Course Title:
RELATED BUSINESS DEVELOPMENT EDLD 516
Faculty:
Paul S. Van Dolah Office number: 760-744-3245 Cell: 858-449-8330 E-mail: pvandolah@earthlink.net Office hours: At mutual convenience. Please call or e-mail for an appointment.
Summary Description: This course prepares current and future leaders in nonprofit organizations to be able to identify related business opportunities that will supplement the financial resources and compliment the core business mission of their organization. Students will learn techniques to identify new business opportunities, analyze market forces, develop effective marketing plans, establish operations plans and identify alternative funding sources in starting a new business. This course focuses on practical real world experience. Students will develop a business plan proposal for a local nonprofit organization. The plan will be evaluated on its ability to help the selected agency move forward with a plan of action to implement a new related business. Students will work in teams. Program Length: Ten (10) interactive classes approximately 3 hours in length meeting Wednesday evenings from 6-9pm. The course begins Wednesday, September 3rd and ends Wednesday, December 10th. There will be time within the weekly class discussion to enable students to focus on their specific Business Plan issues and problems and obtain feedback from the other class members. Course Objectives: 1. 2.
3. 4.
To expose the students to the techniques associated with identifying and screening new business opportunities. For students to learn techniques to assess and manage the risks associated with developing lines of business not directly related to the core of a nonprofit organization. For students to understand how to develop effective Business Plans. For students to understand the financing mechanisms for funding a new business.
Required Reading: 1
All students are expected to purchase: Venture Forth: The Essential Guide to Starting a Moneymaking Business in Your Nonprofit Organization, Rolfe Larson, Amherst H. Wilder Foundation, St. Paul, MN, 1999 Complete Business Plan, Bob Adams, Adams Media Corp, Avon, MA 1998 Additional material will be provided to the students during the course that more fully explains the topics under discussion in each class. Students are expected to bring and share with the class relevant learning materials that they uncover during their business planning research and development. Required Assignments / Grading Criteria: Business Plan Development: 45 % By the end of the course, student teams will have created Business Plans that can used by a local nonprofit to create a new related business. The Business Plan will be evaluated on its ability to demonstrate the team’s understanding of business planning concepts, the ability to help a lay board to understand to basics of the business so as to asses the risks and rewards of moving into this business and / or the ability to convince an independent financial lender to invest in the plan. Discussion Papers: 15 % Reading assignments are based on the course content to be discussed in the next week’s class. The reading assignments will give the students the opportunity to independently explore the course concepts prior to in-class review and discussion. Each class will focus on one or more elements of a Business Plan. Class time is divided between discussion of the generic concepts of the Business Plan and time focused on the specific plans under development by the student planning teams. Team members will present and discuss the status of their specific business plan as it pertains to the topic under discussion. Students will be required to submit three two page papers covering specific course content elements. Reference “Homework” requirements by week. Each paper has a five (5)-point value toward the class grade. Each student will be expected to present their paper to the class at least once during the course. Class participation: 10 % Students are expected to share the findings that they are discovering in the course of researching their new business and to help fellow students think through their business planning issues. Students missing two classes without prior approval will have their letter grade lowered by one grade. Students who miss three classes without prior approval will not pass the course.
