Announcements Global Entrepreneurship

Requirements for Final Examination GE II

posted 9 Jan 2013, 00:53 by Nils de Witte   [ updated 9 Jan 2013, 00:53 ]

From Student Manual:

Deadlines:
January 16th, 2013 @ 09.00 hrs, hand in written report GE 2 (PDF by e-mail to lecturer)
January 30th (13.00 - 17.00) and 31st (09.00 - 13.00) (Changed from 23rd and 25th), 2013, pitches and examination GE 2

Examination:
At the end of each term you will write a (business) plan and pitch it for a forum of experts and investors. The (business) plan will be judged on:
  • innovation;
    • originality
    • use of technology
    • ingenuity
  • illustration;
    • substantiation
    • examples
    • written report and pitch
  • impact:
    • scalability
    • sustainability
    • social impact
    • return on investment
  • implementation (second term)
    • will you pull it off
    • would essential partners participate

Furthermore you will be individually questioned about the content of your report and pitch, your participation in the assignment and your knowledge of the theory and models used in the course and the assignment. You will pass the courses when:

  • (individual) you have contributed duly to the group effort;
  • (individual) you master the used theories and models;
  • (group effort) the report and the pitch meet the stipulated requirements;
  • (group effort) the judges consider contributing to your business.

Additional information:


Topics that should be addressed in the Business Plan:


  • Pitch
  • Why is your business so important
    • Mission/vision
    • Making meaning
  • Who’s lives are you going to touch
    • Your customers
    • Their problem
    • Your solution to that problem
    • Can you jump to the next curve
  • How successful will you be
    • Opportunities and threats
    • Market attractiveness
    • Customer Value
    • Purchasing power and enabling mechanisms
    • Competitors and alternatives
  • What are the major obstacles to achieve success
    • Cultural challenges
    • Institutional challenges
    • Logistical challenges
    • Business challenges
  • How are you going to organise yourselves
    • Strength and Weaknesses of the team
    • Supply chain (make or buy decisions)
    • People and partnerships (who does what)
  • How (and when) will you make your first million ($ or €)
    • Business model
    • Milestones
    • Sales forecast
    • Investments and cash flow
    • Fixed costs
    • Variable costs
    • Margins
  • How will you get going
    • prototyping and trail marketing
    • when can you sell
    • step by step
      • distribution, 
      • marketing, 
      • sales and
      • service

The financial appendix of the businessplan should contain at least the following:
  • Detailed cost price calculation
  • Investment plan (asset side) and finance plan (liabilitiy side)
  • Valuation and ROI for entrepreneurs and investors
  • Profit and loss statement
    • at least 5 year forecast,
    • first two years quaterly statements
    • specify management cost
    • specify marketing costs
    • specify product development costs
    • specify taxes and levys
  • Cash flow forecast
    • including cumulative cash flow and cashflow for investors
  • Balance sheets
    • pre- an post investment
    • yearly only

Assignment for Friday November 30th

posted 23 Nov 2012, 07:47 by Nils de Witte   [ updated 23 Nov 2012, 07:51 ]

On Friday I expect each team to pitch their business idea in max 10 minutes, answering the following questions:
  • Who is your customer
  • What is their problem
  • How will you solve that problem
  • Picture your industry and position yourselves in it (supply chain)
  • Picture your business in three to five years
Conditions for pitching:
  • Your group should be complete
  • When you are not pitching you will give feedback or ask questions to the pitchers

Exam GE1 on Wednesday November 14th

posted 1 Nov 2012, 02:59 by Nils de Witte   [ updated 1 Nov 2012, 02:59 ]

Dear Students,

We have originaly planned the verbal examination for GE1 on Nov. 7th. but Mr De Bell is not available on that date, we have posponed the examination with one week. So your presentationa and the verbal examination wil take place on:

Wednesday, November 14th (examination GE1)

I have received five papers for the GE1 examination. For the groups that have submitted their paper I have made the following schedule for the examination:

09.00 - 10.00    Team Riaaz in 2.E1
10.00 - 11.00    Team Spruijt in 2.E2
11.00 - 12.00    Team Cardozo in 2.E2
13.00 - 14.00    Team Wegscheid in 2.E2
14.00 - 15.00    Team Chipenge in 2.E2

Lectures on that day are cancelled.

For proceedings during examination see Student Manual for the course.

