BLUEPRINT (ENT600) : GUIDELINES & TEMPLATETECHNOLOGY ENTREPRENEURSHIP (ENT600) WRITTEN REPORT TECHNOLOGY VENTURE BLUEPRINT (20%) OVERVIEW A technology venture blueprint is a document that details out what a business wants to accomplish with its new technology product. It is a detailed road map used to convert ideas and visions int o a real and functioning product that is profitable and viable for the business to market. INSTRUCTIONS 1. This is a group project and the students are required to form groups comprising of 3 MEMBERS ONLY. 2. Each group needs to choose and write one viable business idea (product or service). 3. The group needs to write and present final report blueprint using the given format. The written report should not be less than 4,000 pages (original; excluding appendices). 4. Use Times New Roman 12 or Arial 11 with 1.5 spacing for written blueprint report. 5. The report must be submitted on or before ______________. Failure to do so will jeopardize the student’s grade for this subject. IMPORTANT NOTES ON TURNITIN Students also required to submit soft copy of the report via Turnitin. Only reports that achieve less than 20% similiarity index are accepted (those exceeding >10% will be gradually penalized). Please ensure: a. Put the title of the submission using the new product name (e.g. Kid+Safe - Car Seat Child Detection Sensor). b. Name of group members should be listed on the first page. c. The uploaded soft copy must reflect the hard copy report submitted. d. Include the front cover in the Word file before uploading it to Turnitin (together with the student’s name, group etc). e. The transcript can be excluded from Turnitin (to prevent from similiarities), but included in the final soft copy & hard copy submission. ENT600 : NFL 2017 0 COMMERCIALIZATION & INTELLECTUAL PROPERTY 24 9.0 FINANCIAL ESTIMATES 21 8.0 APPENDICES 28 ENT600 : NFL 2017 .0 PROJECT MILESTONES 25 10.0 PRODUCT OR SERVICE DESCRIPTION 2 3.0 MARKETING STRATEGY 8 5. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE TABLE OF CONTENTS Page Number Contents 1.0 TECHNOLOGY DESCRIPTION 5 4.0 REFERNCES 27 12.0 EXECUTIVE SUMMARY 1 2.0 FUNDING PLAN 19 7.0 CONCLUSIONS 26 11.0 MANAGEMENT TEAM 16 6. The summary articulates what the opportunity conditions are and why they exist. This is just a guide). 2. The competitive advantages 1. test. This is your chance to clearly articulate how your business is durable and timely. highlight any differences between what is currently on the market and what you will offer that will account for your market penetration.2. Brief description of the business and product concepts 1. 2. and how it will create or add value to the end user. who will execute the opportunity and why they are capable of doing so. 2.3.3. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE BLUEPRINT OUTLINE Note: Before you begin writing within this section make sure that you have done some research. 1. Define the present state of development of the product or service and how much time and money will be required to fully develop.4. etc. Emphasize any unique features of the product or service and how these will create or add significant value. why you need investment (banks. how the company will gain entry and market penetration. PRODUCT OR SERVICE DESCRIPTION 2. research what types of investment opportunities are available to you. • Gather information sources • Record relevant information • Analyze the information you have gathered and note the associated opportunities and risks • If you are going to submit the blueprint to investors. private equity investors. and introduce the product or service. Describe in some detail the product or service to be produced/sold. ENT600 : NFL 2017 .4.1. EXECUTIVE SUMMARY The executive summary is usually short and concise. also. The management team (Do not use numbering in Executive Summary. the executive summary needs to reflect the criteria presented in the Business Opportunity Analysis Exercises. Blueprint research helps you make informed decisions and create a successful direction for your blueprint. The profitability 1. The target market and projections 1. it answers the questions: “for what reason does this venture exist and for whom?” Essentially. 2.) 1.2 Discuss the application of the product or service and describe the primary end use as well any significant secondary applications.5.1. government. This summary is usually prepared after the other sections of the blueprint are completed. including the prices to be charged for your product and service. 4. agencies. MARKETING STRATEGY 4. own sales force. Include. 4. Promotion. Pricing. 3. dealers and distributors.. Sales tactics. if available. for example. and compare your pricing policy with those of your major competitors. the intellectual property involved. • Describe the approaches the company will use to bring its product or service to the attention of prospective buyers. 2.5. 4. whether service will be handled by company service people. • Describe the methods and channels of distribution you will employ. • Highlight the unique selling proposition (USP) of your product.2.g.5. given the value chain and channel of distribution in the target market. highlight the kind and term of any warranties to be offered. or distributors) that will be used to make sales and distribute the product or service. It should also cover research & development (which outlines your plans for the future).6. Describe any patents or other proprietary features of the product or service. • If your company will offer product that will require service. Most of the technology and specifications have been described in your NPD project (avoid copy & paste). experience and skills involved and regulations that may govern the use of the technology to deliver the product/service. Overall marketing strategy. • Describe the specific marketing philosophy and strategy of the company. of the product. 