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With this detailed information amplify new venture (creation) and small business management tony johnston.
AP/ADMS 3920 3.00 A – Fall 2014
NEW VENTURE (CREATION) AND SMALL BUSINESS MANAGEMENT
COURSE SYLLABUS / OVERVIEW
Lecture Room Location: [ACE-011 - Accolade East Building]
Dated: August 25, 2014
COURSE DIRECTOR / INSTRUCTOR
Tony Johnston, MBA (Finance), BA (Econ), CPA, CGA, CMC Email: [email protected]
PROFILE: Tony Johnston is a broadly experienced senior executive, corporate / investment
banker and management consultant. For more than 20 years, he has held various CEO, CRO,
CFO, and other management, banking and advisory positions with a number of public and
private companies in technology, biotechnology, manufacturing, commercial and financial
services and oil & gas and mining related investment banking. His successes include:
i) negotiating and closing debt, equity, acquisition, divestiture and hedging transactions worth more
than $2.5 billion;
ii) increasing a public company's enterprise value by 300% or $66 million;
iii) Co-founding a biotech company and leading it as CEO for over 4 years, that produced a 3-times
investment gain for venture capital partners on completion of $30 million sale to a public company;
iv) leading 5 corporate turnarounds in manufacturing, biotechnology and financial services;
v) providing strategic, sales & marketing, operational, financing & financial consulting services to over
200 client companies, and
vi) launching 4 new businesses in Biotechnology, Securitized Mortgage Servicing, Market Research and
Management Consulting.
COURSE OVERVIEW
Number of in-class sessions: 11 (12 sessions over 13 weeks with 1 In-Class Midterm)
Length of in-class sessions: 3 hours on Fridays from 11:30 AM to 2:30 PM
In-class session hours: 33 hours (11 sessions x 3 hours per session)
Textbook Pages to be Read: 418 pages in total to be read (minimum required)
Weekly Reading Workload: 38 pages-per-week on-average reading workload
Group Projects: 3 (2 written and 1 presentation that combined are worth 45% of
course mark; all related to start-up of a new business venture)
Exams: 2 (Midterm and Final multiple-choice and essay answer question
Exams, which combined are worth 55% of course mark)
Prof.’s Office Hours: Course Director will be available to talk with students during the
30 minutes before and after each weekly lecture in-class session in
room ACE-011 of the Accolade East Building or in the hallway
just outside (students requested to schedule meetings in advance).
COURSE OBJECTIVES & STRUCTURE
The goal of this course is to position students to become either successful entrepreneurs,
effective members of an entrepreneurial team, capable small business owner/operators or
knowledgeable small business/new venture service providers should a future circumstance
present such an opportunity or create such need. Through course readings, lectures, discussions
1
and practical group-work projects, students will be encouraged to (a) explore the dimensions and
demands of new venture creation and small business management; (b) learn about the various
routes they can take and means and methods they can use to become successful owner/operators
of a business, and (c) examine from both an academic and a practical perspective what are the
multiple complexities, challenges and rewards inherent in being an entrepreneur, intrepreneur,
family business participant or franchise operator.
In support of the above, the key functional areas operative in most businesses will be reviewed,
particularly in the context of how they relate specifically to the planning and launching of a new
venture and the ongoing management of operations in a typical goods or services oriented small
business. A distinguishing central feature of this course is the formation of entrepreneurial teams.
Accordingly, all enrolled students will be required to organize themselves into one of up to
twelve new-venture teams comprised of between four to eight people. In addition to learning
how to work as a collaborative, cohesive unit, each team will need to decide who on their team
will become responsible for such tasks as venture idea development, group leadership, strategy
formulation, marketing and sales (i.e. customer development), operations, finance / financing /
planning, human resources, product development, etc.
The group project related activities undertaken by these new venture teams will allow students to
experience first hand what it takes to organize and launch a new business. Examples of the tasks
they will undertake are (i) opportunity identification/recognition, (ii) evaluation of industry
attractiveness, (iii) assessment of market opportunity, (iv) evaluation of risks and rewards, (v)
recruitment of partners and key staff members, (vi) marketing and sales campaigns formulation,
(vii) organization of finances, (viii) raising capital and (ix) managing such other factors as
production, facilities, cost containment, administrative operations and results management and
reporting. After these teams have formulated their new business idea, they will be required to
document a business case that provides market and financial facts and rationales that
demonstrate how potentially promising, viable and achievable the proposed new venture will be.
Later, they will be asked to prepare a 3 to 5 year strategic business plan addressing all aspects of
the firm’s operations and financial activities, and then prepare and present a business pitch
presentation crafted to achieve a predetermined resource acquisition related objective or goal.
In terms of the weekly required readings, students will be held responsible for doing their
readings in advance of each Friday session. The aim behind this approach is to increase student
learning and stimulate greater subject-matter interest and practical knowledge acquisition
through enabling the first 8 in-class sessions to be structured as follows:
1st Half: Instructor-led weekly-topic-related discussions and presentation of other material
2nd Half: Brief review of week’s assigned textbook chapters followed by student driven Q&A
On completing this course, students should have achieved the following educational objectives:
1) gained a solid understanding of the concept of entrepreneurship and become familiar with
the profiles of noteworthy Canadian entrepreneurs;
2) learned how to find, evaluate, size-up and qualify entrepreneurial opportunities;
3) learned how to organize and execute the pursuit of an entrepreneurial opportunity,
including having learned about:
a) different (i) legal structures for businesses and (ii) avenues of entry into business
ownership,
2
b) how to analyze strategic problems and opportunities and develop practical solutions
to business operational issues, and
c) how to manage key functional areas such as marketing, sales, operations, human
resources management, finance, etc.;
4) gained an appreciation of the importance of business planning and the different types of
plans used in business risk-management and results-control, as well as learned how and
where best to source capital (i.e. money to operate) when and as needed;
5) become knowledgeable on how to monitor business results so as to determine
entrepreneurial success or failure and know how and when to take corrective action;
6) learned about the 5 stages of the business life-cycle and how and when best to transition
operational control and venture ownership to others as required or desired; and
7) gained practical knowledge and experience in working with others through participation
in a group project work focused on developing and presenting a new business venture
concept.
COURSE TIMETABLE
The lecture, readings and assignment due-date schedule is as follows:
Week Date Subject Matter Covered Readings Req’d Submissions
1 Sep 12 Course Overview and Introduction to
Entrepreneurship
Ch. 1, 3
43 pages
None
2 Sep 19 Practical, Legal and Regulatory Issues
Involved in Entrepreneurial Activities and
Opportunities in Franchising & Buy-outs
Ch. 10, 4
52 pages
None
3 Sep 26 Business Planning and New Venture Concept
and Strategy Development
Ch. 5, 2
54 pages
None
4 Oct 3 Sales & Marketing, Promotion and Distribution Ch. 6, 7
70 pages
Group Membership
Forms due via email
5 Oct 10 Global Marketing (Exports), and Human
Resources and the Role of Venture
Management
Course-to-date Recap and Discussion of
Structure and Course-Material Covered on
Midterm Exam
Ch. 8, 9
42 pages
None
6 Oct 17 In class* Midterm: on Chapters 1-7 & 10
*will be in alternate location due to seating
7 Oct 24 Operations (Premises and Production) Ch. 11, 12
54 pages
Group’s New Venture
Business Case with
Business Model Map
3
Week Date Subject Matter Covered Readings Req’d Submissions
8 Oct 31 Co-Curricular Day – no class
9 Nov 7 Finance, Financing and Accounting, and
Evaluating and Managing Performance
Ch. 13, 14
80 pages
Group Presentation
Scheduling Requests
10 Nov 14 Growth, Crisis, Turnaround and Exit Ch. 15 &
Supp’l.
