BUSINESS PLAN DEVELOPMENT

Fall Quarter 2009

Instructor: Jeff Scheinrock
Management 295D Section 1
Monday, 4:00 PM – 6:50 PM
Room C315

OVERVIEW

This course presents the fundamentals of developing an effective business plan, both in presentation
and written form. It teaches the basic principles of designing and articulating plans for the sales,
marketing, product or service, operations, financials, management and staffing functions of a new
startup business.

Students are required to arrive on the first day of class as part of a team (4-5 students) with a well
thought out, already developed, solid business concept that has been pre-approved by the instructor.
This is not a course to “find, create, or think up” a new business. The business concept and market
opportunity must already be investigated and prepared. It is preferable that students have previously
taken the first course in entrepreneurship, Entrepreneurship & New Venture Initiation (Management
295A), as a means to accomplish this.

The Business Plan Development course objectives are for students to: learn how to develop a well
written investment quality business plan and business plan presentation; understand the various
analytical processes required to produce such a plan; improve their writing and oral presentation
skills; review and critique the business plans of several other start up ventures; and to formally
present their business plan to an audience of angel and venture capital investors.

Developing an effective business plan is a challenging exercise for even the most seasoned
professional. Students are required to integrate material from the several disciplines and fields, which
underlie the modern practice of management. As a result, the course builds and extends the student’s
ability to assess markets, define businesses, analyze the environment, analyze the competition,
assemble and manage the people resource, and build economic and financial models that are
grounded in reality. The final business plans are evaluated with feedback from experienced
investment professionals who regularly evaluate new business plans. Guest lecturers from
entrepreneurs, venture capitalists and angel investors provide real-time knowledge and feedback at
various points in the course.

Teams of students (4-5 per team) will work together to develop a business plan for a start up
business. Each team is paired up with another team who reads various drafts of each other’s plan
and provides valuable feedback to each other, in addition to the professor’s review and critique.
Throughout the quarter, students will be required to read, analyze, and critique several real-word
business plans as case studies.

At the end of the course, each team makes a final, formal presentation to a panel of professional
investors. After all presentations have been made, each student becomes an angel investor and
"invests" a total of $100,000 in one or more of the plans, in increments of $10,000. Each plan will be
"funded" from a pool of funds.

REQUIRED TEXTS AND CASES

1. “The Ernst & Young Business Plan Guide”, second edition, by Eric Siegel, Brian Ford, and Jay
Bornstein, John Wiley & Sons, 1993, ISBN 0-471-57826-6, paperback. This text is referred to as the “EY”
text. This is the primary text for the course and provides an excellent reference for developing a business
plan.

2. "Writing Business Plans That Get Results: A Step by Step Guide", by Michael O’Donnell, Lord
Publishing, 1991, ISBN 0-8092-40007-6, paperback. This text is referred to as the “O’Donnell” text. This
book compliments the above text and is useful in that it provides a set of questions to be answered by the
entrepreneur for each major section of a business plan.

3. “Course Packet for Business Plan Development Mgt 295D“ The course packet contains all the
business plan case studies for this course.

OTHER OPTIONAL REFERENCE MATERIALS

4. “Guide to Presentations”, by Mary Munter and Lynn Russell, Prentice Hall, 2001, ISBN 0130929956,
paperback.

5. “The Ernst & Young Guide to Financing for Growth” , 2nd edition, by Daniel Garner, Robert Owen
and Robert Conway, John Wiley & Sons, 1994, ISBN 0-471-599903-4. This is a good introductory
overview of the variety of financing alternatives available to startup ventures. This paperback is a
complimentary book to the E&Y paperback used as the course text.

6. "The Art of The Start: The Time Tested, Battle-Hardened Guide for Anyone Starting
Anything", by Guy Kawasaki, Portfolio Press division of Penguin Putnam, 2004, ISBN 1591840562,
hardcover.

7. “The Successful Business Plan: Secrets & Strategies”, by Rhonda Abrams, Oasis Press 1997

8. “Model Business Plans”, by Wilbur Cross and Alice Richey, Prentice Hall, 1998

COURSE DESCRIPTION

Business Plans
Business plans are developed during the course for new business ventures. Student teams are totally
responsible for finding startup ventures for whom to write a business plan prior to the start of the course.
Students may develop plans for their own personally initiated ventures or for companies being started by
entrepreneurs who are outside of Anderson. In order to assist students in finding new ventures before the
quarter begins, I will solicit local venture capital firms and angel investors to recommend new ventures
who need effective and well-written business plans. Contact me for acceptable ventures which may be
viewed prior to the first day of class.

Business Plan Teams

A team of five students develop each business plan. Students form their own teams and must email me
the name of the students on his/her team prior to the first day of class. It is best to carefully select the
students on each team to include a variety of experiences and skills, such as having marketing/sales,
financial and operational skills on each team. Likewise make sure that each team has expertise with
financial spreadsheets, market research and excellent writing skills.
For students with their own personal ventures: Before the start of the term, students should e-mail me a
one or two page executive summary describing their business venture. Tell me about the product or
service, what market research has been performed, and how they plan to market and sell the product. I
will then determine if the venture is suitable for inclusion in this course. Once I approve the venture, it is
up to the student to present and “sell” their venture to four other enrolled students prior to or during the
first class session in order to create a five-person team. If they cannot recruit a full five- person team to
join them in their venture, that student will have to join another team. While this process initially appears
complex, in the past it has resulted in the 12 very best ventures being selected.

