Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 1 Course Title Essentials of Entrepreneurship (Online) 897.109 Course Catalog Description Entrepreneurs require a foundation in several key areas in order to be successful. This course will focus on multiple topics including; benefits/drawbacks of entrepreneurship, concept to new venture, avoiding common mistakes, strategic management, forms of business ownership & franchising, pricing strategies, financing, location selection, and human capital management. Instructor Matt Kohler, MBA Welcome to class! I m looking forward to the class and working with you. I thought I'd share a brief biography with you so that you can better understand my background. I'm originally from Milwaukee, Wisconsin and moved out to Southern California over 5 years ago. Before relocating, I received a B.S. in Kinesiology from the University Wisconsin- Milwaukee. My initial plan was to go on to medical school, but by the time I graduated I knew I must follow my entrepreneurial spirit. I managed a health club during school and saw the opportunities business can bring. So, I decided to create and open a tanning salon right after school. It's an upscale tanning salon that offers several different levels of tanning as well as sunless tanning. The salon became a success and has been open for 7 years, www.baja-tan.com. I learned quite a lot pursuing this business venture without much of the education and knowledge I have now. My goal is to educate you with the crucial information you should know in starting a successful business. I've experienced the other side of business as well, a failed business in California when I first relocated out here. I opened a spa franchise out here, which had a weak business model and not an ideal location. The business was forced and ultimately failed. So, I can provide you with some real life experiences on this side of entrepreneurship as well. Immediately after the business closed, I acquired an outside medical sales position, which I've held for over 4 years now. I enjoy it because I work independently and it s similar to having your own operation. I also continued studying business, earning a Masters of Business Administration (MBA) from California State University- Channel Islands. My future goals involve additional small business start-ups or acquisitions. During my free time, I enjoy filmmaking and scene study! I look forward to helping you with your entrepreneurial goals. Email is the best way to contact me and I will return your email within 24 hrs.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 2 Staff Information Facilitator: Matt Kohler Email: instructorkohler@gmail.com Work Phone: 818.825.6908 Office Location: Virtual but physically located in Calabasas, CA Office Hours: Usually available Mon-Fri 1-4 PM PST or by appointment Time Zone: Pacific (PST) Required Resources Course Text: Essentials of Entrepreneurship and Small Business Management, 6 th Edition Author: Norman M. Scarborough Publisher: Prentice Hall ISBN: ISBN-10: 0136109594, ISBN-13: 978-0136109594 System requirements: Internet access via a web browser (e.g., Safari, Firefox, Internet Explorer). Recommended Reading Collins, Jim (2001). Good to Great (1st edition). New York, NY: HarperCollins Publishers. Harrison, Thomas (2005). Instinct (1st edition). New York, NY: Warner Business Books. Kim, W. Chan, & Mauborgne, Renee (2005). Blue Ocean Strategy (1st edition). Boston, MA: Harvard Business School Publishing. Lesonsky, Rieva (2007). Start Your Own Business (4th edition). Canada: Entrepreneur Media.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 3 Recommended Website Readings http://www.entrepreneur.com http://www.businessesforsale.com http://www.sba.gov http://www.youngentrepreneur.com http://www.entrepreneurship.org http://www.loopnet.com Prerequisite None. Anyone interested or planning on becoming an entrepreneur. Expected Outcome This 16-hour online course includes in-depth modules designed to train aspiring entrepreneurs in the basics of management and start-up business. This course establishes a practical base for those seeking to execute business plans or act on business ideas. This course is offered in eight weekly online sessions. Participants are able to access lectures, complete assignments, and interact with their instructor via their computers. Learning Goals By the end of this course, a successful learner should be able to: 1. Identify the challenges of entrepreneurship. 2. Utilize techniques for improving the creative process. 3. Build a competitive advantage. 4. Conduct a feasibility analysis. 5. Understand the several forms of business ownership and franchising. 6. Evaluate an existing business. 7. Identify the ten myths and strategies for e-commerce. 8. Understand financial statements. 9. Choose the right location and layout for a small business. 10. Write a solid business plan. Instructor Expectations I'm looking forward to working with you, learning about what you're doing and how you plan to use the course in your career. Adult learners generally appreciate it when their online facilitator is clear and direct with them about expectations for course requirements and procedures.