Eastern Mennonite University
MBA Program
ENTREPRENEURSHIP AND VENTURE CREATION
MBA 655 – Summer, 2012
“Occupation, when integrated with faith, is a calling”
“Occupation, when viewed as a calling, is sacred” - Lefever
Instructor:
Allon H. Lefever
Office:
Call for appointment
Phone:
540-421-6888
E-mail:
allon.lefever@emu.edu
Class Location: Campus Center, Room 350
Class dates and hours as follows:
Monday, May 7, 6-10 pm
Saturday, May 12, 8 am-4 pm
Tuesday, May 15, 6-10 pm
Monday, May 21, 6-10 pm
Wednesday, May 23, 6-10 pm
Office Hours: By appointment
Course Description:
This course presents an overview of entrepreneurship, entrepreneurs and
intrapreneurs, small business fundamentals, and how to write a Business Plan.
The course will investigate the entrepreneurial mindset and what entrepreneurs do – how
they recognize opportunity and gather necessary resources to turn that opportunity into a
commercially viable business. The course emphasizes entrepreneurship as a process, and
also examines how these innovative skills can be applied within larger organizations.
The course will examine entrepreneurial businesses – the role they play in the
economy and how an entrepreneurial business competes against much larger firms. You
will come away with a clear understanding of what entrepreneurship is and how you can
use the entrepreneurial mindset to succeed in your chosen career or business.
The course will utilize a variety of learning methods, including case studies,
lectures, a field visit to Bowl of Good, (and interaction with the two entrepreneurial
founders of this business), role playing, class discussion and interaction, business plan
evaluation, and most importantly, practice in writing and presenting your own Business
Plan.
The course will not require you to purchase a textbook, although an outline
similar to the textbook Entrepreneurship, A Process Perspective, by Robert Baron, and
Scott Shane, published by Thomson South-Western, will be followed as described in
more detail below. (you of course may purchase this textbook if you wish). A number of
articles from various sources will be provided by your instructor.
You will apply your learning by (1.) Selecting a book about an Entrepreneur and
their business story, OR by interviewing an entrepreneur and writing about their story.
You will then share a presentation summary of the book and the entrepreneur’s journey
you have selected, with your classmates (2.), develop a business idea/opportunity, write a
Business Plan, (3.) present this plan to your classmates as if they were the potential
investors in your business!... (4.) you will assume the role of a venture capitalist,
evaluating their business plans, and investing your $100,000, explaining your investment
decision rationale, and (5), you will forecast your business out 10 years, estimate a value,
and define an exit strategy.
Being an entrepreneur requires tremendous creativity and testing of ideas.
Entrepreneurship is as much an art as a science. You will be encouraged to read and
research materials using the Internet, Fortune, Entrepreneur and Inc. magazines, or items
such as franchise documents, to develop and support the particular business idea which
you select for your business plan. I will ask that you track and document your sources.
Course Objectives:
Upon completion of this course, participants will:
1.) Be able to develop an effective business concept that can be tested
2.) Understand the critical elements of a feasibility analysis and business plan:
a. Are there customers and a market of sufficient size to make a concept
viable?
b. Based on estimates of sales and expenses, do the capital requirements to
start a business make sense?
c. Can an appropriate start-up team be assembled to execute the concept?
3.) Demonstrate the analytical and critical thinking skills required to complete a
feasibility analysis for a new venture.
4.) Demonstrate the application of research skills
5.) Determine a potential business opportunity, write, and then defend a Business
Plan for your selected business concept.
6.) Develop a persuasive case for the proposed business
7.) Effectively present this Business Plan before your classmates, who will play
the role of venture capitalist and potential investors!
8.) Practice evaluating business plans & making a logical allocation of $100,000
9.) BEWARE - Potential Outcome: This course (especially the business plan
you develop) may alter your career and generate future dreams that will
change the course of your working career! Be creative and test your wings!
