Professional Project

Entrepreneurship - Module

« Name of startup:»« One Phrase about it » 

Prepared by: …………..

Instructor: Mohamed Tirani

(2017-2018)

Table Of Contents

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All Lines in yellow color must be changed by the student

1. Executive summary0

2. General overview :Industry and Startup0

3. Market research and External / Internal factors analysis0

3.1- Marketing research and External factors analysis0

3.1.1- Primary market research 0

3.1.2- Secondary market research

3.2- Internal study and decission making :0

3.2.1- SWOT Analysis0

3.2.2- TWOS matrix0

4. Startup execution stages0

4.1- Conception stage0

4.1.1- Business Model Canvas0

4.1.2- Value proposition canavas0

4.1.3- Adapted economic model0

4.2- Quality managment system study0

4.2.1- Processes description0

4.2.2- Evaluation tools0

4.2.3- Risk assessment and prevention0

4.3- Marketing Plan 0

4.3.1 -Strategic Marketing study (Segmentation,targeting,positionning)0

4.3.2- Operational Marketing (4 P of the marketing mix)0

4.4- Financial study 0

4.4.1- Cost structure0

4.4.2- Profit structure0

4.4.3- Provisionnal result0

4.4.4- Financial analysis0

Bibliography0

Appendics0

1. Executive Summary

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Write this section last.

I suggest that you make it two pages or fewer.

Include everything that you would cover in a three-minute interview.

Explain the fundamentals of the proposed business: What will your product/service be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?

Make it enthusiastic, professional, complete, and concise.

If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment..

2. General overview :Industry and Startup What business or industry will you be in? Describe it. Is it a growth industry? Show some statistical data?

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What your startup is about ? What is the problem or the need in this market you will answer it "Market Pull" or what is the innovative idea that you present it "Technology Push"?

How you goanna meet this need in the market or how you goanna present your innovative idea?(services,products,..)

Does your idea exist before? What makes the competitors' solution inadequate? What competitive advantage can your solution offer?

Mission Statement: Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason for being and their guiding principles. If you want to draft a mission statement, this is a good place to put it in the plan.

3. Market research and External / Internal factors analysis

3.1 Market Research and External factors analysis4 | P a g e

3.1.1- Primary Market Research

Describe your primary Market research If you have done a questionnaire or focus group or others ways …. , please provid it

here and the result of the data analysis with comments

3.1.2- Secondary Market Research

Describe your secondary Market research

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Show the result of your research , the sources ,your analysis data and provide your comments

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3.2 – Internal study and decission making:

3.2.1- SWOT analysis

Environmental scanning can influence an organization's strategy by creating both threats and opportunities.

However, the structure of the environment does not in itself explain the success or the strategic failure: The differences between the organizations involved must also be taken into account, ie. Internal strengths and weaknesses must also be analyzed in order to finally reach strategic recommendations.

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Analysis of internal and external factors of the startup

Strengths (Internal Factors) Opportunities (External Factors)

Define your startup strengths Define your market opportunities

Weaknesses (Internal factors) Threats (External Factors)

Define your startup weaknesses Define your market threats

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3.2.2- TWOS Matrix :

The TWOS matrix is built from the SWOT analysis conclusions or it allows to generate strategic options that correspond to different combinations of

internal and external factors.

The TWOS matrix

Opportunity points Threat points

Stre

ngth

s Poi

nts

S / O: Use forces to seize opportunities: S /T : Use forces to avoid threats:

************************************ ************************************

Wea

knes

s Poi

nts

W / O: Minimize weaknesses to seize opportunities: W /T : Minimize weaknesses to avoid threats:

************************************************************************

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4. Startup execution stages 4.1- Conception Stage

4.1.1- The "Business Model Canvas"

Key partners

Key activities

Offer (value proposition) F

Customer relationship G

Customer segments

Key resources

Distribution channels

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Cost structure

Sources of income

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4.1.2- The value proposition canvas

It represents the group of products and services that creates value for the customer. It aims to

address an unmet customer need and improve its current situation.

