Entrepreneurship Competitions SU Entrepreneurship Competitions Invest in My

Entrepreneurship Competitions

SU Entrepreneurship Competitions ¡ ¡ ¡ Invest in My Idea “A Poster Competition” The Gull Cage “A Shark Tank Competition” The Richard Bernstein Achievement Award for Excellence “A Business Plan Competition” www. salisbury. edu/perdue/Entrepreneurship. Competitions http: //www. salisbury. edu/perdue/entrepreneurshipcompetitions/dates-news. html

Important Dates ¡ ¡ ¡ Final completed Business Plans Due April ? ? Pre-Presentations Presentation & Awards May 8, 2015 l l l ¡ Tentative Time Slots: Invest In My Idea - 9: 00 a. m. Gull Cage - 11: 30 a. m. Bernstein Business Plan Competition - 2: 00 p. m. Reception - 6: 00 p. m. http: //www. salisbury. edu/perdue/entrepreneurshipcompetitions/dates-news. html

Final Submission Guidelines and Requirements ¡ Online Submission: A four part submission: v 1. Profile: contact information & group members v v (please fill out this section asap so we can get an idea of number of participants for set-up) 2. Business Plan Submission - approx. 700 words/section or 5000 words total for all sections. 3. Supplemental Uploads 3 MB Maximum 4. Poster Upload - 10 MB Maximum

Final Submission Guidelines and Requirements ¡ ¡ ¡ ¡ Executive Summary (1 -2 Pages) Company Description (1 Page) Products and Services (2 Pages) Marketing and Promotion (2 Pages) Operational Plan (1 Page) Management and Organization (1 Page) Implementation and Financials (3 – 5 years), Burn Rate, Break Even. Investment (1 Page)

Preparing a Business Plan John Hickman, Director Maryland SBDC Franklin P. Perdue School of Business Salisbury University East Campus 215 410 548 4419 jnhickman@salisbury. edu

Start-Ups Require • • Research Planning Soul searching Comprehensive, Well Thought Out Plan Of Action

Alice in Wonderland • “Would you tell me, please which way I ought to go from here? ” • “That depends a good deal on where you want to get to, ” said the Cat. • “I don’t much care where, ” said Alice. • “Then it doesn’t matter which way you go, ” said the Cat.

What is a Business Plan? • Action Plan • Written Document – Discipline – Organization – Clear Thinking • Selling Document – Describes the Company – Explains the Growth Potential – Sells the Company

NOT A GUIDE TO BRAIN SURGERY • THE PEOPLE • THE OPPORTUNITY • THE CONTEXT • RISK AND REWARD

The Business Plan Process • Gather the Right Data • Outline the Plan • Designate Responsibilities

The Business Outline • • Executive Summary (1 -2 Pages) Company Description (1 Page) Products and Services (2 Pages) Marketing and Promotion (2 Pages) Operational Plan (1 Page) Management and Organization (1 Page) Financials (1 Page)

Executive Summary The most important single section of a Business Plan

Objective To entice and convince investors (or anyone else) to study your plan further.

Includes • A synopsis of the company’s strategy for succeeding • A brief description of the market (along with the ingredients for success that make your company unique in that market) • A brief description of the product or service • A brief description of the management team’s qualifications • A capsule summary of the key historical and forecasted financial data • An estimate of the amount of capital or loan funds you need and how you will use it

Executive Summary (1 -2 Pages) ¡ Business Concept ¡ ¡ ¡ General Company Description ¡ ¡ Target market, competition, how to market your product/service? Operations and Management ¡ ¡ What makes your business unique? Marketing Plan ¡ ¡ Industry overall Growth potential and trend Location, facilities, equipment, employees, suppliers Financials ¡ Funding requirements, financial statements, financial analysis

Company Description (1 Page) ¡ ¡ Business Goals and Objectives What the business will do ¡ ¡ History of the company ¡ ¡ What products and services will be offered Ideas for the business Experience in the industry Ownership and Legal Structure Nature of the industry and what role your business will play in it

Products and Services (2 Pages) ¡ “Sell your product” ¡ ¡ ¡ Benefits to the user? Stage of the development ¡ ¡ Physical description. What need are you filling? Still discovery or ready to market? What is the competitive advantage of your product?

Marketing and Promotion (2 Pages) ¡ Industry Analysis ¡ ¡ ¡ Market Analysis ¡ ¡ ¡ Who is going to buy your product? What are the market needs, trends? Marketing Plan ¡ ¡ ¡ Trends, participants How does your business fit? How are you going to communicate the value of your product or service to your customer? Sales process Competition ¡ ¡ Who is your competition? What do they do better?

Operational Plan (1 Page) ¡ How are you going to get to the finished product? ¡ ¡ Where is the location of your business? ¡ ¡ What kind of space is required? Who are your suppliers? ¡ ¡ Manufacturing? What is required to secure a supplier? How are you going to distribute your product?

Management and Organization (1 Page) ¡ Who are the people in key positions? ¡ ¡ ¡ Organization structure ¡ ¡ What are their qualifications? Will advisors be necessary? Show that you understand what type and how many employees will be required. Organizational chart

Financials (1 Page) ¡ Cash Flow Statement (3 -5 years) ¡ ¡ ¡ Income Statement (3 -5 years) Sources and Uses: ¡ ¡ ¡ Break down one year monthly Need for business loan, possible investors Balance Sheet Sales/ Income Projections Break-Even Analysis What are the key cost drivers?

Financials Attachments ¡ Cash Flow Statement (3 -5 years) ¡ ¡ ¡ Sources and Uses: ¡ ¡ ¡ Need for business loan, possible investors Balance Sheet for pre-venture Sales/ Income Projections ¡ ¡ Break down one year monthly Income Statement can be an adjustment form CF Basis for Cash Flow Break-Even Analysis

Understanding “Dough” It’s impossible to run a successful business without cash flow projections! • 3 Steps to create cash flow • Step 1 – The near future almost always looks a lot like the recent past • Step 2 – Project your business activity for the next 24 months • Step 3 - Use the “Smell Test”.

Sales Calculate your sales based on your customer projections What is the Average Purchase? • # of customers purchasing per Day (week, month) • Sales = Average Purchase x # customers / Day ( week, month) • # of Days (weeks) open per month • Sales / Month = Sales x # days (weeks) open/month

Sample Income Statement

Financial Section Recap • General Points – Be Consistent – Provide for Slippage – Show the Capital Structure – Describe Additional Financing Plans – Monitor Debt – Describe Future Needs

Putting it All Together • • • Rewrite Extensively Get an Outsiders Perspective Tend to Details Tailor the Plan Consider More Than One Version Prepare an Oral Presentation

Important Points • • • Tell a Good , Exciting Story Be Consistent Focus on a Very Few Priorities Be Realistic in Financial Projections Address the Downsides Clear, Concise and Convincing

HAVE FUN WITH IT! • Finding out how much money you can make is a fun thing! • Knowing when you are going to make all this money is even better…

Break Even • • M B V B/M =V

M- Margin • How much you make after paying for the item • AKA – Gross Profit • Price minus Cost

B- Burn • How much you have to spend, regardless of sales • AKA – Fixed Costs

V - Volume • How many units you have to sell to pay for Burn • AKA - Break Even Point