Required Reading:
Byrne, John A., The 12 Greatest Entrepreneurs of our Time, Fortune Magazine, April 16,
2012
Hise, Phaedra, Inc., March 2006, Confessions of an Entrepreneur’s Wife
Harris, Ira and Davis, James (2001) Family Business Governance: Shifting the
Theoretical Lens to Better Understand Them
Select an autobiography of an Entrepreneur from the list provided, OR one approved by
your instructor
Selected Book Resources (Option 1 - select one to read and present):
See Appendix A for Selected Entrepreneur books (many are in the EMU library)
See Appendix B for Internet Research sites.
Entrepreneur Magazine
Inc. Magazine
Fortune Magazine
Numerous case studies (will be distributed in class)
Attendance and Preparation Requirements:
Entrepreneurship is inherently collaborative – it’s often a social process involving
the entrepreneur, input/feedback from others, and cast in a societal context.
Entrepreneur’s typically find opportunities, adapt, change, and improve on their ideas by
listening and learning from others. We will practice this as a class, so attendance at all
class sessions is critical to learning, and also to providing feedback on each other’s ideas.
Given the concentration of study in less than one month, please plan on 100% attendance.
The reading assignments, case studies, and projects as outlined in the Course Schedule
which follows, will require your preparation for each class to maximize your learning.
Attendance is also a form of respect toward other students. I will provide discussion
handouts per the attached weekly schedule. Students should come prepared with their
ideas for discussion. This interaction will prepare you for constructive feedback regarding
the viability of each other’s business plans and will be an important part of your learning.
Confidentiality Policy:
Given the unusual nature of this class, students may be exposed to proprietary
information as they do research and/or develop their own unique ideas. It is the policy of
the MBA Program that all such information should be treated as confidential.
By enrolling in and taking part in this Entrepreneurship and Venture Creation
class, students agree not to disclose any confidential or proprietary information without
the written permission from the student or faculty who “owns” the idea.
Summary of Major Assignments:
(1.) Choose One of the Following:
a. Reading an Entrepreneurial Experience Book, OR
b. An Interview of an Entrepreneur
(2.) Presentation to the class on the Book, OR the Entrepreneur Interview
(3.) Writing a Business Plan
(4.) Presenting your Business Plan to the class
(5.) Acting as a Venture Capitalist, evaluating the other business plans, and
allocating your investment of your $100,000
(6.) Forecsasting your business 10 years into the future, determining a valuation,
and defining an exit strategy.
(1) and (2) - Book Reading OR Entrepreneur Interviews, and Reporting to
the class:
Each student will either select a book about an entrepreneur from the “Selected
Readings Resources” entrepreneurship books listed in Appendix “A” or one approved by
the instructor, OR interview an Entrepreneur. I will provide a three page outline of
information or topics to discuss with your selected Entrepreneur for those who choose
this option. Each student will then present a 30-45 minute summary of the information
and learning from the book OR interview, including a discussion/sharing of how their
experience/findings/observations can be applied to your life and/or business plan.
If you choose to interview an entrepreneur, the interview should determine how the
individual approached creating an opportunity, and the steps they took to turn that idea
into a viable business, or product/service. The summary should include how they built
their team, where they raised their starting capital, specifics on how they implemented
their idea in terms of marketing and sales, as well as current information regarding the
business. The extent of business analysis possible will vary depending on the
entrepreneur and their comfort in sharing confidential information.
Your report to the class on your book OR your interview, should be about 30-45
minutes, may include power point if you desire, and should also include a well written 48 page summary of your findings, observations, and conclusions, for my review.
(3.) and (4.) Writing a Business Plan and Presenting:
This is the primary assignment of the Entrepreneurship course, testing your ability to
pull together all the aspects of your business opportunity, and write a business plan. Each
student will generate an idea (hopefully from a personal passion or interest) which can be
developed into a business opportunity. I will provide an outline of the various segments
which should be included in your business plan, and share examples of business plans to
give you a good sense of this assignment and my expectations.
An overview of your business plan will then be presented to the class for discussion,
evaluation, investment decisions, and feedback. Typical business plans range from 25 to
50 pages, and should be presented in a quality, professional booklet.
(5.).. Acting as a Venture Capitalist, Evaluating and Investing:
Understanding how to evaluate business plans, and how to make investment decisions
will be a final component of the course. Students will evaluate each other’s business
plans for feasibility, content, quality of research, the financials, the overall presentation,
and investment potential. This peer feedback will be summarized and reported back to
each student.
