Barney School of Business

1. Barney School of Business 2010 Business Plan Competition Requirements

2. 2009 Business Plan Competition requirements Deadline for the registration form submission: November 5 (MGT Department) Deadline for the Business Plan submissions is November 17, 11:00PM. Submit your plan electronically in pdf format to naoumova@hartford.edu 5-minute elevator presentation in front of judges on December 1 Participation at Barney School Award Ceremony on December 8 (Club 1877) 5:00 – 7:30PM.

3. 2010 Business Plan Competition requirements • Business plan has to be done using Fast Track or Business Plan Pro Software • Formal Plan Submissions should include the following sections: • Executive summary • Product/service description, including unique aspects • Target market niche • Competitive landscape • Management issues • Sales and distribution plan • Business model • Amount of new investment sought and intended use

4. Business Plan Tells your business story Includes a marketing plan Outlines financial needs Identifies limitations and favorable conditions Duality of its function: external and internal

5. Main questions • Does your business idea really match the opportunity? • Feasibility analysis • Business idea/idea implementation • Opportunity analysis (market size, potential/industry analysis – competition) • Resources • What is your business model? • Business model analysis • Strategy • Core resources • Partnership/competition • Customer interface • Do you have enough resources to implement it?

6. Do you need a plan? I don’t need one. I have one in my head. I don’t know how to begin. I don’t have enough time. I’m not a numbers person.

7. Why do you really need a plan? Attract investors Organize your thoughts Tool of internal control Communication tool Tool of external control

8. Entrepreneurs Get someone to write a plan for them Buy a plan Write own plan

9. Investors for entrepreneurial company • Banks • Angels • Venture Capitalists • Networks (family, friends, colleagues, etc.)

10. What investors and bankers like: Description of your unique business idea (What problem/need does it meet?) Description of target market and evidence of its capacity Description of managerial skills and experience of the founder Clear financial arrangement Customized business plan

11. Intent to decline “No story” No mission Unrealistic business idea Inability to identify the target market and its potential Unrealistic financials Inability to compete with rivals or poor understanding of their strengths and weaknesses A “standard” plan or fill in the blanks

12. Business Plan Structure • Executive summary • Product/service description, including unique aspects • Business model • Target market niche, number of prospective customers and the annual demand in units • Competitive landscape • Sales and distribution plan • Amount of new investment sought and intended use

13. Executive Summary 1-2 Pages of the overview of the business plan “A story” Structured Well written Shows strengths of the idea Describes briefly your business model

14. Product/service description Start with the brief company overview (size, location, funds available, mission, ownership) Detailed description of each product and service that you sell (price, market need, and uniqueness - why people would buy them?). Point out your competitive advantages Advertising Delivery channels

15. Target market niche • Describe the market problem/need • Solution for the problem • Be specific in describing the customer need that your product would serve: • Does the need exist already, or you would have to develop it? If the need exists already, then who is serving it now, and how? • If the need does not exist yet, then how would you develop it? • Goals (measurable, reachable, time frame, efforts)

16. Target market niche Target groups of customers (use demographic, professional, psychographic, or geographical classifications for customer segmentation) Provide the number of your prospective customers, list them (in B2B case), and annual projections for sales in units. If available, provide the information on industry growth (cite the resources used). What are the major factors that affect your market growth?

17. The Competitive Landscape • Industry: • General structure of the industry • Concentration • Nature of its competition • How does the regular customer choose from the competitors’ products/services: • Price • Quality • Image • Other

18. The Competitive Landscape Divide competitors in groups (large and small businesses), or use the other classifications (international, national, and regional/local). Describe the closest competitors (2-3) in respect to your business model. If possible provide their main strengths and weaknesses (2-3) for each of them.

19. Research Resources • www.census.gov • Provides a wealth on the demographic characteristics of individuals and organizations. Can be used to produce population-based analyses to support market size estimates. • http://www.census.gov/mcd/asmhome.html • Annual Survey of Manufacturers. Contains information on industry segments. • http://www.census.gov/mcd/asm-as2.html • Annual Value of Product Shipments. • http://www.census.gov/epcd/cbp/view/cbpview.html • County Business Patterns. Contains information on Business Activity in Geographic Units. • www.claritasexpress.com • You Are Where You Live Provides information regarding the demographic and psychographic characteristics of residents in a particular geographic area. Useful for determining site location and marketing strategies. • www.infobel.com/teldir • Can be used to produce lists of companies by industry sector and geographic area. • http://www.galenet.com/servlet/AU?finalAuth=true • Associations Unlimited. Contains access to specialized associations that may be contacted for market analyses. • http://rdsweb2.rdsinc.com/texis/rds/suite2?Session=43f262a3a|TBL&isCached=n&ipCnt=1 • Table Base. A Google-like search engine for tables. You can’t tell what you’re going to get. • http://www.sec.gov/edgar/searchedgar/webusers.htm • EDGAR Search for filings of companies. Can be used to look for the 10K forms for existing firms in an industry. These 10K forms often contain industry analyses. • http://edgarscan.pwcglobal.com/servlets/edgarscan • Edgar Scan. Provides access to companies by SIC codes. • http://www.thomasnet.com/ and http://www.tgrnet.com/ • Thomas Register. Provides sources and listings of companies by SIC, keyword and name.

20. Management Team and Other Personnel • Personnel • Top management team (knowledge, skills and experience, management compensation & ownership) • Strengths of your existing personnel • Personnel to hire • Number of employees of each category • Their responsibilities • Salaries • What would be the personnel needs, and costs? • Board of directors/advisors • Investors

21. Business Model • Components of a Business Model • Core Strategy (mission, objectives and basis for differentiation) • Strategic Resources (core competencies, and strategic assets, both tangible and intangible) • Partnership Network (suppliers, and other partners) • Customer Interface (target customer groups, how you reach them, what are your complementary services if any, your pricing model)

22. Sales and Distribution Plan • Provide growth rates in sales (based on your study of the industry trends) per month and for the first 3 years. Estimate your annual sales in units (and dollars). • How will the product/service be delivered to the customer (distribution channels)? What is your advertising plan? What are your strengths and weaknesses in distribution against your rivals?

23. Financials • Balance Sheet • Income Statement • Profit and Loss Analysis • Cash Flow Analysis • Startup Capital/Resource Needs • Financial issues: • Enough cash flow • Revenue and Major Expenses • Current Financing Available • Additional Funds Required – Needed Investments