FCS3300 Entrepreneurship

WesternMichiganUniversity

Business ProposalProject Fall2011 Due December12,2011

TableofContents

ProjectOverview RequiredContent ContentGuide WrittenProposalFormatGuide WrittenProposalGradingRubric PosterPresentation PosterPresentationRubric TeamEvaluationRubric

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BusinessProposalProject
FCS3300EntrepreneurshipinFCS

Overview
Althoughanentrepreneurialventureisoftenthebrainchildofanindividualorgroupofindividuals, launchinganewventureusuallyrequiresoutsidesupport.Smallbusinessesrequirestartupfundsfromlending institutions,familyandfriends.Thesuccessfullaunchofanewproduct,serviceorbusinessprocesswithina largecorporationrequiresthesupportofmanagementandlinestaff.Introducinganewideatoaservice organization,schoolorcommunitygroupcanbemoresuccessfulwhenkeypeopleintheorganizationbuyin totheconcept. Convincingotherstosupportyouridearequirespersuasivecommunicationskills.Persuadingothersthatyour venturewillbesuccessfulrequiresthatyouhaveauniqueidea,andthatyouhaveresearcheditsfeasibility. Successfulpersuasionalsodependsonconvincingothersthattheprojectsgoalscanbeaccomplishedusinga reasonableamountofresources. Theprojectinthecourseinvolvesworkinginateamtodevelopabusinessideaandproduceathoroughly researched,wellwritten,andflawlesslypresentedBusinessProposal.TheProposalwillcontainthefollowing information: Businessdescription Marketingplan Mission/visionstatement Operationalplan Marketanalysis Financialplan Competitiveanalysis Aswemovethroughcoursetopics,wewillbelinkingideas,concepts,theoriesandprocessestothe BusinessProposalproject.Thefinalprojectwilltaketheformofaformalbusinessplan,andwillfollow formatspresentedinourtextandinotherresources.Detailsrelatingtothecontentandpresentationof eachsectionoftheproposalwillbepresentedthroughoutthesemester. Evaluationofteamproposalswillbebasedonbothcontentandpresentation.Specialconsiderationwill begiventoevidenceofapplicationofcourseprinciplesandconcepts,including: Purposeandcontextofabusinessproposal;includeswritingstyleandphysicalfeaturesofthe completedplan. Abilitytowriteamissionstatement Beabletowriteaneffectiveexecutivesummary. Abilitytoprovideanddefendarationaleforownershipform. Clearlyarticulatebusinessdescriptionpurpose,competitiveadvantageandcorecompetencies. Demonstrateevidenceofmarketresearchinpreparationofmarketanalysisandstrategy development. Presentanddiscussbasicfinancialinformationtosupportthebusinessplan. Beabletojustifydecisionsusingrelevantbusinessprinciples. Usecomputertechnologyandformattingguidelinestoprepareaprofessionalproduct.

BusinessProposalDevelopmentProcess:

Step1:Eachstudentwilldevelopanideaforanew,innovativeretailbusinessthat servesacompellingneed.Eachstudentwillconductafeasibilityanalysistosupportthe idea.(WritingAssignment#2.) o Aretailbusinessisdefinedasafirmthatsellsaproductorservicetothe ultimateconsumerofthegood/service.Thus,abusinesswhichproducesa productandthensellsittoaretailerdoesntfitthisprojectsparameters.You could,howeverproduceaproductorserviceandthensellitdirectlytothefinal consumeryourself. o Thereareseverallimitationsonthebusinessidea: Thebusinesswillbeonethatwouldthriveinthetargetcommunity. Nofoodservice*/bars. Youshouldpersonallyhavesomelevelofcompetency/understandingof theproductsorservicesthatyoupropose,andthetechnologytocreate theproductorservicemustbeavailable. Step2:Businessideaswillbeevaluatedbytheclassinsmallgroups.Themost viable/innovative/entrepreneurialideaswillgoforward. Step3:Teamswillworktogethertorevise/improveideas,andthenmovetheidea forwardtothebusinessproposal. Whatcanyoudotopreparerightnow?Practiceyouropportunityseekingskillsand thinkaboutideasforaninnovative,creative,retailconceptthatwouldsucceedin DowntownKalamazoo,Michigan.

