The New Venture Business Plan BAEP 554 Lloyd Greif Center for Entrepreneurial Studies Marshall School

of Business, Bridge Hall One (lower level) University of Southern California Los Angeles, CA 90089-0801 Phone: 213-740-0641 Fax: 213-740-2976
www.marshall.usc.edu/entrepreneur

Instructor:

Dr. Andrea Belz Bio:

http://entrepreneur.marshall.usc.edu/faculty/full-time-faculty/ Email:
abelz@marshall.usc.edu

Section:
14408R
Mondays 6:30 9:30 p.m.

HOH 304 Ofce hours:
Wednesdays 2-5 pm, otherwise please email for an appointment.
INTRODUCTION TO THE COURSE ..........................................................................................................1 UNIVERSITY AND MARSHALL POLICIES .................................................................................................2 CLASS POLICIES .....................................................................................................................................4 COURSE ASSIGNMENTS ........................................................................................................................5

Introduction to the course

Course description and approach This course is the capstone of the Entrepreneurship Program. It takes a feasible business concept and develops each element to create an integrated business plan. This course leverages all the MBA coursework and builds on the lessons of BAEP 552 (Cases in Feasibility Analysis). Whereas BAEP 552 validated concepts through primary and secondary research and created high-level economic analysis, this course takes the concept and brings it to reality. Learning objectives This course prepares you to launch a new venture as a stand-alone enterprise or in a large organization. You will learn the general framework and specic skills to do the following: Use the problem-solving approaches and processes of successful entrepreneurs Evaluate industry and market trends to exploit opportunities Identify and develop sources of sustainable competitive advantage Evaluate and develop value propositions, pricing models, and business models Successfully seek funding to develop your enterprise

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You will also develop: Critical thinking skills: Analyzing data, solving problems, and making decisions Creative capabilities in idea generation Communication skills in written and oral presentations Individual skills in task management and learning skills in a collaborative environment This course provides students with tools to recognize and develop opportunities. It is not a spectator sport. To achieve these objectives through a stimulating and active learning experience, the course will be centered on discussion rather than on lectures. We will use a variety of methods including problem-solving class exercises, case studies, individual and group activities, and guest lectures. Your evaluation will focus on the use and application of content rather than simple content acquisition, emphasizing your ability to understand and articulate the so what? of new information. Course prerequisites Either BAEP 552 or BAEP 556. If you have not completed either of these courses, you must speak to the professor before the second class session to determine if you are prepared for the class. Students who have not taken the prerequisites must become familiar with the methods and approaches to feasibility analysis, as the course begins with students bringing a feasible business concept for maturation. Structure This class is highly structured but will change if the faculty discerns that students or conditions indicate the need to change. Student desires and backgrounds are considered. Special projects are encouraged, upon approval. Your expectations are important!

University and Marshall Policies

Condentiality policy Throughout the Entrepreneur Program's classes and events, students will be exposed to proprietary information from other students, guest lecturers, and faculty. It is the policy of the Entrepreneur Program that all such information is to be treated as condential. By enrolling in and taking part in the Entrepreneur Program's classes and activities, students agree not to disclose this information to any third parties without specic written permission from students, guest lecturers, or faculty, as applicable. Students further agree not to utilize any such proprietary information for their own personal commercial advantage or for the commercial advantage of any third party. In addition, students agree that any legal or consulting advice provided without direct fee and in an academic setting will not be relied upon without the enlisted opinion of an outside attorney or consultant without afliation to the Program. Any breach of this policy may subject a student to academic integrity proceedings as described in the University of Southern California University Governance Policies and procedures as outlined in S C A M P U S , and to any remedies that may be available at law. The Greif Entrepreneurship Program, the Marshall School of Business, and the University of Southern California disclaim any responsibility for the protection of intellectual property of students, guest lecturers or faculty who are involved in Program classes or events. Receipt of
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this policy and registration in our classes is evidence that you understand this policy and will abide by it. Academic integrity USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect ones own academic work from misuse by others as well as to avoid using anothers work as ones own. All students are expected to understand and abide by these principles. SCampus, the Student Guidebook, contains the Student Conduct Code in Section 11.00, while the recommended sanctions are located in Appendix A. http://www.usc.edu/dept/
publications/SCAMPUS/gov/