Material
23 pages
None
11 Nov 21 5 Student Business Pitch Presentations* Draft Group Business
Plan and Group
Membership Report
Peer Evaluations >1
st
Presenting Groups
12 Nov 28 5 Student Business Pitch Presentations* Peer Evaluations >2
nd
Presenting Groups
13 Dec 5 5 Student Business Pitch Presentations*
Course Summary, Discussion of Final Exam
Structure and Course-Material Covered, and
Student Opinion Survey
Finalized Group
Business Plan
Peer Evaluations >3
rd
Presenting Groups
14 to
17
Between
Dec 9 &
22
Final Exam: covers all course material >exact
date, time and location set by Registrar's
Office
GRADE COMPONENTS
Item Description of Student Product Weight
1 Midterm 25%
2 New Venture Business Case*
Document (NVBC will serve as
basis for developing your Group’s
Business Plan and Business Pitch
Presentation)
5%
†
3 Business Plan* (based on NVBC) 25%
†
4 New Business* Pitch Presentation
(based on above)
10%
†
5 Group-Member Peer Evaluation
5%
‡
6 Final Exam 30%
Total 100%
4
†
Group Work: represents 45% of grade and marks will be assigned equally to all group members.
‡
Group-Member Peer Evaluations: these will be based on the average of marks given to the
student by the other members of their group and may be subject to a ‘Group Member Penalty’
as outlined in item 2 under Group Work Submission Details (refer attached document) if the
student is judged not to have made material group work contributions or not delivered on their
group-project work commitments in a reasonable, timely and expected manner.
Group Work Submission Requirements are detailed in Addendum (see page 9).
RESOURCES
1) Required Textbook
Longenecker, J .G, Donlevy; L.B, Champion, T., Petty, J .W., Palich, L.E., Moore, C.W.,
Small Business Management: Launching and Growing New Ventures. Fifth Canadian
Edition. (©2013/2010) Thompson-Nelson. [to purchase online an e-copy of textbook, click
>here< | textbook website: www.longenecker5e.nelson.com} > This textbook gives an
excellent overview of the four routes to entrepreneurship and the various aspects and
activities involved in managing a business as well as the steps involved in setting up for
success when launching a new venture. Students are strongly recommended to use only
the 5
th
edition of this textbook during this semester.
2) Supplementary Resource Texts Available [Free Downloads]
Business Model Map Workbook developed by T. Johnston available fromhttp://www.compassnorthinc.com/BusinessModelMapWorkbookv5-July2014.pdf with BMM
template (refer link on page 11); for more coverage of this topic, refer to Business Model
Design Workbook Guide published by MaRS Discovery District (a member of the Ontario
Network of Excellence) available fromhttp://www.marsdd.com/wp-
content/uploads/2012/12/Business-Model-Design-WorkbookGuide.pdf
Value Proposition Designer Canvas Concept by Alexander Osterwalder available fromhttp://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-with-our-
brand-new-value-proposition-designer.html; for more coverage on this topic, refer to
Crafting Your Value Proposition Workbook published by MaRS Discovery District
available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Crafting-Your-Value-
Proposition-WorkbookGuide.pdf
BDC Business Plan Preparation Templates published by Business Development Bank of
Canada >contents include (i) template for preparing and presenting required text and (ii)
spreadsheet template for preparing and presenting financial statements) with an example in
PDF format of a completed plan (e.g. Doors to the World) > available for free download
online viahttp://www.bdc.ca/en/advice_centre/tools/business_plan/Pages/default.aspx
Entrepreneurship 101 – Comprehensive Modules (guides / videos) for emerging
entrepreneurs by MaRS Discovery District > available for free download or accessing
online viahttp://www.marsdd.com/entrepreneurs-toolkit/entrepreneurship101
5
3) Optional Resource Texts
Blank, Steve, The Startup Owner's Manual: The Step-By-Step Guide for Building a
Great Company, K & S Ranch; (March 1, 2012) > by the pioneer of the ‘Lean Startup’
movement, this book is arguably the best ‘how to’ book written for entrepreneurs,
especially for those in the tech space, as it shares real-world insights and wisdom coming
out of California’s Silicon Valley on how best to get customers and grow companies;
available in hardback and e-book form from Amazon.ca viahttp://www.amazon.com/The-
Startup-Owners-Manual-Step-By-Step/dp/0984999302/ref=pd_bxgy_b_text_z; also, you may
consider taking Steve Blank’s free on-line ’How to Build a Startup’ course available athttps://www.udacity.com/course/ep245
Osterwalder, Alexander (et al.), Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers, Wiley; (J uly 13, 2010) > This book can
help entrepreneurs define and refine their new venture’s sales offerings and identify key
elements required for business success; available in hardback and e-book form from
Amazon.ca viahttp://www.amazon.com/Business-Model-Generation-Visionaries-
Challengers/dp/0470876417/ref=sr_1_1?s=books&ie=UTF8&qid=1377274556&sr=1-
1&keywords=business+model+generation; also digital copies of Osterwalder’s Business
Model Canvas are available athttp://www.businessmodelgeneration.com/canvas [note: an
important subsidiary business model concept highly relevant to this topic of developing
better business models is covered by Osterwalder’s previously mentioned excellent blog
article on how to develop more successful product and service offerings through the use of
market fit analysis using his Value Proposition Designer Canvas concept; related blog
article available athttp://businessmodelalchemist.com/2012/08/achieve-product-market-fit-
with-our-brand-new-value-proposition-designer.html
Wasserman, Noam, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls
That Can Sink a Startup, Princeton University Press (March 31, 2013) > This book can
help aspiring entrepreneurs to identify and make key business decisions which they will
face in the process of establishing and growing their new venture; it is available in
paperback and e-book form from Amazon.ca viahttp://www.amazon.com/The-Founders-
Dilemmas-Anticipating-Entrepreneurship/dp/0691158304; also available are podcasts of
Wasserman’s presentation at Stanford University’s School of Business viahttp://ecorner.stanford.edu/authorMaterialInfo.html?mid=3024
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide For
Anyone Starting Anything. Penguin Group (2004) > This relatively recent ‘classic
business book’ offers savvy, practical advice to entrepreneurs; a free download PDF
containing the table of contents, index and Chapter 1: The Art of Starting (PDF: 295KB) is
available athttp://www.guykawasaki.com/the-art-of-the-start/artprop.pdf and for a
description of this book and testimonial recommendations referhttp://www.guykawasaki.com/the-art-of-the-start/ [Note: this book can be borrowed from
the Toronto Public Library in both hard back version (16 copies) as well as an internet
accessible, downloadable audio book version athttp://www.torontopubliclibrary.ca/detail.jsp?Entt=RDM121628&R=121628 ]
6
COURSE ADMINISTRATION POLICES
General: in addition to the specific polices set out below, ADMS 3920 will be administered in
accordance with the rules set by the Liberal Arts & Professional sciences Faculty; referhttp://calendars.registrar.yorku.ca/2013-2014/faculty_rules/AP/term_tests_exams.htm.
Missed Examinations: All students who miss a regularly scheduled exam in this course
automatically receive the ADMS 3920 Course Director’s approval to write a ADMS 3920 make-
up midterm exam or final exam if they so wish provided that (a) such student makes a deferred
standing request to the LA&PS Faculty regarding the missed midterm exam or submits the
required deferred standing documentation to the University’s Registrar’s Office related to a
missed final exam and these are found acceptable, and (b) all the required documentation
submissions are completed within the required time period in accordance with University policy
and procedures. Note, all such students are required to contact the School of Administrative
Studies as soon as possible after the conclusion of the scheduled exam has been missed (in
almost all cases, no later than 7 days after) to commence the ‘request for deferred standing’
process regarding getting permission to write a make-up examination. For more information,
refer to the YorkU website section on Deferred Standing/Academic Petitions athttp://www.registrar.yorku.ca/exams/deferred/index.htm and the LA&PS Faculty’s Deferred
Standing, Academic Petitions and Appeals web page athttp://calendars.registrar.yorku.ca/2012-
2013/faculty_rules/AP/deferred_petitions.htm.
Late / After-Deadline Enrolments: none will be allowed or approved.
