Assignment:
Innovation and Entrepreneurship: Business Plan
A formal business plan is required for our class, based upon your own venture concept and industry research. The business plan should include several distinct sections, as outlined in the Meyer & Crane (M&C) text and the Small Business Administration (SBA) website.
Details for each business plan section are explained below, but must be applied to your venture.
There are two separate stages or phases of your business plan proposal. First, there is a formal presentation required in class in the week of April 23-25th. This class presentation should last 10 to 15 minutes, and cover the main points of your business plan sections. It would be helpful if you can write out the talking points of your plan in Power Point or similar software for presentations. The verbal class presentations should follow the 9 business plan sections below, but in a briefer format.
The 9 required business plan sections are described (page 276). Although your written plan should begin with an "executive summary", your verbal class presentation could start with the specific "Venture Concept Statement" from to show to customers or investors. The Pitch to potential investors should create a set of 4 compelling stories to convince.
I. Venture Concept statement in a simple, concise paragraph. Or show in a "dashboard."
II. Business Model summary of your "value proposition" and revenue model. What types of revenue, what frequency or volume, at what price points, which streams? These financial outcomes (p. 98) may be hypothetical revenue models to be refined later. What levels of profitability or revenue projections do you expect? When will you reach?
III. Market Analysis of Industry attractiveness, target customers, which customer segments and needs? Who are likely competitors or rivals? Look for trade association or industry level data (NAIC) online or report to identify.
IV. Specific "solutions" offered to chosen customers: What products or service concepts (3), what kind of competitive strategy formulated by price/volume (4)? Any Platform or IP?
V. How to "go to market", when ready to do so? What distribution channels (5) or brand strategy (6)? Will you use advertising or Internet or social media to reach customers?
VI. What are your production or supply plans, if using other external suppliers to make the product or provide key components (if food, or food service)? How will you "scale up"?
VII. How will you organize your company venture with employees, team members, any key positions? This may be premature, before venture starts, but put in plan.
VIII. Milestones in financial revenue projections, from your Pro Forma business plan outline (include here). Using "granular" approach to revenue model, describe a Profit & Loss projection; when and how will your venture "break even"? Try to define the projected startup cost, in detail, and your projected cash flow balance.
IX. Conclude your sales pitch with the venture's exit potential, if successful; when or how?
The second stage of your venture is to write a formal business plan, from your outline above and afterthe class presentation. You should expect to receive some detailed strategic, financial, and accounting questions from the potential investors and customers in the audience; these feedback questions can be helpful, and may be incorporated into your final written business plan. The sales "pitch" doesn't have to be like a dental "root canal", but may be more like the Shark Tank show. The formal plan should be 10 pages long (double spaced), with an executive summary and extra details in the Appendices; a few library or online references will also show that you've done your homework to support a venture. Formal plan is due May 6th, either in my campus mailbox or sent by email attachment to [email protected]. Go to market!