ESBM Summer 2013 Syllabus
Entrepreneurship and Small Business Management EBM-320
Summer Semester 2013
Distance Course Syllabus
Instructor: Professor James Stone
Email:
Skype Address: james.rock434
Primary Texts: Effective Small Business Management: An Entrepreneurial Approach by Norman M. Scarborough and Thomas W. Zimmerer, Powerpoints book and Entrepreneurship Cases collection.
Course Description: The course examines and analyzes the theory and practice of entrepreneurship and small business management from an entrepreneurial perspective, with particular emphasis on planning for, starting and managing a small business. Planning activities in the course will be enhanced by the use of Business Plan Pro software as a management tool.
Goals: Students will be expected to know the basic theoretical concepts covered in the text, discussions and handouts as well as the methods, strategies and aims of various approaches to entrepreneurship and small business management.
Communication with Instructor: Students will communicate with the instructor via email at and via Skype at james.rock434. Students are encouraged to send emails and arrange Skype conferences whenever they need additional information or anything else necessary and appropriate for their successful completion of course assignments.
Assignments and Exams: Students will prepare and present written business plans and other reports and oral presentations. Students will take one mid-term and one final exam. There are no make-up exams except in accordance with university policy.
Grading:
· Participation in Skype Sessions with Instructor (10%). The instructor will schedule a series of one-hour or longer Skype sessions with individual students and/or groups of students who can join a group Skype from separate locations or participate as a group in the same location. These sessions will be used to share information, address any difficulties and to provide a forum for students to present their progress work and final presentations. Students are encouraged to schedule additional Skype conferences whenever necessary for successful completion of assignments.
· Individual business plan project and other individual and group activities (40%). Each student will prepare a REQUIRED written business plan and an accompanying PowerPoint presentation. In addition, students will prepare progress presentations on their business plans and short reports and presentations on other assignments. Students are encouraged to assist each other and students are welcome to have fellow students make part, but not all, of their pitch presentations. Each student must, however, submit a separate original business plan. The final written business plan is a requirement. Anyone failing to produce this document will fail the course.
· Mid-term Exam (20%). Students will arrange to take a proctored multiple choice and short answer midterm examination at a time convenient for the student and the proctor.
· Final Exam (30%). A proctored multiple-choice, short answer and essay practical application comprehensive final examination will be held at a time convenient to the student and proctors.
Projects and Assignments
Individual Business Plan (25% of final grade)
The business plan must be an original (newly written by the student) business plan:
1. For a start-up company in Russia with at least 12 employees
2. Have at least four different job types (including a CEO or general director)
Business Plan Outline Based on Business Plan Pro Software
Following is a business plan outline based on the Business Plan Pro (BPP) software available in the computer room. This is the plan format we will use for the class. Feel free to do some or all of the text writing in MS Word and then insert it in the appropriate sections in BPP.
Students will need to “insert” some topics. The easy way to do so is to select “Outline” from the “View” item on the menu bar. The plan outline will appear on the right of the screen. On the outline, select the main topic for which you will insert a subtopic (for example “1.0 Executive Summary”), then select “Insert” from the outline menu bar and “Topic” from the drop-down menu and then write the topic title (for example “Summary of Financial Request”). BPP will do the numbering of these topics automatically. To position topics in the outline, right click on the item and “move up,” “move down,” “promote,” or “demote.”
The individual numbered items (1., 2., 3., etc.) indicate further subtopics within BPP topics or subtopics. BPP will not insert the numbering scheme automatically, but the writer can choose to make numbered or bulleted lists. Unfortunately numbers and bullets are the only format choices in BPP. Letters are not an option. Numbered lists for these items are not necessary as long as they are included in the designated sections.
Most tables are built into the BPP software. The data in the tables will generate the charts and graphs. Some tables or graphics will need to be created and cut and pasted into the document. These are noted.
Following are the business plan content and format requirements:
Cover Page including: [Fill in page in BPP software.]