Academic Standards, Curriculum and Pedagogy (ASCP): Information on York University’s
Senate-approved policies, procedures and regulations is available viahttp://www.yorku.ca/secretariat/policies/index-policies.html covering such student related topics
as:
• York's Academic Honesty Policy and Procedures / Academic Integrity Web site
• Access / Disability Accommodation Opportunities
• Religious Observance Accommodation
• Code of Student Rights and Responsibilities
Additional information:
• Alternate Exam and Test Scheduling for students requiring special
accommodation.
• Grading Scheme and Feedback Policy > The Senate Grading Scheme and
Feedback Policy stipulates that (a) the grading scheme (i.e. kinds and weights of
assignments, essays, exams, etc.) be announced, and be available in writing,
within the first two weeks of class, and that, (b) under normal circumstances,
graded feedback worth at least 15% of the final grade for Fall, Winter or Summer
Term, and 30% for ‘full year’ courses offered in the Fall/Winter Term be received
7
by students in all courses prior to the final withdrawal date from a course without
receiving a grade.
• Important University Sessional Dates (information on class and exam start/end
dates, reading/co-curricular week, add/drop deadlines, holidays, University
closings and more; refer:http://www.registrar.yorku.ca/enrol/dates/index.htm
• "20% Rule" > York University requires that no examinations or tests
collectively worth more than 20% of the final grade in a course will be given
during the final 14 calendar days of classes in a term. The exceptions to the rule
are classes that regularly meet Friday evenings or on Saturday and/or Sunday at
any time, and courses offered in the compressed summer terms.
• Final Course Grades may be adjusted to conform to Program or Faculty
expected grade distribution profiles.
• Undergraduate Academic Petitions: Faculty of Liberal Arts & Professional
Studies students wishing to submit a petition (i.e. a formal request for the waiver
of a Faculty's regulation or deadline) should follow the required procedures; refer:http://www.yorku.ca/laps/council/students/petitions.html
• Services for Mature and Part-time Students: The Atkinson Centre for Mature
and Part-time Students (ACMAPS) maintains and strengthens York University’s
ongoing commitment to welcome and to serve the needs of mature and part-time
students. For further information and assistance visit:http://www.yorku.ca/acmaps
8
ADDENDUM:
GROUP PROJECT WORK REQUIREMENTS
Before the end of the 4
th
lecture session, students in this course will be required to organize
themselves and join one of a maximum of twelve groups made up of 4 to 8 people in order to:
1) develop and submit a New Venture Business Case that briefly describes and provides the
supporting startup rationale for a new venture concept of their group’s choosing,
2) develop and submit a Strategic Business Plan for their new venture that has been prepared
to win mission-critical support from a third-party (i.e. funds, government approval, etc), and
3) prepare and present a supporting Business Pitch Presentation for the proposed new venture
that is aimed at winning the mission-critical third-party support already identified.
Your group’s proposed new venture can be a product-based or a service-based business that is
either a bricks-and-mortar or an online enterprise. However, your idea must be (i) original in
some meaningful way or ways, (ii) developed by your group, and (iii) not a mindless copy from
any source or existing precedence. That means opening up a franchise, taking over a family
business, acquiring an existing company or proposing a straight copy of an existing business all
are not suitable new venture business concepts for use in this course. By definition for this
course, a new venture is a business that has no operations yet or has been in operations for less
than one year.
Examples of new venture ideas are:
- Pizza Restaurant / Delivery Business
- Technology Company
- J anitorial Service Company
- Online Art Poster Business
- Toner Cartridge Replacement Business
- Home Renovation / Construction Company
- Market Research Company
- Gourmet Food Store / Bakery
- Grill, Pub, Tavern or Bar
- Etc.
For inspiration on coming up with a new venture idea, students are invited to check out these
Profit Magazine articles, Business Trends and Opportunities: Seven Big Ideas for 2012, 5 Tech
Trends to Cash in on in 2013 and Manufacturing: Best Bets for 2014. The better bet is to mine
for opportunities in your own experiences or interests and/or ask your friends and relatives for
their suggestions. Should students have trouble or be uncertain about matters related to their
group’s business plan project, you are invited, but are not required, to brainstorm ideas and / or
discuss various new business concepts with the Prof as well as seek the Prof’s feedback on your
proposed new venture business case before the document’s required submission date of Oct 24
th
.
Please note that when undertaking this work, groups need to be aware that while they will be
required to make estimations, formulate plans and prepare projections of anticipated results, they
are expected to never ‘invent’ any venture-supporting facts or fictional business situations. This
is because, in the ‘real business world’, creating a fictitious ‘good story line’ that is based on
falsehoods just to achieve a self-serving objective is dishonest and a gross misrepresentation as
well as potentially criminally fraudulent.
9
ADDENDUM:
SUBMISSION REQUIREMENT DETAILS:
1. New Venture Business Case* > document submission (* a business case is a
documented thesis or argument that presents the business justification(s) why or why not
the organization in question should undertake an action, task, project or venture.)
(i) Due in class Oct 24. No late submissions will be accepted.
? Document’s objective is to present the Group’s ‘business case’ for your new
business concept using early descriptions, estimates and analysis to describe and
reasonably substantiate that you have identified a promising, satisfactorily-sizable
and prospectively-profitable new business opportunity.
? Your New Venture Business Case assignment must be typed, 1.5x to 2x spacing
with one-inch margins on 8.5" X 11" paper and be informative but brief (2 to
maximum 6 written pages in length), not including cover, business model map
plus up to 4 illustrations and / or charts. Student groups will lose marks if their
papers appear unprofessional, displaying disorganization, sloppiness or have
significant defects in spelling, grammar, punctuation or basic written expression.
New Venture Business Case submissions are expected to have prose made up of
well-formed, logical sentences in essay-quality paragraphs with bulleted lists if
such desired and appropriate.
? New Venture Business Case submission recommended format is:
1 > Title Page
- Name/Description of the product or service offering
- Name of initiator/entrepreneur/legal entity
- Notice of Confidentiality
- Illustration or logo, if appropriate.
2 > Body: made up of a Business Model Map on 1 page and up to 6 pages of
text as per following description:
1) Business Model Map: Diagram using the Business Model Map planning
sheet / image as per template on page 5 of Workbook identifying in simple,
brief wording the value the organization seeks to provides, who are the
expected customers, and the capabilities and resources required to create,
market and deliver this value, as well as what types of profitable, sustainable
revenue streams that should result.
2) Market Opportunity: Brief Description of Customers Types/Segments
Targeted and what their Purchase Motivations are (i.e. what drives their need
for offering) as well as Estimation of Market Size in Units and Dollars and
Description of the Current and Projected Market and Industry Conditions
3) Proposed Offering: Overview Description of Product or Service Offering
and Customer Needs to be met and Benefit(s) Delivered
10
ADDENDUM:
4) Comparison of Offering to Alternatives: Brief Description of Main
Competitors and what about the proposed product or service will give it
distinct Competitive Advantages over the Competition and Alternatives
5) Economics: Description of offering’s Revenue Mechanism and Estimated
Profitability Potential
6) Resources: Brief Description of Key Resources, Abilities and Management
Skills / Knowledge Required for Venture Success and Who on Entrepreneurial
Team Has or Will Bring Such.
7) Main Challenges: Brief Description of any Material Issues or Challenges
the proposed venture will face and how they will be addressed (want to
confirm there will be no fatal flaws in concept or how it is to be executed)
8) Conclusion / Summary / Recommendation
3 > Attachments: supporting images, information, articles or data if any.
Provide maximum of 4 attachments, if necessary, to understand the idea
o Task Relevant Instructional Support Information:
Grading Key for New Venture Business Case >available on course website
Business Model Map Workbook developed by T. Johnston available fromhttp://www.compassnorthinc.com/BusinessModelMapWorkbookv5-July2014.pdf
and Business Model Design Workbook Guide published by MaRS Discovery
District (a member of the Ontario Network of Excellence) available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Business-Model-Design-
WorkbookGuide.pdf
Business Model Map Planning Sheet / Image: use either of the following to
insert appropriate text in 9 pt. font overtop so that you can print out a 8.5 by 11
in. copy on completion >
1.http://www.compassnorthinc.com/BusinessModelMapV5-
PlanningSheet%5Badd-text-by-inserting-9pt-font-textbox%5D.ppt >
download file to edit slide’s image using Microsoft’s PowerPoint.
