Description
During this such a brief file concerning entrepreneurship formation of new ventures vanguard university.
Vanguard University
School for Professional Studies
Degree Program
BUSN 440 –Special Topics:
Entrepreneurship: Formation of
New Ventures
Student Guide
2013
Course Title: Faculty Guide Vanguard University
2
COURSE DESCRIPTION
This course prepares students for serious consideration of entrepreneurial opportunities during
their professional careers.
COURSE OVERVIEW
This course helps students to expand their creativity through readings, discussions and exercises
designed to increase the quantity and enhance the quality of ideas generated, specifically for
exploring new venture opportunities in the students’ areas of expertise. In addition to creativity
and innovation, feasibility studies of attractive new venture ideas will be performed. Students
will also explore business ownership methods such as cold-start, buying an existing business, and
buying a franchise. Finally, the incremental steps to starting, building, growing, and harvesting a
new venture will be covered
TEXTS AND MATERIALS
Required texts:
Barringer, Bruce and Ireland, R. Duane (2012) Entrepreneurship: Successfully Launching New
Ventures, 4th edition. Upper Saddle River, NJ: Pearson Prentice Hall
ISBN-10: 0132555522 ISBN-13: 9780132555524
COURSE LEARNING OUTCOMES
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
(Intellectual Engagement, Professional Excellence, Aesthetic Expression, Responsible
Stewardship)
2. Students will be able to assemble and present a full business plan. (Intellectual Engagement,
Professional Excellence)
3. Students will demonstrate skills in feasibility analysis of business plans. (Intellectual
Engagement, Professional Excellence, Responsible Stewardship)
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase. (Intellectual Engagement, Professional
Excellence, Responsible Stewardship)
COURSE POLICIES
? See the separate document on the VU website titled SPS Course Policies. This document
covers Academic Integrity, Attendance, Drop/Add/Withdraw, Academic Probation and
Disqualification, Disability Services, Diversity Statement, Assignments, and Late Work.
It is the responsibility of all students to read and understand these policies.
Course Title: Faculty Guide Vanguard University
3
ASSIGNMENTS AND GRADING
WEEK ONE:
1. Read Chapters 1, 2, and 3 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters one, two, and three (quizzes total 20% of course grade).
2. Write up answers to question 1 on page 28, application question 1 on page 33, discussion
question 1 on page 35, review question 8 on page 66, application question 2 on page 71,
application question 12 on page 98, and discussion question 2 on page 105. Your response to
each question should be limited to no more than a paragraph or two. Bring these to the first
class meeting. (homework totals 20% of Course Grade)
WEEK TWO:
1. Read Chapters 4, 5, and 6 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters four, five, and six .
2. Write up answers toquestion 6 on page 137, question 12 on page 171, question 3 on page 176,
question 14 on page 200, and discussion question 3 on page 208. Bring these to the second class
meeting.
3. Turn in a rough draft and be ready to discuss the “The Business” portion of your
business plan (see Barringer& Ireland, page 109, for topics in this section.) This should
run about three pages maximum. Assume you have $10,000 in savings, no loans, a decent car,
and a working spouse whose job can (just barely) handle your monthly bills. By the end of year
three, your firm will generate enough after-tax cash flow to pay you $6,000 per month.
WEEK THREE:
1. Read Chapters 7, 8, and 9 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 7, 8, and 9 (2% of course grade).
2. Write up answers to question 20 on page 239, Discussion question 3 on page 244, question 5
on page 280, question 3 on page 283, question 9 on page 308, and discussion question 1 on page
313. Bring these to the third class meeting. (100 points - 10% of course grade)
3. Turn in a rough draft and be ready to discuss the “Industry Analysis” and “Marketing
Plan” portions of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
Course Title: Faculty Guide Vanguard University
4
WEEK FOUR:
1. Read Chapters 10, 11, and 12 in Barringer & Ireland, and be prepared for a matching quiz on
key terms at the ends of chapters 10, 11, and 12 .