In addition, each student will play the role of a venture capitalist, determining how to
invest their capital pool of $100,000 among the various business opportunities, with
rationale as well as evaluation as to why the particular mix was selected.
(6.)Your “final” will consist of an evaluation of your company 10 years into the future,
AND your exit strategy for your business.
We’ll have fun and a lot of learning as we review half a dozen or more business plans!
Grade breakdown and Expectations:
Your final grade will be a combination of your class participation, your book or
entrepreneur interview, your Business Plan and presentation, your evaluation and rational
of your investments into the businesses plan of your fellow classmates, and your
evaluation of your own business 10 years out, and your exit strategy as follows:
Class Participation, exercises….……...……150 points
Book or Interview presentation…………….200 points
Business Plan and, presentation…………....450 points
Investment Allocation and Rationale…….. 100 points
Final Valuation and Exit Strategy………….100 points
Potential Total……………………..1,000 points
Course Schedule of Topics and Activities:
Monday, May 7, 6-10 p.m.
“Entrepreneurship: Who, What, Why?... Idea Generation”
1.
2.
3.
4.
5.
6.
Course overview
Defining Entrepreneurship
What makes an Entrepreneur?
What is an Intrapreneur?
The Entrepreneurial Mind; Crafting a Personal Strategy
America’s Entrepreneurs Go Global
a. Class reporting on Top 12 Entrepreneurs Fortune Article
7. The Entrepreneurial Process
8. Finding Entrepreneurial Opportunities:
a. Idea generation and opportunity discovery
i. “What is your passion” exercise?
a. Class exercise on idea/opportunity generation
9. Testing your Entrepreneurial Potential exercise
Assignments:
1. Entrepreneur interview outline of questions and areas to cover (provided by
instructor)
2. Business plan outline (provided by instructor)
3. Sign-up for book or entrepreneur interview
4. ASSIGNMENT DUE NEXT SAT. – a one page write-up on your business
idea
5. Discuss - Begin book reports or entrepreneur interview reports on Sat.???
Sat., May 12, 8-4 pm
“Assembling the Resources and Launching the Venture ”
1. Identifying resource requirements
2. Acquiring and interpreting information on markets, competitors, &
government regulations
3. Importance of name, logo, positioning
4. Legal forms of organization.
5. Capital structures (debt, equity)
6. Finances – sources of capital
a. The SuperNet and OneMain case study
b. Financials: (instructor will show you where to get electronic
templates)
i. Income statements
ii. Balance sheets
iii. Cash flow statements
7. Writing a Business Plan:
a. Outline of basic components
8. Developing a Vision Statement, a Mission Statement, and a Core Values
Statement (examples, importance/stories)
Field Visit (and lunch): Bowl of Good Inc., Katrina Didot, Rachael Dorsey
9. Franchising as a Possibility
10. Legal protection, intellectual property
11. Marketing your new venture
12. Customer service techniques
13. Differentiation and competitive advantage
14. Strategy formation and strategy implementation
ASSIGNMENTS DUE NEXT TUESDAY:
1. Draft of your Vision, Mission and Core Values Statements
2. First draft of your Marketing and Sales Plan
3. Begin book reports and/or entrepreneurship reports
Case Study:
1. Southwest Airlines (handout and video)
2. Confessions of an Entrepreneur’s Wife (article)
3. Numerous examples of Vision, Mission, and Values Statements
Tues,. May 15: 6-10 p.m.
“Running the Business and Harvesting Strategies”
1. Growth strategies
2. Managing Growth
3. Balancing growth, service, and financial stability
4. Developing appropriate controls:
1. Planning – strategic plans, annual plans
2. Key Performance Measures (KPM’s)
3. Employee Performance Planning and Monitoring
4. Customer Service Surveys
5. The Balance Scorecard or “dashboard”
5. The Family as Entrepreneur
1. The role of the spouse, other family
2. Managing the mix of business, ownership,
management, and family needs.
