Business plan

EL CENTRO COLLEGE: SMALL BUSINESS OPERATIONS
(BUSG 2309, SECTIONS 5426INET)
FALL 2011

CONTACT INFORMATION

Professor: Kevin S. Wiley, Sr., M.A., J.D.
Office: 400 S. Zang Blvd., Suite 1305, Dallas, Texas 75208
E-Mail: KEVIN.WILEY@JOHNSONPRODUCTS.COM
Phone: 214-537-9572 (mobile, the best way to reach me)
Fax: 972-298-1447
Office Hours: By appointment

COURSE DESCRIPTION

As more and more people are considering “taking the plunge” into the world
of entrepreneurship, this course immerses the participants in the
fundamentals and dynamics of launching and growing a business. The
course is designed to identify and develop the knowledge, skills, and
awareness of what it takes to create and grow a new venture.

COURSE OBJECTIVES

At the end of this course participants will be able to answer the following key
questions:

 What does an entrepreneurial career take?
 What is the difference between a good idea and just another idea?
 Is the opportunity I am considering the right opportunity for me, at
this time?
 Why do some firms grow quickly, but then stumble and never grow
beyond a one-product firm?
 What are the critical tasks and hurdles in seizing an opportunity and
building a business?
 How much money do I need to start a venture, and when, where and
how do I get it?
 What are the minimum resources I need to gain control over an
opportunity, and how can I do this?
 Is a business plan needed, and if so, what kind, and how do I develop
one?
 What is my venture worth and how do I negotiate what to give up?

SBM SUPPLMENT - updated 9/27/2011 Page 1 of 13

 What are the critical transitions in entrepreneurial management as a
firm grows from $1 million to $5 million to $25 million in sales?
 What are some of the pitfalls, minefields, and hazards I need to
anticipate, prepare for, and respond to?
 How can I develop a personal “entrepreneurial game plan” to acquire
the experience and knowledge I need to succeed?

In order to answer these questions, the student at the completion
of the course will develop nine (9) critical skills with the following
SCANS emphasis:
1. How to develop financial pro forma and models essential to the
business plan and the business plan. SCANS 1c, 2a-2e, 6a-6d, 7b,
8a-8c. (SKILL 1)
2. How to locate capital for your venture. SCANS 2a-2e, 6a-7d, 8a-
8c.(SKILL 2)
3. How to structure your venture and master the governance
issues.(SKILL 3)
4. How to develop your exit strategies, e.g. private placements; going
public. Scans 5a-5f.(SKILL 4)
5. How to master the international issues. SCANS 6a-6d.(SKILL 5)
6. How to develop strategic management skills and infuse them in
your organization—mastering “SWOT” analysis. SCANS 2a-2e, 3a-
3e; 5a-5f, 6a-6d, 7a-7d, 8a-8d.(SKILL 6)
7. How to lead your organization. SCANS 3a-3e, 5a-5f.(SKILL 7)
8. How to handle the inevitable adverse event and master downside
planning for turnarounds, bailouts, restructurings and
reorganizations. SCANS 4a-4e. (SKILL 8)
9. How to plan for growth through mergers and/or acquisitions.
SCANS 2a-2e, 6a-6d, 7a-7d, 8a-8d. (SKILL 9)

REQUIRED TEXT
Title: Effective Small Business
Management,10th Edition
Author: Norman M. Scarborough
INSTRUCTOR BIO
ISBN: 13: 978-0-13-615270-5
Publisher:
Publication Date: 2006
Kevin S. Wiley, Sr. is an Adjunct Professor at El Centro College where he
teaches contract and real estate law, and at the University Of Dallas
Graduate School Of Management where he teaches strategic management.
Kevin has over 30 years of experience as an attorney, corporate officer,
management consultant, and business manager for businesses based in the
United States, Brazil, and South Africa. In the course of his career, he has


advised business executives of both start-up and established businesses with
respect to development of strategic plans for domestic and international
sales and distribution; acquisition and development of companies and/or
assets; negotiation of key agreements for manufacturing and other
operations; arrangement of private equity capital in excess of $100 million in
closed transactions; mergers and consolidations; recaps and restructurings;
and valuation of the going concern.