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 4 Here are a few expectations I would like you to know about as we begin this course. Simply be yourself. We bring different kinds of experiences to online. Each of you will have different needs, expectations, concerns, and agendas. As your facilitator, it will be easier to help meet your needs if you communicate them directly and sincerely. I hope you'll always find that I am responsive and supportive. Posting Responses I hope that you will make the commitment to post your responses for exercises, assignments and discussions on the due dates each week. The classroom should be active all week long. Pacing your work earlier in the week will give you more time for larger projects when you need it. Your postings should incorporate responses to your peers, your opinions, and pertinent information from things that you ve read, and examples from your experience. Your responses should include more than phrases such as "I agree with that" or "Interesting comment." The distinguishing feature of a well done posting might include an objective and critical analysis of what you read, what you experienced; or, possibly a short synopsis of a chapter or a related assignment from another course. Your posts should feature good writing, correct spelling and mechanics. We judge one another substantially by the quality, clarity and depth of our writing. Communication should be professional and use good netiquette. In the spirit of scholarly discussion, I expect responses that agree and disagree with others as long as they apply to the topic and are respectful. In our learning model, the heart of active learning occurs through the discussions that help you test your ideas, reinforce what you have learned, and share resources with others in the class. Responses to your Postings I will be in the classroom almost every day. I will respond to questions within 24 hours. Put my name in postings to me (to Matt Kohler). No messages are private - so please expand on any topic. You are also free to email me or call me during my posted office hours. If after reading the assignment, you do not understand what to do, please contact me so that I can explain the assignment. This is much better than turning in an assignment that is not done correctly and losing points. Thank you for your thoughtful reading of the expectations, I welcome your comments. Have a great learning experience! Course Requirements 1. Reading assigned lectures, textbook chapters and articles 2. Responding online to discussion questions and answers regarding session topics 3. Completing 8 weekly quizzes 4. Completing business plan project
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 5 Course Grading Policies Grades will be based on the following: 10% = Participation in course sessions, (i.e., reading assigned online lectures and textbook chapters, completing homework assignments, participating in class discussions, reporting progress to instructor, asking questions,100 points) 90% = Evidence of progress during course on: 40% = Weekly quizzes (8 total, 5% or 50 points each) 50% = Final business plan project (500 points) 1000 Total Possible Course Points Course Grading Scale: 930 1000 = A (93%-100%) 900 929 = A- (90%-92%) 870 899 = B+(87%-89%) 830 869 = B (83%-86%) 800 829 = B- (80%-82%) 770 799 = C+(77%-79%) 730 769 = C (73%-76%) 700 729 = C-(70%-72%) 670 699 = D+(67%-69%) 630 669 = D (63%-66%) 600 629 = D-(60%-62%) < 599 = F (0%-59%) Participation 100 points 10% Each participant is expected to take an active part in online activities. This includes presenting and sharing information, ideas, and thoughts in online discussions. There will be one discussion question posted in the online discussion to be answered and discussed each week. The discussions are designed to help you make meaningful connections among the pieces of information presented and your prior knowledge, as well as to assess your progress and understanding. Weekly Quizzes 400 points 40% There will be (1) Quiz that is to be completed each week based on the week s lecture and topics discussed. Each quiz will be made up of 4 multiple choice questions from each of the 2 chapters covered that week, a total of 8 multiple choice questions and 3 short answer. Each quiz will be worth 50 points. The quizzes are designed to help you make meaningful connections among the pieces of information presented and your prior knowledge, as well as to assess your progress and understanding. The quizzes build toward your final business plan project. Each quiz is graded for completeness and accuracy.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 6 Final Business Plan Project 500 points 50% A final business plan is to be submitted at the last course meeting. Business plan progress will be reviewed during the course. You will be assigned to complete a section of the plan each week. See the course schedule for specific due dates. The final business plan project is designed to increase your chances of launching and maintaining a successful business. Incomplete Course Grades Incomplete course grades must be arranged with the instructor prior to the last week of the course. Course incompletes are only allowed in cases of documented, justified circumstances. Policies About Deadlines and Late Work Life happens and I understand that work and family emergencies occur. If your work is posted late but during the week that it is due, you ll receive full points. If the