STEM CHALLENGE RULES
Sponsored by:
Equal Opportunity Employer/Program. Auxiliary aids and services are available upon request to individuals with disabilities. Relay Texas: 711
(Voice) or 1-800-735-2989 (TTY) Igualdad de oportunidades de Empleo/Programas. Equipo auxiliar y servicios de apoyo están disponibles para
personas con discapacidad al ser requeridos. Relay Texas: 711 (Voz) o 1-800-735-2989 (TTY)
Hello STEM Challengers!
Do you have an innovative idea and think it will work? Then launch it! The 2015 STEM Challenge will
introduce the innovative lean startup model1 which is transforming how new ideas are being built and
launched everyday. Your team objective should be to work collaboratively to try and launch a start up
business, successfully.
As a challenger, you will be tasked with creating a business model canvas2 demonstrating how your ideas
pivoted, produce a business plan document and present to potential investors and professionals to win
this year’s competition. Prizes will range from $100 to $1,000 in awards.
This year’s competition we will also incorporate six target industry sectors identified in the Borderplex
Alliance Strategic Plan 2015-20203 as having the highest potential of economic opportunities for our
Borderplex Region (El Paso /Cd. Juárez /Southern New Mexico). They are:
1. Defense and Aerospace
2. Life Sciences
3. Tourism
4. Advanced Manufacturing
5. Advanced Logistic
6. Business Support Services
Before you begin the STEM Challenge, there three key resources to study. These resources will provide
insight into becoming a successful entrepreneur now and in the future. We will also provide technical
workshops from industry leading professionals to help guide your ideas from concept to development.
Resource one: Udacity.com An online university "by Silicon Valley" that teaches
the skills that industry employers need, the credentials endorsed by employers
and educates at a fraction of the cost of traditional schools. With industry
giants—Google, AT&T, Facebook, Salesforce, Cloudera, etc.—Udacity offers
Nanodegree programs and credentials, designed so professionals become Web
Developers, Data Analysts, Mobile Developers, etc.
For STEM Challenge we will use Udacity for the FREE “How to Build a Startup,”
online course. Click on “Start Free Course”. You will need to register at
www.udacity.com/account/auth#!/signup. This is the model for the 2015 STEM Challenge competition.
You will learn from Steve Blank4 who is the innovator of the Lean Start Up Model.
Resource two: businessmodelgeneration.com The Business Model Canvas is
your guide for start up development. You will make mulitiple pivots along the
way. The objective of the canvas is to ensure you “Get Out of the Building”
and talk to potential customers/companies who will start to shape your value
proposition. The canvas has nine components: Value Proposition, Customer
Segments, Customer Relationships, Key Partners, Key Activities, Channels,
Key Resources, Cost Structure and Revenue Streams. We provide you with an
Excel template file or you can go to businessmodelgeneration.com and
download their canvas. Remember, you should have muliple canvases as you talk to companies and
potential customers. This will help increase your odds of winning. We are asking for your final canvas in the
executive summary component of your team business plan.
Resource three: The Borderplex Alliance Strategic Plan The report provides in detail the six
industry sectors for our Borderplex region which have been identified as having the
highest potential for economic opportunities. By understanding the report and its content,
you will identify which industry area your start up product or service solutions will best
align with, increasing your chances for sustainability. To read about industry sectors refer
to pages 63-90 in the report.
1
Lean Startup Model https://hbr.org/2013/05/why-the-lean-start-up-changes-everything
Business Model Canvas https://strategyzer.com/canvas?_ga=1.42520359.342335349.1446509531
3
2015-2020 Regional Strategic Plan Recommendations Report completed by the Borderplex Alliance in June 2015 -(pages 63-90)
http://www.borderplexalliance.org/resources/regional-strategic-plan-2015-2020
4
Steve Blank http://steveblank.com/about/
2
Let the start ups begin! Challengers here are your rules.