Kevin‟s achievements include the following highlights:
1. Successful restructuring of $78 million in debt owed from
Commonwealth Oil Refining Corp. to Transocean Gulf Oil Corporation
when the latter off-loaded a super-tanker at the former‟s Puerto Rican
refinery, only to be met with a midnight filing of Chapter 11 prior to
the wire transfer as contracted.
2. Member of the litigation team that settled the then largest federal
lawsuit ever brought between Westinghouse Electric Corporation and
forty-seven utility plaintiffs, each claiming that Westinghouse‟s
repudiation of Uranium supply agreements would result in damages
exceeding $10 billion dollars. The settlement created a successful
subsidiary of Westinghouse fully engaged in uranium mining, milling,
and processing of enriched uranium that supplied the utility plaintiffs
with their long term contractual uranium supplies at cost. Although
this cost was materially higher than the contract price, rate regulators
throughout the United States allowed the settlement delta to be part
of rate structures under the theory that there was substantial risk that
the utility plaintiffs could lose their breach of contract claims based on
impracticability of performance under U.C.C., §2-615. This settlement
saved both Westinghouse and private utilities from bankruptcy from an
adverse decision against either party. Westinghouse then pursued a
successful anti-trust action against General Electric, and private
uranium cartels in South Africa and Australia, which had cornered the
uranium market, drove up uranium prices, and thus forced
Westinghouse‟s anticipatory repudiation in the first instance.
3. Led teams in connection with closings of $100 million in private
placement capital in connection with merger, acquisition and
consolidation strategies in the ethnic health & beauty aids industry.
Principal investors included Patricof & Co., LLP. This private placement
firm placed the original seed money for Apple Computer. Led teams in
implementing a strategy of a “reverse” merger that led to the creation
of Pro-Line International, a wholly owned subsidiary of Alberto-Culver,
Inc. (“ACV”), now the second largest health and beauty aids company
in the world focused on peoples of African descent. This transaction
was in excess of $75 million.


4. Chief operating officer of the team that leveraged a $350,000
investment in 1991 to create the then largest ethnic television
syndication company in the United States, The Heritage Networks.
This company at its apex in 2004 had gross revenues of over $50
million, and controlled over ½ of all .30 second commercial units
targeting African-American households; produced and distributed the
longest running and highest rated African-American television series
utilizing the variety show format, “Showtime at the Apollo”; and acted
as advertising unit sales representative with all major Hollywood
studios, including Sony/MGM, Warner Bros., and Paramount with
respect to popular television series, such as “the Steve Harvey Show”;
“Judge Hatchett”; “the Bill Cosby Show”; and “the Parkers”. Kevin
also acted as the Chief Restructuring Officer for the Company when
adverse industry conditions forced a substantial restructuring and
reorganization, drawing on his fifteen-year experience as a
reorganization attorney. This restructuring effort led to a successful $8
million exit capital injected by First Bank & Trust of Louisiana and the
Louisiana Economic Development Agency.
5. Currently, Kevin is Director, Business Development with Johnson
Products Company, Inc., an acquisition that closed in March of 2009.
The acquisition was a divestiture of the “Gentle Treatment” and “Ultra
Sheen” brands by The Proctor & Gamble Company in a transaction in
excess of $20 million dollars. In this position, Kevin oversees the
global business development activities of Johnson Products.
6. Kevin received his B.A. cum laude from St. Mary‟s University, San
Antonio in 1970; his M.A. in Urban Studies from Trinity University in
San Antonio in 1975; and his J.D. from Harvard Law School in 1975.

