Unit+4+-+The+Venture+Plan

=Unit 4: Developing and Completing a Venture Plan for the Proposed Business= It's time to put it all together. You’ve decided on your business idea and completed the research that demonstrates there will be enough demand from customers to make the business a success. You know you are capable of becoming a good entrepreneur – you know your personal strengths and weaknesses. Now you are going to create the business on paper – put everything together so that at the end you are only one short step away from opening the business’ doors. Here, you will:
 * Perform a resource analysis to determine what you will need to produce and sell your product or service
 * Determine the best way for you to produce the product or service
 * Create marketing strategies that will help you sell the product/service to the public
 * Develop a variety of financial statements and projections to help you plan and account for your business activities
 * And finally, put it all together into one professional, persuasive venture plan

=CourseWork=

- You will start creating your Venture Plan by crafting a Mission Statement for your company//.// || Answer the following: ||  || - This is what an effective Mission Statement looks like: || Now it's your turn to make your own mission statement Create a mission statement for your own company
 * ~ Date ||~ Topic ||~ Class Notes ||~ Classwork / Homework ||~ Assignments / Projects ||
 * Apr 12 || ** Mission Statements ** || ** Discussion Focus: **
 * 1) What is the purpose of a mission statement
 * 2) Search for mission statements for two organizations:
 * 3) A for-profit company
 * 4) A non-profit organization
 * 5) State each mission statement
 * 6) <span style="font-family: 'Corbel','sans-serif'; font-size: 10pt;">Relate each mission statement you find to some activity that company performs
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 13 || ** Mission Statements ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">** Discussion Focus: **

To begin, answer these questions:
 * 1) Why your product? What does it offer that nobody else does? (*//your unique selling point)//
 * 2) What will you do – your product, your services, your company – that will change / add to / improve the lives of your customers and society?
 * 3) What is special about your product/company?
 * 4) Why will people come to you? And not to anyone else?

Focus on the impact your company/product will have, not on the product itself. || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Type your mission statement onto a placard using MS Publisher

Submit hard copy on Thursday ||
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 14 || ** Business Strategies, Aims and Objectives ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">** Discussion Focus: **<span style="font-family: 'Corbel','sans-serif'; font-size: 10pt;">
 * 1) The Planning Process
 * 2) Objectives and Stakeholders
 * 3) Criteria of useful Objectives
 * 4) The Business Plan as strategy, with individual components helping to achieve overall strategy

||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Portfolio #8: Kelloggs Case Study** Complete the questions you will find in the case study below (Kelloggs)

Submit hard copy answers to case study questions on Thursday

|| ||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Portfolio #9: Resource Analysis** Determine the production process for your business
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 16 || ** Productive Resources & the Production Process ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * 1) Resources Types
 * 2) Human Resources
 * 3) Material Resources
 * 4) Financial Resources
 * 5) Technological Resources
 * 6) The Production Process
 * 1) Trace what will happen from beginning to end
 * 2) What raw materials will you need?
 * 3) Where will you get them?
 * 4) What equipment will you need to produce your product?
 * 5) Who will you need to hire to produce and sell the product?
 * 6) What facilities will you need to get the product to your customers?

Complete the worksheet: || Your resource analysis, human resource requirements and policies, and production methods all come together to form your business' **Operating Strategy** ||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">Complete an Operating Strategy for your business using the notes below || 1. The Marketing Process 2. The Marketing Mix //(4Ps intro)// 3. The Mix related to customer 4. The Marketing Mix (//4Ps in more detail)//
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 16 || ** The Operating Strategy ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 19 || ** The Marketing Process ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * Perform Market Research //(external)//
 * Perform Swot //(internal)//
 * Create Marketing Objectives
 * Create the Marketing Strategy //(4Ps)//
 * Product – Customer Benefit
 * Price – Customer Cost
 * Place – Convenience
 * Promotion – Communication

||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Portfolio #10: McDonald's Marketing Case Study** Read the case study and answer these questions:
 * Does McDonalds have a good marketing strategy?
 * Provide examples from the case study to support your answer

|| Creating Effective Marketing Objectives
 * The Case Study**:
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 20 || ** Marketing Objectives ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * Marketing Objectives
 * SMART Objetives
 * Target Market Objectives
 * Promotional Objectives
 * Matching Objectives to Actions