For students who do not have their own venture: You are responsible for finding a place on an existing
team or you can contact me before the quarter starts to review several available ventures that I have
recruited from outside of Anderson. You can reserve a specific venture and then you must form a five-
person team before the end of the first class session.

Team formation must be completed before the first day of class. Any student not assigned to a team
before Class #1 will be placed on one by the instructor during the first class session. Note, waitlisted
students may not be team members. Once enrolled in the class, the instructor will do his best to place
those students on their preferred team. However, if team size constraints do not allow for the student to
be place on his/her preferred team, the instructor will assign that student to another team.

To assist you in the team formation process, a Yahoo! Groups page has been constructed (INSERT
YAHOO! GROUPS NAME). All enrolled students will be invited to join this group. There you will be able
to: 1) share your own business concepts, 2) seek opportunities to join another team, and 3) discuss skill
sets, experience, and interests in an attempt to best match business concept with team members.

Business Plan Architecture

The business plan is developed in sections, the first being the Executive Summary. Then the sections on
Products, Markets, Marketing, Sales, Management, Operations, Financials, etc. are written. The process
is cumulative and integrative, where after completing the Marketing section; it is almost always necessary
to update the Executive Summary section with the new information and insight gained while developing
the Marketing section. The same updating occurs after writing the Operations section; after analyzing and
studying the operations function in more detail, adjustments almost always need to be made to the
financial projections.

Business Plan Case Discussions

Eight actual business plans are studied and discussed in depth during the course, one plan each week
(with the exception of Week 6, during which students will be giving midpoint presentations). All students
are required to study each plan prior to coming to class. Students are expected to have a thorough
understanding of business and to offer a sound critique of the business and the plan. Specifically,
students should be able to articulate the company’s position, market, product, monetization strategy,
marketing strategy, sales strategy, operations strategy, and financial projections. Students are also
expected to be able to answer the following: How attractive is the market? How unique is the product?
What is the company’s value proposition? How viable is the business model? What are the most positive
attributes of the plan? What are the most apparent weaknesses? How can the plan be improved? How
effective is it in presenting the venture’s value proposition and compelling reason to buy? Will this venture
be successful? What are the risks? Will this plan stimulate professional investors to schedule further
meetings to perform more in depth due diligence? Do not spend time restating the details of the plan
which everyone has already read. Jump right into analyzing it, pointing out the strong and weak points
and making recommendations on how to improve it. The management core courses and Management
295A is a sufficient foundation for these purposes.
Each case will be discussed in class, with a few students being randomly selected just before class starts
to present both the background of the case as well as their own critiques and feedback regarding the
case. This opening presentation is a five to eight-minute verbal presentation from the podium. All
students should be prepared with notes to effectively deliver their presentations. This activity constitutes a
significant portion of the student’s class participation grade which represents 20% of his/her final grade for
the course.

Eight business plans are studied: Chronomotion (imaging applications), Tornado Development
(communications software), Whagaa (personalized instruction), Home Magic ( home control system),
emaimai (auction site), Asia Card (affinity program), Lumitrend (mobile backup platform) and Packard Bell
(computer brand).

Initial / Midpoint Business Plan Presentation

During the sixth week, each team makes an initial formal presentation of the first half of their total
business plan. This includes the following sections: Executive Summary, Company Introduction, Product
or Service, Market, and Marketing & Sales Strategy. Each team has exactly seven minutes to present up
to seven Power Point slides. Load slides onto the class podium computer prior to the start of class and
provide the instructor an TA with a hard copy printout before the presentation begins. It is a requirement
that all teams arrange to meet with a marketing/communication department TA prior to the
midpoint presentation. An evaluation will be required to be turned in. If needed any team can
utilize this resource prior to their final presentation.

Business Plan Drafts Reviews

In order to develop an effective plan, you need critical but constructive feedback from other professionals.
Each team is paired up with another team, called your “paired team” and each team will give their written
and verbal feedback to the other team. This feedback process occurs twice during the course. The first is
the initial presentation and draft of the first half of the plan in week six. The second time is to review the
final plan draft due during week 9. In addition, written and verbal feedback will be given to the teams by
the instructor me and the teaching assistant.

Each individual team member writes a one-page assessment of the other team’s written drafts. This can
be done via a written text or by using the editing software capability in MS Word, where the suggestions
and feedback are placed directly into the plan text. You may use either method to communicate your
feedback. Feedback is to be emailed to every member of your paired team, with a copy sent to me and
the course TA. In your email, clearly enter “(Name of Reviewer)’s Review of (Name of Venture)” in the
email subject area. Verbal feedback is given immediately after each presentation.