2. Write up answers to question 11 on page 345, Discussion question 2 on page 351, question 8
on page 383, Discussion question 3 on page 390, question 6 on page 422, and discussion
question 3 on page 428. Bring these to the fourth class meeting.
3. Turn in a rough draft and be ready to discuss the “Operations Plan” and “Financial
Plan” portion of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
WEEK FIVE:
1. Read Chapters 13 and 15 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 13 and 15 (2% of course grade).
2. Present your final draft of your beautifully integrated, complete business plan (including a one-
page Executive Summary) in written form, and also present a five minute PowerPoint summary
of the plan. Assume you have $10,000 in savings, no loans, a decent car, and a working spouse
whose job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month (the final business plan is
40% of the course grade).
GRADING COMPONENTS AND WEIGHTS:
WEEKLY QUIZZ 20% 10%
WEEKLY HOMEWORK 20%
WRITTEN BUSINESS PLAN 40%
ORAL PRESENTATION 10%
PARTICIPATION, ATTENDANCE, EFFORT, TIMELINESS 10%
Course Title: Faculty Guide Vanguard University
5
STUDENT EVALUATION
Percentages Grade Significance GPA
93-100% A Exceptional 4.00
90-92.9% A- 3.67
87-89.9% B+ 3.33
83-86.9% B Above Average 3.00
80-82.9% B- 2.67
77-79.9% C+ 2.33
73-76.9% C Average 2.00
70-72.9% C- 1.67
67-69.9% D+ 1.33
63-66.9% D Below Average 1.00
60-62.9% D- 0.67
00-59.9% F Failure 0.00
LOGISTICS CHART
(This gives the students and instructor an idea of what will covered during each hour of each
class. Add additional weeks for longer courses.
Hour Week 1 Week 2 Week 3 Week 4 Week 5
1
Barringer
Chapter one:
introduction
Barringer
Chapter four:
Business Plans
Barringer
Chapter
seven:
Legal/ethical
issues
Barringer
Chapter ten:
sources of
funding
Course Evaluations
Barringer Chapter
thirteen: growth
2
Barringer
Chapter two:
idea generation
and
opportunity
recognition
Barringer
Chapter five:
Industry and
competitor
analysis
Barringer
Chapter
eight:
Finances,
feasibility,
forecasting
Barringer
Chapter
eleven: New
Venture
Marketing
Baringer Chapter
fifteen: franchising
3
Barringer
chapter three:
feasibility
analysis
Barringer
chapter six:
Business
Models
Barringer
Chapter nine:
Founding
teams
Baringer
Chapter
twelve:
technology
and IP
Business Plan
Presentations
4
Case analysis
and video
discussion
Case analysis
and video
discussion
Case analysis
and video
discussion
Case analysis
and video
discussion
Business Plan
Presentations
Course Title: Faculty Guide Vanguard University
6
Assignments Due
1. Read Chapters 1, 2, and 3 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters one, two, and three (quizzes total 20% of course grade).
2. Write up answers to question 1 on page 28, application question 1 on page 33, discussion
question 1 on page 35, review question 8 on page 66, application question 2 on page 71,
application question 12 on page 98, and discussion question 2 on page 105. Your response to
each question should be limited to no more than a paragraph or two. Bring these to the first
class meeting. (homework totals 20% of Course Grade)
LEARNING ACTIVITIES
Learning objective:
1. Students will be able to explain the significance of new ventures and small business’
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
3. Students will demonstrate skills in feasibility analysis of business plans.
Class activities:
Define entrepreneurship.
Discuss common misconceptions about entrepreneurs.
Discuss why people desire to become entrepreneurs.
It’s usually about achievement and control, not just money!
Discuss characteristics of successful entrepreneurs: passion, tenacity, execution intelligence,
product/customer focus. What does this mean to each of the students?