Business Plan Presentation: 30% 2
At the end of the course each team will present their Business Plan. The professor and other class members will serve as either an agency board deciding on whether to move forward with the plan, or an external funding agency deciding on whether to invest in the new business. Each student is required to fully participate on their team. Team members will not share a common team grade. Each student will be separately evaluated on their demonstrated contribution to the Business Plan and its presentation. Curriculum Week 1, September 3: Discussion topics:
Orientation to Course Introductions Review / discuss course syllabus Formation of Project Teams Community Based Organizations selections Related new business identification Overview of Business Plan components and concepts
Homework for Week Two: Read:
Chapters Introduction and Chapters 1& 2 of Venture Forth Appendix G Worksheets 1A – 3B
Week 2, September 10: Discussion Topics Prospecting for Business Ideas Organizing for Team Projects Homework for Weeks Three and Four: Read:
Chapters 1 – 5 Complete Business Plan; (Scan only to obtain overview) Chapters 8 – 13 in Complete Business Plan (Scan only to obtain overview) Pages 51 - 101 and Appendix G Worksheets 4A – 5G & 7F of Venture Forth Look at the following web sites www.entreworld.org www.irs.gov for Publication 598 www.managemenhelp.org www.sba.com www.socialentrepreneurs.org
Prepare: Two page paper explaining, “competitor analysis”, “market segmentation”, “target markets” or “product positioning”. Explain the meaning of the element, provide an example from industry and provide summary of relevance to Team Business Plan. Be prepared to discuss the paper with the other students in the class. This paper is due in Week 4. 3
Week 3, September 17: Discussion topics: Market Analysis and Positioning Business concept articulation Mission / Vision Product definition Product differentiation Product positioning Market Research and Analysis Industry assessment Class projects discussion Week 4, September 24: Discussion topics: Market Analysis and Positioning - Continued Competitor analysis Target markets Customer characteristics and needs Market segmentation Market trends and changes Marketing Plan Development Marketing strategy articulation Promotional techniques Free or inexpensive product awareness Paper Presentations Project Discussions Homework for weeks Five and Six: Read :
Chapters 4 and 15 Complete Business Plan Pages 101- 154 and Appendices D, E, F & Appendix G Worksheets 6A – 7B, 7G & 7H from Venture Forth
Prepare: Two page paper explaining, “Financial forecasting”, “working capital analysis”, “breakeven point determination” or “capital budget development”. Explain the meaning of the element, provide an example from industry and provide summary of relevance to Team Business Plan. Be prepared to discuss the paper with the other students in the class. This paper is due in Week 6.
Week 5, October 1: Discussion topics: 4
Financial Planning o Financial forecasting tools o Revenue Projections o Expense Projections o Capital Requirements Project Discussions Week 6, October 8: Discussion topics: Financial Planning - Continued o Working Capital analysis o Preparing multi year income statements o Cash flow projections o Balance Sheet basics o Essential financial measures of success o Breakeven point Paper Presentations Project Discussions Homework for Week 7: Read:
Chapter 14 Complete Business Plan Appendix 7E Venture Forth
Week 7, October 15: Discussion topics: Operations Planning Location Facilities Equipment and materials Labor Force / Required Talent Set / Expertise Management / Governance Strategies to link with core agency operations Implementation Timeline Risk Analysis Alternative futures assessments Exit Strategies Project Discussions
Homework for Week 8: Read:
Chapter 2, 3 and 5 Complete Business Plan 5
Visit:
www.fullcirclefund.org www.venturephilanthropypartners.org www.seedco.org www.pacificcommunityventures.org www.trfund.com www.communitycapital.org www.cdvca.org www.commonscapital.com www.sam-group.com www.investorscircle.net www.sba.gov www.grants.gov
Prepare: Two page paper explaining, one specific type of capital financing methodology such as “bank financing”, “bond financing”, “angel financing”, “grants” or “venture philanthropy”. Explain the meaning of the element, discuss the pros and cons of the financing methodology, provide an example from industry and provide summary of relevance to Team Business Plan. Be prepared to discuss the paper with the other students in the class. This paper is due in Week 7.
Week 8 October 22: Discussion topics: Presentation of papers
Financing Alternatives Self financing Bank financing Bond financing Grants Investment bankers Plan Presentation techniques
October 29 through November 26 No Class Team Project Research and Business Plan Development
December 3 & 10th - Week 9 and 10: Team Presentations of Business Plans Evaluation and Feedback
Other 6
Academic Integrity The code of academic integrity is not just rhetoric; forms of academic dishonesty, including but not limited to cheating, plagiarism, fabrication, or facilitating academic dishonesty, will not be tolerated in this class and may result in suspension or expulsion from the university. If you are unfamiliar with USD's policy, please ensure that you read it. To summarize, anything you hand in must be written in your own words, exemplifying your own thoughts and ideas, and you must source any references you used in completing your work using the format of the APA 5th Edition Style Manual. Although you are encouraged to work and learn collaboratively, both within and outside of class, the work you submit should reflect your own thoughts and ideas, and it must be expressed in your own words unless you cite whose words you are using. If you are unsure of what this means, please check with the instructor before completing an assignment. Students with Disabilities Students with disabilities who believe that they may need accommodations in the class are encouraged to contact Disability Services in Serra 300 (tel. 619-260-4655) as soon as possible to better ensure that such accommodations are implemented in a timely fashion.
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