Team Requirements:
• Teams must represent a high school in the Borderplex Region
• Teams must be comprised of four to five members and must be in 9th through 12th grade
• Teams must have at least one faculty, teacher or staff as team mentor
Team Registration:
To become a competitor, fill out the registration form at https://form.jotform.com/52994044518967. You
must fill out and have a faculty, teacher or staff mentor endorse your team. This will help with
communications and guidance with your projects.
Business Idea Categories:
Your idea must target at least one of the following industry sectors:
1. Defense and Aerospace (e.g. drones, apps,
sensors, aviation, space, military)
2. Life Sciences (e.g. biomedical, digi health,
pharmaceutical, drugs, medicine, devices)
3. Tourism (e.g. quality of life, social campaigns,
customer data solutions, travel, sports)
4. Advanced Manufacturing (e.g. consumer products,
renewable energy, 3D printing, automobile)
5. Advanced Logistics (e.g. tracking, security,
trucking, shipping, packaging, bi-modal services)
6. Business Support Services (e.g. language,
accounting, data cloud management, education)
Document Requirements:
 Business plans must be single space and no more than 12 pages in length (not including cover page,
table of contents and appendices).
 Business plans must be printed on 8 ½ x 11” letter size paper and must cite all sources in footnotes.
 Business model canvases should be included in your appendices of your business plan. Your “final”
business model canvas should be placed in the Executive Summary (page 1).
Scoring Breakdown and Requirements:
Scoring will be based on how well your team applies Science, Technology, Engineering, and Math principles
within each pre-determined section in the business plan template. Here is the scoring breakdown:
 Science - Market Research (20 points)
 Technology - Marketing Applications (20 points)
 Engineering -Commercialization & Operations (20
points)
 Math – Financial Strategy (20 points)
 Innovation –Business Model Canvas (20 points)
Important Dates:
 Saturday, November 21, 2015 - Borderplex Industry Sectors & Intro to the “Lean Start Up” Model Workshop
 Saturday, January 30, 2016 - Lean Start Up Focus Group 1 Workshop
 Saturday, February 13, 2016 - Team Registration Deadline
 Saturday, February 27, 2016 - Lean Start Up Focus Group 2 and Elevator Pitch Workshop
 Friday, March 4, 2016 - Elevator Pitch Competition
 Saturday, March 19, 2016 – Office Hours- Professional QA
 Monday, March 28, 2016 - Business plan deadline (must be submitted no later than 11:59 PM MST)
 Friday, April 8, 2016 - Presentation Competition and Awards Ceremony
For rural area schools, please contact Joseph Sapien at 915.240-5571 or by email joseph.sapien@borderplexjobs.com
Business Plan Submission:
Completed business plans must be submitted no later than Monday, March 28, 2016 by 11:59 PM MST by
either email, fax or mail to:
Email:
joseph.sapien@borderplexjobs.com
Fax:
915.351.2790 Attention: STEM CHALLENGE 7
Mail:
Workforce Solutions Borderplex
300 East Main, Suite 800
El Paso, TX 79901
Business Plan Template
Sponsored by:
Company Name and Logo
School Name
Address
City, State Zip
Team Member Names
1st Member Name
2nd Member Name
3rd Member Name
4th Member Name
5th Member Name
Teacher Sponsor Name
Sponsor Phone Number
Sponsor E-mail
Date Revised
Table of Contents
I. Business Model Canvas – Innovation 20 points (No more than 1 page)
1. Value Proposition
2. Customer Segments
3. Customer Relationships
4. Key Partners
5. Key Activities
6. Channels
7. Key Resources
8. Cost Structure
9. Revenue Streams
II. Market Research – Science 20 points (No more than 3 pages)
1. Industry, Yesterday, Today and Tomorrow
2. Competitive Analysis
III. Marketing Applications– Technology 20 points (No more than 2 pages)
1. Products/Services
2. Sales Strategy
3. Customer Relations
4. Launch Plan Strategy
5. Differentiation (Competitive Advantage)
IV. Commercialization & Operations Plan – Engineering 20 points (No more than 3 pages)
1. Location
2. Operation
3. Organization Structure
4. Critical Suppliers
5. Equipment
6. Intellectual Property
7. Design, Technical Merit and Solution/Address to Issue
V. Financial Strategy – Math 20 points (No more than 3 pages)
1. Cost Structure
2. Revenue Streams
3. Cash Flow Projection
I. Business Model Canvas
Key Partners
Key Activities
Key Resources
Cost Structure
Value Propositions
Customer Relationships
Customer Segments
Channels
Revenue Streams
II. Market Research
Determines access to the market by studying the industry, competitors and customer
demographics (so you can choose a target market).