Discuss types of firms: salary-substitute, lifestyle, growth-oriented, social entrepreneurs,
franchise operators.
Discuss demographics and entrepreneurship.
Discuss opportunity recognition and gap analysis.
WEEK ONE
WEEK ONE
Course Title: Faculty Guide Vanguard University
7
Discuss brainstorming and focus groups, and ask if students have been in any focus groups.
Discuss the advantages and disadvantages of each of the market research methods found in
chapter two.
Introduce and lead discussion on feasibility analysis.
Discuss what went wrong at Iridium (page 72).
Discuss economic and social impact of entrepreneurs.
SETTING UP THE BUSINESS PLAN - This semester each student will write and present a
business plan. Next week, the portion called “The Business” (found on page 109) will be due.
Your business plan should be for a business that is possible to establish, given the present state of
technology and the laws of physics (no flying cars, please). You will be graded on integration,
completeness, and execution, not brilliance of the idea. 40% of your grade comes from the
written plan (due in its final form in week 5), and 10% comes from your oral presentation( also
during week 5)!
Here is the setup for your plan:
Assume you have $10,000 in savings, no loans, a decent car, and a working spouse whose
job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month.
Course Title: Faculty Guide Vanguard University
8
Assignments Due
1. Read Chapters 4, 5, and 6 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters four, five, and six .
2. Write up answers toquestion 6 on page 137, question 12 on page 171, question 3 on page 176,
question 14 on page 200, and discussion question 3 on page 208. Bring these to the second class
meeting.
3. Turn in a rough draft and be ready to discuss the “The Business” portion of your
business plan (see Barringer& Ireland, page 109, for topics in this section.) This should
run about three pages maximum. Assume you have $10,000 in savings, no loans, a decent car,
and a working spouse whose job can (just barely) handle your monthly bills. By the end of year
three, your firm will generate enough after-tax cash flow to pay you $6,000 per month.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Discussion:
Why write a plan?
Who reads the plan?
Who helps prepare the plan?
Precision or direction?
Guideline or straitjacket?
WEEK TWO
WEEK TWO
Course Title: Faculty Guide Vanguard University
9
Chapter 5 – Industry and Competitor analysis: lecture and discussion
Industry and firm analysis
Porter’s five-forces model
Chapter 6 – Developing an effective business model: lecture and discussion
Significance of a business model.
Emergence of Business models.
Fatal flaws…this is an important section to discuss thoroughly!
Great discussion topics: Iridium, In-n-Out Burger, Craigslist
Business models and suppliers/distributors/customers…what is in it for everybody else, not
just your business?
Course Title: Faculty Guide Vanguard University
10
Assignments Due
1. Read Chapters 7, 8, and 9 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 7, 8, and 9 (2% of course grade).
2. Write up answers to question 20 on page 239, Discussion question 3 on page 244, question 5
on page 280, question 3 on page 283, question 9 on page 308, and discussion question 1 on page
313. Bring these to the third class meeting. (100 points - 10% of course grade)
3. Turn in a rough draft and be ready to discuss the “Industry Analysis” and “Marketing
Plan” portions of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Chapter 7 – All businesses, despite size or age, will encounter ethical issues, both inside and
outside the organization. Today, sensitivity to ethical issues (the environment, social
justice, etc.) can provide outstanding business opportunitites!
Chapter 8 – Assessing financial strength and viability – discussion and lecture
This chapter provides a useful review (for some, a preview) of fundamental bookkeeping
principles. The often-overlooked issue for new ventures is that CASH IS KING!
WEEK THREE
WEEK THREE
Course Title: Faculty Guide Vanguard University
11
Just because you have made a sale, doesn’t mean you have the case…management of
Accounts Receivable and collections is critical to survival. Financial statements are fine,
and you should develop balance sheets and income statements in excel. More important to
new ventures is knowing how much cash you have, and scheduling flows out and in.