2.http://www.compassnorthinc.com/images/BusinessModelMapV5-
PlanningSheet%5Badd-text-by-inserting-9pt-font-textbox%5D.jpg >
download image or copy or save file for use in an image processing
program such as Google.com’s Drawings.
Crafting Your Value Proposition Workbook published by MaRS Discovery
District (a member of the Ontario Network of Excellence) available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Crafting-Your-Value-
Proposition-WorkbookGuide.pdf
? Grade Weighting: represents 5% of total grade based on mark given by Prof
11
ADDENDUM:
2. Strategic Business Plan >document submission
(i) Due on or before midnight Nov 21 by email ONLY:
a) Rough Draft of Business Plan allows Prof to ensure everyone in group is
doing their fair share of work, and
b) Group Membership Report to be submitted using form available on
course website; purpose of document is to:
(a) provide final confirmation of their group member list, and
(b) position groups to be able to request the Prof assess a Group Project
Work Penalty Mark of up to 5 marks against any group member judged
by a majority of the group’s members to have not met their group work
commitments in a reasonable and/or timely manner such request
(requires provision of supporting documentation covering the situation
and what previously was done to set work assignments and resolve any
production and delivery disagreements/disputes). Such requests, if
accepted by the Prof, will result in the ‘disciplined’ group member
receiving a zero (0%) on their peer evaluation and being liable for a 0 to
5% penalty being added into their overall course mark, where such
penalty decision will be made by the Prof in his sole discretion.
The purpose for this Group Membership Report is to provide groups with
‘meaningful material consequences option’ they can use as a last resort
against those who do not make material contributions to the group
projects or who do not make a sincere effort to fulfill their group project
work commitments in a timely, agreed-upon manner.
(ii) Due as a hand-in in class on Dec 5:
Finalized Business Plan in hard-copy document format. NOTE: only
the Finalized Document will be reviewed, marked, and commented on,
and no submissions beyond the specified due date will be accepted
o Your Business Plan group project assignment submission must be typed, 1.5x to
2x spacing with one-inch margins on 8.5" X 11" paper and be a maximum of 25
pages in length plus cover and appendices. Student groups will lose marks if their
submission appears unprofessional, disorganization, sloppy or has significant
defects in spelling, grammar, punctuation or basic written expression. Prose used
should be made up of well-formed, logical sentences in essay-quality paragraphs
with bulleted lists if such desired and appropriate.
o Important Note re Business Plan: each venture group will be required to select
and clearly identify one of the following as the goal, objective or task their
formalized, detailed business plan and its presentation is intended to serve:
1. raise capital (i.e. angel equity, venture capital or debt from a lender)
12
ADDENDUM:
2. attract key recruit (i.e. important director, experienced / rain-maker CEO or
key employee)
3. attract key third-party business support (i.e. strategic partner, key supplier
or major customer)
4. obtain government support (i.e. get grant or win regulatory approval)
5. other (as appropriate to circumstance – groups selecting this option will be
required to get Prof’s approval on or before Feb 28)
? Task Relevant Instructional-Support Information:
Grading Key for Strategic Business Plan >available on course website
Longenecker, J .G, Donlevy; L.B, Champion, T., Petty, J .W., Palich, L.E., Moore,
C.W., Small Business Management: Launching and Growing New Ventures.
Fifth Canadian Edition. (©2013/2010) Thompson-Nelson. >pages 116 to 139
Business Plan Preparation Templates. Business Development Bank of Canada
(Word document template for preparing and presenting text and Excel workbook
template for preparing and presenting financials) with examples of a completed
plan (Doors to the World) in PDF format >available for free download online viahttp://www.bdc.ca/en/advice_centre/tools/business_plan/Pages/default.aspx
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide
For Anyone Starting Anything, Penguin Group (2004) >pages 66 to 75
Entrepreneurship 101 - Comprehensive guidance for emerging entrepreneurs
MaRS Discovery District (A member of the Ontario Network of Excellence) >
available for free download or accessing online viahttp://www.marsdd.com/entrepreneurs-toolkit/entrepreneurship101
J ohnston, T., How to Prepare a Company to Successfully Raise Equity Capital
[White Paper]. Compass North Inc. (2011) >free download available viahttp://www.compassnorthinc.com/CNi White Paper How to Prepare a Company
to Successfully Raise Equity Capital_20111207.pdf
? Grade Weighting: represents 20% of total grade based on mark given by Prof
3. Group Business Pitch Presentation > in-class group activity
? To be given as scheduled during one of the last three sessions in late
November and early December: Note: Presentations should be 20-minutes or
less covering 10 to 12 slides followed by a 10 minute Q&A; all group members
13
ADDENDUM:
14
inning and on conclusion,
each group is required to
? Task Relevant Instructional-Support Information:
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide
nd
r entrepreneurial
of the Ontario
etwork of Excellence) >available for free download or accessing online via
will be required at least to introduce themselves at beg
provide digital copy of their presentation to Prof.
Grading Key for Business Pitch Presentation >available on course website
For Anyone Starting Anything, Penguin Group (2004) > pages 44 to 65
(attachment to grading key)
Entrepreneurship 101 - The Pitch: overview of the essentials of building a
delivering an effective pitch to help you find financing for you
enture. Published by MaRS Discovery District (a member v
Nhttp://www.marsdd.com/entrepreneurs-toolkit/sessions/the-pitch
? Grade Weighting: represents 15% of total grade (grade composition
by student graders)
4. Peer E
? Peer evaluations of group members are due to be handed in to the Prof in
approximately weighted 2/3 by Prof and 1/3
valuation: >in-class document submission
class on same day your group business pitch presentation is given. No late
submissions will be accepted.
To avoid having free-riders in your group, everyone will have an opportunity to
evaluate your other group members in terms of their contribution to your Group’s
project work.
?
Please be fair and reasonable in your assessments of your fellow
group members and remember, when it comes to being rewarded for your efforts,
it pays to be a positive contributing group member because ‘what goes around
comes around’! Form to be used will be supplied by the Prof at the time of your
group presentation. What you are to submit is a sheet of paper with the names of
all group members and a score from 1 to 5 next to each name (not including
yourself!), indicating how much each person contributed to the group’s
assignments (i.e. from a low of 0 or 1 =‘very little’ to a high of 5 =‘full’).
?
possible additional 0 to 5% penalty mark
sed on the Prof’s assessment of what
at group member recommendations were
rece
YOUR personal peer evaluation score will be calculated as an average of the
scores YOU receive from your group’s other members. For example, if YOU
receive 4, 5, 3, 4, then YOUR score will be 4 out of 5.
Grade Weighting: represents 5% of total grade, based on average mark given by
your student group peers with
assessment at discretion of Prof ba
contributions were made or not and wh
ived (refer comments below).
ADDENDUM:
15
? Warni
i) not
ngs Regarding Peer Evaluations:
Anyonewithout a valid reason acceptable to the Prof who does submit
ii)
that their group
projects are successful and receive the best possible marks and (b) that
they have done everything reasonable to avoid being assessed a ‘Group
Project Work Penalty Mark’ as described on page 12 above which will also
result in their receiving a zero (0) Peer Evaluation mark..
in person their peer evaluation scoring report in class on the day their
group gives their business pitch presentation will be given a 0% peer
evaluation score (i.e., you will get 0 out of 5).
All students are expected to maintain consistently good relations with the
other members of their group, as well as make regular contributions to their
group projects and do their fair share of the work on time. Meeting these
standards of conduct will help students ensure both (a)
doc_744616479.pdf
With this detailed information amplify new venture (creation) and small business management tony johnston.