work from one week is posted late during the next week, you ll lose ten percent for each day that it is late. After the work is more than ten days late, it will no longer receive a grade. If you will contact me before the work is late, we can try to work out something that will mesh with your schedule. However, there are no extensions for the class. All work must be turned in by the last day of class. Academic Policies Academic honesty is the foundation of the university community. Cheating, plagiarism, or other acts of academic dishonesty compromise the integrity of the academic process and community and are subject to disciplinary action. For this class, academic dishonesty will not be tolerated. Plagiarism represents disregard for academic standards. Plagiarized work will result in an F for the course. If you do not understand the term plagiarism, or if you have difficulty summarizing or documenting sources, contact your professor for assistance.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 7 Discussion Rubric This rubric will be used to assess the quality of your participation in the online discussion forums. Please use this tool as a guide when constructing your postings. Mechanics of the Posting Participation in the Discussion Content of Posting Critical Thinking Evidenced by Posting Unsatisfactory Basic Proficient Distinguished Uses incomplete Uses complete Uses complete Uses complete sentences, is sentences and the sentences, sentences, organization unstructured in its posting is organization is is clear and thoughtful, organization, and comprehensible. The evident, and the the posting is includes frequent or organization could be posting includes no grammatically correct, consistent errors in improved to present a more than one and free of spelling mechanics (grammar, more coherent mechanical error errors. The tone is clear spelling, usage) in argument, statement, (grammar, spelling, and respectful. each paragraph. The or question. Includes usage) per posting is unreadable 2-3 mechanical errors paragraph. The tone and there is a distinct grammar, spelling, is clear and lack of tone. usage) per paragraph. respectful The tone is respectful. Provides minimal comments and information to other participants in the forum. Writes a general or superficial posting that is unrelated to the discussion at hand and/or posts no comments. Provides no evidence of agreement or disagreement with an existing discussion. Provides comments, and some new information on a sporadic basis. Interacts with only 1-2 participants in the forum. Demonstrates a restricted understanding of the concepts, topics, and ideas as evidenced by posting information that could be derived from prior posts and/or including highly general comments. Indicates agreement or disagreement with an existing discussion but provides no justification or explanation for comments. Provides comments, discussion, questions, and new information on a fairly regular basis. Interacts with a few participants in the forum. Demonstrates an adequate understanding of the concepts, topics, and ideas as evidenced by posting superficial, or general statements in the forum. Includes a few details in the posting. Indicates agreement or disagreement with an existing discussion including a limited explanation or justification. Provides comments, discussion, and questions without a clear connection to the course material at hand. Provides comments, discussion, questions, and new information on a regular, active, and weekly basis. Shows a high degree of interaction with other participants in the forum. Demonstrates a solid understanding of the concepts, topics, and ideas as evidenced by thoughtful responses and questions that show a clear connection (are integrated) with the course material at hand. The posting shows depth, and includes many supporting details. Demonstrates a critical analysis of an existing posted idea or introduces a different interpretation to an existing concept or idea. Includes comments, discussion, and questions that have a clear connection (are integrated) with the course material at hand.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 8 Course Summary Session 1: The Challenge of Entrepreneurship Session 2: Building a Competitive Advantage & Developing a Business Plan Session 3: Forms of Ownership & Franchising Session 4: Buying an Existing Business & Building a Powerful Marketing Plan Session 5: E-Commerce & Pricing Strategies Session 6: Financial Planning Session 7: Sources of Financing & Choosing the Right Location and Layout Session 8: Globalization & Building a New Venture Team Description of Content Session 1: Introduction to Course Brief Biography The Foundations of Entrepreneurship Benefits/Drawbacks of Entrepreneurship Behind the Boom: What s Feeding the Entrepreneurial Fire How to Avoid the Pitfalls Inside the Entrepreneurial Mind: From Ideas to Reality Creativity- A Necessity for Survival Techniques for Improving the Creative Process Intellectual Property: Protecting Your Ideas Business Idea Session 2: Designing a Competitive Business Model and Building a Solid Strategic Plan Building a Competitive Advantage The Strategic Management Process Conducting a Feasibility Analysis and Crafting a Winning Business Plan Conducing a Feasibility Analysis The Elements of a Business Plan What Lenders and Investors Look For in a Business Plan Business Feasibility Analysis Industry Profile Customer Interest Session 3: Forms of Business Ownership Sole Proprietorship Partnership Corporations Franchising and the Entrepreneur
