Reference no: EM133862105
Entrepreneurial Financing - Master of Professional Accounting Advanced
Assessment Objective - Aims to provide students with the opportunity to synthesize their knowledge of entrepreneurial finance and apply critical analysis skills to a real-world scenario. Working in groups, students will develop a comprehensive business plan for a startup or early-stage business and then present their plan in a compelling pitch deck.
Instructions to Students: Business Plan
Working in assigned groups, you will develop a business plan for a new or existing early-stage business. The business plan should be a professional, well-researched document suitable for presentation to potential investors or lenders.
Pitch deck
Effectively communicate the key elements of the business plan, with a particular focus on the chosen industry, current market conditions and the venture's financial strategy, in a persuasive and engaging presentation
format.
Structure - Business Plan
The business plan should comprehensively address the following areas:
Executive Summary: (100 words) A concise overview of the business, its objectives, and key financial projections.
Company Description: (100 words) A detailed description of the business, its mission, vision, and values, and a discussion of the chosen form of business ownership (sole proprietorship, partnership, corporation, etc.).
Industry Analysis: (200 words) An analysis of the industry in which the business operates, including market size, growth potential, trends, and competitive landscape.
Market Analysis: (200 words) A detailed analysis of the target market,
including customer demographics, needs, and buying behavior.
Marketing and Sales Strategy: (100 words) A comprehensive plan for reaching and acquiring customers, including marketing channels, sales tactics, and pricing strategy.
Management Team: (50 words) A description of the management team and their relevant experience and expertise.
Operations Plan: (100 words) A detailed plan for how the business will operate, including production, supply chain, and logistics.
Risk Assessment and Mitigation: (250 words) This section should evaluate the key challenges and risks the company will face in both developed and developing markets, with specific strategies on how to mitigate these risks, while taking into account the capital structure of the firm.
Financial Plan: (500 words) A comprehensive financial plan, including:
Start-up Costs
Income Statement Projections (3-5 years)
Balance Sheet Projections (3-5 years)
Cash Flow Projections (3-5 years)
Break-Even Analysis
Funding Request (if applicable)
Capital Budgeting Analysis: Include a calculation of the Weighted Average Cost of Capital (WACC) and apply appropriate capital budgeting techniques (e.g., Net Present Value, Internal Rate of Return) to evaluate the viability of the venture. Justify your assumptions.
Financing Sources: Compare and contrast at least three different potential financing sources for the venture (e.g., venture capital, angel investors, bank loans, bootstrapping). Discuss the advantages and disadvantages of each source and justify your chosen financing strategy.
Pitch deck
Each group will deliver a concise and compelling presentation that summarizes their business plan to potential investors or clients. The presentation should highlight the key value propositions, market opportunities, and financial projections, with a particular emphasis on the business plan.
The pitch deck presentation should cover the following key areas:
Problem: What problem are you solving?
Solution: What is your product or service?
Market: Who is your target market?
Competition: Who are your competitors and what is your competitive advantage?
Business Model: How will you make money? What form of business ownership have you chosen and what are the advantages and disadvantages?
Financial Highlights: Key financial projections, WACC, and justification.
Team: Who are the key members of your team?
Ask: What are you seeking from the audience (e.g., investment, partnership)?
Referencing Style - APA 7