MGS 4500 Entrepreneurship and New Venture Management SYLLABUS REQUIRED TEXT COURSE DESCRIPTION AND OBJECTIVES GRADED ASSIGNMENTS
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1 Instructor: Brett Anitra Gilbert, Ph.D. Semester: Spring 2006 Office: 35 Broad Street, Rm.1009 Time: Thursdays, 7:15PM -9:45PM Telephone: Room: GCB 515 Office Hours: W 5:00-6:00 PM or bgilbert@gsu.edu By Appointment REQUIRED TEXT Launching New Ventures: An Entrepreneurial Approach. 4 th Edition. Kathleen R. Allen. (Boston, New York: Houghton-Mifflin Company). COURSE DESCRIPTION AND OBJECTIVES This course is designed to familiarize students with the perspectives and skills needed for successful entrepreneurship. One of the primary objectives of this course is to encourage entrepreneurial thinking and enable you to evaluate your personal prospects for entrepreneurship. Through lecture and discussion format class settings, assigned readings, illustrative cases, video vignettes and guest speakers, you will be exposed to the theories, concepts, and techniques of entrepreneurship. It is my hope, that by the end of this course you will be able to:! Recognize what it takes to be a successful entrepreneur! Recognize new business opportunities that exist in the marketplace! Evaluate the feasibility of pursuing the opportunity you ve recognized! Write a feasible business plan GRADED ASSIGNMENTS It is my expectation that you will submit all assignments at the beginning of class, before roll call is taken. Anything handed in after that time will be considered late and given the promised penalty. Please ensure that your documents print out properly, and avoid last minute use of the PC lab, as doing so may compromise your grade. The first time a deliverable or assignment is late you will lose 5% off of the grade. The second time you will lose 10% off of the grade. By the third time you will lose 25% off of the grade. As a senior-level course, the communication skills you have cultivated thus far should be evident in every written assignment and every verbal exchange. Successful communication will affect your grade. Because a major part of your grade is shared with your team members, peer review will also be part of the grades component. Therefore, you are advised to choose your fellow team members with care. Besides having compatible personalities and complementary business interests, there are a number of practical issues to consider. Can you meet at the same time of the day and week? Do you live near by or are you all on campus often? Are you willing to adapt Section Thursdays 7:15-9:45PM General Classroom Building, 515 1
2 your interests to someone else s business concept? Once you have selected your team members, please maintain a journal of interactions and retain all communications with them. A team members grade will only be impacted by peer evaluations if there is documented evidence of poor performance. CLASS PROFESSIONALISM 30% In the corporate world, employees are expected to have well-developed communication skills, both written and oral. In an entrepreneurial firm, these skills are perhaps even more important as the entrepreneur is responsible for promoting the business and presenting the business idea to potential investors, motivating employees to support his/her vision, and convincing customers of the value of the venture. As one objective of this course is to help prepare you for life as an entrepreneur, where you will oftentimes be evaluated as much on the basis of your character as you are on the basis of your ability, your professionalism demonstrated during class will comprise a substantial portion of your grade. Your professionalism grade will be derived on the basis of the following: o Attending class as scheduled o Arriving to the classroom on time o Refraining from disruptive conversations during class o Refraining from doing other work or activities during class o Staying awake during class o Being an active participant in the learning process o Coming to class having completed ALL assignments to the best of your ability and according to instructions. o Pop quiz performance o Being respectful of others under all circumstances. Essentially, I ask that you treat my classroom like you would treat your job. Since you would not miss work without calling in to tell them of your absence (at least, not without having repercussions), please do not just skip my class without contacting me PRIOR to your absence. If you do find the need to be absent, please know that you are still responsible for turning in any assignments due that day. Assignments will not be accepted AFTER a missed class period. Pop quizzes cannot be made up! This portion of your grade is taken VERY seriously. Many students who failed to adhere to these guidelines have seen their final grades affected by at least a full letter grade due to poor professionalism scores. If you are not here, you cannot demonstrate your professionalism, therefore, I strongly encourage you to be in class! Classroom etiquette will also require that all cellular phones and pagers be placed on vibrate or turned off. Be prepared to remain in the class for its duration, undisturbed. If you arrive late or leave early, the attendance portion of your grade will be affected. If you are consistently the source of serious distractions from the class discussion, you may be asked to leave the class in accordance with the University policy on disruptive behavior. If you are driving, I recommend parking your car at a Marta station and taking the train to class. To stay informed about business issues and to help identify great business opportunities, entrepreneurs read the newspaper, magazines and other sources constantly. For this class, you Section Thursdays 7:15-9:45PM General Classroom Building, 515 2