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 9 Types of Franchising Benefits/Drawbacks of Franchising Trends Shaping Franchising Mission Statement Business Strategy Business Description Session 4: Buying an Existing Business Steps in Acquiring a Business The Due Diligence Process Business Valuation Building a Powerful Marketing Plan Pinpointing the Target Market Determining Customer Needs and Wants Through Market Research Plotting a Guerrilla Marketing Strategy Marketing Strategy Session 5: E-Commerce and the Entrepreneur Ten Myths of E-Commerce Strategies for E-Success Designing a Killer Web Site Pricing Strategies Three Potent Forces: Image, Competition, and Value Pricing Strategies and Tactics Competitor Analysis Session 6: Creating a Successful Financial Plan Basic Financial Statements Interpreting Business Ratios Break-Even Analysis Managing Cash Flow Cash Management Preparing a Cash Budget The Big Three of Cash Management Projected Financial Statements Session 7: Sources of Financing: Debt and Equity Planning for Capital Requirements Equity Capital vs. Debt Capital
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 10 Small Business Administration (SBA) Choosing the Right Location and Layout Location: A Source of Competitive Advantage Layout and Design Considerations Layout: Maximizing Revenues, Increasing Efficiency, or Reducing Costs Loan Proposal Session 8: Global Aspects of Entrepreneurship Strategies for Going Global Barriers to International Trade Building a New Venture Team and Planning for the Next Generation Leadership in the New Economy Hiring the Right Employees Organizational Culture that Encourages Employee Motivation and Retention. Final Business Plan Course Calendar COURSE WEEK Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Session 7 Session 8 CHAPTERS HOMEWORK ASSIGNMENT 1 & 2 Brief Biography, Business Idea, Week 1- Quiz, W1DQ 3 & 4 Business Feasibility Analysis, Business Strategy, Week 2-Quiz, W2DQ 5 & 6 Mission Statement, Business Description, Week 3- Quiz, W3DQ 7 & 8 Marketing Strategy, Week 4- Quiz, W4BSR, W4DQ 9 & 10 Competitor Analysis, Week 5- Quiz, W5DQ 11 & 12 Projected Income Statements, Week 6- Quiz, W6DQ 13 & 14 Loan Proposal, Week 7- Quiz, W7DQ 15 & 16 Final Business Plan, Week 8- Quiz, W8DQ
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 11 Session 1: The Challenge of Entrepreneurship Again, I look forward to working with you on this exciting subject of entrepreneurship. Some of you may already own a business or have had a business, while others of you may just be interested in launching their own business. Still others may hold a management position and would like to learn how to better manage the business. I m curious to hear what your background is, so the first thing we can do is share our biographies with the rest of the class. I have already shared mine on the contacts page. Please submit a brief autobiography along with a brief discussion of what you would like to get out of the class. Get acquainted by responding to others' autobiographies and by sharing goals. To improve networking, please include your preferred email address so that you can be contacted outside of class. Please post this under the Discussion Forum labeled W1BB- Week 1 Brief Biography. This week we will be covering Chapters 1 and 2 of the textbook, Essentials of Entrepreneurship and Small Business Management. Chapter 1 discusses the foundations of entrepreneurship, which include the benefits and drawbacks of entrepreneurship, what s feeding the entrepreneurial fire and how to avoid the common pitfalls when starting up. Chapter 2 discusses how to transform your creative idea into a real business. This chapter discusses creativity, techniques for improving the creative process and how to protect your creative ideas. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 1. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 1 and 2, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 1-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. As discussed in the course syllabus, everyone will complete a business plan by the end of this 8-week course. I m not expecting the plans to be at the point where they could be submitted to lenders and investors after our course. However, you will have a great template and solid draft that can be continually revised and added-to after the course. This class isn t How to Write a Winning Business Plan, but I think it s important that we go through this process as in doing so, we ll cover many of the areas we need to discuss as entrepreneurs. So, your first weekly assignment will be to post your business idea under the Discussion Board, W1DQ- Week 1 Discussion Question. Some of you may have very similar ideas, which is absolutely fine. You will not be required to submit anything else you don t feel comfortable sharing beyond this to the entire class. However, I think it s important to know what each classmate is interested in pursuing. Please let me know if you have any questions on the material covered this week or on your business idea. I look forward to the first week of class!
