Entrepreneurship
Competitions
SU Entrepreneurship
Competitions
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Invest in My Idea “A Poster Competition”
The Gull Cage “A Shark Tank Competition”
The Richard Bernstein Achievement Award
for Excellence
“A Business Plan Competition”
www.salisbury.edu/perdue/EntrepreneurshipCompetitions
http://www.salisbury.edu/perdue/entrepreneurshipcompetitions/dates-news.html
Important Dates
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Final completed Business Plans Due April ??
Pre-Presentations
Presentation & Awards May 8, 2015
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Tentative Time Slots:
Invest In My Idea - 9:00 a.m.
Gull Cage - 11:30 a.m.
Bernstein Business Plan Competition - 2:00 p.m.
Reception - 6:00 p.m.
http://www.salisbury.edu/perdue/entrepreneurshipcompetitions/dates-news.html
Final Submission Guidelines and
Requirements
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Online Submission: A four part submission:
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1. Profile: contact information & group members
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(please fill out this section asap so we can get an idea of number
of participants for set-up)
2. Business Plan Submission - approx. 700
words/section or 5000 words total for all sections.
3. Supplemental Uploads 3MB Maximum
4. Poster Upload - 10MB Maximum
Final Submission Guidelines and
Requirements
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Executive Summary (1-2 Pages)
Company Description (1 Page)
Products and Services (2 Pages)
Marketing and Promotion (2 Pages)
Operational Plan (1 Page)
Management and Organization (1 Page)
Implementation and Financials (3 – 5 years),
Burn Rate, Break Even. Investment (1 Page)
Preparing a Business Plan
John Hickman, Director
Maryland SBDC
Franklin P. Perdue School of Business
Salisbury University
East Campus 215
410 548 4419
jnhickman@salisbury.edu
Start-Ups Require
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Research
Planning
Soul searching
Comprehensive, Well Thought Out Plan Of Action
Alice in Wonderland
• “Would you tell me, please which way I ought to go
from here?”
• “That depends a good deal on where you want to get
to,” said the Cat.
• “I don’t much care where,” said Alice.
• “Then it doesn’t matter which way you go,” said the
Cat.
What is a Business Plan?
• Action Plan
• Written Document
– Discipline
– Organization
– Clear Thinking
• Selling Document
– Describes the Company
– Explains the Growth Potential
– Sells the Company
NOT A GUIDE TO BRAIN
SURGERY
• THE PEOPLE
• THE OPPORTUNITY
• THE CONTEXT
• RISK AND REWARD
The Business Plan Process
• Gather the Right Data
• Outline the Plan
• Designate Responsibilities
The Business Outline
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Executive Summary (1-2 Pages)
Company Description (1 Page)
Products and Services (2 Pages)
Marketing and Promotion
(2 Pages)
Operational Plan (1 Page)
Management and Organization (1 Page)
Financials (1 Page)
Executive Summary
The most important
single section of a Business Plan
Objective
To entice and convince investors (or
anyone else) to study your plan further.
Includes
• A synopsis of the company’s strategy for
succeeding
• A brief description of the market (along with
the ingredients for success that make your
company unique in that market)
• A brief description of the product or service
• A brief description of the management team’s
qualifications
• A capsule summary of the key historical and
forecasted financial data
• An estimate of the amount of capital or loan
funds you need and how you will use it
Executive Summary (1-2 Pages)
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Business Concept
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General Company Description
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Target market, competition, how to market your product/service?
Operations and Management
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What makes your business unique?
Marketing Plan
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Industry overall
Growth potential and trend
Location, facilities, equipment, employees, suppliers
Financials
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Funding requirements, financial statements, financial analysis
Company Description (1 Page)
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Business Goals and Objectives
What the business will do
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History of the company
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What products and services will be offered
Ideas for the business
Experience in the industry
Ownership and Legal Structure
Nature of the industry and what role your business will
play in it
Products and Services (2 Pages)
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“Sell your product”
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Benefits to the user?
Stage of the development
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Physical description. What need are you filling?
Still discovery or ready to market?
What is the competitive advantage of your product?
Marketing and Promotion
(2 Pages)
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Industry Analysis
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Market Analysis
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Who is going to buy your product?
What are the market needs, trends?
Marketing Plan
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Trends, participants
How does your business fit?
How are you going to communicate the value of your product or service to
your customer?
Sales process
Competition
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Who is your competition?
What do they do better?
Operational Plan (1 Page)
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How are you going to get to the finished product?
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Where is the location of your business?
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What kind of space is required?
Who are your suppliers?
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Manufacturing?
What is required to secure a supplier?
How are you going to distribute your product?
Management and Organization
(1 Page)
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Who are the people in key positions?
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Organization structure
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What are their qualifications?
Will advisors be necessary?
Show that you understand what type and how many employees
will be required.
Organizational chart
Financials (1 Page)
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Cash Flow Statement (3-5 years)
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Income Statement (3-5 years)
Sources and Uses:
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Break down one year monthly
Need for business loan, possible investors
Balance Sheet
Sales/ Income Projections
Break-Even Analysis
What are the key cost drivers?
Financials Attachments
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Cash Flow Statement (3-5 years)
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Sources and Uses:
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Need for business loan, possible investors
Balance Sheet for pre-venture
Sales/ Income Projections
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Break down one year monthly
Income Statement can be an adjustment form CF
Basis for Cash Flow
Break-Even Analysis
Understanding “Dough”
It’s impossible to run a successful
business without cash flow projections!
• 3 Steps to create cash flow
• Step 1 – The near future almost always looks a
lot like the recent past
• Step 2 – Project your business activity for the
next 24 months
• Step 3 - Use the “Smell Test”.
Sales
Calculate your sales based on your
customer projections
What is the Average Purchase?
• # of customers purchasing per Day (week,
month)
• Sales = Average Purchase x # customers / Day (
week, month)
• # of Days (weeks) open per month
• Sales / Month = Sales x # days (weeks)
open/month
Sample Income Statement
Financial Section Recap
• General Points
– Be Consistent
– Provide for Slippage
– Show the Capital Structure
– Describe Additional Financing Plans
– Monitor Debt
– Describe Future Needs
Putting it All Together
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Rewrite Extensively
Get an Outsiders Perspective
Tend to Details
Tailor the Plan
Consider More Than One Version
Prepare an Oral Presentation
Important Points
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Tell a Good , Exciting Story
Be Consistent
Focus on a Very Few Priorities
Be Realistic in Financial Projections
Address the Downsides
Clear, Concise and Convincing
HAVE FUN WITH IT!
• Finding out how much money you can
make is a fun thing!
• Knowing when you are going to make all
this money is even better…
Break Even
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M
B
V
B/M =V
M- Margin
• How much you make after paying for the item
• AKA – Gross Profit
• Price minus Cost
B- Burn
• How much you have to spend, regardless of
sales
• AKA – Fixed Costs
V - Volume
• How many units you have to sell to pay for
Burn
• AKA - Break Even Point