etc.) ............. 10 points Submit a Word document (.doc) that is a comprehensive marketing plan for your business. This will include the many concepts discussed in the textbook and class lectures. This will be very close to the “marketing section” of your to-be-produced finished business plan. Integrated Financial Workbook (B/S, I/S, C/F) ..... 10 points Submit a multi-tabbed Excel workbook (.xls) that is an integrated financial projection for at least 24 months of month-by-month planning for the business. Optional: 36 months is better. Funding Plan ............................................................ 5 points Submit a Word document (.doc) that details how much money you need to raise and how you will raise it. This is a narrative explanation of the funding plan and investment opportunity for investors. Location – details and justification ........................ 10 points Submit a Word document (.doc) explaining where your business will be located and why. Management Section .............................................. 10 points Submit a Word document (.doc) that details each member of the management team, the title in the business, and a brief 1-2 paragraph biography for each that details his/her relevant history that shows qualifications for the position. Peer Evaluations ..................................................... 40 points Submit a Word document (.doc) listing you and your team members with a rating of 1 to 10, 1 being virtually no contribution” and 10 being “excellent.” Remember to rate yourself. The grader will interpret your ratings and those of your teammates and assign a score of up to 40 points. Be honest. No teammates will ever see the ratings directly. You must submit the assignment to get any Peer Evaluation points.
University Policies
Academic Honesty The first injunction of the BYU Honor Code is the call to ―be honest.‖ Students come to the university not only to improve their minds, gain knowledge, and develop skills that will assist them in their life’s work, but also to build character. President David O. McKay taught that ―character is the highest aim of education‖ (The Aims of a BYU Education, p. 6). It is the purpose of the BYU Academic Honesty Policy to assist in fulfilling that aim. BYU students should seek to be totally honest in their dealings with others. They should complete their own work and be evaluated based upon that work. They should avoid academic dishonesty and misconduct in all its forms, including but not limited to plagiarism, fabrication or falsification, cheating, and other academic misconduct. Preventing Sexual Harassment Title IX of the Education Amendments of 1972 prohibits sex discrimination against any participant in an educational program or activity that receives federal funds. The act is intended to eliminate sex discrimination in education. Title IX covers discrimination in programs, admissions, activities, and student-to-student sexual harassment. BYU’s policy against sexual harassment extends not only to employees of the university, but to students as well. If you encounter unlawful sexual harassment or gender based discrimination, please talk to your professor; contact the Equal Employment Office at 422-5895 or 367-5689 (24-hours); or contact the Honor Code Office at 422-2847. Students with Disabilities Brigham University is committed to providing a working and learning atmosphere, which reasonably accommodates qualified persons with disabilities. If you have any disability which may impair your ability to complete this course successfully, please contact the Services for Students with Disabilities Office (422-2767). Reasonable academic accommodations are reviewed for all students who have qualified, documented disabilities. Services are coordinated with the student and instructor by the SSD Office. If you need assistance or if you feel you have been unlawfully discriminated against on the basis of disability, you may seek resolution through established grievance policy and procedures. You should contact the Equal Employment Office at 422-5895, D-285 ASB. Diversity We aim to make my classroom similar to the workplace. In the workplace, it is illegal to discriminate based on race, color, religion, sex, national origin, disability, or age. Furthermore, we believe Christ would never belittle anyone based on their race, color, religion, sex, national origin, disability, or age. Therefore, we feel strongly that no one in my classroom should be belittled for any reason. If you experience such an offense in our class (caused either by me or a fellow student), we strongly encourage you to contact us.
6