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 12 Session 2: Building a Competitive Advantage & Developing a Business Plan We ve now had the opportunity to learn about each other. You should have learned the basics of entrepreneurship and how important the idea is to an entrepreneur. You should have an idea that can be modified during the business planning process. This week we will be covering Chapters 3 and 4 of the textbook. Chapter 3 introduces you to the concept of a competitive advantage, which sets a business apart from its competitors and gives it a unique position in the market superior to its competition. It also discusses the 9-Step Strategic Management Process. Chapter 4 explains how to conduct a feasibility analysis, which is the process of determining if an entrepreneur s idea is viable in creating a successful business. It also introduces to you the importance of a business plan and what should be included in this important document. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 2. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 3 and 4, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 2-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (2) business plan assignments. The first will be to conduct a feasibility analysis on your business idea. This should include an industry and market feasibility section and product or service feasibility section. The second will be to provide your business strategy, which includes your competitive advantage. The foundation of this portion of the business plan comes from the material in Chapter 3, Strategic Management and the Entrepreneur. Please email me these completed assignments. These sections don t have to be long, but simply sufficient. Your third and final assignment will be to participate in this week s Discussion Forum. Please answer the assigned question under the Discussion Forum posted as W2DQ- Week 2 Discussion Question. Please let me know if you have any questions on the material covered this week or on your feasibility analysis or business strategy. This is an exciting week, as your idea will mold into a business.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 13 Session 3: Forms of Ownership & Franchising At this point we ve transformed our ideas into businesses. You should know how to develop a competitive advantage and conduct a feasibility analysis on any business idea. These tools will be continually used if you become a serial entrepreneur. This week we will be covering Chapters 5 and 6 of the textbook. Chapter 5 discusses the several forms of business ownership; including sole proprietorship, partnership and corporations. You should know which type of business ownership you would pursue after reviewing this chapter. Chapter 6 introduces you to franchising, which some of you may consider in the future either as the franchisor or franchisee. Understand the benefits and drawbacks to franchising. The spa that I opened was a license agreement, which is similar to a franchise and ultimately failed. Having a proven system and support doesn t guarantee you success, but your odds improve in making it. The business I created myself, Baja Tan, is a success, so that goes against the norm. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 3. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 5 and 6, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 3-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (2) business plan assignments. The first will be to create your mission statement for your new business venture, which is an enduring declaration of a company s purpose that addresses the first question of any business venture: What business am I in? Developing a mission statement was discussed in Chapter 3, pages 74-76. Your second assignment will be to write your business description. This is a brief summary of your business model, products and services, possible distribution, location, and management team. Please email me these completed assignments. Your third and final assignment will be to participate in this week s Discussion Forum. Please answer the assigned question under the Discussion Forum posted as W3DQ- Week 3 Discussion Question. Please let me know if you have any questions on the material covered this week or on your mission statement or business description. Your business model will be solidified this week.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 14 Session 4: Buying an Existing Business & Building a Powerful Marketing Plan You should have a solid foundation of entrepreneurship at this point! We re going to continue to build on your knowledge and business plans this week by exploring the process of buying an existing business and developing a powerful marketing plan. This week we will be covering Chapters 7 and 8 of the textbook. Chapter 7 discusses the steps in acquiring a business as well as the due diligence process and business valuation. Some of you may consider pursuing this route rather than a start-up business due to advantages of buying an existing business. You should visit http://www.businessesforsale.com under the external links folder this week. Conduct a simple search in a business industry that you re interested in to get an idea of what s out there. Your first weekly assignment will be to post what you found in doing so under the W4BSR- Week 4 Businesses for Sale Results forum under the Discussion Forum. Chapter 8 tackles the process of building a marketing plan. You ll learn how to pinpoint your target market, determine customer needs and wants, and plot a guerilla marketing strategy. There are twelve principles that will help future business owners like you create powerful, effective guerrilla marketing strategies. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 4. