| MGMT600 Business Plan Grading Rubric 4.2 |
| | | | Tips for Using this Rubric |
| To Students: | While no two business plans are alike, use the topics in column A as an outline for your plan. For help with your content, review all of the course content, including the textbook readings, Assignment pages, Lectures, and Tutorials. Make sure all team members review and edit all content for consistency. Remember, your plan is a business document, not an academic research paper. Your instructor has 40 points to give (or take away) for lack of originality. Please note that along with those 40 points, plans which copy and paste huge sections from websites or reference documents (even with citations) may lose points in other sections of the plan for lack of originality. This plan is yours to create, and we want to see your work. |
| To Instructors: | Include comments to explain how well content conforms to the Rubric. Highlight shortcomings or opportunities for improvement. |
| Team | Instructor | Term | Team Topic |
| | | | | Instructor Comments may not be needed for every section. |
| Executive Summary | Possible Points | Earned Points | Instructions for Completing Plan | Instructor Comments |
| No more than two pages | 5 | | This two-page summary of your plan is written last and should be able to stand alone as a document on its own merits. Include a clear and specific mission statement, a brief synopsis of each plan section, and brief financial highlights. After reading this summary, the reader should have a clear understanding of the specifics of your plan. |
| Explains overall plan concisely | 5 |
| Ability to stand alone | 5 |
| Includes valid exit strategy | 5 | | Since investors want to understand your vision, give them insight into where you expect to be in 5 years. |
| Includes valid final valuation | 5 | | Provide a valid final valuation using one of the methods provided in the course finance lecture (note: a final valuation is NOT the projected balance in your checking account). |
| Executive Summary | 25 | 0 | Total Executive Summary Points |
| Industry Analysis | Possible Points | Earned Points | Due in Week 3: Instructions for Completing Plan | Instructor Comments |
| Industry review | 15 | | Research industry averages for profitability in your marketplace. Use this information to determine the validity of your own projections and make changes if necessary. |
| Regulation review and legal concerns | 15 | | Determine your location and business environment. Address all legal, zoning, and licensing concerns your business will face. What form of business will you set up? Why? The level of detail required for this section will depend on your type of location (virtual, retail, warehouse, office, restaurant, etc.) and on your idea. Demonstrate that you have completed your research. DON'T say "We will obtain all of the appropriate permits"; instead, summarize them. When you explain your form of business—remember your audience. For example, if you select an S corporation, explain your reasoning for that selection in the context of your potential business, rather than providing the definition of an S corporation. Address any pending regulations which may have an impact on your business. |
| Competitive analysis | 15 | | Describe the competitive landscape. Who are the key competitors? What are their strengths and weaknesses? Approximate their market shares. How will you take share from them? How will they most likely try to stop you if you are successful? Who are your indirect competitors? What do they offer your prospects? |
| SWOT analysis | 15 | | Identify your company's major strengths, weaknesses, opportunities, and threats. Describe how you plan to maximize your strengths and opportunities and minimize or mitigate your weaknesses and threats. |
| Industry Analysis Totals | 60 | 0 | This section will give the reader an understanding of the overall industry with specific facts and figures. Data is critical in this section as you must specify the size of the market and show how you plan to capture the market. You should also have an overview of the competitors in your space. |
| Marketing Section | Possible Points | Earned Points | Due in Week 4: Instructions for Completing Plan | Instructor Comments |
| Product or service concept | 15 | | Describe in overview and in detail what you are offering to the market. What does it “do”? What are the benefits to your customers? How do the customers now accomplish the same task? How is your approach better than the competition? |
| Target market and segmentation | 15 | | Describe your market. Where is it? How big is it? What is the growth rate? What are the unique features or dynamics of this market? What causes people to buy? What are the demographics and psychographics of your target customer? |
| Value proposition | 10 | | Specific evidence that people will buy your product or service. What is your "hook?" Describe your primary research, and explain how the results validate the value of your product or service to your target audience. Primary market research is the key to this evidence. Prove that if you make this investment, customers will buy what you are selling. What is your competitive edge? |
| Pricing strategy | 10 | | Describe your pricing strategy and specific prices. How did you arrive at these prices? What are competitive prices? Why are yours different? How do your prices relate to costs and your development investment? |