4. or training.6. Service and warranty policy. direct mail. 4. indicate the importance of these to customers’ purchasing decisions and discuss your method of handling service problems. 4. Distribution. ENT600 : NFL 2017 . BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE Provide a summary of the functional specifications and photographs.3. also. • Discuss the pricing strategy. Discuss any opportunities for the expansion of the product line or the development of related product or service. specialized knowledge. sales representatives. warranties. a discussion of the types of customer groups that you are targeting for initial intensive selling effort those that you are targeting for later selling efforts.4. and future technology trends that you and the market can foresee. • Describe the method (e. or return to the factory. 2. TECHNOLOGY DESCRIPTION Areas to be covered are the key components related to the product/service or technology. Summarize and introduce your technology in a simpler way.1. 1. 5. 5. customers. • Design an advertisement poster that would entice customers to become a potential prospect. Canva. Remember to show assumptions used. Use graphic programs and online tools (e. and business skills and experience in doing what is proposed. and of the existence of the proper balance of technical. Estimated market share and sales. competitors and their products. managerial. such as the willingness of team members to initially accept modest salaries.7. • Based on your assessment of the advantages of your product or service. an outline of the organisational structure for the venture.com) to design the ad. a description of the ownership position of any other investors.8. Key Management Roles Name ENT600 : NFL 2017 . Product/service Market Share and Sales Year Market share (%) Total sales in units Total sales in RM 4.g. Present the key management roles in the company and the individuals who will fill each position. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 4. • Design the logo of your brand and product. a description of the board of directors. Be creative not just in graphics. Branding and advertising.com. a description of the key management personnel and their primary duties. but in copywriting too (attract people using influential heading and words). Organisation a. You need to present indications of commitment. and so forth. MANAGEMENT TEAM This section includes a description of the function that will need to be filled. PosterMyWall. the market size and trends. estimate the share of the market and the sales in units and ringgit that you will acquire in each of the next three years. and the amount of equity investment (if any) of each key member of the management team. skills.2. indicate how these functions will be performed (e. who will perform them. the share ownership planned.3. b.4. Key Management Personnel a.g. accounting. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE b. Describe the exact duties and responsibilities of each of the key members of the management team. Names & Positions Monthly salary Share of ownership Amount of Equity Invested 5. and when they will be replaced by a full-time staff members. Names & Positions Duties & Responsibilities 5. If it is not possible to fill each executive role with a full-time person without adding excessive overhead. Supporting Professional Advisors And Services a. and banking advisors selected for your venture and the services each will provide. particularly relevant know- how. Names & Positions Career Highlights b. describe in detail career highlights. ENT600 : NFL 2017 . consulting. State the salary to be paid. advertising. Management Compensation and Ownership a. 5.. Indicate the names and affiliations of the legal. For each key person. and track record of accomplishments that demonstrate his/her ability to perform the assigned role. using part-time specialists or consultants to perform some functions). Indicate the supporting services that will be required. plan a sound. 7. please refer to Table 7. access to externa fundingl sources are needed. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE Name of Professional Advisors Services Provided 6. • To effectively manage your venture finances. In this section think through some of the general issues you will have to address in your formal business plan. or even a mix of both options. • Explore on a particular government agency that might be suitable to fund your venture. • Explore the funding arrangement required: either equity-based or debt-based financing. FINANCIAL ESTIMATES Sound financial management is one of the best ways for the business venture to remain profitable and solvent. • Use the Ms Excel template given to you to generate the financial reports (balance sheet. cash flows etc. Thus. introduces a new product or service. Elaborate your reasons (consider the advantages and disadvantages of both options). Do research on the requirement needed by the agency. conducts business in a new territory or with a new class of customer or beneficiary.) • Insert the Financial Reports as tables in the Appendices section (not in the main content). 7.g. initiates a new process in an existing facility or commences some new operation after considerable research and discussion. realistic budget by determining the actual amount of money needed to start your venture (start-up costs) and the amount needed to keep it open (working capital or operating costs). ENT600 : NFL 2017 .1 Start-up Cost Estimate the costs incurred in conjunction with one-time activities that the venture undertakes when it opens a new facility. Assign appropriate numbering and refer accordingly (e. • The write-up of the Financial Plan section should not be more than 2 pages (as the tables are displayed at the Appendix section). income statement. FUNDING PLAN The amount of funds needed to start a technology-based venture may go beyond the personal financial capacity of the entrepreneur.1 in Appendix). • Refer to Chapter 8 of your text book. