Business Idea: Commercialized Drip Irrigation Systems
Assignment Instructions:
Part A) Customer Discovery to Date
In one page (double spaced or single spaced is fine), describe and detail how many potential customers you have spoken with and what feedback they have given you. What changes have you made as a result of that interaction? What have you learned so far? The potential customer group can include the feedback you got from the MBA cohort but should include more than just that group.
Part B) Business Plan: The Executive Summary
Traditionally, this should be done last, not first. However,have put it here in order to provide me some reminder of your project while grading it. Remember, the goal of the Executive Summary is to get the investor to look at the business plan and the goal of the business plan is to get the investor to talk to you. Short, attractive presentation, good writing are critical here. Obviously, when you build the final plan, put this back at the front.
Part C) Business Plan: Production
The critical issue here is how you intend to produce your product or service. Focus on keeping capital expenditures low to minimize the start-up risk. Second, try to describe if and by how much costs will fall as volume increases. Do these costs savings provide a barrier to entry?
Create a 3-page section on how you will produce your product or service. Estimate what it will cost. It is better to out-source in the early stages, so you may wish to go to a firm and get actual estimates.
Although not required for this submission, the final project will need cash flow, income statements and balance sheet projections for 5 years, so be sure to put in as much detail during this stage as possible.
Part D) Business Plan: Marketing
Nothing happens until you have sales. Can you identify your customers; do they have money to purchase; what do they have to change to purchase your product or service; do you have a way to reach them; how will you get your product to them?
Now your team will develop a 3 page section on marketing, distribution, pricing and market share.
How will you introduce, market and distribute your product or service? How do you anticipate pricing your product? How will that compare with your competitors? What market share do you hope to obtain by year 3 and year 5?
Try to build your model based on a concept of growing from the first sale. For example, “The first sale will take X weeks, or we anticipate contacting X customers each month and converting Y into sales.” Do not provide estimates based on “If we only gain 1% market share, we will be as big as X.” Try to justify your answers as much as possible.