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Complete:** ||  || Three "Types" of Product || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**For your product, describe the core, actual, and augmented product.** Provide details of: Sketch the product and it's packaging ||  || Logos and slogans are a unique and immediate way to gain consumer recognition for your company
 * 3 marketing objectives for your company – be sure at least one is for target market, and at least one is promotional
 * the “Target Market Profile” worksheet for your target market base
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 21 || ** Marketing Mix - Product ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * Core Product
 * Actual Product
 * Augmented Product
 * Features
 * Appearance
 * Packaging
 * Accessories
 * Warranties and Servicing
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 22 || ** Marketing Mix - Logos & Slogans ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**For your product, create 10 possible logos and 10 possible slogans.** <span style="font-family: 'Corbel','sans-serif'; font-size: 10pt; font-variant: small-caps;">**Characteristics of Effective Slogans:** <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;"> || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 9pt;"> Logos and slogans due Monday, April 26 || Effective packaging will catch consumers' interests and can be a major factor in their perceptions of the product and willingness to buy it. || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**For your product, create at least 3 possible packaging options.** || <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 9pt;"> Effective advertising and promotion will communicate to your customers your unique selling point. || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**1.** Find a magazine advertisement that uses all four aspects of effective print ads:
 * <span style="font-family: 'Corbel','sans-serif'; font-size: 10pt; font-variant: small-caps;">Characteristics of Effective Logos: **<span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">
 * Unique
 * Relevant to your mission/business
 * Appealing
 * Simple
 * Memorable
 * Provide Key Benefits
 * Be creative
 * Differentiate Your Brand
 * Use Rhythm and Rhyme
 * Keep it short
 * Create a Warm and Fuzzy Effect
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 23 || ** Marketing Mix - Effective Packaging ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * To Create Effective Packaging:**
 * Use graphics to draw attention
 * Choose your words carefully
 * Keep it simple
 * Be creative
 * Mark your territory with color
 * Differentiate yourself from the competition
 * include the logo, and if appropriate, the slogan
 * sketch several versions of the packaging, changing the design, colour, location of the logo
 * if you have several products, sketch packaging options for each
 * freehand at first; transfer chosen designs to a computer graphics program
 * Remember**: logos and slogans due Monday, April 26 ||
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 27 || ** Marketing Mix - Effective Promotions ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * i.e., it will explain to them:**
 * why they should use your PRODUCT
 * why they should use YOUR product
 * headline,
 * copy
 * illustration
 * signature

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Sketch out 3 promos for your products** || The Elevator Pitch is a one-minute presentation in which you create interest and excitement in your product by discussing: || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Complete this organzer to prepare for your elevator pitch on Friday - you will hand this in for evaluation on Friday.
 * 2.** Answer the three questions for an advertising campaign for your product:
 * What do you want to happen? (Marketing Objectives)
 * What message will make it happen? (Unique Selling Point)
 * What media should be used? (Cost-effective with most impact)
 * Review the "Above-the-line" and "Below-the-line" advertising types
 * Each promo must include your logo, and if appropriate, your slogan
 * Sketch several distinct promos to give yourself options
 * Remember to focus on your target market - what type of promotion would most appeal to this target market?
 * Use technology to create the promos (Publisher, Flash, Web)
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">Apr 28 || ** The Elevator Pitch ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * i.e., it will explain to them:**
 * how it meets customer needs
 * why it is diffefent from your competition (your USP)
 * why it will be successful

** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**There are many activities coming due soon:*** **//Elevator Pitches on Friday//** || The last two aspects of the Marketing Mix are place and price: ||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Decide on:** || This is where we put all the marketing together into one coherent plan. The product for this section will be a business letter with several attachments, and a PowerPoint presentation. ||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Begin work on your Marketing Plan**.
 * Marketing Objectives
 * Logo and Slogan
 * Product sketches
 * Packaging sketched
 * 3 pieces of advertising / promotions
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 3 || ** Place and Price Aspects of Marketing Mix ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * how will you get the product from where it is produced to where your customer can buy it?
 * what pricing strategy will be most appropriate for your product?
 * a distribution strategy for your business
 * choose two possible strategies
 * create a pro/con chart for each
 * choose the best based on this analysis
 * two pricing strategies that suit your business
 * cost-plus and one other
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 4 || ** The Marketing Plan Assignment ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**





|| Like your marketing plan, your financial plan needs to begin with goal-setting. What do you want your business to accomplish financially in the short run? in the long run?
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 5 || ** Financial Objectives ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Create financial objectives for your company:** - 2 short term objectives - 2 long term objectives || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Continue work on your Marketing Plan**. || There are three major financial statements you need to worry about: balance sheet, income statement, and cash flow statement.
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 6 || ** Financial Statement Basics ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Complete the handout sheet - definitions to be handed in today by end of class. - personal income statement - on Excel - emailed before tomorrow's class || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Personal balance sheet and income statement due tomorrow as Portfolio #11 - in Excel format, emailed
 * Financial Strategy Worksheet**