AP/ADMS 3920 3.00 A – Fall 2014
NEW VENTURE (CREATION) AND SMALL BUSINESS MANAGEMENT
COURSE SYLLABUS / OVERVIEW
Lecture Room Location: [ACE-011 - Accolade East Building]
Dated: August 25, 2014
COURSE DIRECTOR / INSTRUCTOR
Tony Johnston, MBA (Finance), BA (Econ), CPA, CGA, CMC Email: [email protected]
PROFILE: Tony Johnston is a broadly experienced senior executive, corporate / investment
banker and management consultant. For more than 20 years, he has held various CEO, CRO,
CFO, and other management, banking and advisory positions with a number of public and
private companies in technology, biotechnology, manufacturing, commercial and financial
services and oil & gas and mining related investment banking. His successes include:
i) negotiating and closing debt, equity, acquisition, divestiture and hedging transactions worth more
than $2.5 billion;
ii) increasing a public company's enterprise value by 300% or $66 million;
iii) Co-founding a biotech company and leading it as CEO for over 4 years, that produced a 3-times
investment gain for venture capital partners on completion of $30 million sale to a public company;
iv) leading 5 corporate turnarounds in manufacturing, biotechnology and financial services;
v) providing strategic, sales & marketing, operational, financing & financial consulting services to over
200 client companies, and
vi) launching 4 new businesses in Biotechnology, Securitized Mortgage Servicing, Market Research and
Management Consulting.
COURSE OVERVIEW
Number of in-class sessions: 11 (12 sessions over 13 weeks with 1 In-Class Midterm)
Length of in-class sessions: 3 hours on Fridays from 11:30 AM to 2:30 PM
In-class session hours: 33 hours (11 sessions x 3 hours per session)
Textbook Pages to be Read: 418 pages in total to be read (minimum required)
Weekly Reading Workload: 38 pages-per-week on-average reading workload
Group Projects: 3 (2 written and 1 presentation that combined are worth 45% of
course mark; all related to start-up of a new business venture)
Exams: 2 (Midterm and Final multiple-choice and essay answer question
Exams, which combined are worth 55% of course mark)
Prof.’s Office Hours: Course Director will be available to talk with students during the
30 minutes before and after each weekly lecture in-class session in
room ACE-011 of the Accolade East Building or in the hallway
just outside (students requested to schedule meetings in advance).
COURSE OBJECTIVES & STRUCTURE
The goal of this course is to position students to become either successful entrepreneurs,
effective members of an entrepreneurial team, capable small business owner/operators or
knowledgeable small business/new venture service providers should a future circumstance
present such an opportunity or create such need. Through course readings, lectures, discussions
1
and practical group-work projects, students will be encouraged to (a) explore the dimensions and
demands of new venture creation and small business management; (b) learn about the various
routes they can take and means and methods they can use to become successful owner/operators
of a business, and (c) examine from both an academic and a practical perspective what are the
multiple complexities, challenges and rewards inherent in being an entrepreneur, intrepreneur,
family business participant or franchise operator.
In support of the above, the key functional areas operative in most businesses will be reviewed,
particularly in the context of how they relate specifically to the planning and launching of a new
venture and the ongoing management of operations in a typical goods or services oriented small
business. A distinguishing central feature of this course is the formation of entrepreneurial teams.
Accordingly, all enrolled students will be required to organize themselves into one of up to
twelve new-venture teams comprised of between four to eight people. In addition to learning
how to work as a collaborative, cohesive unit, each team will need to decide who on their team
will become responsible for such tasks as venture idea development, group leadership, strategy
formulation, marketing and sales (i.e. customer development), operations, finance / financing /
planning, human resources, product development, etc.
The group project related activities undertaken by these new venture teams will allow students to
experience first hand what it takes to organize and launch a new business. Examples of the tasks
they will undertake are (i) opportunity identification/recognition, (ii) evaluation of industry
attractiveness, (iii) assessment of market opportunity, (iv) evaluation of risks and rewards, (v)
recruitment of partners and key staff members, (vi) marketing and sales campaigns formulation,
(vii) organization of finances, (viii) raising capital and (ix) managing such other factors as
production, facilities, cost containment, administrative operations and results management and
reporting. After these teams have formulated their new business idea, they will be required to
document a business case that provides market and financial facts and rationales that
demonstrate how potentially promising, viable and achievable the proposed new venture will be.
Later, they will be asked to prepare a 3 to 5 year strategic business plan addressing all aspects of
the firm’s operations and financial activities, and then prepare and present a business pitch
presentation crafted to achieve a predetermined resource acquisition related objective or goal.
In terms of the weekly required readings, students will be held responsible for doing their
readings in advance of each Friday session. The aim behind this approach is to increase student
learning and stimulate greater subject-matter interest and practical knowledge acquisition
through enabling the first 8 in-class sessions to be structured as follows:
1st Half: Instructor-led weekly-topic-related discussions and presentation of other material
2nd Half: Brief review of week’s assigned textbook chapters followed by student driven Q&A
On completing this course, students should have achieved the following educational objectives:
1) gained a solid understanding of the concept of entrepreneurship and become familiar with
the profiles of noteworthy Canadian entrepreneurs;
2) learned how to find, evaluate, size-up and qualify entrepreneurial opportunities;
3) learned how to organize and execute the pursuit of an entrepreneurial opportunity,
including having learned about:
a) different (i) legal structures for businesses and (ii) avenues of entry into business
ownership,
2
b) how to analyze strategic problems and opportunities and develop practical solutions
to business operational issues, and
c) how to manage key functional areas such as marketing, sales, operations, human
resources management, finance, etc.;
4) gained an appreciation of the importance of business planning and the different types of
plans used in business risk-management and results-control, as well as learned how and
where best to source capital (i.e. money to operate) when and as needed;
5) become knowledgeable on how to monitor business results so as to determine
entrepreneurial success or failure and know how and when to take corrective action;
6) learned about the 5 stages of the business life-cycle and how and when best to transition
operational control and venture ownership to others as required or desired; and
7) gained practical knowledge and experience in working with others through participation
in a group project work focused on developing and presenting a new business venture
concept.
COURSE TIMETABLE
The lecture, readings and assignment due-date schedule is as follows:
Week Date Subject Matter Covered Readings Req’d Submissions
1 Sep 12 Course Overview and Introduction to
Entrepreneurship
Ch. 1, 3
43 pages
None
2 Sep 19 Practical, Legal and Regulatory Issues
Involved in Entrepreneurial Activities and
Opportunities in Franchising & Buy-outs
Ch. 10, 4
52 pages
None
3 Sep 26 Business Planning and New Venture Concept
and Strategy Development
Ch. 5, 2
54 pages
None
4 Oct 3 Sales & Marketing, Promotion and Distribution Ch. 6, 7
70 pages
Group Membership
Forms due via email
5 Oct 10 Global Marketing (Exports), and Human
Resources and the Role of Venture
Management
Course-to-date Recap and Discussion of
Structure and Course-Material Covered on
Midterm Exam
Ch. 8, 9
42 pages
None
6 Oct 17 In class* Midterm: on Chapters 1-7 & 10
*will be in alternate location due to seating
7 Oct 24 Operations (Premises and Production) Ch. 11, 12
54 pages
Group’s New Venture
Business Case with
Business Model Map
3
Week Date Subject Matter Covered Readings Req’d Submissions
8 Oct 31 Co-Curricular Day – no class
9 Nov 7 Finance, Financing and Accounting, and
Evaluating and Managing Performance
Ch. 13, 14
80 pages
Group Presentation
Scheduling Requests
10 Nov 14 Growth, Crisis, Turnaround and Exit Ch. 15 &
Supp’l.