It is important that all students provide positive and constructive feedback to their fellow students in order
to have a high quality learning experience. This feedback should be supportive of our overall goal to
develop the business plan development skills of all students in the class. I keep accurate records of this
important phase of the feedback process, so make sure that I receive a copy of each of your feedback
emails. The importance of this feedback cannot be overstated. This individual feedback process
represents 15% of your final grade.

Also, you will be required to complete a written confidential formal peer review of your team members.
Your feedback will help the instructor make any necessary individual adjustments to the team’s baseline
grade which accounts for 65% of a student’s final grade. This portion of the final grade is composed of
each team’s written business plans and presentations throughout the course.
Final Business Plan Presentation
The conclusion of the course is the final formal presentation of each business plan. Formal presentations
are exactly 15 minutes long with another 15 minutes for questions and answers. This presentation is
made to 2-3 professional investors. This takes place during the week 10 and exam week, with each
session presenting five to six plans. This is the same exact format used by venture capital firms and angel
investor groups such as the Tech Coast Angels and Pasadena Angels. Each investor/judge may “invest”
up to a total of $6 million in one, several or all six ventures they see. Each judge will also provide written
feedback to each team. Dress is business attire.

Other outsiders, such your venture’s management team, may be invited to view the final presentation, but
only for their specific company and with my prior approval. Students working with companies formed by
people outside of Anderson, therefore, may invite the entrepreneur of their company to attend. Guests are
not, however, allowed to ask questions or make comments in class.

After all 12 final plans have been presented, each student will act as an angel investor and invest up to a
hypothetical $100,000 in one, several or all of those ventures that he or she believes are worthy of their
investment. Investments are made in $10,000 increments and may be allocated to none of them, only one
venture, or spread across many or all of them. Students, however, may not invest in their own plan’s
venture. I will summarize these investment decisions and email the results to students.

Attendance Policy
Class attendance is an important and necessary element of class participation. Expect role to be taken in
every class via a class sign-in roster. Please sign your full name, not initials. One class absence is
allowed and acceptable, if notification is sent to me in advance via e-mail. A second absence will reduce
the final grade for class participation by one third. A third absence will result in a failing grade for the
course. Attendance is mandatory during the last two class sessions (Week 10 and Exam Session) when
final presentations are being made. Any absences during these final two weeks will result in the loss of
one letter grade. There is much to be learned about raising capital by carefully observing the investment
professionals asking questions.

At the end of the course, each student will complete a confidential peer review of their team’s members.
Completing this review is a mandatory course requirement and no grade will be given until it is received.

Confidentiality
All business plans developed and discussed in this course are confidential. All students, the Teaching
Assistant and I will sign a confidentiality and non-disclosure agreement and a separate non-disclosure
agreement for the Asia Card business plan case discussion, which appears on the last five pages of this
syllabus. It is imperative that all information disclosed and discussed in this course remains within this
classroom. This is a serious concern with our participating entrepreneurs and we must treat their business
information with the utmost concern and sensitivity.

Name Cards, Resumes, and Seating Assignments

To help me quickly learn each of you by name, please use name cards on your desk and sit in the same
seats. To help me do this, please bring to the first class a recent resume with your facial photograph
attached to the upper right hand corner. If appropriate, give me advice on how to correctly pronounce
your name. Also, students will be assigned to seats during the Week 2 session.

Laptop Policy
Open laptops are NOT permitted during class. Surfing on the web, checking email, typing notes, even
looking at a screensaver can be extremely distracting to the student, to other students around him/her,
and to the instructor. Therefore, please have all notes, slides, etc. printed out prior to the start of class.
Exams
There is neither a mid-term exam nor a final exam. The final completed business plan and the formal
presentation serve as the final exam for the course.

Class Documentation
All class presentations are created on Microsoft Power Point slides, which are placed on the faculty
server prior to the beginning of each class session, under the path “INSTRUCT\FACULTY
\JSCHEINROCK\ BUSINESS PLAN DEVELOPMENT”. Files are labeled by class number; this class is
on “BPD FA2007 1”. These slides will be available on-line during the entire course and removed two
weeks after the course ends. This syllabus, my academic resume, and my professional business resume
are also in this folder. Note that this syllabus and the class presentation slides have been copyrighted and
may not be copied or transmitted to any other persons without my express and written permission.

Contact Information
Instructor: Jeff Scheinrock
Telephone: (310) 779-3643
E-Mail: jscheinrock@anderson.ucla.edu
TA: David Franklin
TA Email: david.franklin.2010@anderson.ucla.edu
Office Hours: I do not have regular “office hours”. If you want to meet with me, please send me an
email and we’ll arrange a mutually convenient time in the following day or two.
.
 GRADING CRITERIA

Class Participation (20% weight of final grade)

Evaluation is based upon each student’s active, enthusiastic and voluntary involvement in class and case
discussions. This is evidenced by preparation prior to class and thoughtful, relevant, and appropriate
questions and comments during class. Each student is expected to read and study every case before
class in order to maximize the learning experience of the case discussion. The quality of participation is
valued much more than quantity or total amount of “air time” and where more than one student raises
their hand to speak, I’ll call on the student who has made the fewest contributions to date. This peer
feedback is invaluable as a learning experience. The quality, frequency and amount of feedback will be
graded. Each student will be evaluated individually. Class participation will be graded on a relative
distribution (scale out of 20, mean of 16).