BusinessProposal
RequiredContent

TheWrittenBusinessPlan willinclude: ExecutiveSummary Businessdescriptionand Visionstatement Marketanalysisand Competitiveanalysis Marketingplan Operationalplan Financialplan Summary

FormatOutlineSection (p.127129) inZimmerer) I. II IV,IX VI,VII,VIII X;XI XII;XIII Allsection

RefertoContentinthese Chapters 4 3,4,5

8,9,10,14 4,16 4,11,12,13

Appendix

References

Provideabriefconclusionof keypointsattheendofthe plan. XIV Includeanysupporting materialsthatsupportyour plansclaims. Listofallreferencesused,inAPAformat

BusinessPlanPresentation TheBusinessPlanshouldbepresentedina3ringbinderintheorderbelow.Usesection dividerstoorganizeeachsection. Pleasedonotusemylarsheetcovers. FollowguidelinesforproposalpresentationfoundinZimmerer,Chapter4. Thefinalproposalwillbeevaluatedusingtheattachedrubric.Includeacopyofthe evaluationrubricatthefrontofthenotebook. Approximatelength:810pagesfornarrative,plusExecutiveSummary,Appendixand References. DueDate:Pleaseseesyllabus

BusinessProposalProject
ContentGuide

Thissectionpresentsthequestionsthatyourbusinessproposalshouldanswer.Reviewthechapters andlecturenotesforguidanceonpreparingresponsestoeachquestion.Keepinmindthatthefinal proposaldocumentshouldnotbepresentedinquestion/answerformat,butratherfollowthe writtenproposalformatguide.

BusinessPlanDevelopment BusinessDescriptionandVision
Thissectionanswersthefollowingquestionsforthereader.RefertoSectionIIintheBusinessPlan Outlineinyourtext(pp.127129),andcontentinChapters3,4&5toguidedevelopmentofthis section. BusinessDescription Whatisthepurposeofyourbusiness? Whatvalueswilldriveyourbusiness? Whatproductsand/orserviceswillyouoffer? Whichsupplierswillyouuse?Giveoneortwoexamplesineachproductcategory. Whatplansdoesyourbusinesshaveforfutureproducts/servicesofferings? Whoisyourtargetcustomer? Whatarethecorecompetenciesthatyourbusinesswillneedtoachieveitsmission,goalsand objectives? Whatistheproposedlegalorganizationofyourbusiness?Whydidyouchoosethisform? Vision Provideamissionorvisionstatementforthebusiness.FollowguidelinesinChapter4ofyourtext.

BusinessPlanDevelopment
Marketandindustryanalysisandcompetitiveanalysis Thissectionanswersthefollowingquestionsforthereader.RefertoSectionIVandIXinthe BusinessPlanOutlineinyourtext(pp.127129),andcontentinChapter8toguidedevelopmentof thissection.Youcanbuildonthefeasibilityanalysisthatwasconductedforthisbusinessideaforthis section.

Marketandindustryanalysis
Whatarethedemographic,psychographicandbehavioralcharacteristicsofyourtargetcustomers? Howdoyoudescribeyourtradingarea? Whatisthesizeofyourmarket? Whyisthisanattractiveindustrytoenterrightnow? Whatdoesittaketobesuccessfulinthisindustry? Isthemarketforyourproducts/servicesgrowing,stable,declining? Whataretheimportantandrelevanttrends(social,economic,cultural)thatarelikelytoinfluence yourmarketinthenext13years? Whatistheeconomicenvironmentlikeinyourtradingarea? Whatistheeconomicandsocialenvironmentlikeinyourtradingarea? Howwillyourbusinessexploitcurrentopportunities(positiveexternaloptions)inthemarket? Whatnegativeexternalforcesmayinhibityourbusinessabilitytoachieveitsmission,goalsand objectives?

