Terence C. Krell, M.B.A., Ph.D. Office Phone: 792-5330 x244 Home Phone: 793-1998
Office Hours: Tues 11am-noon; 1-3pm; 5:45-6:15; 9-9:30pm
(after class hours are for the students in that night's class only); and by appointment
THE COURSE
According to the University Catalog, this course "examines the decision process of starting a new business. Topics covered include the role of small business in society; characteristics of small business owners; problems, opportunities, advantages, and disadvantages of being in small business. The process of writing a complete business plan is a major focus of the course."
The purpose of this course is to integrate your knowledge of Marketing, Finance, and Management (derived from the prerequisite courses you have taken) with an understanding of small business. A business plan, in addition to being a necessary document to achieve formal funding of a new or existing small business, requires that the writer integrate skills in these three areas in a practical manner, creating a document that allows the reader to visualize every aspect of the business, its operation, and its prospects.
A small business can be one person with a hot dog cart or a corporation having manufacturing sales up into millions of dollars. Thus, small business is not limited to a few people in its operation or the family business. In addition, most local Accounting firms and some national food brands are considered small businesses. It is important to note that small businesses are not "little, big businesses." The issues small businesses deal with are different than those that confront big business. Hence, this course.
OBJECTIVES
By the end of the course, I will expect you to be able to:
1. describe in writing the future operation of a real business.
2. appreciate the difference between large and small business.
3. write a business plan suitable for attaining financing.
4. respond to critical questions regarding your plans.
ORIENTATION
This is a seminar-type course employing a combination of lecture and extensive discussion. Students are expected to contribute from their understanding of the assigned readings, from stories they have heard and from their own experience. Students will each select a business for which they will prepare a detailed, formal business plan functioning as a team of consultants to the business. Team opportunities may exist for students who plan to start a business together.
GRADING CRITERIA
Grades on individual assignments will be assigned on the basis of demonstrated accomplishment in applying concepts to management problems. Grades on team assignments will be the same for all members of the team and will be on the basis of the quality of the written report. Team projects are expected to reflect the number of people involved and are expected to be better than individual projects for the same grade. Thus grades may not be consistent with students' backgrounds, level of input effort, or personal goals. Proper English, including clarity, organization, grammar, references, form, and spelling are a required part of all papers: Failure to use proper English will have a detrimental effect upon your grade. Percentage grades from 0 to 100 will be earned for each assignment. It is rare for an assignment turned in on time to receive a grade lower than 50 or higher than 90.
GRADING PLAN
Your course grade will be based on the following components and point distribution:
- Interim reports (10% each) 30%
- Presentation 10%
- Business Plan 40%
- Participation 20%
GRADING STANDARDS
95 - Exceptional, innovative, or comprehensively written; 80 - Solid performance to assignment; 70 - Marginal or unbalanced analysis, or poorly written; 60 - Completely off-target, minimal analysis, very poorly written 0 - Not turned in. At the end of the semester, each grade will be weighted according to the grading plan and an overall percentage computed. Multiply the percentage grade you receive for each individual assignment by the weighted percent of total grade and add the results together to reach a net score. A net score of 90 or above earns an "A", 80 or above a "B", 70 or above a "C" 60 or above a D. There are no preordained grade quotas, and a modified curve (to raise the average) will be used, which may lower the above grade-required net scores. Overall, solid performance will earn a grade of "B". An "A" will be reserved for outstanding performance. Marginally acceptable work will earn a "C".
CLASS POLICIES
1. Attendance is required. Three tardies will count for one absence. See me in advance, if you have a problem. IF YOU MISS MORE THAN 2 SESSIONS TOTAL, YOU ARE IN DANGER OF FAILING THE COURSE.
2. Reading in this course is essential for discussion. Reading assignments must be completed on time.
3. You will be expected to come to class, participate in group discussion activities, complete assignments, and pull your own weight in team projects.
4. No make-ups will be allowed. Reports and written projects will be lowered one full grade for each day past the due date if turned in late.
5. Create two copies of all assignments you turn in. Turn in one copy, retain one copy for yourself for discussion purposes.
6. All written assignments must be typed (double-spaced, word processing OK). If you use erasable or onion-skin paper, turn in a high quality copy rather than the original. Staple sheets together. Do not use binders, notebooks, etc.
7. Requests for a change in your grade on any assignment or part thereof, must be made in writing. Such requests must include a description of the error made and the reason(s) you believe it is an error, and must be made within one week of receiving your grade.
8. All assignments are to follow correct form, spelling, grammar, etc. Papers which, in the opinion of the instructor, employ disproportionately poor grammar and poor quality written communication skills will be assigned a grade that is one-letter (10 points) lower than would otherwise be assigned.
