Transcript The Business Plan

The Vice Chancellor’s Cup of
Student Entrepreneurship 2012
VCCE
A business plan
competition
• “Planning is the substitution of error for
chaos.” – Anonymous
• Writing and presenting plans allows you to
communicate
• Communication is essential for attracting
– Investors
– High quality staff
– Suppliers
– Buyers
How to compete
• Get an idea
• Form a team
– The Presenting Team: up to 5 CUHK students
– Real Team may be different
• include non students
• Be fewer or more
• Find an Advisor – any CUHK professor
• CUHK student role must be substantial
– CUHK student equity > 20%
– CUHK student management > 50%
• If your company already exists it must have no
substantial sales before Sept 2011
Plan is written to source equity
capital
• Any independent business in any industry
– No buy-outs of, expansions to or sponouts of
existing companies
– No franchises or licensing agreements for
distribution in a different geographical area
Criterion for winning
…which plan presents
the most attractive
investment opportunity?
Ventures May be Social
Enterprises or Mixed Enterprises
• All great companies have a value creating purpose:
• Google’s mission is to organize the world‘s information and make it
universally accessible and useful.
• High quality employees is motivated to work for such a
purpose
• Attractive Social Ventures maximize social return on
financial investment
– Aim for global impact
– Solve large social problems
– Scalable
• Social Ventures will NOT be judged in a separate track
Prizes
• LEARN skills useful for start-ups
• Interact with VCs, investors and partners
• Winners represent CUHK at national and international
competitions
• 1st $8,000; 2nd $5,000; 3rd $2,000
• Judged by panels of investors
• Sow Asia Foundation Social Venture Award: $8,000
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Regular prize winners may also win the Sow Award
Judged by Darius Yuen
Sow Asia will seriously consider financing of one of the plans
up to a principal amount of $1 million
subject to mentoring, review, due diligence and team commitment
• Investment is available for ventures with high expected
returns
Plan Length
• Written Plan
– Summary maximum 2000 words due 17th December
– Final Plan: 16 pages 12 font due 16th January
• 10 pages of text
• 6 pages appendices
• First page should be summary
• Presentation
– 15 minutes presentation
– 15 minutes Q&A
The Plan Concerns Forecasts
• Focus on one plan with milestones and
cash needs focusing on first year
• Predict
• Unknowable : give your best guess based on
detailed analysis of the present
• Cite sources and list assumptions
The Plan also discusses the past
and the present …
You Business Plan is a
Prospectus
• Make whatever forecasts you wish
• Statements purported to be factual must
be factual
• Any investor will do due diligence in
confirming the facts as presented in the
plan
– you will likely be discovered for falsehoods
• If an investor relies on false information in
making an investment and loses because
of that reliance, you are personally liable
No Plagiarism
Plagiarism is easy to spot
Merriam Webster Dictionary:
pla·gia·rize (Etymology: plagiary Date: 1716)
Transitive senses : to steal and pass off
(the ideas or words of another) as one's own :
use (another's production) without crediting the source.
Intransitive senses : to commit literary theft :
present as new and original an idea or product derived from an
existing source.
When you quote use quotation marks.
Fully reference your sources in footnotes
The Concerns of the Investor
Criterion: Is this an attractive investment?
• Does it create value for end users?
• Is it a “must buy” so the end user is
willing to pay a premium?
• Is that “must buy” market
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large?
high growth?
high margin?
with significant barriers to entry?
• Does the venture’s team fit the
opportunity?
CUHK Faculty and Students Can
Help with Your Plan – but you have
to find the right people yourself !!!!
If you use CUHK technology, obtain the
consent of the developing professor
and CUHK Knowledge Transfer Office:
– Tracy Pang, IP Manager 37633031
For Pre-Incubation at CUHK:
– Center for Innovation and Technology
– K.Y. Leung, Associate Director x 8380
Tap Our Alumni Network
• Alumni are willing to share
– Market knowledge
– Strategic partners
– Entrepreneurial experience
– Investment expertise
• Alumni mentor network
Schedule for VCCE
• Registration and Summary Dec 17th
• Semi-Finalist announcement December
21st
• Full Written Plans January 16th
• Semi-Finals Friday Feb 3rd
• Finals Saturday Feb 4th
Questions? Ask
The CUHK Center for Entrepreneurship
9th Floor Cheng Yu Tung Building
Rosanna Lo [email protected]
phone 26097542
Hugh Thomas [email protected]