Business start up project

As outlined in the Module Handbook, including:

· MDX Entrepreneurship Library Guide

You should be aware of the University’s academic integrity and misconduct policies and procedures. Taking unfair advantage over other students in assessment is considered a serious offence by the University. Action will be taken against any student who contravenes the regulations through negligence, foolishness or deliberate intent. Academic misconduct takes several forms, in particular:

· Plagiarism – using extensive unacknowledged quotations from, or direct copying of, another person’s work and presenting it for assessment as if it were your own effort. This includes the use of third-party essay writing services.

· Collusion – working together with other students (without the tutor’s permission) and presenting similar or identical work for assessment.

· Infringement of Exam Room Rules – Communication with another candidate, taking notes to your table in the exam room and/or referring to notes during the examination.

· Self-Plagiarism – including any material which is identical or substantially similar to material that has already been submitted by you for another assessment in the University or elsewhere.

Students who attempt to gain unfair advantage over others through academic misconduct will be penalised by sanctions, according to the severity of the offence, which can include exclusion from the University.

There is a zero tolerance for late submissions. All late submissions

There may be difficult circumstances in your life that affect your ability to meet an assessment deadline or affect your performance in an assessment. These are known as extenuating circumstances or ‘ECs’. Extenuating circumstances are exceptional , seriously adverse and outside of your control .

NOTES

Each student is tasked with identifying an idea and building a business plan around it. Please follow the guide below, including the Microsoft Excel Financial Spreadsheet. All information pertaining to the Business Plan can be found in your Kortextbook:

· New Venture Creation: A Framework for Entrepreneurial Start-ups (Paul Burns)

Please submit on Turnitin (Module Page):

· Business plan in Microsoft Word

· Financial Template in MS Excel Spreadsheet

BUSINESS PLAN OUTLINE

1. TITLE PAGE

2. TABLE OF CONTENTS

3. EXECUTIVE SUMMARY (1 Page Maximum)

13. REFLECTION (1 Page Maximum)

This is a reflection on what you have learned from the development of your business plan, and how this class has shaped your understanding of entrepreneurship; including, how it will shape your career motives moving forward. This does not mean you have to become an entrepreneur, but how can these newly learned skills transfer to other aspects of your career and life.

BUSINESS PLAN CONTENTS

· What kind of entrepreneur are you? Innovator? Lifestyle? Income-replacement

· What kind of business are you?

· Disruptive Innovation? New-to-the-world Industries? Incremental Product/Service? Innovation? Copy-cat? Market Development Market Paradigm Shift?

· Sole Proprietorship? Partnership? Corporation? S-Corporation? Non-Profit?

· Is your business part-time or full-time work?

· Why do you want to start this business?

· Have you not added your entrepreneurial characteristics quizzes to talk about/discuss yourself in the business details? Remember YOU are your business, and the business identity is shaped in YOUR vision.

INDUSTRY AND MARKET ANALYSIS:

· Market/Industry Lifecycle: New Market? Emerging? Growing? Mature? Declining?

· Market/Industry Concentration: Fragmented? Consolidated?

· Market/Industry Geographic Extent: Local, regional or national? Global?

· Competitors: Direct? Indirect? Future Competitors?

· Market Size: Potential Market? Total Available Market? Served Available Market? Penetrated Market?

· Market Analysis Techniques/Tools: Brainstorming; Mind Maps; Industry Futures: PESTEL Analysis; Attribute Analysis; Gap Analysis; SWOT Analysis;

· Identifying gaps in the market: Value Chain: Porter’s 5 Forces – inbound logistics; operations; outbound logistics; marketing and sales; after-sales service; procurement; human resource management; technology development; firm infrastructure.

· Page 97: The screening process ahead of the go/no-go decision.

· Why do you think this will work? What opportunity do you recognise? Is there a gap in the market? Are you bringing a totally new innovation?

CUSTOMERS AND VALUE PROPOSITION:

· Business Model: Low price (low cost); high differentiation; high customer focus or intimacy; Internet-based model?

· How are you ensuring that your business has a competitive advantage?

· What IS your competitive advantage?

· CHARACTERISTICS OF A GOOD BUSINESS MODEL: Pg 134-135.

· VALUE PROPOSITION SHOULD STATE THREE THINGS: Pg 146.