· Business Name
· Names of Team Members
· Instructor’s Name
· Name of Class and Semester
Legal Page/Confidentiality Agreement [Comes with BPP]
Table of Contents with Page Numbers [Generated by BPP Software]
1.0 Executive Summary [This will be prepared last in the BPP Software. The summary should be written in paragraph form and cover the items in a) through f) but without the letters for each item.]
a) Company name, address, and phone number (this can be fictitious)
b) Name(s) of all key people
c) Brief description of the business, its products and services, and the customer problems they solve
d) Brief overview of the market for your products and services
e) Brief overview of the strategies that will make your firm a success
f) Brief description of the managerial and technical experience of key people
Graph: Highlights [Three years Revenues, Gross Profit (if applicable) and Net Profit]
1.1 Objectives [Choose eight or fewer key S.M.A.R.T. objectives.]
1.2 Mission
1.4 Keys to Success
1.5 Summary of Financial Request [You must Insert this topic in BPP.]
2.0 Company Summary [Brief summary of the business the company is in and its products and services]
2.1 Company Ownership
2.2 Start-up Summary
Table: Start-up
Graph: Start-up
3.0 Products and Services
3.1 Product/Service Description [You must Insert this topic in BPP. Cover the following subtopics for each category of products and/or services.]
1. Product or service features
2. Customer benefits
3. Warranties and guarantees
4. Uniqueness
5. Key product/service success features
3.2 Patent or trademark protection [You must Insert this topic in BPP.]
3.3 Description of production process (if applicable) [You must Insert this topic in BPP.]
1. Raw materials
2. Costs
3. Key suppliers
4. Lead times
3.4 Future product or service offerings [You must Insert this topic in BPP.]
4.0 Market Analysis Summary
4.1 Market Segmentation
1. Identify Market Segments
· Describe what divides the segments, requiring you to market differently to each
· Briefly discuss how marketing might differ for each
· Estimate the segment size
2. Explain table data
Table: Market Analysis (numbers include ALL prospective buyers for you and competitors in your trade area, not just the customers you think your business will actually attract)
Pie Chart: Market Analysis
4.2 Target Market Segment Strategy
1. Define segments your business will target
· Provide a more detailed profile for each
· Size and growth trends for each
2. Explain their motivation for buying from your business
4.3 Business Analysis
4.3.1 Competition and Buying Patterns
4.3.2 Competitor Comparison [You must Insert this topic in BPP.]
1. Existing competitors
· Describe who they are
· Strengths
· Weaknesses
2. Potential competitors: Companies that might enter the market
· Describe who they are
· Describe the impact on your business if they enter
Table: Competitor Comparison Matrix [You may need to cut and paste from MS Word.] This should have key success factors and product attributes on one axis and your company and key competitors on the other axis. The intersecting interior cells should tell the story of which companies are strong or weak on these key factors and why your company is competitive (or not competitive).
5.0 Web Plan Summary
5.1 Website Marketing Strategy
5.2 Development Requirements
6.0 Strategy and Implementation Summary
6.1 SWOT Analysis
6.1.1 Strengths
6.1.2 Weaknesses
6.1.3 Opportunities
6.1.4 Threats
6.2 Competitive Edge
6.3 Business Strategy [You must Insert this topic in BPP.]
1. Desired image in the marketplace-positioning
2. Competitive Strategy (Cost leadership, differentiation, focus) for various products/services
3. Key success factors for business success
6.4 Marketing Strategy
1. Marketing programs. Some may differ for different segments or services.
2. Advertising and promotion
· Media used-include reader, viewer, listener profiles
· Media costs
· Frequency of usage
· Plans for generating publicity
· Description of sales literature and how it will be used
Table: Advertising budget by media [You may need to cut and paste from MS Word.]
3. Distribution Strategy
· Distribution channels
· Sales techniques and incentives
4. Strategic Alliances
5. Test market results
· Surveys
· Prospective customer feedback on prototypes
· Focus groups
6.5 Sales Strategy
1. Personal selling efforts
· Sales force size, recruitment, and training
· Sales force compensation
· Number of calls per sale
· Amount of average sale
2. Pricing
· Cost structure fixed and variable costs
· Desired image in market
· Comparison against competitors’ prices
· Discounts
· Gross profit margins
6.5.1 Sales Forecast
Table: Sales Forecast
Graph: Sales Monthly
Graph: Sales By Year
6.6 Milestones
Table: Milestones
Chart: Milestones
7.0 Management Summary
1. Form of ownership
2. Company structure (include decision-making authority, etc.)
3. Key managers and employees
Chart: Organization Chart
7.1 Personnel Plan
Table: Personnel
8.0 Location and Layout [You must Insert this topic in BPP. This will address any office, restaurant, manufacturing or other facilities the company will own or lease for operations.]