COURSE TOPICS: (Note: All “Assignments” are due to me by email by
7:00 p.m., Sunday, at the end of each Week Unit. All date references
are to 2011)


WEEK/UNIT
COURSE TOPICS (2011) ASSIGNMENTS
8/29-9/4
Telephone Review
Orientation.(Please Syllabus and
Small Business call cell phone for eCampus
Operations time and Materials;
Orientation appointment) Introduction
Small Business: An Lesson 1-Are You − Reading
Overview an Entrepreneur Assignment:
9/5-9/11 Scarborough:
Small Business Chapters 1
Management and 2
(Skill 1) − Assignment:
Complete
Lesson 1-
“Homework”,
ECampus

Starting a New Lesson 2-What is − Reading
Business Your Business? Assignment:
(Skill 1,3,5 & 9) Chapters 4-5
− Assignment:
Complete
Lesson 2-
“Homework”,
ECampus

The Business Plan Lesson 3-What is a − Reading
Business Plan? Assignment:
(Skill 1,2,5, 9) 9/19-9/25 Scarborough:
Chapter 6
− Assignment:
Complete
Lesson 3-
“Homework”,
ECampus

PERSONAL FINANCES, Lesson 4- − Reading
DEBT Introduction to Assignment:
Business Finances Scarborough:
(Skill 2,3,4,8 & 9) 9/26-10/2 Chapter 7


− Assignment:
See Lesson 4-
“Homework”,
ECampus

Start Up Costs Lesson 5-Starting − Reading
(Skill 2,8 & 9) a New Business Assignment:
Chapter 8
− Complete
Lesson 5-
“Homework”,
ECampus

Pricing and Break Even Lesson 6: − Reading
Analysis Small Business Assignment:
Finance Scarborough:
10/10-10/16 Chapter 11
(Skill 1,8 &9)
− Assignment:
See Lesson 6-
“Homework”,
ECampus

Financial and Legal Lesson 7: − Reading
Management Financial and Legal Assignment
Management- Scarborough,
(Skill 1, 2, 3,4,8) Income statements Chapter 7
10/17-10/23 − Assignment:
See Lesson 7-
“Homework”,
ECampus
NO
ASSIGNMENTS
FOR SPRING
BREAK
Sources of Capital -Reading
(Skill 1, 2, 3, 4,8) Assignment
Scarborough,
Chapters 14-15
Financial Statements- Lesson 8: − Reading
Balance Sheet Understanding the Assignment:
Balance Sheet − Scarborough,


Chapter 7
See Lesson 8-
“Homework”,
(Skill 1, 2, 3,4,8) ECampus

Financial Statements- Lesson 9: − Reading
Cash Flow Managing Cash Assignment:
Flow − Scarborough,
Chapter 8
(Skill 1, 2, 3,4,8) 10/31-11/6 − Assignment:
See Lesson 9-
“Homework”,
ECampus

Human Resource Lesson 10: Payroll − Reading
Issues Assignment:
− Scarborough,
Chapter 19
See
− Lesson 10,
ECampus
−
Business Law and Lesson 11: − Reading
Regulations Dealing with the Assignment:
IRS; Succession − Scarborough,
Plan and Ethics Chapters 20-
11/14-11/20 22
− Assignment:
See Lesson
THANKSGIVING 11, ECampus
HOLIDAYS 11/21-11/27 NO CLASS

Techniques to Enhance COMPLETE − Scarborough,
Profitability BUSINESS PLANS Chapters 17-
AND INTERVIEWS 18, 13
11/28-12/11

ASSIGNMENTS AND EVALUATION

Entrepreneur Interview:


− Each participant is responsible for interviewing an Entrepreneur (someone
who has started a business within the last 5-10 years, whose sales
exceed $100,000 annually). Each participant is to develop his/her own
interview outline.
− Your interview summary should be a 3- to 6-page, bullet point,
summary (word document in 12 point, Arial font) and include the
following three sections:
1. Entrepreneur and Business(es) Overview: A description of
the person you are interviewing and the business(es) he/she has
started (1- to 2-pages).
2. Key Observations: The most important observations learned
from the interview (1- to 2-pages).
3. Key Insights/Impacts: How your key interview observations
relate to/impact you and your entrepreneurial aspirations (1- to
2-pages).