3 will be expected to read the newspaper or a good business magazine and look for examples of the concepts we are discussing in class. Start reading the Atlanta Journal Constitution, Atlanta Business Chronicle, the Wall Street Journal or Forbes, which all great resources for entrepreneurs. There are also other good magazines and newspapers that consistently provide interesting coverage of entrepreneurship issues. Even the Atlanta Journal-Constitution will feature entrepreneurship stories regularly. Your professionalism grade will be enhanced by the extent to which you incorporate articles you ve read into class discussions so keep your eyes out for them! BUSINESS PLAN/BUSINESS PLAN ASSIGNMENTS (20/40%) To help your team prepare a business plan, each team will turn in regular assignments related to the development of your plan. The grading standard for the assignments will be completion, thoughtfulness and careful preparation of the material as relates to your business idea and the successful preparation of a business plan. You will receive feedback from the instructor for each assignment and are expected to incorporate this feedback into the improvements of your final plan. (If you do not change or improve, expect a lower final grade.) The assignments and a detailed description of each are included in a separate handout. The main goal of the assignments is to help you improve and develop your ideas, understand what an effective business plan looks like and experience the real-life process of writing a business plan. In fact, many revisions are required to get to an effective business plan. By doing each section at least twice, you have an opportunity to create a better business concept and improve your grade. Please note that should you decide to revise a section, you will only have 2 weeks to submit a first revision on a section. Once the deadline has expired, revisions can only be accepted in the final business plan submitted. Each assignment is worth a percentage of your total business plan assignments grade, as noted on the assignments list handout. You will receive very detailed feedback on the assignments submitted, which if changes are incorporated into the final document, should mean that you will receive a better grade overall. Failure to incorporate feedback may result in a worse grade than received on the initial submissions. Remember that the first time an assignment is turned in late (after the beginning of class), the grade on the assignment will be reduced by 5%, the second time by 10%, and the third time by 25%. Additionally, with three late assignments you will lose the privilege of submitting a revision prior to the final version. In preparing the business plan, I expect you to use both primary and secondary sources. Secondary sources include trade journals, government databases and internet research. Primary research means speaking with potential customers, competitors, suppliers and industry experts. These interviews can add considerable value to your industry and market analysis. Aim to speak to at least 30 people. Also, if you think a structured market survey can help you understand your customers better, then that could be an additional source of information. The insight gained from speaking to the right people, and asking the right questions, can make all the difference between mediocrity and excellence. Describe and/or list the people you interview in an appendix or in the text of the relevant sections. Your grade will be adversely affected if you do not fulfill this requirement. Section Thursdays 7:15-9:45PM General Classroom Building, 515 3
4 BUSINESS PLAN PRESENTATION 10% At the end of the semester, you will be required to present the results of your business plan. The purpose or orientation of this presentation should be to gain access to funds or support for your business. Your completed business plan should accompany this presentation. Grading: Classroom Professionalism - 20% Business Plan Assignments - 40% Business Plan - 20% Business Plan Presentation - 10% Final Exam (optional) - 10% % A 80-89% B 70-79% C 60-69% D 59- below F Academic Dishonesty You are strongly advised to avoid any activities that suggest cheating on tests or individual assignments. Activities such as talking, passing notes, using unauthorized crib sheets, and/or having books or notebooks open during a test are among the activities sufficient to justify a charge of major violation of the GSU academic dishonesty policy. Please refer to the GSU academic honesty policy if you have questions regarding this matter. It is available in On Campus: The Undergraduate Co-Curricular Affairs Handbook or you can go to and search using "academic honesty policy". Plagiarism, as defined in the academic dishonesty policy of the University, will be enforced on all student assignments. Using the exact words from a published work without giving a proper citation is within this definition. It also includes information or text from web sites that is not cited. Make sure that if exact words are used, they