1. Location
· Demographic analysis of location vs. target customer profile
· Traffic count
· Lease/Rental rates
· Labor needs and supply
· Wage rates
2. Layout
· Size requirements
· Ergonomic issues
Graphic: Layout plan [You will need to create this in another program and cut and paste it into the document.]
9.0Financial Plan
9.1 Start-up Funding
Table: Start-up Funding
9.2 Important Assumptions
9.3 Break-even Analysis
Table: Break-even Analysis
Graph: Break-even Analysis
9.4 Projected Profit and Loss
Table: Profit and Loss
Graph: Profit Monthly
Graph: Profit Yearly
Graph: Gross Margin Monthly
Graph: Gross Margin Yearly
9.5 Projected Cash Flow
Table: Cash Flow
Graph: Cash
9.6 Projected Balance Sheet
Table: Balance Sheet
9.7 Business Ratios
Table: Ratios
10.0 Loan or Investment Proposal (If outside investment or loans are required, otherwise indicate this is not applicable.)
· Amount requested
· Purpose and uses of funds
· Repayment or “cash out” schedule (exit strategy)
APPENDIX
Table: Sales Forecast Detail
Table: Personnel Detail
Table: Profit and Loss Detail
Table: Cash Flow Detail
Table: Balance Sheet Detail
Key Job Descriptions
Sales Literature-copy of one piece of sales literature
Business Plan Assignment Grading Criteria
5% All or nothing. Written business plan meets minimum requirements. Plan document includes all components and sub-components, including cover page, TOC, page numbers sections, sub-sections, tables, charts and graphs.
Up to 10% Quality of Section 1 (including graphics).
Up to 10% Quality of Sections 2-3 (including figures).
Up to 10% Quality of Sections 4-5 (including figures).
Up to 20% Quality of Section 6 (including figures).
Up to 10% Quality of Sections 7-8 (including figures).
Up to 20% Quality of Section 9 (including figures).
Up to 5% Quality of Section 10
Up to 10% Quality of Section Appendices (including figures, job descriptions and sales literature).
100% Total possible percentage points. The final percentage score will be multiplied by .25 (25%) to arrive at the score for the final grade. This is because the business plan assignment makes up 25% of the final grade.
Business Plan Pitch Presentation (5% of final grade)
10 to 20 minute PowerPoint presentation. Each student will prepare a PowerPoint presentation and team “pitch” to the class. The instructor and others on the Skype conference will play the role of prospective investors or bankers. Each student should choose and present the most important aspects of their business idea and business plan in a PowerPoint presentation to the audience. Each student will also participate in a 5-10 minute question and answer session on their business plan immediately following their presentation. Students may ask other students in this course to assist with making parts of their presentation, but the student preparing the business plan should be the principle presenter.
Other Individual and Team Activities:
In addition to the business planning project and pitch, students will produce the following reports and presentations for submission or presentation.
Ø Individual/Team Answers to Textbook and other Cases. Individual students or teams of up to four students will read the textbook or other cases and prepare and submit answers to the accompanying questions. Where there is time, the cases will be discussed during Skype conferences with the instructor.
Ø Individual/Team Beula’s Bistro Financial Plan Exercises. This will be prepared by individual students or teams of up to four students in the computer lab or on another computer equipped with Business Plan Pro. Each student should complete the exercise with students helping their team members and members of other teams to go through the full process and complete it.
Ø Assigned (existing) Business Plan Pitch Presentations. To give students early experience reading, understanding and “pitching” a business plan, the instructor will assign already-prepared business plans to each student or a pair of students. Students will then make 10-minute pitch presentations based on the key points in the business plan. In deciding what to present, students must decide who their audience is (company employees, bankers, investors, venture capitalists, etc.), and what they want their audience to do with the information in their presentation (get on board with changes in company direction, provide loan funding, invest in the company, etc.). PowerPoint slides are not required. The presentations should include: