Assignment 2: New Venture – Launch Plan
Due: Monday, 9:00 am (eastern), Week 7 (Weight: 25%)
OVERVIEW
In this assignment, you will continue your research and planning to design and implement a new product or service. Based on the innovative “big idea” and the vision that you developed in Assignment 1, you will now write the sections that describe your launch strategy, business model, and financial plan.
INSTRUCTIONS
For Assignment 2, you will create a Launch Plan paper. It will describe your launch strategy, business model, and financial plan. Your paper will be at least 4 pages long.
In Assignment 2, you will complete the following four sections of your Business Plan:
§ Section V: New Concept / Business / Nonprofit Launch Strategy § Section VI: Impact on the Business Model / Business Mode / Organization Structure
§ Section VII: Revenue Streams / Operational Strategy
§ Section VIII: Financial Structure and Costs / Financial Plan
Continue to use the same big idea that you used in Assignment 1. As before, you will follow the instructions in ONE of the three Options below and you will continue to work with section that matches your chosen Option.
Option A – INTRAPRENEUR
NEW CONCEPT LAUNCH STRATEGY
o What are the key business objectives for the project? o What strategies will be used to meet those business objectives? o In what time frame will the objectives be met? Specify months and years for the time frame.
o What are the key activities needed to launch the product or service? o What are the key resources needed to launch the product or service?
o What are the distribution channels – i.e., how will the customers access the product or service?
IMPACT ON THE BUSINESS MODEL
o How complementary is the new product or service line with the company’s existing products or services? What does the new line add that will benefit existing customers? How could it attract the interest of potential new customers?
o What regulations must be complied with, or licenses required, to produce, operate, or sell your new product or service line? o How do your values drive your business model?
REVENUE STREAMS
Represents the cash a company generates from each Customer Segment or each type of product or service.
o After reviewing the competition’s current market price for similar products or services, explain how those prices compare to the planned pricing for the new products or services?
o Cash flow is king. What payment or collection methods or terms will be used to sell the product or service? – i.e., cash only, credit only, subscriptions, down payments, net 30, scheduled payment contracts.
o Describe the various revenue streams. What percentage does each contribute to the overall project revenues?
FINANCIAL STRUCTURE and COSTS
o Summary Income Statement: Create a 3- or 4-year Profit and Loss Statement summary for your initiative only, not for the entire company. You can use one of the ProForma Spreadsheets in your Assignment 2 Resources or create your own.
o Provide a detailed Financial Narrative explaining the research and analysis used to develop the numbers in the Summary Income Statement.
o Provide a list of the start-up capital expenses to launch the project. These are one-time costs for the launch, such as buildings, inventory, and equipment, not ongoing operational expenses.
o Is the existing company providing the funds necessary for launching the new product or service line? If not, what are the proposed sources for funding the launch?
* * * * * * * * * * * * * * * * * * * *
Option B – ENTREPRENEUR
NEW BUSINESS LAUNCH STRATEGY
o What are the key business objectives?
o What strategies will be used to meet those business objectives? o In what time frame will the objectives be met? o What are the key activities needed to launch the product or service? o What are the key resources needed to launch the product or service?
o What are the distribution channels – i.e., how will the customers access the product or service?
BUSINESS MODEL
o What legal structure will be used for this business and why? Use the source below to learn about your different business structure options:
Research Source: https://www.sba.gov/business-guide/launch-your-business/choosebusiness-structure
o What regulations must be complied with, or licenses required, to produce, operate, or sell the new product or service line?
o How do your values drive your business model?
REVENUE STREAMS
Represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings).
o After reviewing the competition’s current market price for similar products/services, explain how those prices compare to the planned pricing for the new products/services?
o Cash flow is king. What payment or collection methods or terms will be used to sell the product or service? – i.e., cash only, credit only, subscriptions, down payments, net 30, scheduled payment contracts.
o Describe the various revenue streams. What percentage does each contribute to the overall project revenues?
FINANCIAL STRUCTURE and COSTS
o Summary Income Statement: Create a 3-year Profit and Loss Statement summary for the business. You can use one of the Proforma Spreadsheets in your Assignment 2 Resources or create your own.
o Provide a detailed Financial Narrative explaining the research and analysis used to develop the numbers in the Summary Income Statement.
o Provide a list of the start-up capital expenses to launch the business. These are one-time costs for the launch, such as buildings, inventory, and equipment, not ongoing operational expenses. o What are the proposed sources for funding the launch of the new product or service?