are enclosed in quotation marks and indicate the source. When ideas are borrowed without exact wording, cite the work in footnotes, endnotes, or the reference section of your assignment. Business plans, like school essays, also require proper acknowledgment of sources, both from the internet and other types of publication. If you use data or quote text or paraphrase ideas from any source, you should give full reference information. Note that it is impossible to prepare a business plan without some statistics, so I expect everyone to have at least some references in an appendix. High quality sources of data give your plan greater credibility (which means a higher grade). I will check the sources of some plans, and I will challenge any apparent infringements. Note that I have caught students plagiarizing business plans in the past and it Section Thursdays 7:15-9:45PM General Classroom Building, 515 4
5 only took me five minutes to find the source. Do not risk the severe penalties associated with cheating in an academic environment. Disabled Students GSU provides accessibility and reasonable accommodations for persons with disabilities. If you are a student with a disability, you are responsible for contacting the Office of Disability Services to have your needs assessed and the appropriate accommodations arranged. Additionally, you must also identify yourself and your need to me no later than the first day of class. Section Thursdays 7:15-9:45PM General Classroom Building, 515 5
6 CLASS SCHEDULE This syllabus provides a general plan for the course. The instructor reserves the right to make changes/additions to it as necessary. WEEK DATE TOPIC READINGS INDIVIDUAL ASSIGNMENT 1 1/12/06 Introduction and Course Overview Chap.1 Understanding Entrepreneurship, pgs ; Chap. 9 The Business Plan, pgs /19/06 Origins of Businesses Chap. 5 Analyzing the Industry & Market, pgs /26/06 Course Projects Chap. 3 Recognizing and Creating Opportunity, pgs Chap.5 Developing A Business Model, pgs /02/06 Identifying a Market for your Business Chap.5 Analyzing the Industry & Market, pgs TEAM DELIVERABLE -- NONE -Choose any two-three companies and investigate the history behind how/why the company was founded. One-two paragraphs max per company. - Select an industry and evaluate it based on the concepts discussed in Chapter 5 (e.g. entry barriers, carrying capacity etc.) -2-3 minute Venture Idea presentation on the business idea you are interested in researching. -Summary Statement of Idea Concept and Perceived Potential - Preliminary Competitor Analysis - Target Market Identification - Customer Description NONE NONE Names, # s and s of individuals you will be working with, along with a concept statement for the idea you intend to investigate. Section Thursdays 7:15-9:45PM General Classroom Building, 515 6
7 WEEK DATE TOPIC READINGS INDIVIDUAL ASSIGNMENT 5 2/09/06 Concept Development Week, No class. 6 2/16/06 Exploiting the Concept 7 2/23/06 Legal Considerations of Entrepreneurship Chap. 9, pgs Chap. 7 The Founding Team Chap.10 Analyzing Legal Risks & Benefits; Chap. 6 Analyzing Product/Service Risks/Benefits, pg Guest Speaker: TBD 8 3/2/06 The Business Model Chap. 4 Developing a Business Model, pgs Chap. 13 Producing Products/Services, pgs ; TEAM DELIVERABLE -- NONE - What personal goals do you have as an entrepreneur? - What type of individuals would be most critical for your venture to have at startup and through the first year of operations? - How complete is the team of individuals you ve assembled for this project? What type of person is missing? -What legal form do you think would be best for the concept you have developed and why? -What intellectual property protection will be needed for the concept you re developing? --Listing of Products/Services to offer clients based on research and rationale for offering. - Who does the work for this concept? What do they need to do their job? Where does the work get done? - How will your product/ service get to the customer? Market and Industry Analysis Report NONE Management Team/Ownership Structure Report Market and Industry Analysis Report Revision Section Thursdays 7:15-9:45PM General Classroom Building, 515 7
8 WEEK DATE TOPIC READINGS INDIVIDUAL ASSIGNMENT 9 3/16/06 Designing an Entrepreneurial Organization 10 3/23/06 Analyzing Startup Resources 11 3/30/06 Financing the Venture Guest Speaker: TBD 12 4/06/06 Concept Development Week, No class. 3/3/2006 LAST DAY TO WITHDRAW AND RECEIVE A W MARCH 6-12, 2006 SPRING BREAK!!!!! Chap. 12 Designing an Entrepreneurial Organization Chap. 8 Analyzing Startup Resources Chap. 15 Funding a Startup Venture 13 4/13/06 Marketing the Concept Chap.14 Developing an Entrepreneurial Marketing Plan - Given the activities involved in operating the business concept you re developing, what will be the best ways to structure the organization? - Where is the best place to locate the concept? - Should you lease, buy or build? -Sales volume for 1 year -Expenses for 1 year -Assumptions for Sales, Expenses TEAM DELIVERABLE Operations Plan Management Team/Ownership Structure Revisions -Estimated Startup Costs - How will you obtain the funds Pro-Forma Cash Flow needed to start the business? Who Statement will be your primary financing sources? Startup Capital Analysis - If you couldn t raise all of the capital, what would you do? Operations Plan Revision What strategies, tactics and techniques should you use to raise customer awareness and promote your product/service? - How should you go about building long-term customer relationships? - How should you price the products your company offers? Financial Plan Section Thursdays 7:15-9:45PM General Classroom Building, 515 8