Competitiveanalysis
Which3existingbusinesseswillyourcompanycompetewith? Whatarethestrengthsandweaknessesofeach? Howwillyourbusinessdifferentiateitselffromyourcompetitors? Whatimage/positiondoyouenvisionforyourbusiness?

BusinessPlanDevelopment
MarketingPlan

Thissectionanswersthefollowingquestionsforthereader.RefertoSectionVI,VII,andIIIinthe BusinessPlanOutlineinyourtext(pp.127129),andcontentinChapters8,9,10and14toguide developmentofthissection. MarketingPlan Howwillyourbusinesscombineelementsandstrategicdecisionsrelatedtothe4Ps. Howwillyoucommunicatewithyourcustomer? Whatmediawillyouuse? Whatistheproposedlocationforyourbusinessandwhyitisappropriate? Whatwillyourstoredesign,layout,signagelooklike? Whatproductqualitylevelwillbeoffered? Willbrandedorprivatelabelmerchandisebeoffered? Whatarethekeyfactorsthatwilldeterminethepricesyoucharge? Whichstrategywillyouusetointroduceyourbusinesstothemarket? Whatmarkuporpriceperhourisnecessarytoachieveaprofit? Willyouoffercredit?Whattypeofcredit?

BusinessPlanDevelopment
OperationalandFinancialPlan Thissectionofthereportshouldanswerquestionsabouthowthebusinesswilloperatewith respecttomanagement,staffandleadershipapproach.Thissectionalsopresentsfinancial forecasts(incomestatement,balancesheetandcashflow)andestimatedstartupcostsand sourcesofcapital. OperationalPlan
Whoarethekeymanagersinthebusiness?Whataretheirbackgroundsandqualifications(both entrepreneurialandmanagerial)? Whatisthecompanysoverallmanagementstyle? Willyouneedtohireadditionalemployeestorunthebusiness?Brieflyexplainhowyouwillhireemployeesif neededinthefuture. Whatformofownershipwillyouchoosetoorganizeyourbusiness? Whatdoestheorganizationalchartlooklikeforthefirm?(Whowilldowhat?) Howwillmanagerialdecisionsbemadeinthebusiness? Howwillmanagersandemployeesbecompensatedandrewarded? FinancialPlan SeePowerpointguidesonelearningforfurtherassistance WhatdoestheProformaincomestatementlooklikeforthefirstyearofbusiness?Includeaproforma statementbasedonthebizstatsexerciseintheAppendix,andapagenarrativeexplanationofthefirstyear incomeandexpensesinthebodyofthereport. Howmuchcapitalwillbeneededforstartupcosts?IncludeastartupcosttableintheAppendix,andone paragraphexplanationofstartupcostsinthenarrative. Howmuchcashwillbeneededinthefirst3monthsofoperation?Includea3monthcashflowstatementin theAppendix.Provideoneparagraphexplanationinthebodyofthereport. Howwillyoufinanceyourstartupandcashneedsforthefirst3months?(Wherewillthecapitalcomefrom?). Includeseveralsentenceexplanationofequityfinancing. Whatisthetimetableforimplementingyourbusinessplan? Be sure to consult the Business Plan Format Guide for advice on conclusion, references, appendix and overall format of the business plan.

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BusinessPlanFormatGuide WrittenProposal
ThisguidehasbeenpreparedforstudentsinFCS3300toassistincreatingthewrittenbusinessplan project.Thisguideincludescontentrequirementsandguidelinesforformattingthereport.