The other subtle issue is that growth can kill a new venture (sounds odd). If you have to
buy additional equipment or inventory right now, in order to serve customers who (may)
pay later, you have to fund the infrastructure expansion out of cash reserves, or find
creative ways to not pay your suppliers until after you have been paid (Dell model).
Chapter 9 – Building a New-Venture Team
In addition to the chapter materials, the critical point here is that teams outperform
individuals in acquiring funding, work output, functional expertise, commitment and
energy. Team-based new ventures fail at a far lower rate than sole proprietor new
ventures.
Suggest you use Kiersey-Bates online survey or other similar ones, to look at personality as
well as experience.
Experienced teams get funded by outside investors! Individuals do not!
****For the Financial Plan portion, I generally do not require a balance sheet and income
statement, for two reasons. Many students have not had enough accounting to do these
directly, and these statements obscure the entrepreneurial reality that CASH I S KI NG!
Instead, I ask students to project a “checkbook” for their business (inflows, outflows, dates,
and descriptions), so that we can all see exactly how much cash will be needed, and when, to
grow the business.
NEXT WEEK…BRING IN YOUR (IN-PROGRESS BUSINESS PLANS) TO WORK ON
TOGETHER DURING CLASS TIME!
Course Title: Faculty Guide Vanguard University
12
Assignments Due
1. Read Chapters 10, 11, and 12 in Barringer & Ireland, and be prepared for a matching quiz on
key terms at the ends of chapters 10, 11, and 12 .
2. Write up answers to question 11 on page 345, Discussion question 2 on page 351, question 8
on page 383, Discussion question 3 on page 390, question 6 on page 422, and discussion
question 3 on page 428. Bring these to the fourth class meeting.
3. Turn in a rough draft and be ready to discuss the “Operations Plan” and “Financial
Plan” portion of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Chapter 10 – Getting financing or funding: lecture and discussion
Beyond the “3 Fs – friends, family, and fools – where do you get financing for your new
venture? Most new ventures begin self-financed out of owners’ savings, but customers,
suppliers, and distributors can be early sources of funding. Also discuss angel investors,
venture capital firms, private equity, and banks as lenders/investors. Look at Tech Coast
Venture Network’s website to set up discussion of angel investors. Also consider SCORE
(Service Core of Retired Executives) services and SBA guaranteed loans.
Chapter 11 – Unique Marketing Issues: This chapter serves as a simple introduction to
marketing. Many tech-based entrepreneurs suffer from the “great product, no need”
WEEK FOUR
WEEK FOUR
Course Title: Faculty Guide Vanguard University
13
challenge. A great resource is the book, Guerrilla Marketing, by Jay Conrad Levinson,
available at any public library or bookstore.
A major point here is that, in any market, if there is a small number of large-sized
competitors, they cannot address the needs of every potential segment…that is your
opportunity!
Chapter 12 – Intellectual property issues: How do you protect what you have created?
READY FOR NEXT WEEK?
Bring your final business plans and powerpoint presntation for your classmates and your
instructor to act as consultants.
Course Title: Faculty Guide Vanguard University
14
Assignments Due
1. Read Chapters 13 and 15 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 13 and 15 (2% of course grade).
2. Present your final draft of your beautifully integrated, complete business plan (including a one-
page Executive Summary) in written form, and also present a five minute PowerPoint summary
of the plan. Assume you have $10,000 in savings, no loans, a decent car, and a working spouse
whose job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month (the final business plan is
40% of the course grade).
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities:
PRESENTATIONS
COURSE EVALUATIONS
WEEK FIVE
WEEK FIVE
doc_112240054.pdf
During this such a brief file concerning entrepreneurship formation of new ventures vanguard university.
Vanguard University
School for Professional Studies
Degree Program
BUSN 440 –Special Topics:
Entrepreneurship: Formation of
New Ventures
Student Guide
2013
Course Title: Faculty Guide Vanguard University
2
COURSE DESCRIPTION
This course prepares students for serious consideration of entrepreneurial opportunities during
their professional careers.