6. Role of the Board and advisors
7. Exit strategies:
1. Why think about this now?
2. Family business transitions
3. Discussion of numerous options
4. Valuation approaches
ASSIGNMENT DUE NEXT TUES AND THUR.:
1. Book reports, entrepreneur interview reports, Business Plans
Case Studies:
1. Family Business Governance; Shifting the Lens to Understand, Harris, et al
2. The SuperNet & OneMain.com deal structures and doing an IPO (Lefever)
3. Warren Buffet and Berkshire Hathaway – How does he do it?!
Monday, May 21; 6-10 pm
“Business Plan Presentations and Venture Capital Investment Allocation”
1. Business Plan review process
2. Investment Allocation process
Completion of Entrepreneur Interviews
Completion of book reports
Presentation and constructive critique of Business Plans
Wed., May 23, 6-10 pm
1. Analyzing the Plans and allocating your $100,000 of capital…& rational!
2. Valuation process review
3. 10 year outlook for your business and your exit strategy
Final Business Plan DUE June 11 (should be bound and professionally presented)
It is my hope that each of you will gain a new appreciation for Entrepreneurship and the
unique contribution Entrepreneurs bring to the founding and establishing of businesses
and organizations throughout the world. As you develop your Business Plan, it is also my
hope that you will experience both the challenge/struggle of discovering and defining the
business, as well as the inward satisfaction and reward that comes from discovering a
way to turn your passion into a business opportunity. Enjoy the journey!
- Allon Lefever
Appendix A.
Selected Entrepreneur Book Resources ( select one to read and present):
Bergdahl, What I Learned from Sam Walton (WalMart story)
Chappell, Tom, Managing Upside Down (Co-founder, CEO of Tom’s of Maine)
Dell, Michael, Direct from Dell (Dell Computer story)
Freiberg, Nuts! (Southwest Airline story)
Gates, Bill, Business @ the Speed of Thought (Bill Gates ideas on Technology)
Gross, Forbes Greatest Business Stories of All Time (12 or so business stories)
Iacocca, Lee, Iacocca, An Autobiography (Autobiography, Ford and Chrysler story)
Isaacson, Walter, Steve Jobs (based on 40 interviews with Steve Jobs. Apple founder)
Jones, Laurie Beth, Jesus, Entrepreneur (looking as Jesus as an Entrepreneur)
Lansburg, Ivan, Succeeding Generations (Family Business Transition process)
Lowenstein, Roger, Buffett, The Making of American Capitalism, (Story of Warren
Buffett’s Berkshire Hathway)
Packard, David, The HP Way (Hewlett Packard story)
Peterson, Blue Streak (Jet Blue Airlines story)
Schultz, Howard, Pour Your Heart Into It, (Starbucks coffee story)
Schultz, Susan, Blue Mountain – Turning Dreams into Reality, (Blue Mtn.com Cards)
Slater, Robert, Jack Welch, and the GE Way, (story of Jack’s Welch’s leadership of GE)
Swisher, There Must be a Pony in here Somewhere (AOL Time Warner Story)
Trump, Donald, The Art of the Deal (Real Estate Development, Trump story)
Vise, David, The Google Story, (the story of Googles’s creation and growth).
Appendix B
Internet Research Resources ( this is a comprehensive list of helpful internet sites
depending on the research you need, or the problem you are solving):
www.business.gov (Small Business Administration site for info on starting a business)
www.fedworld.gov/ntis (U.S.Department of Commerce site that has the new North
Amer. Industry Classification System (NAICS), replacing older SIC system)
www.aisbofmn.com (American Institute of Small Business for educational materials re
start-up that can be ordered)
www.entreworld.org (AllBusiness site that provides tools, services for start-up)
www.zdnet.com/smallbusiness (ZDNet Small Business clearinghouse site for web based
small businesses)
www.franchise.com (all kinds of information on how to select a franchise opportunity
www.franchisegator.com (listing and examples of available franchises
http://bizserve.com (BizServe site with info on government, nonprofit for small business
www.doc.gov (Dept of Commerce site that links to many sites of interest)
www.industrylink.com (IndustryLink site - links to site of interest in number of industries
www.sec.gov (Securities and Exchange Commission site good for researching specific
industries)
www.thestandard.com/research/metrics (The Industry Standard site that maintains an
extensive database of information on the Internet)
www.ceoexpress.com (CEO Express site that is a general guide to business resources on
the Internet)
www.depaul.edu/ethics (The Online Journal of Ethics site good for ethics articles)
http://condor.depaul.edu/ethics/bizethics.html (Business Ethics Magazine web site with
articles on social responsibility and ethics)
www.business-ethic.org (International Bus Ethics Institute has info on issues of
transnationalism in business ethics)
www.ezines.com (Business Opportunities Handbook: Online; business opportunity ideas)
www.ozemail.com.au (Creativity Web site in Australia with creativity articles)
http://edge.lowe.org (Thinking up a Storm article helpful for idea generation)
www.sec.gov/edgarhp.htm (SEC Edgar Database contains documents that public
companies must submit to the SEC)
www.thomasregister,com:8000/ (Thomas Register on-line version of the Thomas
Register of American Manufacturers – info on products, services, industries)
www.riseb.org (Reaearch Institute’s small and Emerging Business, Inc. is a general
research source for issues impacting the formation and growth of small business.