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WrittenProposalFormatGuide
WritingStyle Thebusinessplanisadocumentwrittentoinformothersabouttheentrepreneursbusinessidea, andtoconvincereadersthatthisisanideaworthinvestingin.Thepurposeofthereportisnottosell yourproductorservicetothereader,butrathertoselltheideathatthisisaviablebusinessidea. Thereportshouldbewritteninaprofessionaltone,takingcaretoavoidslang,clichsandhyperbole. Useactivevoiceformforthemajorityofyourwriting. ReportFormat Font.Use12pointfont,TimesNewRoman,Arial,Calibriorothereasytoreadfont.Useonefont consistentlythroughoutthereport.Tablesmayuse11or10pointfont.Upto24pointfontmaybe usedforthetitlepage. Spacing.Use1.5spacingthroughouttheproposal,exceptfortables,whichmaybesinglespaced. Margins.SelectmirroredmarginsfromthemarginmenuinMicrosoftWord.Thisresultsina1.5 marginontheleftsideand1inchmarginsontop,rightandbottom. Pagenumberingandpagebreaks.Thetitlepageisnotnumbered.TheTableofContentspageis numberedi.BeginnumberingwithExecutiveSummaryaspage1,andcontinuingtonumber consecutivelythroughtheendofthereport.Placepagenumbersatthebottomofthepageand center.UserdefinedpagebreaksshouldbeusedafterTableofContents,ExecutiveSummaryandat theendofthemainbodyofthereport.Themainbodyofthereportshouldflowfromonesectionto anotherwithnouserdefinedpagebreaks. Presentation.Thebusinessplanreportshouldbepresentedon8x11whitepaper,andbound alongleftmarginorin3ringbinderofanappropriatesizeforthereportcontent.Besurethatall pagesinthereportareuniforminsize,andarealignedcarefully.Printonsinglesideonlythroughout thereport.DonotuseMylarsheetprotectors.Reportsusingsheetprotectorswillnotbegraded.

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 TitlePage Thetitlepageisthefirstpageofyourreport.Itshouldcontainthefollowinginformation,centered onthepage: Titleofyourbusinessandidentificationofdocument. Date Firstandlastnamesofteammembers,withWMUemailaddresses ForExample: _________________________________________________________________________________

TheFlipFlopShop BusinessProposal MM/DD/YYYY TeamMember1 teammember1@wmich.edu TeamMember2 teammbember2@wmich.edu TeamMember3 teammember3@wmich.edu TeamMember4 teammmember4@wmich.edu ________________________________________________________________

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 TableofContents Thetableofcontentspagepresentsthesectionsofthereportandcorrespondingpagenumbers. Suggestedlengthofeachsectionisgiveninitalics.(Donotincludesuggestedlengthinyourreport.) Forexample: Page ExecutiveSummary12pages 1 Introductionpage 3 Businessdescriptionandvisionstatementpage 3 MarketAnalysis22pages 35 CompetitorAnalysis12pages 57 MarketingPlan2pages 89 OperationalPlanpage 9 FinancialPlan11pages 910 Conclusionpage 10 Referencesvariablenorestriction 11X Appendixvariablenorestriction XX Numberthispagei. ExecutiveSummary(12pages) TheExecutiveSummaryisacomprehensivesummaryofthecontentsofthenarrative.Executive summariesareoftenusedbypotentialinvestorstodetermineifitisapotentialbusinessideathat intereststhem.Thissummaryshoulddescribethebusinessproposalincompleteenoughdetailto communicatetheessenceofallofthebusinessplancomponents.Thissectionshouldbe12pagesin length.NumberthefirstpageoftheExecutiveSummary1,andcontinuetonumberpages consecutivelytotheendofthereport. Beginnumberingthispagestartingat1. NarrativeSection(maximum10pages) Providesectionheadingsforeachsection.Eachsectionandparagraphwithinsectionsshould demonstratestrongorganizationalwritingskills,withclearintroductoryandconcludingstatements. Introduction Theintroductionshouldbepage,andshouldintroducethereadertoyourbusinessidea,and previewthecontentofthenarrative. Businessdescriptionandvisionstatement