· How your product or service will solve a problem for your target customers.

· The benefits they can expect – tangible and intangible.

· Why they should buy from you rather than from your competitors.

· CREATE VALUE BY: Pg 148

· Establish an identity

· Help build a reputation

· Help develop a relationship

MARKETING STRATEGY:

· Marketing Mix

· Product/service: Quality; Performance; Design; Newness or novelty; Colours; Sizes; Specifications; Customization; Packaging; Convenience.

· Price: List Price; Discounts (volume, loyalty, etc); Auction; Negotiated; Payment Terms; Sales and Specific Offers; Differential or Segment Pricing; Reduction in cost of other products/services.

· Promotion: Communication; Advertising; PR; Word-of-mouth; Fairs and exhibitions; Sponsorship; Competitions; Point of Sale Displays; Brand.

· Place: Location; Layout; Distribution Channels; Retail/Wholesale; Internet; Telephone; Face-to-face selling; Accessibility.

· People: Relationships; Service; Advice; Support; Partnerships; Convenience of use.

· Launch Strategy;

· Sales Tactics;

· Communication Tools;

· Word of mouth; Relationships and Networks; Social Networks and Media; Blogging; Guerrilla Marketing; Publicity and Public Relations; Newspaper Advertising; Radio Advertising; TV Advertising; Internet Advertising; Sponsorship; Telephone; Posters; Flyers; Billboards; Direct Mail; Email; Texting/Tweeting.

· Minimum Viability;

· Customer Feedback and Evaluation

· Brand Development;

· Competitive Reaction;

· Product and Market Development;

· Product Modification; Product Expansion; Product Extension; Completely New Products.

· Star; Problem Child; Cash Cow; Cash Dog.

· Acquisition for product and market development.

· Growth Potential and Scale-up Plans.

· Market Penetration; Product/Service Development; Diversification (horizontal integration, backwards vertical integration, forwards vertical integration); Market Development; Franchising.

OPERATIONS PLAN:

· Key Operating Activities (i.e. Manufacturing Processes; Business Model; etc.)

· Sole Proprietorship; Partnership; Limited Liability or Corporation; Social Enterprise: Not-for-profit, Charities.

· Safeguarding your business;

· Intellectual Property Law: Patent; Trademark; Registered Design; Copyright.

· Partnerships;

· Business Controls;

· IP Issues;

· Scalability.

· Operations Plan.

· Gantt Chart

RISK ASSESSMENT (see Page 9 below for the template to use for this section)

· Identified Risks;

· Pre-launch activities; Post-launch Operations.

· Risk Monitoring and Mitigation;

· Pre-launch Delays; Competitors; Competitive Advantage; Market; Customer Value Proposition; Product/Service quality; Customer Service; Cash Flow; Sales; Profits; Operations; Productivity; Administration; Brand Identity; IP; Technology; Investment; Stocks/Inventory; Merchandising; Debtors/Receivables; Interest rates; Exchange Rates; Management.

· Critical Success Factors;

· Things that are essential to get right if the business is to achieve its mission.

· Assessing Risk: Impact; Probability; Control;

· Strategic Options

· Affordable loss and lean start-up; Borrowing and bootstrapping; Compartmentalizing risk; High margins and low fixed costs;

MANAGEMENT TEAM:

· Key People; their functions and background;

· Culture

· Organizational processes

· Leadership Styles: Authoritarian; Democratic; Laissez-faire;

· Structures;

· Controls and rewards;

· Empowerment;

· Routines; Rituals; Rites and Taboos

· Stories; Symbols and Myths.

· Cognitive Processes

· Ethics; Beliefs; Assumptions and Attitudes;

· Norms and Rules of Conduct.

· Behaviours

· How things actually get done: Rational v. Politicking; Following v. Bending.

· Vocabulary: Job Titles; Slogans; Metaphors; Signals; Gossip.

· Business Organization or Structure;

· Spider’s Web Structure?

· Hierarchical Structure?

· Matrix and Teamworking Structure?

· Directors, Advisors or Other Key Partners;

· Skills, Gaps and Plans for filling them.

RESOURCES:

· Human Capital;

· Staff

· Recruiting people:

· Job description?

· Where do you find them?

· What kind of people do you need? What skills/education?