Feedback (15%)
Evaluation will be based on quality and comprehensiveness of your verbal and written feedback given to
your paired team’s plan and presentation. Each student will be evaluated individually. Copy me and the
Teaching Assistant on your feedback emails. I read every feedback email and keep accurate records of
each feedback. Feedback will be graded on a relative distribution (scale out of 15, mean of 12).

Written Business Plan (50%)

This is the final result of the class, hence the major weighting. Taken as a total business plan, is it
effective in presenting the business opportunity in a realistic manner? Does it convey a level of knowledge
and confidence that the authors really know what they are talking about and have developed a
comprehensive plan? Does it have all the elements needed in a well-prepared plan? Will it be read in one
sitting? The same grade will generally, but not always, is given to all members of each team. This grade
will incorporate not only the final deliverable, but also your team’s progress and effort throughout the
course. The written business plan will be graded on a relative basis (scale of 50, mean of 40).
a) Executive Summary (20% of the plan)
Does it present an effective capsule of the business opportunity? Does it cover all the major
points of markets, operations, financials, management, and sales? Is it strong and interesting
enough to motivate an investor to completely read the entire plan at one time?
b) Market Segment Analysis Section (20% of plan)
What is the target market segment? Who is the target customer? What is the purchasing
criterion? How large is the total market? How fast is it growing? What is the competition? How is
the product or serviced differentiated from the competition? What is the compelling reason to
buy? What is the value proposition being offered to the customer?
c) Marketing & Sales Section (20% of plan)
What is the marketing strategy? How will it be sold? What is the typical sell cycle? What is the
pricing strategy? What is the sales forecast and how was it developed? What about advertising,
public relations and sourcing sales leads?
d) Financial Projections (20% of plan)
Do the financial projections directly relate to the activities described in the plan? Are the
expenses reasonable and appropriate? Have the revenues been realistically forecasted? Does
the balance sheet represent the true position of the firm? Are the spreadsheets complete and
easy to understand? Does it clearly indicate when break-even operation, positive cash flow and
profitability is reached?
e) Other Sections (20% of plan)

Business Plan Presentations (15%)

How well did the presentation come across to the audience? Were the presenters able to convey a sense
of excitement and credibility for their new business? Were their slides and handouts appropriate, well
designed, and easy to understand? Was there a direct relationship between the slides and the plan? How
did they handle the questions and answers period? Did they get caught without a convincing answer to
the judges’ questions? Were they able to substantiate their claims? Were they credible? The same grade
will normally be given to all members of the team. The Business Plan Presentations will be graded
according to a relative distribution (15 point scale, mean of 12).
CLASS SCHEDULE

Class #1 (September 28, 2009) – Introduction to Business Planning

Preparation / Assignments for Today

1. Make sure you sign the class roster each week using your full name; no initials.
2. Before you leave tonight, give me the name of your venture and the names of the student team
members. I will assign team numbers tonight.
3. Bring to class a recent resume with a facial photograph attached to the upper right hand corner.
4. Bring a clearly printed name plate to class each week and display it.
5. REQUIRED Reading:
• EY text: Chapters 1 through 4 with emphasis on chapters 1 and 2.
• O’Donnell text: Pages 1 through 9.
• Chronomotion
6. OPTIONAL Reading:
• Harvard Business School, September 16, 1985, Prestart Analysis: a Framework
for Thinking about Business Ventures, article 9-386-075.
• Alan Carsrud, Women-Owned Businesses, 1989, In the Beginning...Concept
Development, Feasibility, Analysis, and Value Creation, 35-54
• Robert A Baron, Journal of Business Venturing, 2000 Counterfactual Thinking
and Venture Formation: The Potential Effects of Thinking About “What Might Have
Been”, 15(1), 79-92
• Ian MacMillan, Lauriann Zemann, & P. N. SubbaNarasimha, Journal Of Business
Venturing, 1987, Criteria Distinguishing Successful From Unsuccessful Ventures,
123-138, Vol. 2.
• Xenas Block & Ian MacMillan, Harvard Business Review, Milestones for
Successful Venture Planning, 1985, Sept.-Oct., 184-196
• William Gartner, Jennifer Starr, Sudodh Bhat, Journal of Business Venturing,
1999, Predicting New Venture Survival: An analysis of “Anatomy of a Start-Up Cases
from INC. Magazine”, 14 (2), 215-232.

Deliverables Due Today

1. Resume with photo attached on the upper right hand corner.
2. Names of each person on each team and team company name.