Students will be referred to the Ofce of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic dishonesty. The Review process can be found at: http://www.usc.edu/student-affairs/SJACS/ Failure to adhere to the academic conduct standards set forth by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to dismissal. Please be advised that your assignments will be randomly submitted to TurnItIn through the Blackboard system, which will generate an originality report on your paper. Bottom line: Your original thought in addition to carefully cited sources will ensure that you dont run into academic integrity issues that may affect your grade or your status at USC. Any material cited verbatim from its source should be in quotes and contain a reference to a full citation for that source. Paraphrased work should also contain a reference to the source citation. Add/Drop process In compliance with USC and Marshalls policies classes are open enrollment (R-clearance) through the rst week of class. All classes are closed (switched to D-clearance) at the end of the rst week. This policy minimizes the complexity of the registration process for students by standardizing across classes. We can drop you from our class if you dont attend the rst two sessions. Please note: If you decide to drop, or if you choose not to attend the rst two sessions and are dropped, you risk not being able to add yourself to another section this semester. You can only add a class after the rst week of classes if you receive approval from the instructor. Technology policy Laptop and Internet usage is not permitted during academic or professional sessions unless otherwise stated by the professors. Use of other personal communication devices, such as cell phones, is considered unprofessional and is not permitted during academic or professional sessions. ANY e-devices (cell phones, PDAs, iPhones, iPods, iPads, Blackberries, other texting devices, laptops, etc.) must be completely turned off during class time. Videotaping faculty lectures is not permitted due to copyright infringement regulations. Audiotaping may be permitted ONLY if approved by the professors. Use of any recorded material is reserved exclusively for USC Marshall students. Policy on accommodations for students with disabilities Any student requesting academic accommodations based on a physical, psychological or learning disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verication for approved accommodations can be obtained from DSP. Please be sure
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the letter is delivered to us as early in the semester as possible (by the second week of the semester). DSP is located in STU 301 and is open from 8:30 AM to 5 PM, Monday through Friday. The telephone number for DSP is (213) 740-0776.

Class policies
Attendance Attendance at all class sessions is critical to the participation component of the course and to learning in general as we will discuss material not found in the textbook; in addition, we will undertake a number of in-class exercises and strategy-building sessions that require your regular attendance. As part of the emphasis on successful teamwork, you will be evaluated on your ability to listen to and learn from others. Please arrive on time so as not to disturb the class, a guest speaker, or interrupt the professor. You will be asked to sign an attendance sheet for each class. It is your responsibility to remember to sign the sheet. You may miss one complete class for any reason with no penalty. After missing one class, your participation grade will be affected. Guests and invited speakers From time to time we may have guests or invited speakers. You are expected to be prompt so you can greet them at the beginning of class. Please also check about my availability for ofce hours just before speakers' visits. We will inform you of changes as they occur. Reading list HBS readings: You will be able to acquire the required articles at a discount from the HBS site. A link will be emailed to you and posted in Blackboard so you can purchase and download the cases. Any additional readings are provided free of charge in Blackboard. Book: You are required to purchase The McGraw-Hill 36-Hour Course: Product Development, by Andrea Belz. This book summarizes many of the issues in business plan development and includes mini-cases, which you will be expected to have read. A due date for the completion of readings is given in the Course Plan. On the day the readings will be discussed, please come to class prepared to contribute your analysis and insights on what you have read. This will contribute to the participation portion of your grade. Classroom exercises When possible, classes will begin with small group work in which you will review various elements of your business plan with your classmates. Please bring a single hard copy of each submission to review with your colleague. The participation evaluation includes your role in these exercises. English as a second language In the rare case where a student is unable to participate for language or other reasons, please consult me early in the semester. You will have an opportunity to evaluate your own participation at the end of the semester. Technology use (see University and Marshall policies) Laptops and cell phones are forbidden in class. There is no point in attending if you are focused on another activity.

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Course Assignments
Introduction
Do not skip this section as the following guidelines apply to ALL assignments without exception. You will be penalized if you do not follow them.

Blackboard communication Course communication will take place through announcements in class, emails, and on Blackboard (blackboard.usc.edu). All emails will go through Blackboard; therefore, it's imperative that you have a fully operational Blackboard account with a current and correct email address posted. You are responsible for regularly checking Blackboard for announcements and new materials as well as to deliver your assignments. Emails rejected because your account is full will not be resent. Assignment format No hard copies will be accepted for any work. Submit everything on Blackboard. All submissions must be in PDF les labeled as follows: Yourlastname_assignmentname_551. No other formats are accepted, including Word, Pages, OpenOfce, GoogleDoc, PowerPoint, Keynote, or others. If you make an error and submit the wrong le, do not email it to me. The version on Blackboard is the nal submission. Blackboard will not accept multiple submissions. All comments will be posted in Blackboard. It is highly encouraged that you review these before the end of the semester. Documents must be written in 12 pt Times New Roman or a similar font, with 1 margins, and single-spaced. All documents exceeding 1 page in length must have headers containing page numbers and the le name on all pages. All assignments are subject to penalties for language errors. Deadlines All assignments must be posted to the Blackboard assignment page by 6:30 pm on the due date posted in the Schedule of Assignments. Note the dates on schedule of assignments, as some are not the same as dates on which we are in the classroom. If you will not be in class on the due date, your assignment must still arrive by on the due date. You are certainly encouraged to submit les before the deadline. Please keep copies of all your les and emails until the end of the semester. No hard copies will be accepted. Ever! Penalties Assignments will be accepted after the deadline with the following penalties: Assignments turned in after the required time on the due date and within 24 hours of the due date will lose 10% of the total points possible. Papers turned in 24 hours after the due date will lose 20% of the total points. No papers will be accepted 48 hours after the date due.