Venture Capitalist Interview:

− Alternatively, each participant is responsible for interviewing a Venture
Capitalist (someone who has invested in a business within the last 5-10
years, whose sales exceed $1M annually). Each participant is to develop
his/her own interview outline.
1. Venture Capitalist and Business(es) Overview: A
description of the person you are interviewing and the
business(es) he/she has invested in (1- to 2-pages).
2-pages).

Business Attorney or Tax Accountant Interview:

− Alternatively, each participant is responsible for interviewing either a
Business Attorney or Tax Accountant (someone who has assisted
entrepreneurs within the last 5-10 years). Each participant is to develop
his/her own interview guide.


1. Attorney or Tax Accountant and Business(es) Overview: A
description of the person you are interviewing and examples of
the business(es) he/she has assisted (1- to 2-pages).
2-pages).

Business Plan Development:

Each course participant will be required to develop a “basic” business plan.
The Plan requires course participants to demonstrate an understanding of
the course materials by integrating and applying the course topics to a
“real life” business idea. Your Plan should follow the “Business Plan
Assessment” outline provided in the „eCampus‟ area of the course website.
Your Plan should be done as a word document in 12 point, Arial font. At your
option, you may also purchase Business-Plan Pro as an alternative source to
support your business plan, as preferred by the Scarborough Text. If you
earlier took BUSG 2309-5426, we will focus instead on execution of your
business plan developed in that course and the financing options.

GRADING SCALE

Grades will be determined based on performance on the following tasks:
− Coursework 30 points
− Interview 20 points
− Business Plan: 50 points
− Total Course Points 100 points

Grades will be assigned based on the total points earned in the class.

Grade
Grade Points 100-point Scale*
A 4.0 93-100
A- 3.7 90-92
B+ 3.3 87-89
B 3.0 83-86
B- 2.7 80-82
C+ 2.3 77-79
C 2.0 73-76
C- 1.7 70-72


D+ 1.3 67-69
D 1.0 63-66
D- 0.7 60-62
F 0.0 <=59
FA 0.0 Failure because of
excessive absences or
failure to withdraw
from the course.
*As a percentage of total points possible for the course.

eCampus and eConnect

eCampus is the web interface used to access Internet-based distance
education courses. This class is registered on eCampus and there are
assigned materials that are located there. IN ADDITION, THE TEXT HAS
CROSS REFERENCES TO WEB MATERIALS THAT WILL BE
INTEREST TO YOU IN EACH CHAPTER AT
www.prenhall.com/scarborough.

For information, go to http://www.elcentrocollege.edu/ecamus/.

eConnect is also the web interface that provides online student services,
which allow students to search, register, and pay for credit classes, view
final grades and financial aid status.

Go to this address: http://econnect.dcccd.edu/econnect/st/stsroexp.html.

You MUST have an email address on file with the College to access
eConnect. You may use a DCCCD email address, which is free if you are
eligible, or you may use a commercial email address). If you have a
question, contact eConnect@dcccd.edu.

COMPUTER USE POLICY: This class will require you to utilize campus
computers. Please see the computer use policy for the district under the
student code of conduct at
http://www1.dcccd.edu/cat0406/ss/computer.cfm.

We will use e-Campus in this course in the following way:
− The course syllabus and schedule
− Key resources (e.g. articles/book excerpts, tools, etc.) in the “Course
Documents” function.
− Emails and posting boards for discussion topics


− Posting questions or comments regarding the lectures in the posting
boards and following the discussion thread

LIBRARY

The El Centro Library is a valuable resource for this course, providing access
to many references and electronic databases that will be useful research
tools for this course. “Hoovers”, a service of Dun & Bradstreet, is an
excellent source for information on businesses of all types.

