Assessment Brief 2Assessment Title: Business StartUp Incubator Report
Assessment Number (if relevant): 2 of 2
Assessment Type: Business Opportunity Assessment
Restrictions on Time/Length: Min. 3,000 words for groups of 3; 3750 for groups of 4, 4250 words for groups of 5. The limit in each case is exclusive of appendices & the template provided on Moodle
Individual/Group: Group
Assessment Weighting: 75%
Issue Date: January 2015
Hand In Date: +3 weeks after last class, indicatively Friday 20 March, exact date will be confirmed with the class & posted on Moodle following the final class.
Planned Feedback Date: 6 weeks from submission date
Mode of Submission: Moodle
Student must submit:-1. MS word / PDF documents via MoodleAssignment Objectives:
Following a short taught stage, learners in teams will be encouraged and facilitated to conceive a product, service or organisational idea and develop it into a detailed, viable and cogent business assessment . The assessment should enable the future realisation of the innovation and should provide clear objectives and plans with all relevant business areas covered, such as customers, marketing, development, operations, finance, etc. Formative feedback on the draft plans will be supplied throughout the module.
RequirementDetails of assignment briefThis is a research-based individual assignment designed to test students in regard to the principal learning outcomes for the module as set out in the Module Guide. For the purposes of the assignment, each student is required to adopt the role of an entrepreneur, as part of a team, who has been asked to investigate a business idea to determine if it is a viable business opportunity. The output of your assessment is a business opportunity assessment which will be submitted to a Dublin based business startup incubator for potential funding, mentorship & office space.
You will be required to investigate many aspects of the idea including
Who are potential customers
What is the customer problem that the product is fulfilling
How will the product best be sold
Product pricing
Who are the competitors & what is their position
Operational issues
Legal , funding & Intellectual property issues.A template has been provided by the incubator in order for you to address the multitude of areas necessary to turn an idea into an opportunity. You are reminded of one message by the business incubator:Business opportunity = business idea + customersThe assignment deliverable is as follows:A formal written report addressing the requirements specified below (100 marks). The report will be based on the MS Word Template supplied with this assessment brief & posted on moodle. The team may modify the template in any way they see fit, however the guidance provided should be covered as this will deliver a well-rounded report.The assignment must be submitted in electronic format using Moodle. It is the students & teams responsibility to ensure that their submission is accessible, and to keep an electronic copy of it in a separate storage device.The report to the Business Incubator must address the following:1. Executive Summary
2. Products & Services
3. The Market
4. Market Research
5. Marketing Strategy
6. Competitor Analysis
7. Operations & Logistics
8. Cost & pricing Strategy
9. Other Matters, including legal, funding & IP
10. Appendices
The report must also contain the following:
An Executive Summary (no more than 100 words)
An identifiable main body, with numbered sections
A list of References & Bibliography
Numbered Appendices (where appropriate).
The word limit does not include the executive summary ( Section 1) or the appendices (Section 10) ; it also does not include the text , in italics, included in the document as guidance or the questions posed in the headers in bold. The guidance text should be removed when you are completing or have completed the report.
BUSINESS OPPORTUNITY ASSESSMENT
Module Code:
Module Name:
Lecturer:
Submission Deadline: Sunday 12 April 2015, via Moodle
Submission Date:
Word count (Excluding the template & appendices):
Team Member DetailsName Student Number
1
2
3
4
5
Instructions:To use the template, delete the text in italics, which are simply a guide to assist you with the assessment. You may modify it in any way you see fit. We suggest answering the questions posed.Min. 3,000 words for groups of 3; 3750 for groups of 4, 4250 words for groups of 5. The limit in each case is exclusive of appendices & the template provided on MoodleTable of Contents (students to update as required)Page
1) Executive Summary 4
2) Step 1: Identify a Consumer or Business Problem 53) Step 2: Better Understand the Problem & the Customer 74) Step 3: Potential Solutions & Recommendation 75) Step 4: Feasibility Analysis
8
6) Step 5: In Conclusion 10
7) Appendices 11
As part of an entrepreneurial team you have been tasked with finding and understanding problems that businesses and consumers face. You know that when consumers and businesses face problems, that they are willing to pay for innovative solutions even if they are not perfect. Your challenge is to find an innovative solution to a real world consumer or business problem.
But theres a lot more to a potential future business than a good idea. You need to think things through to maximise your chances of success. What do potential customers really want? Are they price sensitive? What is the competition like? Will customers like your product? How to price? Etc..Some parts of this assessment will be easier to complete than others. It may be that you experience unexpected challenges that is just the nature of the process. Stick at it because its not the final document thats important, its the process.Executive SummaryOnly complete this section after you have completed all other sections. Explain the problem you have identified and the attitude of potential customers to this problem and your proposed solution. Summarise if you believe this is feasible business proposition. ( Less than 100 words)
Step 1 Identify a Consumer or Business ProblemIn this section describe the consumer or business problem you have identified. Be as clear as you can in explaining the problem you have identified. People & businesses will pay to have problems solved! We are looking for ideas that solve customer problems. Products are objects, for example, clothes, jewelry, books, etc.
Services involve selling time to do something for a customer, for example, a plumber, car mechanic, etc.
Technology such as Apps can be both a service (think Hailo & Gmail) or a product, such as Angry Birds or even both, think Netflix.
Describe the problem the customer faces. What brought this problem to you attention?What is the nature of the problem and how did it come to your attention?
How large a problem is it?Describe the scale of the problem? Is it an annoyance or a major challenge?
Who is serving this customer need at present?Find out information about companies who are currently meeting this customer need at present, even if it is imperfect. Its best to focus on those companies whose customers are most likely to buy from today. Try to do this for at least five potential competitors. It may be that this need is not currently being met. However, remember it is hard to serve a market or problem that does not exist.