Material
23 pages
None
11 Nov 21 5 Student Business Pitch Presentations* Draft Group Business
Plan and Group
Membership Report
Peer Evaluations >1
st
Presenting Groups
12 Nov 28 5 Student Business Pitch Presentations* Peer Evaluations >2
nd
Presenting Groups
13 Dec 5 5 Student Business Pitch Presentations*
Course Summary, Discussion of Final Exam
Structure and Course-Material Covered, and
Student Opinion Survey
Finalized Group
Business Plan
Peer Evaluations >3
rd
Presenting Groups
14 to
17
Between
Dec 9 &
22
Final Exam: covers all course material >exact
date, time and location set by Registrar's
Office
GRADE COMPONENTS
Item Description of Student Product Weight
1 Midterm 25%
2 New Venture Business Case*
Document (NVBC will serve as
basis for developing your Group’s
Business Plan and Business Pitch
Presentation)
5%
†
3 Business Plan* (based on NVBC) 25%
†
4 New Business* Pitch Presentation
(based on above)
10%
†
5 Group-Member Peer Evaluation
5%
‡
6 Final Exam 30%
Total 100%
4
†
Group Work: represents 45% of grade and marks will be assigned equally to all group members.
‡
Group-Member Peer Evaluations: these will be based on the average of marks given to the
student by the other members of their group and may be subject to a ‘Group Member Penalty’
as outlined in item 2 under Group Work Submission Details (refer attached document) if the
student is judged not to have made material group work contributions or not delivered on their
group-project work commitments in a reasonable, timely and expected manner.
Group Work Submission Requirements are detailed in Addendum (see page 9).
RESOURCES
1) Required Textbook
Longenecker, J .G, Donlevy; L.B, Champion, T., Petty, J .W., Palich, L.E., Moore, C.W.,
Small Business Management: Launching and Growing New Ventures. Fifth Canadian
Edition. (©2013/2010) Thompson-Nelson. [to purchase online an e-copy of textbook, click
>here< | textbook website: www.longenecker5e.nelson.com} > This textbook gives an
excellent overview of the four routes to entrepreneurship and the various aspects and
activities involved in managing a business as well as the steps involved in setting up for
success when launching a new venture. Students are strongly recommended to use only
the 5
th
edition of this textbook during this semester.
2) Supplementary Resource Texts Available [Free Downloads]
Business Model Map Workbook developed by T. Johnston available fromhttp://www.compassnorthinc.com/BusinessModelMapWorkbookv5-July2014.pdf with BMM
template (refer link on page 11); for more coverage of this topic, refer to Business Model
Design Workbook Guide published by MaRS Discovery District (a member of the Ontario
Network of Excellence) available fromhttp://www.marsdd.com/wp-
content/uploads/2012/12/Business-Model-Design-WorkbookGuide.pdf
Value Proposition Designer Canvas Concept by Alexander Osterwalder available fromhttp://businessmodelalchemist.com/blog/2012/08/achieve-product-market-fit-with-our-
brand-new-value-proposition-designer.html; for more coverage on this topic, refer to
Crafting Your Value Proposition Workbook published by MaRS Discovery District
available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Crafting-Your-Value-
Proposition-WorkbookGuide.pdf
BDC Business Plan Preparation Templates published by Business Development Bank of
Canada >contents include (i) template for preparing and presenting required text and (ii)
spreadsheet template for preparing and presenting financial statements) with an example in
PDF format of a completed plan (e.g. Doors to the World) > available for free download
online viahttp://www.bdc.ca/en/advice_centre/tools/business_plan/Pages/default.aspx
Entrepreneurship 101 – Comprehensive Modules (guides / videos) for emerging
entrepreneurs by MaRS Discovery District > available for free download or accessing
online viahttp://www.marsdd.com/entrepreneurs-toolkit/entrepreneurship101
5
3) Optional Resource Texts
Blank, Steve, The Startup Owner's Manual: The Step-By-Step Guide for Building a
Great Company, K & S Ranch; (March 1, 2012) > by the pioneer of the ‘Lean Startup’
movement, this book is arguably the best ‘how to’ book written for entrepreneurs,
especially for those in the tech space, as it shares real-world insights and wisdom coming
out of California’s Silicon Valley on how best to get customers and grow companies;
available in hardback and e-book form from Amazon.ca viahttp://www.amazon.com/The-
Startup-Owners-Manual-Step-By-Step/dp/0984999302/ref=pd_bxgy_b_text_z; also, you may
consider taking Steve Blank’s free on-line ’How to Build a Startup’ course available athttps://www.udacity.com/course/ep245
Osterwalder, Alexander (et al.), Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers, Wiley; (J uly 13, 2010) > This book can
help entrepreneurs define and refine their new venture’s sales offerings and identify key
elements required for business success; available in hardback and e-book form from
Amazon.ca viahttp://www.amazon.com/Business-Model-Generation-Visionaries-
Challengers/dp/0470876417/ref=sr_1_1?s=books&ie=UTF8&qid=1377274556&sr=1-
1&keywords=business+model+generation; also digital copies of Osterwalder’s Business
Model Canvas are available athttp://www.businessmodelgeneration.com/canvas [note: an
important subsidiary business model concept highly relevant to this topic of developing
better business models is covered by Osterwalder’s previously mentioned excellent blog
article on how to develop more successful product and service offerings through the use of
market fit analysis using his Value Proposition Designer Canvas concept; related blog
article available athttp://businessmodelalchemist.com/2012/08/achieve-product-market-fit-
with-our-brand-new-value-proposition-designer.html
Wasserman, Noam, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls
That Can Sink a Startup, Princeton University Press (March 31, 2013) > This book can
help aspiring entrepreneurs to identify and make key business decisions which they will
face in the process of establishing and growing their new venture; it is available in
paperback and e-book form from Amazon.ca viahttp://www.amazon.com/The-Founders-
Dilemmas-Anticipating-Entrepreneurship/dp/0691158304; also available are podcasts of
Wasserman’s presentation at Stanford University’s School of Business viahttp://ecorner.stanford.edu/authorMaterialInfo.html?mid=3024
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide For
Anyone Starting Anything. Penguin Group (2004) > This relatively recent ‘classic
business book’ offers savvy, practical advice to entrepreneurs; a free download PDF
containing the table of contents, index and Chapter 1: The Art of Starting (PDF: 295KB) is
available athttp://www.guykawasaki.com/the-art-of-the-start/artprop.pdf and for a
description of this book and testimonial recommendations referhttp://www.guykawasaki.com/the-art-of-the-start/ [Note: this book can be borrowed from
the Toronto Public Library in both hard back version (16 copies) as well as an internet
accessible, downloadable audio book version athttp://www.torontopubliclibrary.ca/detail.jsp?Entt=RDM121628&R=121628 ]
6
COURSE ADMINISTRATION POLICES
General: in addition to the specific polices set out below, ADMS 3920 will be administered in
accordance with the rules set by the Liberal Arts & Professional sciences Faculty; referhttp://calendars.registrar.yorku.ca/2013-2014/faculty_rules/AP/term_tests_exams.htm.
Missed Examinations: All students who miss a regularly scheduled exam in this course
automatically receive the ADMS 3920 Course Director’s approval to write a ADMS 3920 make-
up midterm exam or final exam if they so wish provided that (a) such student makes a deferred
standing request to the LA&PS Faculty regarding the missed midterm exam or submits the
required deferred standing documentation to the University’s Registrar’s Office related to a
missed final exam and these are found acceptable, and (b) all the required documentation
submissions are completed within the required time period in accordance with University policy
and procedures. Note, all such students are required to contact the School of Administrative
Studies as soon as possible after the conclusion of the scheduled exam has been missed (in
almost all cases, no later than 7 days after) to commence the ‘request for deferred standing’
process regarding getting permission to write a make-up examination. For more information,
refer to the YorkU website section on Deferred Standing/Academic Petitions athttp://www.registrar.yorku.ca/exams/deferred/index.htm and the LA&PS Faculty’s Deferred
Standing, Academic Petitions and Appeals web page athttp://calendars.registrar.yorku.ca/2012-
2013/faculty_rules/AP/deferred_petitions.htm.
Late / After-Deadline Enrolments: none will be allowed or approved.