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 7 and 8, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 4-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (1) business plan assignment. It will include the development of your marketing strategy. This portion of the plan is described on pages 117-118 in the textbook. Please email me this part of your business plan. Please let me know if you have any questions on the material covered this week. Your final assignment will be to participate in this week s Discussion Forum. Please answer the assigned question under the Discussion Forum posted as W4DQ- Week 4 Discussion Question.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 15 Session 5: E-Commerce & Pricing Strategies We are really moving along now! You now know what to look for in buying an existing business and a good place to start your search. More importantly, you know the importance of a marketing plan and the essential elements of a powerful plan. This information should be incorporated into your business plan. We re moving on to two new subjects this week; E- Commerce and the Entrepreneur and Pricing Strategies. This week we will be covering Chapters 9 and 10 of the textbook. Chapter 9 goes through the subject of E-Commerce. This is a strong opportunity today and should be explored. The ten myths of E-Commerce and strategies for success will be covered. You will also learn how to design a killer website. Chapter 10 is discusses the major pricing strategies and tactics. The three potent forces; image, competition, and value in determining price is covered. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 5. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 9 and 10, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 5-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (1) business plan assignment. The assignment is to complete your competitor analysis portion of your plan. The key questions to be answered in this section include the following: 1. Who are the company s key competitors? 2. What are their strengths and weaknesses? 3. What are their strategies? 4. What images do they have in the marketplace? 5. How successful are they? 6. What distinguishes the entrepreneur s product or service from others already on the market, and how will these differences produce a competitive edge? I don t expect you to answer all of these questions as it would take a considerable amount of research. However, please provide an adequate analysis. Please participate in this week s Discussion Forum question which can be found under the Discussion Forum posted as W5DQ- Week 5 Discussion Question. Please let me know if you have any questions on the material covered this week or on your competitive analysis. Competition shouldn t be taken lightly, this is an important section of your business plan.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 16 Session 6: Financial Planning Your business plan is getting near to completion. However, the most crucial component of the business plan will be tackled this week. You will complete your projected income statement this week. Accurate financial planning is the best way to increase your chances of success. This is one of the most important topics we discuss, if not the most. Entrepreneurs need to know the concept of profitability as well as the difference between cash and profits. This next segment on financial planning will educate you on these crucial components of entrepreneurship. This week we will be covering Chapters 11 and 12 of the textbook. Chapter 11 discusses the (3) basic financial statements; balance sheet, income statement, and statement of cash flows. Most entrepreneurs have an accountant and accounting software, such as QuickBooks. However, it is important to be aware of these statements, especially the income statement that calculates profitability. You will also learn how to interpret business ratios and conduct a breakeven analysis. Chapter 12 covers management of cash flow. This includes the Big Three of cash management; accounts receivable, accounts payable, and inventory. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 6. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 11 and 12, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 6-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (1) business plan assignment. The assignment is to complete your projected income statement for your first 2 years of operation. Most lenders and investors would like to see 3 years as well as a balance sheet and statement of cash flows. This is not an accounting course, but it is important to know how to calculate if your business idea can be profitable within 2 years. Drafting the income statement is discussed on pgs. 333-335 in the textbook. It is much easier to complete this statement in Excel as it allows for easier multi-column addition and subtraction. I have posted a template for a projected income statement. Please feel free to use this as it as all the equations saved under the appropriate cells. You will have to do some research on what and how much your expenses will be as well as how quickly your revenue will increase. Please participate in this week s Discussion Forum question which can be found under the Discussion Forum posted as W6DQ- Week 6 Discussion Question. Please let me know if you have any questions on the material covered this week or on your projected income statement. I have lots of experience in creating and analyzing financial statements.