Agenda
1. Presentation and Class Discussion of Course Introduction and
Overview - This includes an overview of the course, syllabus, teaching objectives, grading
criteria, texts and cases, presentations, review of candidate ventures, and other administrative
issues.
2. Presentation and Class Discussion: Overview of Business Plan
Development - Why develop a business plan, elements of a business plan, the business plan
development process, and who is the audience? Describe the reiterative process of improving
each version of the plan. We’ll discuss the Executive Summary and Company Description
sections. Stress the importance of the first minute or two of reading a business plan.
3. Discuss Chronomotion plan
4. Team Formation and Assignment to Ventures - If you are bringing
your own venture to class, which I have previously approved, and you do not yet have four other
students on your team, be prepared to make a short 3-4 minute verbal introduction of your
business venture to the class. The objective is for you to recruit another four team members to
join your venture. If you are not successful, you will have to join another team. If you are not
committed to a team by the first class, you will be able to view other students who have approved
ventures and who need to recruit team members. If you have not joined a team by the end of this
first class session, I will randomly assign you to a team.
 Class #2 (October 5, 2009) – Product Strategies

Preparation / Assignments for Today

1. If your team is developing a plan for someone else, contact your
venture company and interview the entrepreneurs to develop sufficient background about the
product, market and background to write an effective Executive Summary and Company
Description.
2. Write a two to three page Executive Summary and a two to three
page Company Introduction section of your business plan. This will be submitted with other
sections due in week 5.
3. REQUIRED Reading
• EY: Chapters 5, 6, 7
• O’Donnell: Modules 1, 2, 3, 4, 5
• Tornado Development plan
4. OPTIONAL Reading
• Rita Gunther McGrath, Ian C. MacMillan and Willow Sheremata, The Academy of
Management Review, 2000, Centrifugal and Centripetal Forces in Radical New
Product Development Under Time Pressure, 25 (2), 389-408.
• Richard Robinson & John Pearce II, Journal of Business Venturing, 1986, Product
Lifecycle Considerations and the Nature of Strategic Activities, 207-244, Vol. 1.
• Johne Axel & Patricia Suelson, Journal of Business Venturing, 1988, Success
Factors in Product Innovation, 114-128, Vol. 5.

Deliverables Due Today

1. None

Agenda
1. Presentation and Class Discussion: "What is the Product or Service?" - What business are
you in? What is the core competency of the business? What's different about your product? How
have you differentiated it? What is the value proposition you provide customers? Why will the
customer buy? What is the compelling reason to buy? Do you have patent protection? Do you
have a working prototype?
2. Discuss the Tornado Development plan.
3. Panel Discussion with Current Entrepreneurs - This one-hour panel discussion includes three
current entrepreneurs who have recently started their own ventures. The objective is to provide
current real world insights into writing and re-writing business plans and raising capital.
 Class #3 (October 12, 2009) - Market Segment Analysis

Preparation / Assignments for Today

1. Write a two or three page section of the plan on the Product or Service. This will be handed in
during week 5 of class.
2. REQUIRED Reading
• EY: Chapter 8
• O’Donnell: Modules 6, 7
• Whagaa plan
3. OPTIONAL Reading
• Briance Mascarenhas, Journal of Business Venturing, 1997, The order and size of
entry into international markets, 12 (4), 287-300.
• Bengt Johannisson, Entrepreneurship and Regional Development Personal networks
in emerging knowledge-based firms: Spatial and functional patterns, 1998, 10 (4),
297-312.
• Kenneth Robinson, Journal of Business Venturing, 1999, An examination of the
influence of industry structure on eight alternative measures of new venture
performance for high potential independent new ventures, 14 (2), 165-188
4. Obtain all necessary signatures on the Non Disclosure Agreement and bring the signed original to
class to give to me. Make copies for yourself and your venture’s executive sponsor.

Deliverables Due Today

1. Signed NDA’s.

Agenda
1. Presentation and Class Discussion: Market Segment Analysis - Who is the target customer?
How do you describe him or her? How do you define the market? How is the market segmented?
What about trends, market size and growth potential? What’s the relationship between market
share and profitability? Who is the competition?
2. Discuss Whagaa plan.
 Class #4 (October 19, 2009) – Marketing & Sales Strategies

Preparation / Assignments for Today

1. Write a two to three page section on your venture’s target market. To be handed in during the
Week 5 session along with other sections of the plan that you’ve previously written.
2. REQUIRED Reading
• EY: Chapters 12, 13
• O’Donnell: Module 8
• Home Magic plan
3. OPTIONAL Reading
• John Pearce and Steven Michael, Journal of Business Venturing, 1997, Marketing
Strategies that make entrepreneurial firms recession-resistant, 12 (4), 301-314.
• Jeffrey Covin, Dennis Slevin, and Michael Heeley, Journal of Business Venturing,
2000, Pioneers and Followers: Competitive Tactics, Environment and Firm Growth,
15(2), 175-210.
• Kenneth Robinson, Journal of Business Venturing, 1999, An examination of the
influence of industry structure on eight alternative measures of new venture
performance for high potential independent new ventures, 14 (2), 165-188
• Shaker Zahra and William Bogner, Journal of Business Venturing, 2000, Technology
Strategy and Software new Ventures’ Performance: Exploring the Moderating Effects
of the Competitive Environment, 15 (2), 135-174

