The purpose of the Group Business Plan Project is to show me that you have a comprehensive understanding of the concepts presented during the class. This will be evidenced by your Group Business Plan and by your personal Investment decisions when you invest Class Script in one or more Business Plans.
You are required to create a Business Plan for a potential new venture.You may NOT use a business plan that you developed for another class project outside of this class.
The Business Plan must be constructed such that you need a minimum of $200,000 in investment which you will attempt to raise from Investors (students) during your Business Plan Presentation.
You may not 'pretend' to contribute more than $200,000 in additional funds from other sources. In other words... you can not pretend that you are putting in $1,000,000 and only need $200,000 to finish the investment. Your maximum 'pretend' personal contribution from any and all other sources is $200,000.
You may need more than $200,000 from investors for your business. That is OK. There is no upper limit on the amount that you may presume to need, however, I recommend that you come up with a business that can be founded for under $1,000,000 for the purposes of this project.
Your Business Plan must be for a 'Start-up' business. You may NOT presume that you have an existing business that is expanding.
You MUST offer Common Stock to Investors.
You MUST need Investors.
You MUST specifically identify what Investors receive in the way of stock... shares and % of ownership... in your company.
You will be presenting your Business Plan to the Class and will be required to raise Investment Money from the other students (Investors). If your written Business Plan and your Group Presentation does not clearly request an investment of at least $200,000 you will have 20 points deducted. No exceptions.
The Business Plan that your group turns in will represent 70% of your grade for the Business Plan project.
Each Student will be given $50,000 in 'Class Script' to invest. The reasons you give for making your investment will be 30% of your Business Plan Project grade. Well thought out reasons for making your Investment may add to your individual grade... poorly articulated reasons will not help your grade and may be a reason to deduct from your individual Business Plan Project grade.
Be sure to help your team mates. If I am told that you have not contributed on an equal basis I will reduce your individual score by 25%. This could be the difference between a pass or fail for the course. Participating in the Business Plan Project is important.
Students may NOT invest in their own Business Plan with the Class Script. Students may invest their Class Script in up to 2 Business Plans presented by other Student Teams.
Teams will have their Business Plan Project Score adjusted as follows:
Highest Investment gets 25 pts added
Next Highest Investment gets 20 pts added
Next Highest Investment gets 15 pts added
In the event of tie's at the various levels the points will be split evenly between the tying teams.
Your Investment Decision Explanation Form is due at the end of class on the last date when business plans are presented in class. Failure to be present that date and turn your business plan in means that you will be a -0- for the Investment Decision Explanation portion.
Your Business Plan Project is due to be handed in at the beginning of the class on the 1st day of class devoted to Business Plan Presentations. You must print out and hand in both the written explanation portion and the cash flow projection spreadsheet portion. You are also required to email me your Business Plan... both sections... either the day before or the day that they are due to be handed in. Emailing your Business Plan does NOT qualify as being handed in. The Email is in ADDITION to the printed version.