Part I: Environmental Analysis. Due: Feb. 14.
Part II: Service/Product Planning Due: Mar. 7.
Part III: Market Plan and Results Measurement Due: Mar. 28.
Part IV: Financial Plans and Management Team Due: Apr. 18.
Presentation: Poster Session. Due: Apr. 25.
Opportunity to Revise Project (Optional) Final Due Date: May 2Overview.This handout describes one of three options for the term project assignment (The other two are Planning a Special Library and a Competitive Intelligence Analysis) The business plan assignment involves a series of short summary papers based on an idea you have for establishing (or expanding) an information-oriented business. It may be done individually or, preferably, in a team of two (possibly three) people. If the latter, unless there is overwhelming evidence to do otherwise, both individuals will receive the same grade. Sample business plans for the Someplace Fitness Center and for Rainbow Kites, Inc. with slightly varied organization may be examined on the web. The literature on business planning is very large -- many other examples are available in print and on the web.
Selection of Business. The selection of what business to enter requires considerable thought and involves a self-inventory of skills, knowledge, interests, aptitudes and a parallel examination of the environment to determine where opportunities may exist. You will be seeking a good match between what you can offer as an entrepreneur and the need for your services. As you consider this question, think about each of the following factors: type of business, size, location, and potential clients. Select a buiness that you can enjoy, that you believe you can manage, that will be profitable for you, and that you can afford to enter (NOTE: some attractive possible businesses require substantial capital to get started).
Once you have identified a few ideas from your self-inventory, check the current business journals and talk to people in the know to investigate the climate for your possible business venture. The first part of the project assignment will encourage you to do more research on the environment. Your ideas may change as you move through this exercise; there is some flexibility in shifting course a bit as your develop your information base.
You will be asked to submit the business concept and your potential partner(s) before you being the project. Then your task will be to develop a business plan in four parts as listed above.
Part I: Environmental Analysis.
For the first report, write a short description of the results of your investigation of who your clients will be (individuals or companies), where they’re located, and what their characteristics and needs are. This will be easier to do if your service is to be offered to companies rather than individuals, but if the latter, determine how these individuals can be grouped to ascertain some generalizable attributes.Also summarize your investigation of who the primary competition for your services will be. Describe how you will differentiate yourself from your competitors. It would be good to end this part with an overall vision or mission statement for your company and to identify 2-4 objectives for your business. Your summary report (in paragraph form or bulleted text) will probably be about 3-5 pages long.
Part II: Service/Product Planning.
Develop a preliminary list of the kinds of products, events, and/or services you will offer. Remember the tangibility of products make them somewhat easier to sell than are services, although most information-oriented companies are primarily service businesses. Consider how you will position these product/services in the market.Indicate what kinds of information sources you will need. You may include reference book titles that you will purchase, database contracts. You may decide, in addition, that you will need the services of a major academic or public library. Indicate which one(s) you plan to use and whether or not you need a formal agreement. You will probably want an Internet presence and will want to sketch out a plan for how your website will look.
This section may include lists as well as brief text. You may want to create a mockup website to show how you will present your information to the public.
Part III: Market Plan and Results Measurement.
Your ability to market your company and its products and services is key to your survival. Refine your understanding of your planned customer base and your major competitors. Consider what market segments you will target and describe the cusomter characteristics, needs, and buying habits. Consider also who you would perceive to be your primary competitors and what competitive products/services already exist. You may want to target some potential partnerships or alliances as well. Develop some marketing objectives and strategies. Describe your game plan with examples of how you will monitor market reaction and sales successes.This section should include your pricing strategy, selling tactics, methods of distribution, advertising and promotion, public relations, etc. (4 Ps of marketing = price, place, promotion, public relations). This section may be the longest in your business plan and will probably take 4-6 pages of text.
Part IV: Financial Plan and Management Team.
This is the heart of a business plan and will require the most effort on your part. You will need to think carefully about both start-up costs and ongoing anticipated expenses and income. A useful first step will be to develop a ledger of accounts (that is, the income and expense categories in which you wish to group your activities). You will then need to distinguish costs for initial development to establish the business (possible needs might include incorporation costs, legal fees, space and equipment purchase or rental, permits, marketing costs, etc.)Identify one or two sources you might approach for finding the necessary start-up capital. Consider whether you will incorporate, sell partial ownership, form a partnership, borrow money and/or use personal savings. If you plan to borrow money, include your projected repayment plans.
For the financial section, develop a starting balance sheet (your assets (your initial investment), liabilities (any debt you may anticipate incurring), and the amount of equity (difference between your liaibilities and assets) you begin with). You should also include a profit and loss projection for the first 2-3 years (in more detail for the first year), a month-by-month cash flow project for the first year and any key ratios you will monitor.
You will also want to identify your managment team (your key asset) with a short paragraph or two about each person's background and experience plus an organizational chart or a definition of responsibilities that each person has. You may want to include a description of how you plan to arrange your business space and whether you will employ other staff.
Poster Session.
As a way of showing the rest of the class how you have developed your business, create a poster with information about your project. This can be a simple affair on a piece of poster board with the name of the business and products/services offered, perhaps examples of your advertising, and other aspects of your business attached to the board with pockets, staples or tape. It can be as elaborate as you wish.Bring your poster to class on Apr. 25 and be prepared to stand beside it to provide an overview and to explain one or more particular features that you think are noteworthy to other members of the class.
Final Revision.
You have the opportunity of revising one or more sections of your business plan before turning it in for a final grade. Whether you make any revisions or not is entirely your choice. You will only improve your grade by doing so.