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Thissectionanswersthefollowingquestionsforthereader.Whatisthepurposeofyourbusiness? Whatvalueswilldriveyourbusiness?Whatproductsand/orserviceswillyouoffer?Whichsuppliers willyouuse?Whatplansdoesyourbusinesshaveforfutureproducts/servicesofferings?Whoisyour targetcustomer?Whatarethecorecompetenciesthatyourbusinesswillneedtoachieveits mission,goalsandobjectives?Whatistheproposedlegalorganizationofyourbusiness?Whydid youchoosethisform? Marketandindustryanalysis Beginthissectionbyansweringthesequestions:Whatarethedemographic,psychographicand behavioralcharacteristicsofyourtargetcustomers?Howdoyoudescribeyourtradingarea?Whatis thesizeofyourmarket? Themarketingandindustryanalysissectionshouldanswerthefollowingquestions.Whyisthisan attractiveindustrytoenterrightnow?Whatdoesittaketobesuccessfulinthisindustry?Isthe marketforyourproducts/servicesgrowing,stable,declining?Whataretheimportantandrelevant trends(social,economic,cultural)thatarelikelytoinfluenceyourmarketinthenext13years? Thissectionalsoaddressesthesequestions:Whatistheeconomicenvironmentlikeinyourtrading area?Whatistheeconomicandsocialenvironmentlikeinyourtradingarea?Howwillyourbusiness exploitcurrentopportunities(positiveexternaloptions)inthemarket?Whatnegativeexternal forcesmayinhibityourbusinessabilitytoachieveitsmission,goalsandobjectives?Youmaywantto buildonthefeasibilityanalysisthatwasconductedforthisbusinessideaforthissection. Competitiveanalysis Thissectionshouldanswerthesequestions:Which3existingbusinesseswillyourcompanycompete with?Whatarethestrengthsandweaknessesofeach?Howwillyourbusinessdifferentiateitself fromyourcompetitors?Whatimage/positiondoyouenvisionforyourbusiness? Marketingplan Thissectiondescribesyourmarketingstrategy.Thereportshouldexplainhowthebusinesswill combineelementsandstrategicdecisionsrelatedtothe4Ps.Thissectionshouldanswerthe questions,Howwillyoucommunicatewithyourcustomer?,Whatmediawillyouuse?,Whatpricing structurewillbeused?(discussmarkup,ratesperhourasappliestoyourfirmsactivities).What pricingstrategywillyoufollow?;Whatistheproposedlocationforyourbusinessandwhyitis appropriate?Whatwillyourstoredesign,layout,signagelooklike?,andWhatproductqualitylevel willbeoffered,Willbrandedorprivatelabelmerchandisebeoffered? 15

Operationalplan Thissectionshoulddiscussbrieflythefollowing:Qualificationsofthemanagementteam,decision makingresponsibilities,staffrequirements,days/hoursofoperation,specialcustomerservice offerings. Financialplan Thissectionshouldpresentthefirstyearproformaincomestatementandfirst3monthscashflow projectionsintableform.Anarrativediscussionofprojectedsalesforthefirstyear,andexplanation ofthedatapresentedintheincomestatementandcashflowprojectiontablesshouldbeincludedin thissection.Iftheteamelectstocompletethebonusbalancesheet,thisinformationcanbeincluded intheAppendix,asnotedinthePowerpointslidepresentedinclass. Astatementoffundsneededforstartupshouldalsobeincludedinthissection.Thisdiscussion shouldidentifythetotalamountneededtostartthebusiness,andidentifyatleasttwosourcesand amountsofequityfinancinginadditiontotherequestedloanamount.Includeadetailedtable identifyingstartupfundsneededbycategoryintheAppendix. Conclusion Thefinalparagraphshouldsummarizetheessenceoftheplan,withastatementexplainingwhythis planisworthinvestingin. References ListreferencesusedaccordingtoAPAguidelinesandformatting.Thequalityandquantityof referencesarecriticaltotheoverallqualityofyourproposal.Proposalswithscantreferencesdrawn fromquestionablesourcesareviewedskeptically,andriskbeingoverlookedbyinvestors. Appendix TheAppendixappearsafterthemainpaperandreferencelist.TheAppendixshouldpresent supportingdatasuchasarticles,reportsandcopiesofdatausedintheplan.TheAppendixmayalso includelengthytables,suchastheProformafinancialstatements.AllitemsintheAppendixmustbe referredtointhetextofyourplan.Forexample:ArecentarticleinNationalGardenerindicatedthat homegardeningisontherise(SeeAppendix). ItemsintheAppendixshouldbeorganizedintheorderinwhichtheyarediscussedinyourplan.For example,ifyoudiscussaUSCensusreportonpage2ofyourreport,thendiscusstheNational Gardenerarticleonpage3,placetheUSCensusreportfirstintheAppendix,followedbytheNational Gardenerarticle.

