New Venture Modelling

Please go through the given document to get the picture as to what to do

DETAILED SUPPORT for your semester 1, Individual Summative Assessment 1.

Start-Up Idea and Financing, additional BRIEFING.

 

Introduction:

This is your 1st individual, though NON-physical ‘elevator pitch’ presentation, but still as a PPT (with excel spreadsheets imported, OR copy and pasted LEGIBLY into the PPT slides) of no more than 15 slides of main content created by you. You will NOT be physically presenting in class of course, and only submitting via Turnitin in BB by Thursday afternoon, 12.00, of wk12, and worth a significant 20%TMM and must be engaged with, by ALL students.

 

The 15 slides max can be additionally supplemented by a title slide (TS), a table of contents (ToC) if necessary, divider slides (if necessary) and slides for your NUMEROUS references/bibliography. Do NOT forget to in-text reference your slides’sentences, paragraphs and visuals throughout!

 

It needs to focus on your already presented business ideas’(if you had participated in the formative stage) financial needs. If you did or didn’t for whatever reason present your idea last time, you need to articulate the context for a business idea, express the business idea, based on lecture approaches thus far.

 

The structure will be your choice, as long as the format is clear and presentable and in PPT, only. Here’s a suggested overall structure and it’s up to you as to how you create detailed, yet conceptual slides.

 

Business Idea, plus what further sub-sections?:  i) Clearly and succinctly describe and articulate your business idea, including key benefits, features and wider services, ii) briefly articulating your macro market iii) and your specific target market, applying any models/tools you see fit.

iv) List BUT also rationalize the suppliers, partners and stakeholders you will need for the business to be set-up and run. You could also internally cross-reference to the list from your costs/expenses in your later cash flow.

 

Investment and Funding sub-sections?: i) Clearly define the types of funding options relevant to set your business up, ii) in a detailed and rationalized approach. iii) Think of a range of fund sources which will enable you to set-up for no more than £100k, or any level below that amount. iv) You MUST report in GBP £ Sterling, so ensure you state your exchange rate somewhere appropriately and obviously if you had been originally calculating in another currency.

Only for extra marks, you might even present the funds as % probabilities/likelihoods in achieving funds researched by you in addition to the £100k, e.g. therefore within the self/angel-funding of £100k, you may have researched a specific government subsidy, but the likelihood of you in achieving a proportion of the available fund, such as £40k of a fund worth £1Bn (therefore 0.04% of the fund) and might be likely to be 5% likely in achieving this 0.04%? Because you may have researched the volumes of applicants involved typically. Therefore, for these extra marks, you will have needed to rationalize why you have allocated specific % likelihoods for (the) subsidy(ies).

 

Revenue streams: Think of your business as i) needing revenue streams. Revenue, sales streams can be derived from, and can include some, or all of the following (but are often mistakenly viewed as mutually exclusive, see below this list):

ii) Products and/or services;

iii) Accessories;

iv) Premium benefits and options;

v) By target audiences;

vi) Short and longer-term.

Think of how you would present the above and evaluate what could create revenue sales for your business, with reference to the above example sales stream constructs. vii) Careful not to ‘double count’, e.g. do you really increase revenue from target audiences in addition to the products and/or the price you charge on your products by audience? That could be double-counting as the revenue is actually only the revenue derived from the target audience buying that product at that price.

 

Cash-Flow creation: You will i) create a cash flow for 1 year, ii) split by 12 individual months in an Excel spreadsheet. Be as detailed as possible. 

You will think of all your potential costs/expenses per month in addition to the initial set-up and creation costs, e.g. operating costs (the running costs) of a business, over a one year period. You may also be attempting to try for salaries/wages and how many must be paid I this way. But you must be cautious on this latter point. Many investors will not fund a business with limited or no profits, especially when there are salaries involved too early for those involved in setting the business up. ‘Think potential dividends’. For extra points, you may need to show dividends in your cash flow. However, that can only be present should profit be made in the first year. BUT you are not being marked on your ability to create a profit in an assessment paper. Anyone can do that! In reality, it is typically unlikely in the first year and even the second. And even if there is profit is it wise to pay dividends on small profits vs. re-investing into the business?

iii) You will create financial notes (BUT NOT PTT slide notes, but notes within main content per financial slide) to support figures you have inputted into the spreadsheet and which act as accompanying costs descriptions and other relevant information you wish to share from workings, assumptions, etc. And referencing where possible, whether secondary, OR, primary research.

 

iv) You will need to estimate your sales forecast by month, and in which month the sales commence. HOWEVER, you will have ZERO sales in months 1 through 3.

This is already highly generous for many real business start-ups.

v) You will need to calculate your gross profit / loss per month in the spread sheet. You do NOT need to show tax and net profit / loss due to tax. Tax is irrelevant for this assessment as it changes so substantially from one tax approach to the next and by different geographies. Just present ‘gross’ figures.

 
 

Therefore, ENSURE YOUR FINANCES COME WITH FINANCIAL NOTES AND RATIONALE EXPLAINING THE TABLES AND REASONS FOR MANY OF THE figures.

 

vi) There will be NO bank loans/interest.

 

Finally for extra points, there are slides uploaded in the Assessment 1 area to help you calculate your break even analysis, unless as a minimum you graphically estimate your break-even based on the figures/data into your excel.

 

ENSURE YOU HAVE YOUR eVISION NAME and STUDENT I.D. Number ON THE FRONT TITLE PAGE, THAT YOU SUBMIT BY 23.59 OF Thursday of WK12, INTO THE TURNITIN submission LINK IN BB IN THE ASSESSMENT 1 submission link, by seminar-tutor, based on which webinar you are allocated to.

Use Wk9/10 for your x1 draft check with Ellie or myself Ash, based on the correct submission link, depending on your seminar-tutor allocation, but no more than x1 draft will be fed-back on.

Your final submission for Assesment 1 must be uploaded to the EXACT same link as your draft, which will overwrite your draft and rid any danger of duplication/self-plagiarism.

 

Remember to refer to week 8 material support notes on:

Cash Flow example;

Break-even point calcualation slides (for extra marks), vs. a mere graphical forcecast and approximate summation;

Lecture Wk7 will be on types of entrepreneurial finance investment sources, as well as example revenue streams.