Academic Standards, Curriculum and Pedagogy (ASCP): Information on York University’s
Senate-approved policies, procedures and regulations is available viahttp://www.yorku.ca/secretariat/policies/index-policies.html covering such student related topics
as:
• York's Academic Honesty Policy and Procedures / Academic Integrity Web site
• Access / Disability Accommodation Opportunities
• Religious Observance Accommodation
• Code of Student Rights and Responsibilities
Additional information:
• Alternate Exam and Test Scheduling for students requiring special
accommodation.
• Grading Scheme and Feedback Policy > The Senate Grading Scheme and
Feedback Policy stipulates that (a) the grading scheme (i.e. kinds and weights of
assignments, essays, exams, etc.) be announced, and be available in writing,
within the first two weeks of class, and that, (b) under normal circumstances,
graded feedback worth at least 15% of the final grade for Fall, Winter or Summer
Term, and 30% for ‘full year’ courses offered in the Fall/Winter Term be received
7
by students in all courses prior to the final withdrawal date from a course without
receiving a grade.
• Important University Sessional Dates (information on class and exam start/end
dates, reading/co-curricular week, add/drop deadlines, holidays, University
closings and more; refer:http://www.registrar.yorku.ca/enrol/dates/index.htm
• "20% Rule" > York University requires that no examinations or tests
collectively worth more than 20% of the final grade in a course will be given
during the final 14 calendar days of classes in a term. The exceptions to the rule
are classes that regularly meet Friday evenings or on Saturday and/or Sunday at
any time, and courses offered in the compressed summer terms.
• Final Course Grades may be adjusted to conform to Program or Faculty
expected grade distribution profiles.
• Undergraduate Academic Petitions: Faculty of Liberal Arts & Professional
Studies students wishing to submit a petition (i.e. a formal request for the waiver
of a Faculty's regulation or deadline) should follow the required procedures; refer:http://www.yorku.ca/laps/council/students/petitions.html
• Services for Mature and Part-time Students: The Atkinson Centre for Mature
and Part-time Students (ACMAPS) maintains and strengthens York University’s
ongoing commitment to welcome and to serve the needs of mature and part-time
students. For further information and assistance visit:http://www.yorku.ca/acmaps
8
ADDENDUM:
GROUP PROJECT WORK REQUIREMENTS
Before the end of the 4
th
lecture session, students in this course will be required to organize
themselves and join one of a maximum of twelve groups made up of 4 to 8 people in order to:
1) develop and submit a New Venture Business Case that briefly describes and provides the
supporting startup rationale for a new venture concept of their group’s choosing,
2) develop and submit a Strategic Business Plan for their new venture that has been prepared
to win mission-critical support from a third-party (i.e. funds, government approval, etc), and
3) prepare and present a supporting Business Pitch Presentation for the proposed new venture
that is aimed at winning the mission-critical third-party support already identified.
Your group’s proposed new venture can be a product-based or a service-based business that is
either a bricks-and-mortar or an online enterprise. However, your idea must be (i) original in
some meaningful way or ways, (ii) developed by your group, and (iii) not a mindless copy from
any source or existing precedence. That means opening up a franchise, taking over a family
business, acquiring an existing company or proposing a straight copy of an existing business all
are not suitable new venture business concepts for use in this course. By definition for this
course, a new venture is a business that has no operations yet or has been in operations for less
than one year.
Examples of new venture ideas are:
- Pizza Restaurant / Delivery Business
- Technology Company
- J anitorial Service Company
- Online Art Poster Business
- Toner Cartridge Replacement Business
- Home Renovation / Construction Company
- Market Research Company
- Gourmet Food Store / Bakery
- Grill, Pub, Tavern or Bar
- Etc.
For inspiration on coming up with a new venture idea, students are invited to check out these
Profit Magazine articles, Business Trends and Opportunities: Seven Big Ideas for 2012, 5 Tech
Trends to Cash in on in 2013 and Manufacturing: Best Bets for 2014. The better bet is to mine
for opportunities in your own experiences or interests and/or ask your friends and relatives for
their suggestions. Should students have trouble or be uncertain about matters related to their
group’s business plan project, you are invited, but are not required, to brainstorm ideas and / or
discuss various new business concepts with the Prof as well as seek the Prof’s feedback on your
proposed new venture business case before the document’s required submission date of Oct 24
th
.
Please note that when undertaking this work, groups need to be aware that while they will be
required to make estimations, formulate plans and prepare projections of anticipated results, they
are expected to never ‘invent’ any venture-supporting facts or fictional business situations. This
is because, in the ‘real business world’, creating a fictitious ‘good story line’ that is based on
falsehoods just to achieve a self-serving objective is dishonest and a gross misrepresentation as
well as potentially criminally fraudulent.
9
ADDENDUM:
SUBMISSION REQUIREMENT DETAILS:
1. New Venture Business Case* > document submission (* a business case is a
documented thesis or argument that presents the business justification(s) why or why not
the organization in question should undertake an action, task, project or venture.)
(i) Due in class Oct 24. No late submissions will be accepted.
? Document’s objective is to present the Group’s ‘business case’ for your new
business concept using early descriptions, estimates and analysis to describe and
reasonably substantiate that you have identified a promising, satisfactorily-sizable
and prospectively-profitable new business opportunity.
? Your New Venture Business Case assignment must be typed, 1.5x to 2x spacing
with one-inch margins on 8.5" X 11" paper and be informative but brief (2 to
maximum 6 written pages in length), not including cover, business model map
plus up to 4 illustrations and / or charts. Student groups will lose marks if their
papers appear unprofessional, displaying disorganization, sloppiness or have
significant defects in spelling, grammar, punctuation or basic written expression.
New Venture Business Case submissions are expected to have prose made up of
well-formed, logical sentences in essay-quality paragraphs with bulleted lists if
such desired and appropriate.
? New Venture Business Case submission recommended format is:
1 > Title Page
- Name/Description of the product or service offering
- Name of initiator/entrepreneur/legal entity
- Notice of Confidentiality
- Illustration or logo, if appropriate.
2 > Body: made up of a Business Model Map on 1 page and up to 6 pages of
text as per following description:
1) Business Model Map: Diagram using the Business Model Map planning
sheet / image as per template on page 5 of Workbook identifying in simple,
brief wording the value the organization seeks to provides, who are the
expected customers, and the capabilities and resources required to create,
market and deliver this value, as well as what types of profitable, sustainable
revenue streams that should result.
2) Market Opportunity: Brief Description of Customers Types/Segments
Targeted and what their Purchase Motivations are (i.e. what drives their need
for offering) as well as Estimation of Market Size in Units and Dollars and
Description of the Current and Projected Market and Industry Conditions
3) Proposed Offering: Overview Description of Product or Service Offering
and Customer Needs to be met and Benefit(s) Delivered
10
ADDENDUM:
4) Comparison of Offering to Alternatives: Brief Description of Main
Competitors and what about the proposed product or service will give it
distinct Competitive Advantages over the Competition and Alternatives
5) Economics: Description of offering’s Revenue Mechanism and Estimated
Profitability Potential
6) Resources: Brief Description of Key Resources, Abilities and Management
Skills / Knowledge Required for Venture Success and Who on Entrepreneurial
Team Has or Will Bring Such.
7) Main Challenges: Brief Description of any Material Issues or Challenges
the proposed venture will face and how they will be addressed (want to
confirm there will be no fatal flaws in concept or how it is to be executed)
8) Conclusion / Summary / Recommendation
3 > Attachments: supporting images, information, articles or data if any.
Provide maximum of 4 attachments, if necessary, to understand the idea
o Task Relevant Instructional Support Information:
Grading Key for New Venture Business Case >available on course website
Business Model Map Workbook developed by T. Johnston available fromhttp://www.compassnorthinc.com/BusinessModelMapWorkbookv5-July2014.pdf
and Business Model Design Workbook Guide published by MaRS Discovery
District (a member of the Ontario Network of Excellence) available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Business-Model-Design-
WorkbookGuide.pdf
Business Model Map Planning Sheet / Image: use either of the following to
insert appropriate text in 9 pt. font overtop so that you can print out a 8.5 by 11
in. copy on completion >
1.http://www.compassnorthinc.com/BusinessModelMapV5-
PlanningSheet%5Badd-text-by-inserting-9pt-font-textbox%5D.ppt >
download file to edit slide’s image using Microsoft’s PowerPoint.