COURSE OVERVIEW
This course helps students to expand their creativity through readings, discussions and exercises
designed to increase the quantity and enhance the quality of ideas generated, specifically for
exploring new venture opportunities in the students’ areas of expertise. In addition to creativity
and innovation, feasibility studies of attractive new venture ideas will be performed. Students
will also explore business ownership methods such as cold-start, buying an existing business, and
buying a franchise. Finally, the incremental steps to starting, building, growing, and harvesting a
new venture will be covered
TEXTS AND MATERIALS
Required texts:
Barringer, Bruce and Ireland, R. Duane (2012) Entrepreneurship: Successfully Launching New
Ventures, 4th edition. Upper Saddle River, NJ: Pearson Prentice Hall
ISBN-10: 0132555522 ISBN-13: 9780132555524
COURSE LEARNING OUTCOMES
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
(Intellectual Engagement, Professional Excellence, Aesthetic Expression, Responsible
Stewardship)
2. Students will be able to assemble and present a full business plan. (Intellectual Engagement,
Professional Excellence)
3. Students will demonstrate skills in feasibility analysis of business plans. (Intellectual
Engagement, Professional Excellence, Responsible Stewardship)
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase. (Intellectual Engagement, Professional
Excellence, Responsible Stewardship)
COURSE POLICIES
? See the separate document on the VU website titled SPS Course Policies. This document
covers Academic Integrity, Attendance, Drop/Add/Withdraw, Academic Probation and
Disqualification, Disability Services, Diversity Statement, Assignments, and Late Work.
It is the responsibility of all students to read and understand these policies.
Course Title: Faculty Guide Vanguard University
3
ASSIGNMENTS AND GRADING
WEEK ONE:
1. Read Chapters 1, 2, and 3 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters one, two, and three (quizzes total 20% of course grade).
2. Write up answers to question 1 on page 28, application question 1 on page 33, discussion
question 1 on page 35, review question 8 on page 66, application question 2 on page 71,
application question 12 on page 98, and discussion question 2 on page 105. Your response to
each question should be limited to no more than a paragraph or two. Bring these to the first
class meeting. (homework totals 20% of Course Grade)
WEEK TWO:
1. Read Chapters 4, 5, and 6 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters four, five, and six .
2. Write up answers toquestion 6 on page 137, question 12 on page 171, question 3 on page 176,
question 14 on page 200, and discussion question 3 on page 208. Bring these to the second class
meeting.
3. Turn in a rough draft and be ready to discuss the “The Business” portion of your
business plan (see Barringer& Ireland, page 109, for topics in this section.) This should
run about three pages maximum. Assume you have $10,000 in savings, no loans, a decent car,
and a working spouse whose job can (just barely) handle your monthly bills. By the end of year
three, your firm will generate enough after-tax cash flow to pay you $6,000 per month.
WEEK THREE:
1. Read Chapters 7, 8, and 9 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 7, 8, and 9 (2% of course grade).
2. Write up answers to question 20 on page 239, Discussion question 3 on page 244, question 5
on page 280, question 3 on page 283, question 9 on page 308, and discussion question 1 on page
313. Bring these to the third class meeting. (100 points - 10% of course grade)
3. Turn in a rough draft and be ready to discuss the “Industry Analysis” and “Marketing
Plan” portions of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
Course Title: Faculty Guide Vanguard University
4
WEEK FOUR:
1. Read Chapters 10, 11, and 12 in Barringer & Ireland, and be prepared for a matching quiz on
key terms at the ends of chapters 10, 11, and 12 .
2. Write up answers to question 11 on page 345, Discussion question 2 on page 351, question 8
on page 383, Discussion question 3 on page 390, question 6 on page 422, and discussion
question 3 on page 428. Bring these to the fourth class meeting.