Collaborators side

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Tasks

Pains

Desired gains

Value Proposition Side (Product / Service)

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4.1.3- Adapted Economic Model

Freemium » -- « Premium »  / « Subscription »……………….

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Characteristics of the products or services

Pain Relief

Gains Creator

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4.2- Quality Management System Study

The "PDCA" method, also called the Deming wheel, is adapted to the creation approach and the implementation of the platform, which has helped to:

o Better understand the needs of applicants.

o Implement the processes necessary to achieve these needs.

o Measure the satisfaction of these applicants and evaluate the performance of the processes implemented.

o Make improvements and corrections decisions of the platform processes.

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Process Title Process Actors Process Description Process Documents/Resources

Remarks

4.2.1- Main Processes description

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4.2.2- Evaluation tools

Quality objectives have been set with performance indicators for each of these objectives, the purpose of which is to compare them with the measured

results.

Table of objectives

Goal KPI Formula TargetFrequency of measurement

Maximize customer satisfaction The level of customer satisfactionThe judgment for each question in customer satisfaction questionnaire must be <3

The desired result for each question must be <3

At the end of each quarter

Resolve all customer complaints% of customer complaints resolved

within 2 working daysnumber of customer complaints resolved / total

number of customer complaints presented100% At the end of

each quarter

Maximize risk preventionNumber of countermeasures

applied0 At the end of

each quarter

Maximize profit Average number of buyers of our services or products 125/year At the end of

each quarter

Respect the expenditure budgetAmount of the budget spent

compared to the amount allocatedAmount of budget spent / Total amount of

budget allocated< 1 At the end of

each quarter

Optimization of the execution of the marketing plan (commercial side)

% of commercial actions applied

number of commercial actions applied / number of commercial actions fixed 100% At the end of

each quarter

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4.2.3- Risk assessment and prevention

The risks

Pote

ntia

lity

Impa

ct The causes Potential impacts Preventive action

Freq

uent

/ M

oder

ate

/ U

nlik

ely

Crit

ical

/ Se

rious

/ N

eglig

ible

Freq

uent

/ M

oder

ate

/ U

nlik

ely

Crit

ical

/ Se

rious

/ N

eglig

ible

Freq

uent

/ M

oder

ate

/ U

nlik

ely

Crit

ical

/ Se

rious

/ N

eglig

ible

Freq

uent

/ M

oder

ate

/ Unl

ikel

y

Crit

ical

/ Se

rious

/ N

eglig

ible

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4.3- Marketing Plan :

4.3.1- Strategic Marketing (segmentation,targeting and positioning )

Customer Target Segmentation :

The adapted segmentation variables differ for each of the collaborators:

Collaborator 1:

o Segmentation criteria 1 ex :Profession

o ******

o ******

o

Collaborator 2:

o Segmentation criteria 1

o ******

o ******

o

Targeting :

Targeting variables adapted for:

Collaborator 1 :

o Segmentation criteria selected(value for the criteria

ex :Doctor)

o Segmentation criteria selected

Collaborator 2 :

o Segmentation criteria selected

o Segmentation criteria selected

The positioning :

To better position yourself, a study / analysis of competitors is applied by trying to answer

several questions:

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"Who are our competitors? What products / services do they offer? What are their strengths

and weaknesses? What prices do our competitors practice? What is the reputation of our

competitors? Where are they located? What is their communication strategy? "

Complete the table below and estimate the importance of each competitive factor to the customer. 1 = critical; 5 = not very important.

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Competitive Analysis

Products/S

ervice

sPric

e

Quality

Selection

Customer S

ervice

or after s

ale servi

ce

Experti

se

Company Reputation

Location

Sales Method

Credit Polic

ies

Advertisin

g0

0.5

1

1.5

2

2.5

3

3.5

Competitive Analysis

My Startup Competiotor 1 Competiotor 2

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4.3.2- Operational Marketing (4 P of the marketing mix)The marketing mix:

"The marketing mix (sometimes referred to as a market plan or a marketing policy) refers to the

coherent set of product, price, distribution and communication decisions of a company's or

brand's products.

Product / Service Policy:

List all of your major products or services.

For each product or service:

Describe the most important features. What is special about it?