Deliverables Due Today

1. None

Agenda
1. Present Final Presentation Schedule - Weeks 10 and 11 (during Exam time)
2. Presentation and Class Discussion: Marketing and Sales Strategies - How do you plan to
market your product or service? What strategies are you going to use? Who is the competition?
How are you positioned versus your competition? What is the pricing and business revenue
model? What are your sales strategy and tactics? Who will sell the product? How? How are you
going to generate sales leads? What's the sell cycle?
3. Discuss Home Magic plan
 Class #5 (October 26, 2009) – Financial Forecasts

Preparation / Assignments for Today

1. Write a two to three page section on your venture's Marketing and Sales Strategies. To be
handed in this week with other sections of the plan you’ve previously written.
2. Compile your business plan to date as your Initial Plan Document (See Today’s Deliverable)
3. REQUIRED Reading:
• O’Donnell: Module 14
• emaimai plan
4. OPTIONAL Reading:
• “The Ernst & Young Guide to Financing for Growth” by Daniel Garner, Robert Owen
and Robert Conway.
• William Bygrave (ed) The Portable MBA in Entrepreneurship (2nd Ed.), 1997, Wiley
Chapter 10 on Legal & Tax and Chapter 11 on Intellectual Property.

Deliverables Due Today

1. Submit your Initial Plan Document, which is the first half of the plan. This includes all sections of
the business plan completed to date. This one Word document should include the following
sections: Executive Summary, Company Introduction, Product/Service, Market, and Marketing &
Sales Strategy. Bring a printed copy to class to give me. Email copies to me, the course
Teaching Assistant and to each student on your paired team.

Agenda
1. Presentation and Class Discussion on Development of Financial Projections – Overview of
necessary financial forecasts: balance sheets, P&L statements, and cash flow statements.
2. Discuss emaimai plan.
3. Panel Discussion with Professional Investors - This is a one-hour panel discussion with
several venture capitalists and angel investors who regularly review business plans and make
investments in seed and early stage ventures. The objective is to provide an insight into what
investors look for when reading business plans and what they like and don’t like to see in
business plans.
 Class #6 (November 2, 2009) – Midpoint Presentations

Preparation / Assignments for Today

1. Midpoint Presentations
2. Paired Team Feedback. This is an individual assignment. See Deliverables for more details.
3. Start developing your venture’s financial forecasts and reports.

Deliverables Due Today

1. Midpoint Presentations
2. Paired Team Feedback. Before class tonight, each student is to individually write a critical
analysis and comprehensive review of the plan their paired team sent them. It is useful to use the
revision functionality of the Word software to accomplish this. Then e-mail a soft copy of your
written feedback review to each member of the feedback team with whom you are paired with,
plus email soft copies to the Teaching Assistant and me. As you will be graded on the
comprehensiveness and quality of your, make sure the Teaching Assistant and I receive a copy
of your feedback email.

Agenda
1. Initial / Midpoint Plan Presentations
 Class #7 (November 9, 2009) – Company Operations, Room

Preparation / Assignments for Today

1. Develop your venture’s financial projections and reports to be handed in (as your next draft of the
final business plan) with other sections of the plan you’ve previously written.
2. REQUIRED Reading:
• EY: Chapters 9, 11
• O’Donnell: Module 9
• Asia Card plan
3. OPTIONAL Reading:
• “The Ernst & Young Guide to Financing for Growth” by Daniel Garner, Robert Owen
and Robert Conway.
• William Bygrave (ed) The Portable MBA in Entrepreneurship (2nd Ed.), 1997, Wiley
Chapter 10 on Legal & Tax and Chapter 11 on Intellectual Property.

Deliverables Due Today

1. None

Agenda
1. Presentation and Class Discussion on Company Operations – This includes discussion
about operations, manufacturing, logistics, sub-contracting, supplier relationships, capital
investment requirements for infrastructure, facilities planning and major milestones.
2. Discuss Asia Card plan.
 Class #8 (November 16, 2009) – Management & Personnel

Preparation / Assignments for Today

1. Write the section on your venture's Operations.
2. Complete writing final business plan draft including sections on Operations, Management,
Personnel, and Financials. See Deliverables Due for more details.
3. Schedule a mandatory dry run review of formal presentation with the Instructor and TA
4. REQUIRED Reading:
• EY: Chapter 10
• O’Donnell: Modules 10, 11
• Lumitrend plan
4. OPTIONAL Reading:
• Beverly Virany & Michael Tushman, Journal of Business Venturing, 1986, Top
Management Teams & Corporate Success in an Emerging Industry, 261-274, Vol. 1.
• Vance Fried, Garry Bruton, and Robert Hisrich, Journal of Business Venturing, 1998,
Strategy and the board of directors in venture capital-backed firms, 13 (6), 493-504.
• Sara Carter and Peter Rosa, The financing of male- and female-owned businesses,
Entrepreneurship and Regional Development, 1998, 10 (3), 225-242.

Deliverables Due Today

1. Submit Final Business Plan Drafts - This includes all sections of the business plan. Email
copies to me, the course Teaching Assistant and to each student on your paired team. E-mail soft
copies to each member of your paired team for their feedback, with copies to the TA and me.