www.census.gov (U.S. Bureau of the Census site that has useful demographic info)
http://tiger.census.gov (Gov source for census tract maps)
www.liszt.com (U.S. Bureau directory of mailing list topics)
www.corporate.com/cover_f.html (Corporate Agents, Inc., a site to help you incorporate)
www.virtuamall.com/CC (The Company Corporation, a site which shows you how to
incorporate quickly and cheaply in any state)
www.gen.com (Global Entrepreneurs Network site that helps small businesses gain a
presence on the web)
http://advgroup.com (Advanced Consulting Group that has articles on helping
entrepreneurs with management concerns)
www.ioma.com (Institute of Management& Administration Business Pages site that has
info on employee benefits, compensation and other links to industry resources)
www.ama.org (American Marketing Association site has info on marketing issues)
www.marketing.haynet.com (Inline Marketing’s online journal for marketers)
www.gmarketing.com/tactics/weekly_02.html (Guerrila Marketing guru Jay Levinson
has weekly articles on marketing.)
www.marketingtools.com (American Demographics/Marketing Tools site will help you
target your marketing efforts)
www.synergyx.com/cgi-bin/sgx/d>cgi?S1137 (Synergyx – this is an integrated shopping
cart, affiliate program, and delivery system for digital products)
www.adage.com (AdvertisingAge site is the online version of the magazine that focuses
on the advertising industry)
www.office.com (Office.com site has help on creating a financial statement)
www.ibf.com (International Business Forum site geared toward entrepreneurs wanting to
enter the international marketplace. Goods list of foreign resources)
www.internationalist.com (The Internationalist site is a good source for a wide range of
international issues)
www.tradezone.com (Global Trade Center site with business links and listings of
international business opportunities)
www.inc.com/guide/item/0,7462,CHL1_GDE66,00.html (Inc., Magazine’s guide to
writing a business plan
www.vfinance.com (Business Plan Templates can be downloaded and viewed in
Microsoft Word)
www.accountingnet.com (AccountingNet site is a general source of accounting
information for business owners)
www.accounting.pro2net.com (Pro2Net’s general source for accounting know-how)
www.manufacturing.net (a clearinghouse for info and resources about manufacturing)
www.research.ibm.com/pdtr/scm.html (IBM site gives you step-by-step instructions for
building cost-effective business processes)
www.kcilink.com/brc/financing/vent-capt.html (A Venture Capital Analysis is a site that
helps evaluate if venture capital is right for your plan)
www.pw.com/vc (Price Waterhouse LLP National Venture Capital Survey is a site that
contains the quarterly survey of venture capital trends and results)
www.financehub.com (FinanceHub’s site that contains a database of 11,000 investors
and links to many venture firms)
www.vfinance.com (Vfinance is a site for private entrepreneurs seeking funding)
www.financehub.com/welcomef.html (InterSoft Solutions FinanceHub site with sites to
venture capital, finance and legal issues, etc.)
www.usbusiness.com/capquest (another site for those seeking private “angel” capital.
http://fdncenter.org (this is a site for non-profit funding from foundations and
philanthropists)
4/23/2012, ahl