1. Industry, Yesterday, Today and Tomorrow
i. What industry does your product/service fall under? What has this industry
done in the last several years, what is it doing today, and what do industry
analysts (trade organizations) predict for the future?
Factors
Your Start Up
Competitor 1
Competitor 2
1. Minimal Viable
Product or Service
2. Cost Structure
3. Customer Segments
4. Product/Service
Maintenance Plan
5. Customer Support
Availability
6. Key Partners
7. Location
8. Product Specs
(dimensions)
9. Customer Channels
10. Revenue Streams
ii. Conduct a thorough study of the demographics of the market your business
will become part of. Then, decide what type of person (target market) will buy
your product. Does the population demographic in your area match? Is there
enough of this type of client (target market) in your area to have a successful
business?
iii. Customer Archetype (examples can include):
i.
Age
ii.
Gender
iii.
iv.
v.
vi.
vii.
viii.
iv.
Income
Education Level
Occupation
Location (region, neighborhoods)
Lifestyle (psychographics, hobbies)
Business Organization (size, industry)
Are there barriers to entry? High entry cost? High risk and cost to get
in, but limits the amount of competitors. Low entry cost? Low risk and
cost to get in, but likely to have many competitors. Are there permits
or regulatory approvals required?
v.
Are there other competencies you need to develop? Are they easily
achieved?
2. Competitive Analysis
Who is the competition? If there are many it will be easy to enter the market, but
hard to get significant share- If there are few, it might be harder to enter, but you
could gain significant share.
III. Marketing Applications
Build strategy from core competencies (quality, speed, service, product, price,
convenience, location, etc.) your strategy should tell customers what you will do better
than the competition; customer must be able to clearly experience value.
1. Products/Services
i. Give a detailed description of your minimal viable product or service.
Including photos, creates a more powerful presentation.
2. Sales Strategy
i. How will you get your product/service to the market? Direct sales? Through
what channel (distributor, manufacturers representative, retailer, internet)?
Pricing Strategy
i. How are going to price your product or service? Look at the competition’s
price, what and compare to what you estimate your cost to be. Can you get
the same price or a premium over the competition?
ii. Penetration pricing strategy
1. Price charged is set artificially low to gain market share. Once
achieved, price is increased.
iii. Skimming pricing strategy
1. Charging a high price because you have a substantial competitive
advantage. However, the advantage is not sustainable. The high price
tends to attract new competitors into the market, and the price
inevitably falls due to increased supply.
iv. Follow-the-leader pricing strategy
1. Set price based on competitors (leads to “price wars”).
v. Variable pricing strategy
1. Price fluctuates based on (changing) cost of production.
vi. Economy Pricing
1. No frills low price; the lowest possible regardless of what other are
doing. Cost of marketing and manufacture are kept at a minimum.
vii. Premium Pricing
1. High price is for a uniqueness about the product or service. This
approach is used where a substantial competitive advantage exists.
3. Customer Relations
i. How will you get customers archetypes (This goes back to demographics and
figuring out what types of person (customer archetype) will buy your product.