* * * * * * * * * * * * * * * * * * * *
Option C – NONPROFIT
NONPROFIT LAUNCH STRATEGY
o What are the key business objectives? o What strategies would be used to meet those business objectives? o In what time frame will the objectives be met? o What are the key activities needed to launch the services? o What are the key resources needed to launch the services?
o What are the distribution channels – i.e., how will the beneficiaries/customers access the services?
ORGANIZATIONAL STRUCTURE
o What type or category of nonprofit organization will be created?
Research Source: https://www.usa.gov/start-nonprofit o What regulations must be complied with, or licenses required, to produce, operate, or sell the new product or service line?
o How do your values drive your business model?
OPERATIONAL STRATEGY
An operational plan describes how your nonprofit organization plans to deliver its community-focused activities.
o Describe the plan to manage and maintain the daily operations of the organization? –i.e., use and roles of volunteers, times of operation.
o Describe the fundraising plans – i.e., fundraising events and/or donor focused fundraising strategies.
o Nonprofits receive donations and/or grants based on the impacts they have in the community. What impact metrics will be used to evaluate the impact of the programs?
FINANCIAL and FUNDRAISING PLAN
o Summary Income Statement: Create a 3- or 4-year nonprofit Profit and Loss Statement summary for the business. You can use the Nonprofit Proforma Spreadsheet in your Assignment 2 Resources or create your own.
o Provide a detailed Financial Narrative explaining the research and analysis used to develop the numbers in the Summary Income Statement.
o Provide a list of the start-up capital expenses to launch the business. These are one-time costs for the launch, such as buildings, inventory, and equipment, not ongoing operational expenses.
o What changes will be made if the required levels of funding to launch the organization is not achieved?
* * * * * * * * * * * * * * * * * * * *
FORMATTING
§ Submit your work as a Word document with page numbers.
§ Typed, double-spaced, using Ariel or Times New Roman font (size 11 or 12) with one-inch margins on all sides. Check with your professor for any additional instructions.
§ Label each chart and graph by adding a Chart Title or a Caption.
§ Your Summary Income Statement may be included in the body of your document or placed at the end of your document in an Appendix. If you use an Appendix, reference it in the body of the Business Plan.
§ Include a Cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.
§ Use in-text citations with a References page to identify your sources. References must follow the format from the JWMI Writing Standards Guide.
Note: The Cover page, References page, and Appendix are not included in the required page length.
Rubric: Assignment 2: New Venture – Launch Plan
|
CRITERIA |
Honors |
High Pass |
Pass |
Low Pass |
Unsatisfactory |
|
1. Describe the new venture’s launch strategy, including key
Weight:
|
Exemplarily |
Thoroughly |
Satisfactorily |
Partially |
Did |
|
2. Describe in detail the Impact
Weight
|
Exemplarily described the indicated item and responded to all prompts.
|
Thoroughly described the indicated item and responded to all prompts. Good detail covering all required elements.
|
Satisfactorily described the indicated item and responded to all prompts.
|
Partially described the indicated item and responded to some of the prompts.
|
Did not describe or incompletely described
|
|
3. detail Revenue Streams (A or B) or Operational Strategy (C). Respond to
Weight: |
Exemplarily described the indicated item and responded to all prompts.
|
Thoroughly described the indicated item and responded to all prompts. Good detail covering all required elements.
|
Satisfactorily described the indicated item and responded to all prompts.
|
Partially described the indicated item and responded to some of the prompts.
|
Did not describe or incompletely described
|
|
CRITERIA |
Honors |
High Pass |
Pass |
Low Pass |
Unsatisfactory |
|
4. Describe in detail the Financial Structure and Costs (A or B) or the Financial and Fundraising Plan Statement, Financial Narrative, and list of capital start-up expenses.
Weight: 30%
|
Exemplarily described the indicated item and responded to all prompts. Summary Statement, Financial Narrative, and list of capital start-up expenses.
|
Thoroughly described the indicated item and responded to all prompts. Provided a Summary Income Statement, Financial Narrative, and list of capital start-up
|
Satisfactorily described the indicated item and responded to all prompts. Provided a satisfactory Summary Income Statement, Financial Narrative, and list of capital start-up
|
Partially described the indicated item and responded to some of the prompts. Provided Summary Income Statement, Financial Narrative, and list of capital start-up |
Did not describe or incompletely described respond to all prompts. Did not provide an adequate Summary Income Statement, Financial Narrative, |
|
5. Clarity, logic, and writing mechanics.
Weight: 10% |
No mechanical errors. Text Flows very well. Writing |
Few |
More |
Several mechanical errors. Parts of the text are difficult to understand. The text |
Multiple mechanical errors. Much of the difficult to understand. Fails The |