You need to work out:
who they are
where they are
how much it costs
how big the company is
what their main strengths and weaknesses are
are they good at what they do?
Name, location
and business size
Product/service
Price
Strengths
Weaknesses
Step 2: Better Understand the Problem & The CustomerA major part of this project is to understand the customer mindset. This is a really important section & should not be skimmed over. The aim is to research & better understand the problem you have identified and the mindset of your potential customers i.e. potential purchasers. We are looking for ideas which solve customer problems.There is no right amount of research. It is better to research your local market than it is to research the entire global market. The right amount of research will tell you what your market looks like, how it behaves and what customers expect.There are two types of market research: desk & field research. Write up your findings including the most important information only. You will need to interview at least 10 potential customers with the problem you have identified.Key findings from field research customer questionnaires:Field research involves asking potential customers their opinion of the problem you have identified. It is the best way of working out if it will be successful. You should ask potential customers to complete questionnaires.
When designing questionnaires:
keep it short one page with about 10-15 questions
ask questions answered yes/no or with options, such as very happy, happy, unhappy, very unhappy
ask specific questions
o How price sensitive are they?
o Which is more important speed or price or quality? Or other factor?
o What influences their purchasing decisions?
o Is this is a real problem or a nice to have?
o Who do they currently buy from, if at all?
o What do they think of their current supplier?
o If appropriate, what would it take to get them to change?
Include a copy of the questionnaire & results in the appendices
Complete at least 10 questionnaires; a medium such as survey monkey is recommended
Clearly document the findings from your field research in this section.Key findings from desk research:
Desk research uses information from the internet and books.
It involves learning what other people say about your market and finding out basic facts. When writing a description of your market, you should explain:
How big the market is (for example, how many sales take place in a year?)
Trends in your market (for example, are sales going up or down? Are people changing how they buy the product/service?)
any important facts, statistics or events
whether the market is seasonal or dependent on other external factors
(for example, the weather)
Good places to find information are:
general area statistics & agencies / your own knowledge from previous jobs or experience working in the field
Clearly document the findings from your desk research in this section.Step 3: Potential Solutions & RecommendationBased on your primary and secondary research in Step 2 you will now have a clear understanding of the customer needs. This section is to describe the top 5 most innovative solutions to this pressing consumer or business problem.Potential Solutions
Potential Solution For / Pros Against / ConsYour RecommendationSelect one single solution (be that a product / service / technology), which you believe is most aligned with customer, needs (i.e. best product / market fit) and explain why. How big is the potential market?Unique Selling Point (USP) for Your Solution:Your USP is the thing that makes your solution different from competitors if there are any. It might be specific to your product/service or it might relate to the way you might deliver the product or service. Be specific and avoid clichs, such as, better quality products, better customer service or cheaper products. Consider how you will show your customers that you are the best solution to their problem.
Unique Selling Point (USP)Step 4: Feasibility AnalysisNow that you have come up with a solution that potential customers are going to love & be willing to pay for, its now time to better understand some of the challenges.
How will you market your solution?Marketing describes any activity that attempts to make contact with potential customers. Good marketing materials in whatever form will grab a customers attention, capture their interest, illicit their desire for your product/service and direct them to take action and find out more.
If your marketing is successful, your potential customers will learn what your solution does and where to find you. Popular marketing methods include TV ads / sponsorship / social media / Google ad words / word of mouth, etc..What are you going to do? Why have you chosen this marketing method? Indicatively, how much will it cost? []Complete the following sections on the next page as appropriate ; delete those that you believe are not appropriate to your chosen solution.Payment & DistributionHow will the product or service be distributed to customers? Perhaps it may be over the web or via local resellers such as Spar shops. When will you get paid and how for example, with credit cards, cheques or cash? Will your customers pay you upfront or pay a deposit and the rest when you finish?
Operations, Premises & EquipmentWhat equipment or premises do you need for example, a computer, a mobile phone, and a sewing machine? What will you use each item for, how much will it cost and where will you buy it from or do you own it already?
LegalAre there any particular legal restrictions or government licensing required?
Pricing: How do you stack up against the competition?How do you think the product should be priced compared to your potential competitors? Hopefully your solution is so innovative that there are no competitors and you can charge a premium!
Money & Funding RequirementsState here the total amount of money needed to deliver your solution, and how these funds should be raised. Will this be attractive to a bank to invest or perhaps angel investors?IP, Patents, Copyrights, Brands, Design RightsIndicate any protection available for your product or service: whether the technology can be or has been patented, whether you can avail of copyright or trademark registration, and the brand image you intend to build up as a protection against competition.
Legal StructureDescribe what type of legal entity you would envisage forming for this venture. Perhaps this solution is best delivered as part of a much bigger existing company with a foothold in the market (more resources) or a startup business (more agile).Step 5 In ConclusionWell, you have been through a detailed assessment of your solution to this consumer or business problem. You are likely to have encountered an issue that you had not expected, thats just how it is sometimes. Based on what you have developed, give an assessment of how feasible the opportunity is and an honest assessment if you, or indeed others, should invest their time, energy & money in it. Perhaps your idea fits better within an existing organisation. If so make a suggestion on who this is.If there is some magic dust e.g. money, time, infinite resources, free marketing, crazy technology that could make this idea into a viable business opportunity then what would that be?This is the question you need to answer: Is this problem a real business opportunity?
Business opportunity = business idea + customers?Appendices (not included in word count)This section is used to provide the detailed data on which the main text of the assessment is based, and to provide extra information of interest to the readers of the business opportunity assessment. Items for inclusion in appendices vary from opportunity to opportunity, but normally include some of the following:
Interesting background information or articles
Detailed market research findings
Promotional literature
Product or service information
Details of company or competitors website
Market research material & detailed results