3. Turn in a rough draft and be ready to discuss the “Operations Plan” and “Financial
Plan” portion of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
WEEK FIVE:
1. Read Chapters 13 and 15 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 13 and 15 (2% of course grade).
2. Present your final draft of your beautifully integrated, complete business plan (including a one-
page Executive Summary) in written form, and also present a five minute PowerPoint summary
of the plan. Assume you have $10,000 in savings, no loans, a decent car, and a working spouse
whose job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month (the final business plan is
40% of the course grade).
GRADING COMPONENTS AND WEIGHTS:
WEEKLY QUIZZ 20% 10%
WEEKLY HOMEWORK 20%
WRITTEN BUSINESS PLAN 40%
ORAL PRESENTATION 10%
PARTICIPATION, ATTENDANCE, EFFORT, TIMELINESS 10%
Course Title: Faculty Guide Vanguard University
5
STUDENT EVALUATION
Percentages Grade Significance GPA
93-100% A Exceptional 4.00
90-92.9% A- 3.67
87-89.9% B+ 3.33
83-86.9% B Above Average 3.00
80-82.9% B- 2.67
77-79.9% C+ 2.33
73-76.9% C Average 2.00
70-72.9% C- 1.67
67-69.9% D+ 1.33
63-66.9% D Below Average 1.00
60-62.9% D- 0.67
00-59.9% F Failure 0.00
LOGISTICS CHART
(This gives the students and instructor an idea of what will covered during each hour of each
class. Add additional weeks for longer courses.
Hour Week 1 Week 2 Week 3 Week 4 Week 5
1
Barringer
Chapter one:
introduction
Barringer
Chapter four:
Business Plans
Barringer
Chapter
seven:
Legal/ethical
issues
Barringer
Chapter ten:
sources of
funding
Course Evaluations
Barringer Chapter
thirteen: growth
2
Barringer
Chapter two:
idea generation
and
opportunity
recognition
Barringer
Chapter five:
Industry and
competitor
analysis
Barringer
Chapter
eight:
Finances,
feasibility,
forecasting
Barringer
Chapter
eleven: New
Venture
Marketing
Baringer Chapter
fifteen: franchising
3
Barringer
chapter three:
feasibility
analysis
Barringer
chapter six:
Business
Models
Barringer
Chapter nine:
Founding
teams
Baringer
Chapter
twelve:
technology
and IP
Business Plan
Presentations
4
Case analysis
and video
discussion
Case analysis
and video
discussion
Case analysis
and video
discussion
Case analysis
and video
discussion
Business Plan
Presentations
Course Title: Faculty Guide Vanguard University
6
Assignments Due
1. Read Chapters 1, 2, and 3 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters one, two, and three (quizzes total 20% of course grade).
2. Write up answers to question 1 on page 28, application question 1 on page 33, discussion
question 1 on page 35, review question 8 on page 66, application question 2 on page 71,
application question 12 on page 98, and discussion question 2 on page 105. Your response to
each question should be limited to no more than a paragraph or two. Bring these to the first
class meeting. (homework totals 20% of Course Grade)
LEARNING ACTIVITIES
Learning objective:
1. Students will be able to explain the significance of new ventures and small business’
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
3. Students will demonstrate skills in feasibility analysis of business plans.
Class activities:
Define entrepreneurship.
Discuss common misconceptions about entrepreneurs.
Discuss why people desire to become entrepreneurs.
It’s usually about achievement and control, not just money!
Discuss characteristics of successful entrepreneurs: passion, tenacity, execution intelligence,
product/customer focus. What does this mean to each of the students?
Discuss types of firms: salary-substitute, lifestyle, growth-oriented, social entrepreneurs,
franchise operators.
Discuss demographics and entrepreneurship.
Discuss opportunity recognition and gap analysis.
WEEK ONE
WEEK ONE
Course Title: Faculty Guide Vanguard University
7
Discuss brainstorming and focus groups, and ask if students have been in any focus groups.