9 WEEK DATE TOPIC READINGS INDIVIDUAL ASSIGNMENT 4/17/06 LAST DAY TO WITHDRAW AND RECEIVE A WF 14 4/20/06 Growing the Business Guest Speaker: TBD 15 4/27/06 Business Plan Presentations Finals 5/04/06 Final Exam (Optional) Chap. 17 Planning for Growth Chap. 18 Planning for Change - How rapidly do you want your business to grow? - Which growth strategies should your company pursue? TEAM DELIVERABLE Marketing Plan -- - Presentations (Bring 1 copy of Final Business Plans slides for Professor) None Section Thursdays 7:15-9:45PM General Classroom Building, 515 9
10 Business Plan Assignments Due Date Assignment Description % 1/26/06 Venture Idea Presentation/Summary Statement of Idea Concept and Perceived Potential Convince the class of your venture's potential. Think of the class as an audience of potential employees, and persuade us to join your company. Refer to the assigned readings for help in preparing your speech. Practice is an essential element for success. Describe the venture opportunity you are interested in pursuing. Provide evidence (i.e. stats, other data) that indicate there is a need for your idea. Explain why you believe, at this time, the venture will be successful. 3 Minutes, 1 slide MAX. 1 Page Maximum for the report. 5 2/02/06 Concept Statement and group members names, #s and A list of each group member s name, telephone numbers and address. Prepare a concept statement for the concept (pg. 66). Be sure to discuss the value-add your concept provides and use data to support your belief in the potential of the concept. Minimum of two members per group; Maximum of four. 1 Page Maximum for report. 2/16/06 Market and Industry Analysis A detailed analysis of the market potential of your venture. Include a description of the target market (size, buying habits, demographics, psychometrics, etc.), a detailed analysis of the industry in which the venture will compete, including a competitor profile and a conclusion regarding the market potential of the venture. Follow the outline in Chap. 4 and steps presented in the book to ensure completeness of your analysis. Refer to Chapter Pages Maximum. 3/2/06 Management Team/Ownership Structure A list of your management team, their titles, responsibilities and qualifications for the position. Describe your legal structure and ownership structure (# shares) and why you chose this. Refer to chapter 7 & Pages Maximum. 3/16/06 Operations Plan This plan outlines your operations: who does what, where and when in your organization in order to provide the product or service to your clients. Each team will provide a flow chart of operations from sales call, to order taking, to delivery. Facilities layouts will also be included, if necessary. Refer to chapter 4, 13 and in-class discussions. 4 Pages Maximum. 3/30/06 Pro-Forma Cash Flow Statement and Startup Capital Analysis A month-by-month pro-forma cash flow statement for the first year of operations (See chapter 8 for format), and a worksheet detailing the anticipated capital needed to ensure funds are available until the time when cash inflow exceeds the outflow. 2 Pages Maximum Section Thursdays 7:15-9:45PM General Classroom Building,
11 Due Date Assignment Description % 4/13/06 Financial Plan Provide 1 year, month-by-month pro-forma income statement, cash-flow budget. Provide a 1 year, quarterly pro-forma balance sheet. Include all assumptions underlying those statements. Refer to chapters 8 and lectures. Evaluate the financial position of your business by discussing the meaning of the numbers provided in your financial statements. Also include an assessment of your anticipated funding sources. 5 Pages Maximum. 4/20/06 Marketing Plan This report will be your plan for entering the market and achieving your sales/marketing goals. This should be a comprehensive guide describing your product/service, pricing structure and rationale, distribution/sales channels and your advertising and promotional campaign. The plan should be comprehensive for years 1 & 2, and provide direction for year 3. Refer to chapter 14. Your report should also demonstrate that you have talked to customers and determined their needs. 5 Pages Maximum. 4/27/06 Growth Plan This report will detail how you intend to grow you business. It should include a statement of the growth strategy you will pursue, as well as any anticipated structural/operational changes you foresee necessary to accommodate the growth. This report is only turned in with the final business plan and does not have a separate grade. 2 Pages Maximum. 4/27/06 Contingency Plan Critical Risks are the specific short-term and long-term factors that are most likely to cause the business to fail, or are essential to the business success. What research and strategies do you need, as a plan, to manage the critical risks? Risks and contingency planning are mentioned in many chapters. The relevant resources depend on your own judgment of what types of critical risks your venture may face. Critical risks were discussed throughout many of the chapters. 3 Pages Maximum Section Thursdays 7:15-9:45PM General Classroom Building,
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