Recommended readings from the Library include, inter alia:

Accounting for Dummies----John A. Tracey
Growing a Business—Paul Hawken
Guerilla Marketing---Jay Conrad Levinson
How to Set Up Your Own Small Business—Vol. 1& 2, --Max Fallek
101 Best Businesses to Start—Sharon Kahn and Phillip Lerp Group
Small Businesses for Dummies—Eric Tyson and Jim Schell
Small Time Operator—Bernard Kamrof
So, You’re Thinking of Having a Business—Jonathan Sher
The Entrepreneur and the Small Business Problem Solver---William A. Cohen
Working from Home---Paul & Sarah Edwards

POLICY ON ACADEMIC HONESTY
Any violation of the Student Code of Conduct (as printed in
the El Centro College Catalog and available at
http://www.dcccd.edu/cat0900/conduct.htm) will be
penalized accordingly. All matters of academic dishonesty
(plagiarism, collusion, fabrication, cheating, etc.) will result
in a failing grade for the assignment in question. (The
instructor will always advise when a project or assignment
is a group project, which will involve approved
collaboration among students). All violations will be
forwarded to the proper college authorities for review. The
college may, at its discretion, impose additional penalties
on the student including academic probation, suspension,
or expulsion. ANY form of disruptive behavior as
aforementioned will not be tolerated.


GRIEVANCE PROCEDURES:
Students are expected to follow established procedures of
the Health Occupations Division, Paralegal Studies, in
handling academic issues such as grade appeals. El
Centro College requires that other complaints and disputes
(that cannot be resolved by the persons directly involved)
be referred initially to the Ombudsman Office for informal,
confidential, resolution. Additional grievance procedures
and the Student Code of conduct are outlined in the El
Centro Catalog, available in hard copy in advisement or on
the web at WWW.Elcentrocollege.edu.

FINANCIAL AID STATEMENT:
Students who are receiving any form of financial aid
should check with the Financial Aid Office prior to
withdrawing from classes. Withdrawals may affect your
eligibility to receive further aid and could cause you to be
in a position of repayment for the current semester.

RELIGIOUS HOLY DAYS STATEMENT:
A student who is absent from classes for the observance
of a religious holy day shall be allowed to take an
examination or complete an assignment scheduled for that
day within a reasonable time after the absence if, not later
than the fifteenth day after the first day of the semester, the
student notified the instructor of each class scheduled on
the date that the student would be absent for a religious
holy day. A “religious holy day” means a holy day
observed by a religion whose places of worship are
exempt from property taxation under Section 11.20, Tax
Code. The notice shall be in writing and shall be delivered
by the student personally to the instructor, with receipt
acknowledged and dated by the instructor or by certified
mail, return receipt requested, addressed to the instructor.
A student who is excused under this section may not be
penalized for the absence, but the instructor may
appropriately respond if the student fails to satisfactorily
complete the assignment or examination.


CHILDREN ON CAMPUS:
El Centro College strives to protect an environment
conducive to teaching and learning for all enrolled
students. Minor children may not be brought to
classrooms, labs, testing areas or study areas of the
college. This practice is disruptive of the learning process.
Children who are taking part in organized scheduled
activities, or who are enrolled in specific classes, are
welcome. For reasons of security and child welfare, the
college will not permit unattended children to be left
anywhere on the premises. Students/Parents who have
problems with childcare should visit the
advisement/counseling center or the Adult Resource
Center to receive referrals to childcare services in the area.

POLICY ON THE AMERICANS WITH DISABILITIES ACT

Any student who may need accommodations due to a
disability should contact the Disability Services Office,
Room A110, phone number 214.860.2411.

SCANS STATEMENT –See Course Objectives for anticipated SCANS
objectives. A summary of SCANS is available with the Syllabus under
eCampus.


Business plan

Recommended

Recommended

More Related Content

Similar to Business plan

Similar to Business plan (20)

Business plan