Continue work on your Marketing Plan**. || Here we will take a look at statements of actual companies, to find out what they can tell us about the company's operations.
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 7 || ** Financial Statement Analysis ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Complete the steps in the class notes - choose a company similar to yours and dowload its annual report - recreate the company's balance sheet using Excel (you can simplify if necessary) - arrange the balance sheet totals into the accounting equation - compare most recent balance sheet to previous years' balance sheets - changes? - compare most recent income statement to previous years' statements - changes? || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Financial Statement Analysis due on Monday as Portfolio #12
 * Financial Statement Analysis**

Continue work on your Marketing Plan**. || The sales forecast is probably the most important set of numbers in your venture plan, since it describes not only how much money you expect to earn in the coming year, but also when you expect to receive it.
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 14 || ** The Sales Forecast ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Complete the steps in the class notes for your own 1. Develop a customer profile and determine industry trends 2. Establish size and location of trading area 3. Profile competitors in your trading area 4. Estimate your sales - monthly - for your first year || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Complete at least the first two or three steps by Monday**. || What does cash flow mean? how is it different from income statement? why is it important to a start up?
 * Sales Forecast** for your first year in business
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 18 || ** Cash Flow Basics ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Complete the cash flow exercise sheet below to be reviewed at the end of class

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Complete Sales Forecast for tomorrow**. || As a start up, you will be most worried about two types of costs: start up costs (expenses you will need to pay before you begin operations) and the operating costs (expenses you pay while doing business) before you reach the break even point, when your cash inflows equal your cash outflows.
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 19 || ** Cash Flow and Start Up Costs ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">Calculate your business' start up costs and operating costs - refer back to your resourse requirements from Unit 2 - brainstorm methods you can use to reduce your startup costs || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Sales Forecast due today by end of class**. || Use the start up and operating costs you have put together to create a cashflow statement for your business, using the Excel template below. || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**//<span style="font-family: 'Corbel','sans-serif'; font-size: 10pt; font-variant: small-caps;">Notes on the Excel template: //** <span style="font-family: 'Corbel','sans-serif'; font-size: 10pt;">- you must change sources of cash and uses of cash to suit the costs you have compiled - start up costs are incurred only in the first month (technically in the time preceding start-up, which would be Month 0) - formulae are already set into the spreadsheet || <span style="font-family: 'Corbel','sans-serif'; font-size: 9pt;">**Have a Great Long Weekend!** || We'll wrap up this part of the course by putting all our financial statements together in one Excel spreadsheet. ||  || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**The Financial Statements Assignment:** One Excel Workbook with 7 spreadsheets: 1. Financial Objectives 2. Sales Forecast – Monthly for Year 1 3. Sales Forecast – Yearly for Years 1,2,3 4. Cash Flow Projections – Monthly for Year 1 5. Break Even Analysis 6. Personal Balance Sheet 7. Personal Budget || One aspect of your company's financial health thath you will want to know is when you will break even - at what sales level or at what time will you finally start making a profit?
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 20 || ** Cash Flow Forecast ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 25 || ** Financial Statements Assignment ** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 27 || **Break Even Revenue** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**

|| <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">Complete the steps in the handout to determine the break-even sales revenue for your company (this is part 5 of your **Financial Statements Assignment**) || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Continue work on your Financial Statements Assignment** || The Financial Statements assignment is a soft copy submission of several statements in Excel format. Use the Excel file to the right as an example of what is expected || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">This is an example Excel file of your **Financial Statements Assignment:** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Continue work on your Financial Statements Assignment** || You need a long term vision for your business - nothing too detailed, but you need to have an idea of where you see the business going in five years' time. - you need to choose an expansion or an exit strategy || || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">Choose **ONE** of the expansion or exit strategies discussed for your business and add it to your Venture Plan - If you choose an **IPO** - issuing stock on a stock exchange - be sure you can justify it (not every business is appropriate for an IPO - smaller businesses are unlikely to qualify to be listed on stock exchanges) ||
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">May 31 || **Financial Statements Preparation** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">June 7 || **Exit & Expansion Strategies** || <span style="font-family: 'Corbel','sans-serif'; font-size: 9.5pt;">**Discussion Focus:**