2.http://www.compassnorthinc.com/images/BusinessModelMapV5-
PlanningSheet%5Badd-text-by-inserting-9pt-font-textbox%5D.jpg >
download image or copy or save file for use in an image processing
program such as Google.com’s Drawings.
Crafting Your Value Proposition Workbook published by MaRS Discovery
District (a member of the Ontario Network of Excellence) available fromhttp://www.marsdd.com/wp-content/uploads/2012/12/Crafting-Your-Value-
Proposition-WorkbookGuide.pdf
? Grade Weighting: represents 5% of total grade based on mark given by Prof
11
ADDENDUM:
2. Strategic Business Plan >document submission
(i) Due on or before midnight Nov 21 by email ONLY:
a) Rough Draft of Business Plan allows Prof to ensure everyone in group is
doing their fair share of work, and
b) Group Membership Report to be submitted using form available on
course website; purpose of document is to:
(a) provide final confirmation of their group member list, and
(b) position groups to be able to request the Prof assess a Group Project
Work Penalty Mark of up to 5 marks against any group member judged
by a majority of the group’s members to have not met their group work
commitments in a reasonable and/or timely manner such request
(requires provision of supporting documentation covering the situation
and what previously was done to set work assignments and resolve any
production and delivery disagreements/disputes). Such requests, if
accepted by the Prof, will result in the ‘disciplined’ group member
receiving a zero (0%) on their peer evaluation and being liable for a 0 to
5% penalty being added into their overall course mark, where such
penalty decision will be made by the Prof in his sole discretion.
The purpose for this Group Membership Report is to provide groups with
‘meaningful material consequences option’ they can use as a last resort
against those who do not make material contributions to the group
projects or who do not make a sincere effort to fulfill their group project
work commitments in a timely, agreed-upon manner.
(ii) Due as a hand-in in class on Dec 5:
Finalized Business Plan in hard-copy document format. NOTE: only
the Finalized Document will be reviewed, marked, and commented on,
and no submissions beyond the specified due date will be accepted
o Your Business Plan group project assignment submission must be typed, 1.5x to
2x spacing with one-inch margins on 8.5" X 11" paper and be a maximum of 25
pages in length plus cover and appendices. Student groups will lose marks if their
submission appears unprofessional, disorganization, sloppy or has significant
defects in spelling, grammar, punctuation or basic written expression. Prose used
should be made up of well-formed, logical sentences in essay-quality paragraphs
with bulleted lists if such desired and appropriate.
o Important Note re Business Plan: each venture group will be required to select
and clearly identify one of the following as the goal, objective or task their
formalized, detailed business plan and its presentation is intended to serve:
1. raise capital (i.e. angel equity, venture capital or debt from a lender)
12
ADDENDUM:
2. attract key recruit (i.e. important director, experienced / rain-maker CEO or
key employee)
3. attract key third-party business support (i.e. strategic partner, key supplier
or major customer)
4. obtain government support (i.e. get grant or win regulatory approval)
5. other (as appropriate to circumstance – groups selecting this option will be
required to get Prof’s approval on or before Feb 28)
? Task Relevant Instructional-Support Information:
Grading Key for Strategic Business Plan >available on course website
Longenecker, J .G, Donlevy; L.B, Champion, T., Petty, J .W., Palich, L.E., Moore,
C.W., Small Business Management: Launching and Growing New Ventures.
Fifth Canadian Edition. (©2013/2010) Thompson-Nelson. >pages 116 to 139
Business Plan Preparation Templates. Business Development Bank of Canada
(Word document template for preparing and presenting text and Excel workbook
template for preparing and presenting financials) with examples of a completed
plan (Doors to the World) in PDF format >available for free download online viahttp://www.bdc.ca/en/advice_centre/tools/business_plan/Pages/default.aspx
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide
For Anyone Starting Anything, Penguin Group (2004) >pages 66 to 75
Entrepreneurship 101 - Comprehensive guidance for emerging entrepreneurs
MaRS Discovery District (A member of the Ontario Network of Excellence) >
available for free download or accessing online viahttp://www.marsdd.com/entrepreneurs-toolkit/entrepreneurship101
J ohnston, T., How to Prepare a Company to Successfully Raise Equity Capital
[White Paper]. Compass North Inc. (2011) >free download available viahttp://www.compassnorthinc.com/CNi White Paper How to Prepare a Company
to Successfully Raise Equity Capital_20111207.pdf
? Grade Weighting: represents 20% of total grade based on mark given by Prof
3. Group Business Pitch Presentation > in-class group activity
? To be given as scheduled during one of the last three sessions in late
November and early December: Note: Presentations should be 20-minutes or
less covering 10 to 12 slides followed by a 10 minute Q&A; all group members
13
ADDENDUM:
14
inning and on conclusion,
each group is required to
? Task Relevant Instructional-Support Information:
Kawasaki, Guy, The Art of the Start: The Time-Tested, Battle-Hardened Guide
nd
r entrepreneurial
of the Ontario
etwork of Excellence) >available for free download or accessing online via
will be required at least to introduce themselves at beg
provide digital copy of their presentation to Prof.
Grading Key for Business Pitch Presentation >available on course website
For Anyone Starting Anything, Penguin Group (2004) > pages 44 to 65
(attachment to grading key)
Entrepreneurship 101 - The Pitch: overview of the essentials of building a
delivering an effective pitch to help you find financing for you
enture. Published by MaRS Discovery District (a member v
Nhttp://www.marsdd.com/entrepreneurs-toolkit/sessions/the-pitch
? Grade Weighting: represents 15% of total grade (grade composition
by student graders)
4. Peer E
? Peer evaluations of group members are due to be handed in to the Prof in
approximately weighted 2/3 by Prof and 1/3
valuation: >in-class document submission
class on same day your group business pitch presentation is given. No late
submissions will be accepted.
To avoid having free-riders in your group, everyone will have an opportunity to
evaluate your other group members in terms of their contribution to your Group’s
project work.
?
Please be fair and reasonable in your assessments of your fellow
group members and remember, when it comes to being rewarded for your efforts,
it pays to be a positive contributing group member because ‘what goes around
comes around’! Form to be used will be supplied by the Prof at the time of your
group presentation. What you are to submit is a sheet of paper with the names of
all group members and a score from 1 to 5 next to each name (not including
yourself!), indicating how much each person contributed to the group’s
assignments (i.e. from a low of 0 or 1 =‘very little’ to a high of 5 =‘full’).
?
possible additional 0 to 5% penalty mark
sed on the Prof’s assessment of what
at group member recommendations were
rece
YOUR personal peer evaluation score will be calculated as an average of the
scores YOU receive from your group’s other members. For example, if YOU
receive 4, 5, 3, 4, then YOUR score will be 4 out of 5.
Grade Weighting: represents 5% of total grade, based on average mark given by
your student group peers with
assessment at discretion of Prof ba
contributions were made or not and wh
ived (refer comments below).
ADDENDUM:
15
? Warni
i) not
ngs Regarding Peer Evaluations:
Anyonewithout a valid reason acceptable to the Prof who does submit
ii)
that their group
projects are successful and receive the best possible marks and (b) that
they have done everything reasonable to avoid being assessed a ‘Group
Project Work Penalty Mark’ as described on page 12 above which will also
result in their receiving a zero (0) Peer Evaluation mark..
in person their peer evaluation scoring report in class on the day their
group gives their business pitch presentation will be given a 0% peer
evaluation score (i.e., you will get 0 out of 5).
All students are expected to maintain consistently good relations with the
other members of their group, as well as make regular contributions to their
group projects and do their fair share of the work on time. Meeting these
standards of conduct will help students ensure both (a)
doc_744616479.pdf