So, what kind of advertisements does this person respond to the best?)
ii. How will you keep your current customers
iii. How will you grow your customers
4. Launch Plan Strategy
i. When do you plan to launch your minimal viable product or service
ii. How will you promote your product/service to the customer? Provide
examples.
iii. What marketing strategies will you implement in launching strategy (web,
media, grass roots, social media, partners)
iv. How will you track progress of launch strategy
v. What are your leading indicators and metrics by month/quarter sales
5. Differentiation (Competitive Advantage)
This brings your entire marketing strategy together.
i. Why will you succeed? What will you do different than the competitors?
These are called your “core competencies”, what you do well that perhaps
the competition does not. List your core competencies. Examples would be
superior service levels, exceptional quality, speed, better product or service,
better location, etc.
ii. If there is enough differentiation, you can be successful. If there is little or no
differentiation, then you will usually need to rely on price to get business; not
the best option for a start up business.
IV. Commercialization & Operations Plan
How product is made and/or service fulfilled, and other core characteristics of your
business:
1. Location
i. (Include complete address)
2. Operation
i. When business will operate
ii. Hours
iii. Seasonal or not
3. Organization Structure
i. Sole proprietor or L.L.C.1
ii. Team structure and responsibilities
iii. How much product/service can you provide in a certain time frame.
4. Critical Suppliers
i. Manufactures
ii. Resources required from partners
iii. Which activities do your partners perform
5. Equipment (Examples)
i. Computer System
ii. Tools
iii. Fixtures
iv. Displays
v. Vehicles
vi. List everything you need to conduct business!
6. Intellectual Property
(Examples)
i. Permits
ii. Licenses
iii. Insurance
iv. Contracts
v. Patents and Copyrights2
7. Design, Technical Merit and Solution
In this section judges will be evaluating the design of your idea (what materials are
used, how does it perform, were new technical ideas introduced); production
(efficiency, effectiveness); technology (is it new, is it adapted, can it be duplicated);
technical merit (can your invention/idea be engineered) and solution (did your
idea/invention address the intended issue).
i. Prototype design
ii. Materials
iii. Technology needs
iv. Power requirements
1
2
Texas Secretary of State http://www.sos.state.tx.us/corp/businessstructure.shtml
United State Patent and Trademark Office http://www.uspto.gov/
V. Financial Strategy
What’s your business model?
How will you generate revenue?
How much effort will it take, in time and money, to develop your product?
How much cash flow will you need to start generating revenue?
Will you need to spend on advertising (local, paid campaigns, pay per click, salespeople)?
1. Cost Structure (Product and Service Pricing)
List all of your products and services and how they will be priced. Then, describe
your product/service unit and how many you will sell each month for the first year.
Add these totals to your cash flow projection.
1. Product and/or Service
Price / Rate
2. Product and/or Service
Price / Rate
3. Product and/or Service
Price / Rate
1.2 Operating Costs to deliver the services - These costs are usually fixed in nature and
are driven by the number of staff delivering or managing the Direct Services.
 What are the most important costs inherent to your business model?
 Which key resources are most expensive?
 Which key activities are most important?
i. Personnel
ii. Equipment & Related Costs
iii. Professional Services
iv. Other Expenses
- Communication / Data Lines
- Printing / Reproduction
- Insurance
2. Revenue Streams(s)
Explain where you intend to obtain revenue streams and how much you will receive
from each source.
 For what value are your customers really willing to pay?
 For what do they currently pay?
 What is your revenue model? http://www.bmnow.com/revenue-models-quickguide/
 What are the pricing tactics?
i. Entity
1. Amount
ii. Entity
1. Amount
iii. Entity
1. Amount
3. Cash Flow Projection
Given the definition of the business plan financial budget (which may include
operating costs and / or time-specific profile of the expected budget disbursements
(or cash flow) is outlined. This facilitates assessing the scope, size, and timing of
the financial commitments necessary for successful implementation of the
business plan. Steps to create cash flow projection:
1.
2.
3.
4.
Appendix
Enter your beginning balance
Estimate cash coming in
Estimate cash going out (expenses)
Subtract outlays from income