Agenda
1. Presentation and Class Discussion on Management and Personnel – This includes
discussion on the importance of the management team, executive equity compensation, creating
a board of directors and a board of advisors.
2. Discuss Lumitrend plan.
 Class #9 (November 23, 2009) – Raising Capital

Preparation / Assignments for Today

1. Update Business Plan with Management and Personnel based on last week’s class.
2. Paired Team Feedback. This is an individual assignment. See Deliverables for more details.
3. Develop the formal slide presentation, both the slides themselves and the vocal presentation.
Identify ten potential questions that you believe may be asked by the judges and prepare a back
up slide to answer each one of them.
4. REQUIRED Reading:
• EY: Chapter 12
• Packard Bell plan
5. OPTIONAL Reading:
• Noam Wasserman, Harvard Business School case Venture Capital Negotiations: VC
versus Entrepreneur, case 9-800-170, revised March 2, 2000.
• Bob Zider, Harvard Business Review, How Venture Capital Works, November-
December 1998, reprint number 98611
• Houlihan Valution Advisors/Venture One Study, Journal of Business Venturing, 1998,
The pricing of successful venture capital-backed, high-tech and life-sciences
companies, 13 (5), 333-352.
• William Sahlman & Howard Stevenson, Journal of Business Venturing, 1985, Capital
Market Myopia, 7-30, Vol. 1.
• Albert Bruno & Tysoon T. Tyebjee, Journal of Business Venturing, 1985, The
Entrepreneur's Search for Capital, 61-74, Vol. 1.
• Neil Churchill & Virginia Lewis, Journal of Business Venturing, 1986, Bank Lending to
New and Growing Enterprises, 193-206, Vol. 1.
• Andrew Zacharakis and Dale Meyer, A lack of insight: Do venture capitalists really
understand their own decision process?, Journal of Business Venturing, 1998, 13 (1),
57-79
• James McNeill Stancil. Harvard Business Review, 1986, How Much Money Does
Your New Venture Need?, 122-139.
• Gary Rivlin, The Industry Standard, The Advisory Board Game, June 19, 2000, page
162.
• Rafe Needleman, Business 2.0, Building the Perfect Board, May 2003, page 58.
• Auren Hoffman, Business Week On-line, Going By the Board, August 6, 2003.
• Ross Garber, Red Herring, Board Management Made Easy, July 2000, page 390.

Deliverables Due Today

1. Paired Team Feedback. Before class tonight, each student is to individually write a critical
analysis and comprehensive review of the plan their paired team sent them. It is useful to use the
revision functionality of the Word software to accomplish this. Then e-mail a soft copy of your
written feedback review to each member of the feedback team with whom you are paired with,
plus email soft copies to the Teaching Assistant and me. As you will be graded on the
comprehensiveness and quality of your, make sure the Teaching Assistant and I receive a copy
of your feedback email.

Agenda
1. Presentation and Class Discussion on Raising Capital - Discuss various financing
alternatives and the terms and conditions normally used when raising capital. Will cover
financing from friends & family, angel investors and venture capital. Also will cover valuation of
 startup ventures and what percentage of equity an investor receives for a given investment.
Presenting how invested capital will be used.
2. Discuss Packard Bell plan
 Class #10 (November 30, 2009) – Final Presentations (Day 1)

Preparation / Assignments for Today

1. All students are required to attend both today’s class session and next week’s session (at the
scheduled Exam day/time) to view the final presentations.
2. Day 1 Teams must have completed and submitted their business plans and presentations.
3. All students must individually submit their “Day 1 Investment Sheets”.

Deliverables Due Today

1. Day 1 Teams: Final Business Plan document and presentation. Each team is to make
five printed full size copies of their slide presentation to give to the three investors, me and the
Teaching Assistant before they make their presentation. Final copies of the complete business
plan should be available to give to investors if they request a plan. At the time of the presentation,
give me and the course Teaching Assistant a copy of the final version of the business plan. Also
e-mail me soft copies to both of us.
2. All students must individually submit their “Day 1 Student Investment Forms” at the
end of class based on today’s presentations.

Agenda
1. Day 1 Final Business Plan Presentations - The first group of teams will make formal, final
presentations of their business plans before a panel of judges composed of members of the
investment community. The format will be a formal 15-minute slide presentation followed by
another 15 minutes of answering questions from the panelists. All team members stand in front of
the class during the Q&A period and join in answering questions. Dress for all members of those
teams presenting is business attire.
2. Teacher / Course Evaluations
 Class #11 / December 4, 2009 – Final Presentations (Day 2)

Preparation / Assignments for Today

1. All students are required to attend both today’s class session.
2. Day 2 Teams must have completed and submitted their business plans and presentations.
3. All students must individually submit their “Day 2 Investment Sheets”.
4. Complete Business Plan Team Peer Evaluations.

Deliverables Due Today

1. Day 2 Teams: Final Business Plan document and presentation. Each team is to make five
printed full size copies of their slide presentation to give to the three investors, me and the
Teaching Assistant before they make their presentation. Final copies of the complete business
plan should be available to give to investors if they request a plan. At the time of the presentation,
give me and the course Teaching Assistant a copy of the final version of the business plan. Also
e-mail me soft copies to both of us.
2. All students must individually submit their “Day 2 Student Investment Forms” at the end of
class based on today’s presentations.
3. All students must individually submit their “Business Plan Peer Evaluations” at the end of
class.