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE ENT600 : NFL 2017 . 2 Working Capital Working capital represents the amount of initial expenditure required to finance the daily operation until the business gets its first sale. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 7. ENT600 : NFL 2017 . The amount of working capital is therefore dependent upon the period until the firm can generate enough sales to cover its short-term expenditure. The next most common source of finance is term loan. ENT600 : NFL 2017 . • Cash outflows – the projected amount of cash flowing out of the company. The pro forma cash flow statement must be able to show the following information: • Cash inflows – the projected amount of cash flowing into the company. the pro forma cash flow statement is prepared between three to five consecutive years. • Cash deficit or surplus – the difference between cash inflows and cash outflows. The equity contribution can be in the form of cash or assets.3 Start-up Capital and Financing Total start-up capital incorporates both start-up cost and working capital needed to start a project. • Cash position – the beginning and ending cash balances for a particular period. 7. The interest rate and the loan period depend on the current interest rate and the amount of loan required respectively. The most common source of finance for new venture is the entrepreneur’s own equity contribution.4 Cash Flow Statement A cash flow pro-forma statement refers to the projected statement of cash inflow and outflow throughout the planned period. However. This is a form of long term financing offered by most commercial banks. Under normal circumstances. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 7. longer periods are sometimes needed depending upon the projects undertaken. The term loan can be used to finance fixed assets as well as working capital requirements. Gross profit is the gross margin realised after deducting the cost of goods sold from sales. manufacturing overheads and the differential value between the beginning and ending balances of the work-in-progress (if any). direct labour. usually for three to five consecutive years. ENT600 : NFL 2017 . It represents the amount of profit before deducting other operating expenditure. Generally. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 7. Net profit (or net loss) is defined as the difference between gross profit and operating expenses for the planned period.5 Income Statement The next step in developing a financial plan is to prepare the pro forma income statement which shows the expected profit or loss for the planned period. the pro forma income statement consists of the following elements: • Cost of good manufactured (production cost) • Gross profit • Net profit Cost of goods manufactured (also known as production costs) refers to the total production cost involved in producing the finished goods. It includes all costs such as direct materials. ENT600 : NFL 2017 . The pro forma balance sheet is prepared for a period between three to five years. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 7.6 Balance Sheet While the pro forma income statement shows the financial performance of the company for the planned period. the pro forma balance sheet shows the financial position of the company at a specific point in time in terms of assets owned and how those assets are financed. delivery of first sales. and highlight the option that is most suitable for your product. starting of production or operations. Activities Deadlines ENT600 : NFL 2017 . completion of design and development. trademark or patent). completion of prototypes. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 8. • Highlight the type of protection sought (is it copyright. COMMERCIALIZATION AND INTELLECTUAL PROPERTY Determine if the newly designed product should be protected. • Explore the commercializing options available (page 128 of text book). ordering of materials in production quantities. signing of distributors and dealers. obtaining of sales representatives. Explain based lessons from Chapter 6 & 7 of text book. Examples of activities that are critical to the success of the venture are: Incorporation of the venture. PROJECT MILESTONES This section includes a month-by-month schedule that shows the deadlines or milestones of activities critical to the venture’s success. 9. receipt of first orders. Provide justifications. Provide reasons (why) and methods (how). Make sure you support your ideas with facts and figures. ASSESSMENT BREAKDOWN Section Marks Preliminary materials 5 (2) Product Description (3) Technology Description 10 (4) Marketing Plan 30 (5) Management Team 5 (6) Funding Plan 10 (7) Financial Estimates 20 (8) Commercialization & Intellectual Property 10 (9) Project Milestones (10) Conclusions 5 Originality (Turnitin) 5 ENT600 : NFL 2017 . • Photos or diagrams of product or prototype • All charts. BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE 10. and textual references as well as some online research. It can be a statement providing viability of the proposal business and seeking grants or loan approval. CONCLUSIONS End with a brief conclusion and the next step of action to be taken. • Market research projections. REFERENCES Make sure all references are cited correctly using APA 6th edition. financials. visuals. APPENDICES Attach any material that does nots easily fit into the body of a blueprint such as: • Resumes of the top management team members. and other related items can be placed here and referenced in the report. Please try to use your own words and ideas based on research rather than copy and paste other’s words from the internet. Recommend that you source interviews. periodicals. 12. The conclusion can include the entrepreneur’s decision on how to proceed next. 11. business journals.