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 17 Session 7: Sources of Financing & Choosing the Right Location and Layout Last week s session could very well been your most challenging week if you don t have experience with financial statements or Excel. I hope you learned a lot and realize how important it is to understand these statements. This week we ll be going through some interesting subjects; sources of financing and choosing the right location and layout. This week we will be covering Chapters 13 and 14 of the textbook. Chapter 13 explains the difference between debt and equity financing. There are definite advantages and disadvantages to both of them. The Small Business Administration (SBA), angel investors, venture capitalists, and Initial Public Offerings (IPOs) are discussed. You can find out about the several SBA loan programs available by visiting their website at www.sba.gov. Chapter 14 explains the process of choosing the right location and layout for your business. It will discuss the stages in the location decision: choosing the region, the state, the city and the specific site. It goes through the location criteria for retail and service businesses as well as layout and design considerations. These are the type of businesses I m most familiar with and can provide the most assistance with. It also goes through the same crucial topics with manufacturing companies. You ll learn how a business layout can maximize revenues, increase efficiency and reduce costs. I know when I designed my tanning salon, the location and layout were major areas of concern. I probably spent the most time choosing the right location and negotiating the lease. It was well worth the time. Remember that you can have the best idea, but if it s in a poor location, it can still easily fail. I located my salon in a busy shopping center with lots of walk-by traffic vs. making it a destination location, where word of mouth and advertising are the only way to gain customers and visibility. I had my best, biggest tanning bed located at the front of the salon to gain customer attention. The hall and lounge area were designed to allow for easy customer traffic. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 7. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 13 and 14, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 7-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. This week s portion of the business plan will contain (1) business plan assignment. You are to complete your loan or investment proposal form. This section is discussed on pgs. 121-122 in the textbook. The proposal should state the purpose of financing, the amount requested, and the plans for repayment. If you have investors such as angel investors, what is the exit strategy? You will need to know what your total start-up cost will be. Definitely include 3-6 months of expenses in this total. The number one reason businesses fail is due to lack of working capital. You can simply look at what your expenses totaled during these months on your projected income statement you created last week. Your final assignment will be to participate in this week s Discussion Forum. Please answer the assigned question under the Discussion Forum posted as W7DQ- Week 7 Discussion Question. Please let me know if you have any questions on the material covered this week or on your loan proposal.
Essentials of Entrepreneurship Course Syllabus Matt Kohler, MBA 18 Session 8: Globalization & Building a New Venture Team We re on to the final week of Essentials of Entrepreneurship! I hope you feel like you have a solid base that you can build on after this week. We ve covered several topics, all the key aspects of business and entrepreneurship. You should be able to discuss these topics with anyone now that you re familiar with them and have implemented them into your business plan. You can always learn more though and the global market is constantly evolving. It s important to keep up with the current trends. Remember that as things change in the world, there will be new opportunities for business. A simple way to start brainstorming for new ideas is to ask yourself what product or service can I provide to remove the pain? There are countless kinds and sources of pain in your daily life, your idea should solve the pain or problem for your future customers. It should improve their lifestyle by enhancing it, saving them time or money. You will create value in your product or service. Your customers can be people or businesses and definitely be global! If you go global, you greatly expand your potential customer base. I hope you found this course interesting and possibly met a few people that you can stay in touch with. Remember that networking is huge in business and you never know what opportunities could come in the future. This week we will be covering the final two chapters of the textbook, Chapters 15 and 16. Chapter 15 introduces you to the global aspects of entrepreneurship. You ll learn the principal strategies in going global and the major barriers to international trade. Chapter 16 discusses leadership, how to build a new venture team and plan for the next generation. The challenges involved in the entrepreneur s role as leader, importance of hiring the right employees, and a company culture that promotes employee motivation and retention are covered. I have posted a PowerPoint presentation for both Chapters under Weekly Lectures, Week 8. Feel free to go through the presentation as it emphasizes the key points from each Chapter. After reviewing both Chapters 15 and 16, please take this week s short quiz. The quiz can be found under Weekly Assignments, Week 8-Quiz. It is made up primarily of multiple-choice questions with a few short answer questions. Your final business plan assignment will be to finish your business plan. Spend some time working on the sections you d like to improve. You can also make it more appealing to present, which is discussed on page 122 in the textbook. Please email me your final business plan at instructorkohler@gmail.com. I look forward to reviewing it and offering my feedback to you. Please participate in this week s Discussion Forum question which can be found under the Discussion Forum posted as W8DQ- Week 8 Discussion Question. Please let me know if you have any questions on the material covered this week or on any segments in finalizing your business plan. If you haven t checked out the recommended readings I ve posted, I would encourage you to do so after this week s session. It would be a wonderful continuation of this class. Instinct, Good to Great, and Blue Ocean Strategy are excellent books on entrepreneurship. Best wishes to you and hope to find out you ve made your ideas into successful businesses!