Agenda
1. Day 2 Final Business Plan Presentations - The second group of teams will make formal, final
presentations of their business plans before a panel of judges composed of members of the
investment community. The format will be a formal 15-minute slide presentation followed by
another 15 minutes of answering questions from the panelists. All team members stand in front of
the class during the Q&A period and join in answering questions. Dress for all members of those
teams presenting is business attire.
2. Course Wrap-Up
 Business Plan Development Course
Confidential Non-Disclosure Agreement (page 1 of 2)

This agreement is between the company listed below ("Company") who is participating in a Business Plan
Development course at The UCLA Anderson Graduate School of Management, the students ("Students")
enrolled in this course, the course instructor ("Professor") and the Teaching Assistant ("TA") for the
course. All parties mutually agree to the following:

1. The Company agrees to disclose to Students certain confidential information about their company in
order for the Students to develop and write a formal business plan for the Company. This confidential
information includes, but is not limited to, financial data and projections, business strategies, business
models, product designs and strategies and business plans. This information may be communicated
verbally or in writing. Students agree that this confidential information is owned solely by the
Company and no intellectual property rights are acquired by the Students. Students agree not to
disclose, disseminate or communicate any of this confidential information to any other third party.
Information that is generally available in the public domain is not considered confidential information.
Students may use this confidential information only for the purpose of developing and writing a formal
business plan and presentation for the Company. The Company authorizes no other use of this
confidential information. Students may not communicate this confidential information, the final
business plan, or any part of the business plan to any third party. Students agree to promptly return to
the Company all documents, computer data files and other media containing confidential information
that was given to them during the course.

2. Students agree that the resulting formal business plan developed during the Business Plan
Development course is the sole property of the Company. Students may retain one soft and one hard
copy of the business plan and presentation developed in the course for their own personal use, but
may not reproduce them nor give them to any third party. Students agree that the final business plan
and presentation developed in this course is the Company's confidential information. Company
agrees that the Anderson School may reproduce the plan and presentation for internal educational
purposes, but only after a period of 12 months after the Company’s representative signs and dates
this agreement.

3. Students will not receive any financial compensation from the Company for the development of the
business plan and the Student is not an employee, consultant, nor an agent of the Company.

4. The Company understands that during the Business Plan Development course, portions of their
confidential information may be disclosed to all Students enrolled in the course in formal classroom
discussions. Students agree to treat this confidential information in the same manner and under the
same obligations as they do for the Company for whom they are developing plans. Students also
agree to treat all business plans reviewed in class as confidential information.

5. The laws of the state of California will govern this agreement. All parties agree to submit any disputes
to a mutually agreed upon arbitration service and that the prevailing party will be entitled to
reimbursement of their reasonable legal expenses by the other party.

6. The Professor and Teaching Assistant agree to all obligations of this agreement in exactly the same
way as the Students are obligated.

7. The Company and Students agree that the final business plan and presentation made at the end of
this course is for educational purposes only and is not to be considered an offering to sell securities.
Company and Students agree that the final business plan is not a prospectus, offering memorandum
 or private placement memorandum.

Confidential Non-Disclosure Agreement Continued (page 2 of 2)

___________________________________
Company Name

___________________________________
Print Name of Company Representative

__________________________________
Signature

_______________
Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Student Name Student Signature Date

________________________________ __________________________________________________
Print Professor Name Professor Signature Date

________________________________ __________________________________________________
Print Teaching Assistant Name TA Signature Date
Management 295D – Business Plan Development Winter 2007

Peer Evaluation Form

NAME: ________________________________________________________________

TEAM NAME: ________________________________________________________________

Please complete and submit hard copy to the TA at the beginning of class on Monday, March 12.

Part 1: Please provide scores (1 – 5, 5 being Outstanding, 1 being Unacceptable) for each team
member (including you).

Team Member Idea Research Deliverable Teamwork Overall

Creation Contribution Contribution
ME

Part 2: You are given 100 “Performance” points. Please allocate an appropriate portion of these points
to each team member (including you).

Team Member Points Comments

ME
Management 295D – Business Plan Development Winter 2007

DAY 1 - Student Investment Form

NAME: ________________________________________________________________

YOUR TEAM: ________________________________________________________________

DATE: ________________________________________________________________

Please complete and submit hard copy to the TA at the end of the March 5th and March 12th classes.

You have $100,000 each day to invest across one or more teams that present. Please articulate why you
are or are not investing in each team that presents. You may not invest in your own company.

Team Name Investment ($) Rationale

Management 295D – Business Plan Development Winter 2007

DAY 2 - Student Investment Form

NAME: ________________________________________________________________

YOUR TEAM: ________________________________________________________________

DATE: ________________________________________________________________

Please complete and submit hard copy to the TA at the end of the March 5th and March 12th classes.

You have $100,000 each day to invest across one or more teams that present. Please articulate why you
are or are not investing in each team that presents. You may not invest in your own company.

Team Name Investment ($) Rationale