Order Description
Business Plan & Funding Requirements [100% of Module Grade]
You are required to write an individual 2,000 word business plan comprising two parts:
1. Business Plan – approximately 1,500 words; accompanied by
2. Funding Requirements of your enterprise – approximately 500 words.
The document you write should relate to the new business venture you decided to set up identified earlier in this module.
Part 1: Business Plan (approximately. 1,500 words, 70 marks)
The business plan you will produce is a document that could be presented to a potential investor.
It should include the following:
• Summary of the purpose and uniqueness of the business
• Description and explanation (including evidence) of the market opportunity, the gap in the market that the business fills and the customer need.
• Description and explanation of the products and/or services the business will offer (including the innovation the business brings to the market) to meet the customer needs/solve the customer problem(s).
• Description and explanation of the sales and marketing strategy and activities, plus any role played by the brand to enable the business to attract and retain customers.
• Detailed competitor analysis and a clear description and explanation of the competitive advantage(s) of the business.
• Description and explanation of operational structure and choices.
• A profit and loss summary – incorporating a sales forecast and details of costs for the first year of operation.
• Cash flow forecast for year 1.
NB: The financial tables or spreadsheets you create will NOT be included in the word count limit. However, your written explanation of the key figures (and what is causing them) should be included in the main report and will be included in the word count limit.
Part 2: Funding Requirements (approximately 500 words, 30 marks)
Funding can often be perceived by the novice as an obstacle or even a reason not to pursue a great business idea. However, there are numerous and various options for raising start-up capital for a new venture which can also be an important part of the opportunity.
Please provide answers to the following questions:
1. Identify and describe the various specific sources of finance that are available to any new enterprise from debt and equity sources. Explain the specific advantages and disadvantages of two debt sources and two equity sources.
2. From the options identified in part 1 above, select the sources of funding that you consider to be the optimum choice(s) for funding your venture. You should name the specific commercial banks (e.g. Lloyds, Santander, Barclays), venture capital funds, business angels, grant institutions, etc. (where possible) that the business intends to use. Please explain your rationale for why these specific sources of funding are the best ones for your business venture.
3. Please explain how the investment capital will be used and why it will be used in these particular ways. Use some specific examples in your explanation, e.g. refurbishment of premises, advertising costs, web site development, new product development costs, etc. (Again, there should be commercial logic behind your choices).
IMPORTANT: the funding for the set-up of your business MUST include at least one source of external debt or equity finance.
(Although personal savings and/or family and friends funding may be included as part of your plans for setup and launch, they cannot be the sole source of funding).
Failing to include at least one specific source of external debt or equity funding will automatically result in fewer marks for part two of this assignment.
Student Marking Scheme
Please note that the coursework will be marked holistically and the below marking scheme is for guidance purposes only.
The coursework consists of two questions or two parts – 1) the business plan & forecasts; and 2) the funding requirements. BOTH parts are compulsory.
Please see below for more guidance on the allocation of the marks. The underlying assumption is that you are presenting the plan for a viable business idea to an investor who will judge the credibility of your business and the attractiveness of the investment opportunity.
1. Business Plan – Part 1 (approximately 1,500 words) 70 marks
2. Funding Requirements – Part 2 (approximately 500 words) 30 marks
Total 100 Marks
Part 1 – Business Plan: Description/Criteria Marks
Company introduction: Purpose of the business and the business differentials (i.e. what makes it different and special in its category); location, structure and target audience; short and longer term ambitions/goals for the business. 4
Market Opportunity: Has the student defined the market/segments in which their business will trade, market size, market value and anticipated growth of the market; description of the specific gap they’ve identified and the market potential for the business and any barriers to entry? 5
Identification & evidence of the customer problem(s) that the business aims to solve:
To what degree has the student demonstrated evidence of research and analysis in order to establish a clear need for the business (quantified and qualified where possible) amongst the target market? 5
Solution: This is the solution to the market/customer problem identified above. Has the student demonstrated relevant and appropriate use of information gathered to support their argument and the introduction of the business/products/services that map directly to the above customer problem(s)? 8
Product and/or Service description and explanation:
How well has the student clearly and accurately described their product/service range and explained their respective commercial or strategic contributions? 10
Business model:
How well has the student identified and explained all revenue streams? How well has the choice of business model and prioritisation of revenue streams been explained/justified and factored in to their broader plans? 5
Marketing & Sales:
Has the student showed evidence of segmentation and targeting of specific customer groups and the rationale for these choices?
To what degree has the student described, explained and justified the marketing activities – for product, pricing, distribution/access and promotion – that they would use to launch and grow the business and how the activities are integrated?
Sales: Clear expression of priority customers and the approach, mechanisms, channels and/or resources you would use to drive and close the B2B or B2C deal(s). 10
Competition: How much and how well has the student demonstrated evidence of research and analysis of the key competitors for their business?
Has the student explained the competitive advantage(s) of their business in relation to direct and/or indirect rivals? 7
Operations: The student should describe and explain the logic behind the following where applicable: choice of business location, management team, staff structure, production process, suppliers, equipment, inventory management, use of technology, trading hours, payment types, credit terms, warranties, quality control. 5
Financial requirements & forecasts: To what extent has the student included well researched, credible information and understanding of the financial requirements of the business:
1. Comprehensive, accurate, realistic setup, capital and running costs.
2. Accurate, realistic sales/revenue and profit projections for year 1.
3. Accurate, realistic cash flow statement for year 1.
Commentary on the above figures including explanation of financial highlights, risks and assumptions. 6
Overall Presentation: How well is the plan structured, presented, how clear and precise in expression, and how well referenced to optimise the logical flow, professionalism, reader-friendliness and persuasiveness of the plan? 5
Part 2 – Funding: Description/Criteria
Sources of funding available – to what degree has the student demonstrated awareness of the numerous types of debt and equity funding options available to new ventures. To what extent has the student demonstrated theoretical knowledge and understanding of debt and equity funding? 18
Has the student provided a clear, detailed explanation of the advantages and disadvantages of two debt sources and two equity sources of funding?
Types of finance to be used for the venture – Is there evidence of aligning the financial requirements of the business with the choices of funding options based on type of industry, stage of venture development, size of venture, nature of the venture, growth plans and likelihood of being financed? Has the student included at least one EXTERNAL source of debt or equity funding? 7
Overall Presentation – structure, presentation, use of language, clarity and precision in expression, referencing (see above). 5
NB: Academic models and frameworks such as PESTEL or Porter’s 5 Forces can be used in the market analysis but there is no requirement to include them explicitly in the assignment due to word limit constraints. If they are included, then they should be used in appendices as supporting/contextual information and analysis.