Describe the benefits. That is, what will the product do for the customer?

Name, logo and slogan of the product / service:

Product name justification :

Place your product name here with justification

*********************

Slogan justification :

Place your slogan here with justification

*********************

Logo justification  :

Place your Logo here with justification

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Promotion

How will you get the word out to customers?

Advertising: What media, why, and how often? Why this mix and not some other?

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Year 1 /$ Year 2 /$ Year 3 /$ Year 4 /$ Year 5 /$

Det

ails

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ails

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ails

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Emails Campaign X Dedicated IP X Template (design) Advanced Reporting Monitor (Who Clicked &

Viewed) X Shots Responsive Design Occupation Specific

Facebook Campaign

Cost Per Click (CPC)Click to our site/Facebook page

Cost Per Mile (CPM) Impression of our ads (site or page)

Google Adwords

SEO (Search Engine Optimasation)

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Year 1 /$ Year 2 /$ Year 3 /$ Year 4 /$ Year 5 /$

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ails

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ails

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ails

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ails

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nt

SMS

Leaflet+Bussiness card

Events

Blogger

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Year 1 /$ Year 2 /$ Year 3 /$ Year 4 /$ Year 5 /$

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ails

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nt

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ails

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Radio/TV

Total

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Pricing

Explain your method or methods of setting prices.

Does your pricing strategy fit with what was revealed in your competitive analysis?

« Freemium » -- « Premium »  / « Subscription »……………….

*********************

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Location

Is your location important to your customers? If yes, how?

If customers come to your place of business:

Is it convenient? Parking? Interior spaces? Not out of the way?

Is it consistent with your image?

Is it what customers want and expect?

Where is the competition located? Is it better for you to be near them (like car dealers or fast food restaurants) or distant (like convenience food stores)?

Distribution Channels

How do you sell your products or services?

Retail

Direct (mail order, Web, catalog)

Wholesale

Your own sales force

Agents

Independent representatives

Bid on contracts

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4.4- Financial study :

4.4.1- Cost Structure :

Fixed costs. Administrative overheads, direct labor, manufacturing overheads, payroll taxes, .......

Variable costs. bonuses, travel and entertainment, direct materials, commissions, production supplies, piece wages, ...

See Excel file (Financial Calculation)

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4.4.2- Profit Structure :

Describe your profit structure. See Excel file (Financial Calculation)

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4.4.3- Provisional Results

We started with a starting balance sheet at the end of the year 2017, then the five years of

investment (2018-2022) and the balance sheet of the year 2023 which will help us make

decisions.

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4.4.4- Financial analysis

Net present value (NPV) over 5 years :

Net present value (NPV) is the difference between the present value of cash inflows and the

present value of cash outflows over a period of time. NPV is used in capital budgeting to

analyze the profitability of a projected investment or project.. 

o VAN = -I + CF1 / (1+i) + CF2 / (1+i) ^2 + CF3 / (1 +i)^3+ CF4 / (1 +i)^4+ CF5 / (1

+i)^5

- (I) it is the amount invested

- CF is the estimated cash flow of each year.

- i it is the discount rate which is equal to 10% (interest on Treasury bills in

Lebanon = 7.08% and the risk is 1.5).

Net present value (NPV) over 5 years calculation

Internal rate of return calculation

Internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of

potential investments. Internal rate of return is a discount rate that makes the net present

value (NPV) of all cash flows from a particular project equal to zero. 

An investment project will generally be retained only if its predictable IRR is sufficiently

higher than the bank interest rate, to take into account, in particular, the risk premium specific

to the type of project.

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Internal rate of return calculation over the 5 years

Recovery time of the amount invested:

Recovery time of the projet

Profitability Index :

The profitability index is an index that attempts to identify the relationship between the costs

and benefits of a proposed project

Profitability Index = (Net present value + invested amount) / invested amount

= (30.098.98+45,000) /45,000

= 1.67 > 1 => the project is profitable.

The company can expect to cash $ 0.67 for every dollar invested. That is, the net present value

is $ 0.67.

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Bibliography

Books :

Studies, research projects, …….. :

Reports :

Websites:

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Appendices

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