Good luck and kind regards,
Nils de Witte

Notes on Final Presentation

posted 21 Oct 2012, 14:00 by Nils de Witte   [ updated 21 Oct 2012, 14:08 ]

Pitch:
  • See Guy Kawasaki on start-ups first.
  • 10 minute presentation
  • 10 slides max
  • 5 bullits/slide max (or one picture)
  • 5 words/bullit
  • ILLUSTRATE YOUR POINT!
Aim is to convince the examinors (who will act as investors) that you have the most powerfull businessmodel and you are the most likely to succeed in implementing it. See examination for details.


Deadlines:
  • October 31st, 2012 @ 09.00 hrs, hand in written report GE1 (PDF by e-mail to lecturer)
  • November 7th, 2012, whole day, pitches and examination GE1
Examination:

At the end of each term you will write a (business) plan and pitch it for a forum of experts and investors. The (business) plan will be judged on:
  • innovation;
    • originality
    • use of technology
    • ingenuity
  • illustration;
    • substantiation
    • examples
    • written report and pitch
  • impact:
    • scalability
    • sustainability
    • social impact
    • return on investment
Furthermore you will be individually questioned about the content of tour report and pitch, your participation in the assignment and your knowledge of the theory and models used in the course and the assignment. You will pass the courses when:
  • (individual) you have contributed duly to the group effort;
  • (individual) you master the used theories and models;
  • (group effort) the report and the pitch meet the stipulated requirements;
  • (group effort) the judges consider contributing to your business.

Notes on Financial Statements (for practical assignment GE I)

posted 7 Oct 2012, 05:47 by Nils de Witte   [ updated 7 Oct 2012, 05:53 ]

Notes on the financial statements

Usually four simple statements are enough. Planning more than two or three years ahead is pointless.

Investment Budget and Costs Calculation

Overview of major expendirures with explanations.

Example:
Investment Budgetpre start1st year2nd yearetc
Product developmment(depriciate)
Capitalgoods(depreciate or lease)
Start-up costs(may be depreciated)
Furnishings and equipment(depreciation or lease)
Production or procurement
Marketing and Sales
Logistics
Personnel
Rent
Other overheads
TOTAL

Cost calculationeach1st year2nd yearetc
The list price minus av. discounts (excl. VAT)
minus costs for service and warranty
Minus margin distribution and sales channel
Minus outbound warehousing, insurance, freight, handling, (import)duties and taxes.
= the selling price
minus costs for sales and marketing
minus inbound storage and logistics
minus production or processing costs
minus purchasing costs
= gross margin
minus overheads
minus depriciation and amortization
minus capital costs
= NET MARGIN

Cash-flow analysis

Create a quarterly overview of all payments (both received and payed). A cash flow analysis is similar to a summary of your the bank statement. Make sure to include payments on investments but also costs for incorporation, rental guarantees, acquisition costs of capital, et cetera. Also plan loan disbursements and repayments and capital disbursements and divident payments. Please make sure you are as conservative as possible with revenues from sales, which have a habit of being dissapointing in the early stages of yiur business. Consider payment periods (delays) and VAT payments.

Cash Out
Investments (capital goods, R&D, market development etc.)
Purchases
Fixed and variable cost (overheads excluding depreciation, amortisation and reservations)
Guarantees and advances
Interest, (loan)repayments and dividend
corporate taxes and VAT
Total Cash Out
Cash In
Revenues from sales and deposits
Repaid guarantees and advances
Disbursements of loans, subsidy and capital
Total Cash In
Net cash per period
Cumulative

Profit and loss account

The profit and loss account is a statement of operating revenue and expenses, again per quarter. The difference with the cash flow analysis is that loans, capital, guarantees and investments are not included as such. Investments in capital goods are spread by amortization. This means that each time a portion of the amount invested is recorded, untill the entire investment paid off.

A simple profit and loss account is as follows:

Revenues
Sales
Other income
Expenses
Purchasing and/or production costs
Gross margin = (sales - purchases) / Sales
Marketing
Warehousing and logistics
Overheads
Other expenses
Operating profit / loss = revenue - expenses (EBITDA)
Depreciation and amortisation
Interest payments
Special costs / benefits (reservations)
Profit / loss before tax
Income tax
Net profit / loss (after tax)


If you provide profit forecasts or return on investment for investors, these are always based on Net Profits after Tax, unless explicitly stated otherwise.

Balance Sheet

The balance sheet provides an overview of the distribution of capital. On one side states what the capital is used for and the other side states where the capital originates (who it belongs to). A balance sheet is a snapshot. It states the situation at a specific moment (unlike the Cash-flow statement and the P/L). An important balance is the opening balance at the start of the company and the balance sheets just before and after new shareholders come on board.