| Sales and marketing strategy | 15 | | Describe the role, the strategy, and the execution of your total communications plan. What is your message? What are your specific communication vehicles, such as advertising, literature, promotion, the Internet? What type of scheduling or timing will you use? Show your budget by year and type of expense. |
| Marketing Section Totals | 65 | 0 | In this section, you will build a case that details what you are offering, the market in which you are operating, why there is a need for your product or service, and how you will reach that market. |
| Operations Plan | Possible Points | Earned Points | Due in Week 5: Instructions for Completing Plan | Instructor Comments |
| Day-to-day operations | 20 | | Describe how your business will “operate.” If you make a product, describe the production. If you offer a service, describe each step of that service. If you are a retailer, location, product mix, and suppliers are important. Think through your business' daily operation and explain it in detail. Then, think about who, what, and how each of those steps will happen. Realistically, how much of this can one person do? Strategically, how will you plan for growth? | |
| Human resources | 10 | | Plan and cost your people requirements. Key managers: What is required, and how do you pay them? Staff: plan for each year, including costs and benefits (what will be offered and how much does it cost?). |
| Facilities and equipment plan | 10 | | Describe and cost your capital assets, such as production lines, office equipment, and buildings. If you plan to have a physical location, include a floor plan if possible. Address your build-out strategy. Are you leasing a location that meets your specs (fairly unusual); if not, include a build-out plan with high-level milestones, dates, and costs. What are your startup timelines? Expansion timelines? |
| Technology plan | 10 | | Describe your company's IT needs and how much they will cost and how you will implement. Will you have a web presence, and if so, what type of functionality will it include? If you need a particular software program, explain its function. Will you need licenses for each employee? Will you handle your IT requirements with "in-house" or outsource to IT consultants—explain your decision. |
| Management Team | 5 | | Describe the professional experience of your company founders with brief bios. How will founder experience help the company succeed? What management roles will the founders hold? (Examples include President, Director of Operations, Marketing Director, etc.) You may fund salaries for founders if they are performing operational activities, such as an onsite manager, but do not otherwise build in salaries for your team. Your team's compensation should be in the form of draws or distributions out of profits that do not need to be reinvested into your company. |
| Organization chart | 5 | | An organization chart depicts the company's structure. How many vice presidents will you have, or how will your company organize its departments? An organizational chart diagram is required for full credit. |
| Management team gaps | 5 | | Investors appreciate a responsible and reasonable plan. In this section, describe areas where your management team is weak or in need of assistance; and how you plan to address those gaps. |
| Operations Plan Totals | 65 | 0 | This section describes how you will run the business. You will demonstrate how you make your product or execute your service. You will describe and cost your facilities. Lastly, you will plan your human capital resources. |
| Financial Plan | Possible Points | Earned Points | Due in Week 6: Instructions for Completing Plan | Instructor Comments |
| Start-up funding | 5 | | Ensure that your requested capital is enough to handle your start-up costs and reserves to ensure business viability. Minimum of $300K start up capital (with $100K from the team and $200K from outside investors) is required. Up to $600K should be cleared with the instructor. You can request a loan or private equity investment (one or the other) but the plan must be written with the proper audience stated and in mind. | |
| Use of funds | 10 | | Describe how you plan to use the startup requirements in detail providing a start-up budget which includes all initial capital expenditures, build-out and start-up expenses. The details must be realistic and well researched. Data that does not make sense will cost you points. In other words, if you are starting a restaurant and your remodeling startup costs are $5,000, you would be penalized, since that amount is unrealistic. | |
| Sales forecast | 10 | | Your worksheet work here will be the underpinning of how you create your forecast. Units, dollars and assumptions are critical. All other statements build on these numbers. Create the sales forecast in a narrative based on what your worksheets show you after you have completed them. (Remember, you don't submit the spreadsheet created using our course financial software, so restate important numbers in the form of charts, tables or excerpts from the SalesProj tab in your spreadsheet.) Your forecast is the description of the units you plan to sell, the services (amount of them) you plan to provide, and your growth projections of these numbers. Document all assumptions, and provide external source information for all assertions. |