Discuss the advantages and disadvantages of each of the market research methods found in
chapter two.
Introduce and lead discussion on feasibility analysis.
Discuss what went wrong at Iridium (page 72).
Discuss economic and social impact of entrepreneurs.
SETTING UP THE BUSINESS PLAN - This semester each student will write and present a
business plan. Next week, the portion called “The Business” (found on page 109) will be due.
Your business plan should be for a business that is possible to establish, given the present state of
technology and the laws of physics (no flying cars, please). You will be graded on integration,
completeness, and execution, not brilliance of the idea. 40% of your grade comes from the
written plan (due in its final form in week 5), and 10% comes from your oral presentation( also
during week 5)!
Here is the setup for your plan:
Assume you have $10,000 in savings, no loans, a decent car, and a working spouse whose
job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month.
Course Title: Faculty Guide Vanguard University
8
Assignments Due
1. Read Chapters 4, 5, and 6 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters four, five, and six .
2. Write up answers toquestion 6 on page 137, question 12 on page 171, question 3 on page 176,
question 14 on page 200, and discussion question 3 on page 208. Bring these to the second class
meeting.
3. Turn in a rough draft and be ready to discuss the “The Business” portion of your
business plan (see Barringer& Ireland, page 109, for topics in this section.) This should
run about three pages maximum. Assume you have $10,000 in savings, no loans, a decent car,
and a working spouse whose job can (just barely) handle your monthly bills. By the end of year
three, your firm will generate enough after-tax cash flow to pay you $6,000 per month.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Discussion:
Why write a plan?
Who reads the plan?
Who helps prepare the plan?
Precision or direction?
Guideline or straitjacket?
WEEK TWO
WEEK TWO
Course Title: Faculty Guide Vanguard University
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Chapter 5 – Industry and Competitor analysis: lecture and discussion
Industry and firm analysis
Porter’s five-forces model
Chapter 6 – Developing an effective business model: lecture and discussion
Significance of a business model.
Emergence of Business models.
Fatal flaws…this is an important section to discuss thoroughly!
Great discussion topics: Iridium, In-n-Out Burger, Craigslist
Business models and suppliers/distributors/customers…what is in it for everybody else, not
just your business?
Course Title: Faculty Guide Vanguard University
10
Assignments Due
1. Read Chapters 7, 8, and 9 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 7, 8, and 9 (2% of course grade).
2. Write up answers to question 20 on page 239, Discussion question 3 on page 244, question 5
on page 280, question 3 on page 283, question 9 on page 308, and discussion question 1 on page
313. Bring these to the third class meeting. (100 points - 10% of course grade)
3. Turn in a rough draft and be ready to discuss the “Industry Analysis” and “Marketing
Plan” portions of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Chapter 7 – All businesses, despite size or age, will encounter ethical issues, both inside and
outside the organization. Today, sensitivity to ethical issues (the environment, social
justice, etc.) can provide outstanding business opportunitites!
Chapter 8 – Assessing financial strength and viability – discussion and lecture
This chapter provides a useful review (for some, a preview) of fundamental bookkeeping
principles. The often-overlooked issue for new ventures is that CASH IS KING!
WEEK THREE
WEEK THREE
Course Title: Faculty Guide Vanguard University
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Just because you have made a sale, doesn’t mean you have the case…management of
Accounts Receivable and collections is critical to survival. Financial statements are fine,
and you should develop balance sheets and income statements in excel. More important to
new ventures is knowing how much cash you have, and scheduling flows out and in.
The other subtle issue is that growth can kill a new venture (sounds odd). If you have to
buy additional equipment or inventory right now, in order to serve customers who (may)
pay later, you have to fund the infrastructure expansion out of cash reserves, or find
creative ways to not pay your suppliers until after you have been paid (Dell model).