Example of a simple balance sheet:

Assets (property)Liabilities (financing)
Real EstateEquity capital
Capital goods   from shareholders
Inventories and ordersRetained profit / loss
Loans from shareholders
Money (cash or bank)
Bank loans (short and long)
Accounts receivable Supplier credit
Other assetsOther liabilities (lease?)
TotalTotal

Note that the total assets must equal the total liabilities. Loans from shareholders are not formally regarded as equity, but under particular circumstances they are regarded as “guaranteed capital”. Long-term liabilities such as rent and lease, do not really belong on the balance sheet, but because they are important for the solvency (and thus for the shareholders), they better be included be on the liabilities side of the balance. Investors can calculate ratios themselves. They're usually better at it than the entrepreneurs. One ratio remains important: the ratio between equity (or the guarantee capital) and loans (and long-term liabilities).

Finally, limit the financial annexes to two or three pages. They only serve to illustrate the business model.

Outline Business Model (for practical assignment GE I)

posted 30 Sep 2012, 04:38 by Nils de Witte   [ updated 30 Sep 2012, 04:38 ]

Practical Assignment GE I

GE I - form groups of 5 students and create a business model for a business based on introducing a new or existing product or service in a new market or markets based in new emerging economies.

Outline Business Model:

  • Pitch
  • Why is your business so important
    • Mission/vision
    • Making meaning
  • Who’s lives are you going to touch
    • Your customers
    • Their problem
    • Your solution to that problem
    • Can you jump to the next curve
  • How successful will you be
    • Opportunities and threats
    • Market attractiveness
    • Customer Value
    • Purchasing power and enabling mechanisms
    • Competitors and alternatives
  • What are the major obstacles to achieve success
    • Cultural challenges
    • Institutional challenges
    • Logistical challenges
    • Business challenges
  • How are you going to organise yourselves
    • Strength and Weaknesses of the team
    • Supply chain (make or buy decisions)
    • People and partnerships (who does what)
  • How (and when) will you make your first million ($ or €)
    • Business model
    • Milestones
    • Sales forecast
    • Investments and cash flow
    • Fixed costs
    • Variable costs
    • Margins
  • How will you get going
    • prototyping and trail marketing
    • when can you sell

How do you score on:
  • innovation;
    • originality
    • use of technology
    • ingenuity
  • illustration;
    • substantiation
    • examples
    • written report and pitch
  • impact:
    • scalability
    • sustainability
    • social impact
    • return on investment

Homework for GE1 week 2

posted 2 Sep 2012, 13:21 by Nils de Witte   [ updated 2 Sep 2012, 13:22 ]

Check-out:
For next lecture read:
For next lecture do:
  • Do research and write a brief report on an SME that exports from/to emerging markets; focusing in particular on the different theories about internationalization (Uppsala model, born globals, resource based view etc.)

Welcome to Global Entrepreneurship I & II

posted 2 Sep 2012, 11:49 by Nils de Witte   [ updated 2 Sep 2012, 11:49 ]

Dear Students,

Welcome to my class site. Here you will find your programme for the course, assignments and resources. You should be able to access all documents, exept for "klassenlijst" and "Secret Mission". You will see me on Monday and Wednessday, when I will explain to you what we will be doing the next semester. I promise you, it will be pretty exiting.

See you,

Nils de Witte

Course Schedule 1213A

posted 2 Sep 2012, 04:41 by Nils de Witte   [ updated 2 Sep 2012, 04:41 ]

DayStartEndCourse codeActivityFormGroupLecturerLocation
Maandag12:1014:10MB-GE1INTER-10M-Global Entrepreneurship 1/01HCMB-Minor International Business for Emerging MarketsWitte, Nils deFEM 1.25 [L30] B + S 
Maandag15:4017:40MB-IB1STRA-10M-International Business 1: Strategy/01HCMB-Minor International Business for Emerging MarketsBruyn, Robert deFEM 0.27 [L30] B 
Dinsdag8:3011:00MB-ECSOCDE-10M-Economic and Social Development/01WCMB-Minor International Business for Emerging MarketsHoestenberghe, Karel vanFEM 1.48 [L30] B 
Dinsdag12:0014:30MB-ECSOCDE-10M-Economic and Social Development/01WCMB-Minor International Business for Emerging MarketsHoestenberghe, Karel vanFEM 1.04 [L30] B 
Woensdag8:3011:30MB-GE1INTER-10M-Global Entrepreneurship 1/02WCMB-Minor International Business for Emerging MarketsWitte, Nils deFEM 2.D1 [150] 
Woensdag12:3015:30MB-IB1STRA-10M-International Business 1: Strategy/02WCMB-Minor International Business for Emerging MarketsBruyn, Robert deFEM 0.27 [L30] B 
Date: 02 Sep 2012

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