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Correcting grading errors If you do not inform me of missing or incorrect grades within two weeks of the grades being posted, the grades will be assumed correct. Do NOT wait until the end of the semester to check your grades or to appeal a grade on any assignment. Evaluation of classroom participation The attendance, participation, and in-class exercises portion of the grade is 200 points and is evaluated in a number of ways. Obviously, participation requires attendance. It is impossible to earn a participation grade if you are not in class. Missing more than one class session during the semester will affect the participation grade. Current events Successful entrepreneurs must be keenly aware of the current economic and funding environment. You must demonstrate an understanding by bringing in one article from a reputable news source (The Wall Street Journal, the Los Angeles Times, CNN, etc.), dened as having an active editorial function separate from the writing and reporting function. This article should describe something of interest to the entrepreneurial community or on your industry of interest. Please bring the link or the printed article to class and prepare to discuss it for 3-5 minutes. Evaluation scheme To achieve an A or A- in this class, you will need to go well beyond the minimum requirements as stated in the syllabus in terms of the quality of your work and your involvement in and contribution to the class. An A is a sign of superior work and, much like the efforts of entrepreneurs, reects the fact that you stood out from the crowd. Acknowledgment of requirements Receipt of this Syllabus and registration in this class will serve as evidence that you understand and accept the requirements of this course.

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Schedule of assignments
Due date 1/23 1/30 2/6 2/13 2/20 2/27 3/6 3/6 3/13 4/3 4/10 4/10 4/17 4/24 4/24 5/1 5/1 5/1 Concept statement Industry and market analysis Marketing and sales plan Management and organization plan Business model and owchart Financial plan Launch plan Draft Stranger Log Draft business plan Draft pitch Financing plan News article Stranger Log Executive Summary Final pitch Final business plan Fundability Self-assessment Participation Total possible points Assignment Max # of pages 1 3 3 3 3 3 3 1 20 10 slides 3 N/A 2 1 10 slides 20 N/A 1 N/A Points 25 100 100 100 100 100 100 50 50 50 100 50 50 150 200 400 50 25 200 2,000

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Course plan
Week Date 1 1/16 Topics Introduction to class Feasibility analysis Risk Concept statements PanelPro Speaker: Scott Sangster Ch. 1, 2 General strategy for entrepreneurship Industry value chain analysis Estimating market size Primary and secondary research SeaMicro Speaker: IP panel (Kevin DeBre and David Shari) Ch. 3, 4, 5 Lead users Value propositions and pricing Sales forecasts (top-down/ bottoms-up) Scaling a start-up Legal structures Ch. 7, 8 Organizational charts Roadmaps and milestones Recruiting Advisory Boards, Boards of Directors Business model analysis Business models Ch. 9, 10 Business process owchart Pack-iTS Speaker: Jim Schaefer Financial statements Sensitivity analyses Cash conversion cycles Ch. 11 Speaker: Simon Burrow Launch Strategic partnerships Lead users, revisited TruckItNow business Market challenge plan Stranger Log status report Financials, revisited No class (spring break) How VCs evaluate Speaker: Malcolm Cloyd opportunities Fundability Ch. 6 Entrepreneurial nance Practice pitches I Practice pitches II Readings Deliverable

1/23

Concept statement

1/30

Industry and market analysis

2/6

Marketing and sales plan

5 6

2/13 2/20

Management and organization plan Business model and owchart

2/27

Financial plan

8 9 10 11

3/6 3/13 3/20 3/27

Launch plan Draft stranger log Draft business plan

12 13

4/3 4/10

14 15 16

4/17 4/24 5/1

New Venture Seed Competition Elevator pitch competition Final business plan competition

Draft pitch Financing plan Last day to submit news article Final stranger log Executive Summary Final pitch Final business plan Self-assessment

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