Chapter 9 – Building a New-Venture Team
In addition to the chapter materials, the critical point here is that teams outperform
individuals in acquiring funding, work output, functional expertise, commitment and
energy. Team-based new ventures fail at a far lower rate than sole proprietor new
ventures.
Suggest you use Kiersey-Bates online survey or other similar ones, to look at personality as
well as experience.
Experienced teams get funded by outside investors! Individuals do not!
****For the Financial Plan portion, I generally do not require a balance sheet and income
statement, for two reasons. Many students have not had enough accounting to do these
directly, and these statements obscure the entrepreneurial reality that CASH I S KI NG!
Instead, I ask students to project a “checkbook” for their business (inflows, outflows, dates,
and descriptions), so that we can all see exactly how much cash will be needed, and when, to
grow the business.
NEXT WEEK…BRING IN YOUR (IN-PROGRESS BUSINESS PLANS) TO WORK ON
TOGETHER DURING CLASS TIME!
Course Title: Faculty Guide Vanguard University
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Assignments Due
1. Read Chapters 10, 11, and 12 in Barringer & Ireland, and be prepared for a matching quiz on
key terms at the ends of chapters 10, 11, and 12 .
2. Write up answers to question 11 on page 345, Discussion question 2 on page 351, question 8
on page 383, Discussion question 3 on page 390, question 6 on page 422, and discussion
question 3 on page 428. Bring these to the fourth class meeting.
3. Turn in a rough draft and be ready to discuss the “Operations Plan” and “Financial
Plan” portion of your business plan (see Barringer& Ireland, page 109, for topics in this
section.) This should run about six pages maximum.
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities
Chapter 10 – Getting financing or funding: lecture and discussion
Beyond the “3 Fs – friends, family, and fools – where do you get financing for your new
venture? Most new ventures begin self-financed out of owners’ savings, but customers,
suppliers, and distributors can be early sources of funding. Also discuss angel investors,
venture capital firms, private equity, and banks as lenders/investors. Look at Tech Coast
Venture Network’s website to set up discussion of angel investors. Also consider SCORE
(Service Core of Retired Executives) services and SBA guaranteed loans.
Chapter 11 – Unique Marketing Issues: This chapter serves as a simple introduction to
marketing. Many tech-based entrepreneurs suffer from the “great product, no need”
WEEK FOUR
WEEK FOUR
Course Title: Faculty Guide Vanguard University
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challenge. A great resource is the book, Guerrilla Marketing, by Jay Conrad Levinson,
available at any public library or bookstore.
A major point here is that, in any market, if there is a small number of large-sized
competitors, they cannot address the needs of every potential segment…that is your
opportunity!
Chapter 12 – Intellectual property issues: How do you protect what you have created?
READY FOR NEXT WEEK?
Bring your final business plans and powerpoint presntation for your classmates and your
instructor to act as consultants.
Course Title: Faculty Guide Vanguard University
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Assignments Due
1. Read Chapters 13 and 15 in Barringer & Ireland, and be prepared for a matching quiz on key
terms at the ends of chapters 13 and 15 (2% of course grade).
2. Present your final draft of your beautifully integrated, complete business plan (including a one-
page Executive Summary) in written form, and also present a five minute PowerPoint summary
of the plan. Assume you have $10,000 in savings, no loans, a decent car, and a working spouse
whose job can (just barely) handle your monthly bills. By the end of year three, your firm will
generate enough after-tax cash flow to pay you $6,000 per month (the final business plan is
40% of the course grade).
LEARNING ACTIVITIES
Learning objectives
1. Students will be able to explain the significance of new ventures and small business
contribution to gross domestic product, employment, innovation, and competition.
2. Students will be able to assemble and present a full business plan.
3. Students will demonstrate skills in feasibility analysis of business plans.
4. Students will be able to describe and discuss the methods of cold-start, buying an existing
business, and selecting a franchise for purchase.
Class activities:
PRESENTATIONS
COURSE EVALUATIONS
WEEK FIVE
WEEK FIVE
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