· Full-time? Part-time? Contract?

· Salary? Hourly? Piecework? Commission?

· Social Resources;

· Accountants?

· Lawyers?

· Business Consultants?

· Mentors?

· Emotional Support?

· Financial Resources;

· Premises and Facilities;

· Machinery and equipment;

FINANCING:

· Founder’s contribution;

· Loan and/or equity finance requirements;

· Gearing/leverage;

· Timescale and exit routes for equity investors;

· Financial Projections:

· Income Projections;

· Cash Flow Projections;

· Balance Sheet Projections;

· Key Ratios;

· The assumptions on which your projections are based.

RISK ASSESSMENT TEMPLATE

3 High, 3 Medium, 3 Low Risks

SO: Strategic Options

M: Mitigating Risk

CSF: Critical Success Factors

1. Risk (Medium | External): Snowstorm in winter.

0. SO: Online store.

0. M: Late opening.

0. CSF: Open communication with customers.

1. Risk (High/Medium/Low | Internal or External): ……?

1. SO:

1. M

1. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

2. SO:

2. M

2. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

3. SO:

3. M

3. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

4. SO:

4. M

4. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

5. SO:

5. M

5. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

6. SO:

6. M

6. CSF:

1. Risk (High/Medium/Low | Internal or External): ……?

7. SO:

7. M

7. CSF:

Risk (High/Medium/Low | Internal or External): ……?

7. SO:

7. M

7. CSF:

GRADING

Grade Allocation

Assessment 2 – Business Plan (70%)

* Each student will be required to submit a business plan 2,000 Words (+/- 10%).

Reassessment and Deferrals

A student may apply for a deferral through the Student Office when the student has documented good cause to defer. Deferral will mean taking the substitute assessment; it does not mean handing in the current work later on. A deferral can be granted in exceptional circumstances, usually on medical grounds, and only when a reassessment opportunity will be available at a future point. Students must apply to the assessment manager in writing, submitting supporting documentation. The application for deferral must be submitted without a delay. The applications that have been unjustifiably delayed will not be processed. To help the module team keep track of deferrals, the student should inform the module leader of his/her intentions to apply for deferral before doing so.

Deferral means that you could undertake and submit your assessment (please note that this can be a different assessment) at a later date, decided between the School and the Module Leader. If a student receives a deferral, they should immediately forward the approval email to the module leader to discuss the next possible date for the student to undertake the missed assessment. This arrangement is intended to help students to complete the module within the schedule. Please note that self-deferral is not allowed in the Business School.

Further information is available at

https://unihub.mdx.ac.uk/study/assessment

You will be provided with feedback on all coursework that is helpful and informative, consistent with aiding the learning and development process. The nature of the feedback shall be determined at programme level but may take a variety of forms including: written comments; individual and group tutorial feedback; peer feedback; or other forms of effective and efficient feedback.

Feedback will normally be provided within 15 WORKING DAYS of the published coursework component submission date.

We have worked with the Middlesex University Students’ Union (MDXSU) to create an anonymous marking policy, in response to student feedback.  Anonymous marking ensures that your identity (your name, student number and other personal/identifiable information) is not made available to academics when they are marking your work.  This means that you can have confidence that your assessments will be marked fairly and consistently.  However, there are some forms of assessment for which anonymity cannot be guaranteed and these are recognised in the policy.  We believe that it is important to provide you with the support and guidance needed to help you develop and prepare for your final assessments (those which count towards your final grades i.e. summative assessments). Therefore, anonymous marking will not apply to learning activities and assessments that do not contribute to your final grades (i.e. formative assessments).  If you require further information and support to understand how anonymous marking works in your programme modules, please contact the Module Leader for more information.

The following table details the support you will be receiving for this assessment and the feedback opportunities you will have.

University 20-point Scale

1

2

3

4

5

You submit your assignment

The first marker grades the work and provides feedback; this could be completed anonymously depending on the assessment type.

A moderator or second marker reviews a sample of the work to quality assure the grades and feedback, to ensure they are accurate. A final mark for the work is agreed between the first marker and the moderator or second marker.

Your final grades are submitted to the subject assessment board.

A sample of work is sent to the External Examiner to check that the grading and feedback is at the right level and in line with external subject benchmarks (this applies to levels 5 & 6 only)