9. The University rules (see page 27 of the student handbook) on academic honesty and plagiarism apply: In brief, turn in your own work. Do not use papers you have prepared for other classes
10. University regulations prohibit eating, drinking, and smoking in the classroom.
11. Usually I will be available before and after sessions for consultation in office hours. Contact me at the above numbers on other occasions, to make an appointment or to ask a question. I'm usually good about returning calls
POLICIES REGARDING WRITTEN ASSIGNMENTS
Written assignments are due on the day scheduled and should be turned in to your instructor at the beginning of the class period. Assignments turned in after the beginning of the class period are considered to be late. Create two copies: Turn in one copy, retain one copy for yourself for discussion purposes. Assignments turned in after the beginning of the scheduled class period are eligible for a grade no higher than a 70 (and that only if the paper is otherwise an 90 or 85 paper). No late papers will be accepted if submitted more than one day past the scheduled due date (except by prearranged consent of the instructor. HINT: try to have your papers completed a day early). All written assignments are to be typed (double-spaced) and to follow correct form, spelling, grammar, etc. Staple sheets together. Do not use binders, notebooks, etc. Papers which, in the opinion of the instructor, employ disproportionately poor grammar and poor quality written communication skills will be assigned a grade that is one-letter (10 points) lower than would otherwise be assigned. The University rules (see page 27 of the student handbook) on academic honesty and plagiarism apply: In brief, turn in your own work.
REQUIRED TEXTS
(RER) Ryan, Eckert, & Ray, Small Business: An Entrepreneur's Plan, Third Edition, 1993
CLASS ATTENDANCE & PARTICIPATION IN CLASS DISCUSSION
Attendance at all class sessions is expected, especially class discussion of assigned topics. To encourage attendance, the instructor will randomly assign "participation points" to all of those present.
Due to the fact that participation in class counts 20% of your grade, each student must contribute significantly to in-class discussion of topics. Each student is expected to be an active participant and to make meaningful comments on topics being discussed. Your grade on class participation is something to be earned via consistent, daily contribution to class discussion. You should, therefore, make a conscientious effort to attend class discussions and to be sufficiently prepared to contribute to the discussions. Merely coming to class is not sufficient.
Being shy is no excuse for not being prepared, and may mean you will choose not to participate as much as more vocal personalities. Quality of participation is more important than quantity in determining your participation grade. It is therefore the task of those who consider themselves shy to make sure the quality of their participation is higher than that of those who are more vocal.
ASSIGNMENTS
1. Business Plan
It is your task to prepare and present to the class a formal business plan. The requirements for this document are described in the texts, and in handouts. This project will count for 40% of your grade. You are required to meet with the instructor at least once, during office hours and well before your presentation, to insure you are on the right track.
2. Interim Reports
Three interim reports consisting of key elements of your business plan will be handed in and commented on by the instructor. These will be described in handouts and will eventually become part of your final business plan.
3. Presentation
You will present your business plan to the class as a whole at the end of the semester. The class will act as a set of bankers or venture capitalist who will evaluate your plan.
There is no final exam for this course. Business plans will be handed in at the regularly scheduled final time during finals week.
This syllabus is subject to change with appropriate notice.
ASSIGNMENT DEADLINES:
1/16 Lecture/discussion - Syllabus and course overview. Documentation check.
1/23 Lecture/discussion - Entrepreneurship
Read RER Preface, Chapter 1
1/30 Lecture/discussion - Trends and ideas
Read RER Chapter 2
2/6 Interim Report One Due. Lecture/discussion - Small Business Marketing
Read RER Chapter 3
2/13 Lecture/discussion - Customers and Competition
Read RER Chapter 4 & 5
2/20 Lecture/discussion - Promotion
Read RER Chapter 6
2/27 Lecture/discussion - Writing the Plan
Read RER Chapter 16
3/5 Interim Report Two Due Lecture/discussion - Where and What?
Read RER Chapter 7
3/12 SPRING BREAK -- NO CLASS
3/19 Lecture/discussion - Raising Money
Read RER Chapter 11
3/26 Lecture/discussion - Finance
Read RER Chapter 8 & 9
4/2 Interim Report Three Due
4/9 Lecture/discussion - Personnel & Operations
Read RER Chapter 13 & 14
4/16 Lecture/discussion - Buying a Business/Franchising & Legal Matters
Read RER Chapter 10, 12 & 15
4/23 Presentations
4/30 Presentations
5/7 Final Business Plan Due. Presentations NO FINAL
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