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GradingRubric
WrittenProposal

TeamName___________________________________
Gradingrubric/Section
ExecutiveSummary BusinessdescriptionandVision statement MarketanalysisandCompetitive analysis Marketingplan Financialplan Operationalplan Summary/conclusion Appendix:contents,organization WritingMechanics PresentationandOrganization TotalPoints

Points Scoring 12345678910 10 8 25 25 20 10 4 18 20 10

125
12345678910 1234567891011121314151617181920 123456789101112131415 123456789101112131415 12345678910 12345 12345678910 1234567891011121314151617181920 12345678910

Writtenproposalswillbeevaluatedonabovecriteria.Themainproposalshouldnotexceed10 pages,withadditionalpagesdevotedtoappendicesandreferences.Includeallelementsdescribedin thisHandout.Besuretoreviewallrequirementsoftheproject,andbaseyourplanonconceptsand principlespresentedinreadingsandclassdiscussions.Proposalmustbesubmittedinclassonthe duedatenotedinthesyllabustobeconsideredforfullcredit.

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Proposal:OralPresentation
FinalExamPosterPresentation
Thefinalexamactivityforthiscourseconsistsofyourteampresentationofbusinessproposal conceptstotheHastingsbusinesscommunity.Presentationswilltakeplaceduringthetimeslotfor thefinalexam.Therewillbenoadditionalfinalexamrequirements.

TeamswillcreateandpresentaprofessionalposterbasedontheBusinessPlanwrittenreport explainingthebusinessconcepttotheHastingscommunity.Detailswillfollowonspecific requirementsforthisassignment.Thisassignmentisworth50points.Pleaseseetherubricatthe endofthissectionforpresentationrequirements.

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PleaseseeFinalExamPosterGuidepowerpointon Elearningforpresentationrequirements.

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GradingRubric
PosterPresentation(FinalExam)

FinalPosterPresentationRubric
Professionalism Ontimearrival, preparation,personal appearance. Interaction:effective articulationofproject concepts. Posterpresentation: Organized,clearideas. Errorfree; Attractive presentation;follows prescribedguidelines. PointsPossible50
109876543210

20181614121086420 20181614121086420

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BusinessPlanTeamEvaluation
Usingonecolumnforeachofyourteammembers,completeanevaluationonthecriterialisted.Your evaluationshouldbebasedonyourcarefulconsiderationofeachcriterion.PleaseentertheFIRSTandLAST namesofyourteammembersinthecolumns,andthenenteryourevaluationusingthescalebelow.Totalthe scoreforeachteammember.ThesescoreswillbecomepartofyourteammembersgradeontheBusinessPlan Project. Rateeachbehaviorforeachteammemberonascaleof1to5with5equalingOutstanding.

Nameofteammember (PRINTFIRSTandLASTname) Contributedcourserelated knowledgetoproject Waswillingtolistento othersideas Contributedcreativeideasto theproject Contributedafairshareto theproject. Wasdependable;attended meetings,submittedassigned work. TotalScoreforeachteam member

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