| Cash flow | 10 | | Because cash is critical in the first year, a monthly cash flow for year 1 is required (place in the appendix.) Remember that cash flow is your solvency check and balance. Summarize your projections by including a yearly cash flow table. Explain how your cash flow will impact the ability of your business to expand, succeed, grow, and support your growth. Provide an annual summary of the cash flow (receipts and disbursements) here. Document all assumptions, and provide source information for all assertions. | |
| Balance sheet | 5 | | Provide the end of year 5 balance sheet to show your company's net worth and financial position at the end of the 5-year plan. | |
| Income statement | 10 | | Your income statement is a narrative explanation of your projected pro-formas. Include the detailed statements in your Appendix, and then list the annual estimates in a table format in your plan. Explain how your income and expenses will contribute to your P&L and your net income. Your growth factor should be shown and explained (justified) as well. Document all assumptions, and provide source information for all assertions. | |
| Break-even analysis | 5 | | Include a graphical representation that shows when your company will start making a profit. |
| Valuation after 5 years | 5 | | Calculated at the end of year 5 using one of the models described in the lecture or some other generally accepted valuation method, explained and provided in the plan. | |
| Exit strategy | 5 | | Address your early termination plans as well as your vision for the business at the end of year 5. The exit strategy takes into account business Return on Investment (ROI.) It will also look at the rate of return you are offering your investors, if you have them. Private equity, or venture capital projects, should include both in the exit strategy. Lender-based projects do not require a rate of return but should include the ROI. You need to review the lecture in the Financial Plan for various methods of exiting the business. |
| Financial Plan Totals | 65 | 0 | You will prepare 5 years of proforma financial statements to support the business viability of your concepts. You need to test your idea for logic and reasonableness in your market. You must demonstrate how you determined your figures. Your narrative should explain key assumptions and statements. Backup schedules should go in the appendix. |
| Appendix | Possible Points | Earned Points | Instructions for Completing Plan | Instructor Comments |
| Primary research results | Varies, zero if none | | All Teams must use primary research as described in the Marketing section. Your Appendix must include evidence of that research. Examples might include survey responses, or interview notes. Faculty will confirm primary research—failure to provide evidence is an automatic 40-point deduction. Faculty, type in 0 points for the entire section if no primary research is provided in the final plan. |
| Reference page | Varies | | If you have used outside research, include a reference page in your Appendix. Use any accepted method of citation, but do NOT include footnotes, superscripts, or subscripts in the plan. |
| Any other items | Varies | | Include any additional content that supports your plan, such as extensive floor plans, inventories, promotional materials, etc. |
| Appendix | 40 | 0 |
| Quality and Visual Presentation | Possible Points | Earned Points | Instructions for Completing Plan | Instructor Comments |
| Idea/plan originality | 40 | | Is your plan original, and does it have a great hook? Creativity along with business viability is key. Perhaps the idea isn't original but the location is…that still counts. Is the plan original? In other words, do you have big chunks of quoted or paraphrased material from some other plan or someone else's website or work? If so, your turnitin.com % will impact your originality score in a big way. Avoid large copy and pastes from websites! |
| Audience analysis | 10 | | Are you asking for $$ from banks or venture capitalists? The answer will make a difference in how you present your material. Be sure you have targeted your audience and written with it in mind throughout the plan. |
| Eye appeal | 10 | | White space and formatting is clean and neat. (Avoid the use of canned plan templates…they are easy to write and difficult to read.) Follow this outline for your plan to make grading it for your faculty member easy and seamless. |
| Grammar and spelling | 20 | | Obvious. Write like a master's degree would suggest you should. Proper grammar and English, avoid typos and spelling errors. Avoid slang, jargon, IM style writing, and curse words. |
| Quality and Visual Presentation | 80 | 0 | Overall quality will make or break your plan. Is the formatting professional? Did you use diagrams, charts, tables, and color effectively? If you are writing for VC's, you need flash to be noticed but you do not want to cross the line into cartoonish. Find a balance of panache, class, and style. |
| | | | | |
| Business Plan | Possible Points | Earned Points | Instructor Comments |
| Business Plan Total Points | 400 | 0 |
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