Abstract

In the business planning course that I teach, several student teams each year write plans that relate to an operating or a startup business.

Issue

Business planning is difficult for both new and ongoing businesses. Entrepreneurs operating in real world markets often are overwhelmed with operational realities. As a result, the viability of new companies may suffer or they may be unable to obtain funding. Completing a business planning process can be helpful in both ways, in getting additional investors interested in the business and increasing the chances of economic survival.

Response

Students, working in a highly mentored environment, do a step-by-step business plan with the real-world participants. This includes everything from strategic planning through a creation of a full set of financials based on a financial model. As a result, legitimate market validation is accomplished and insights are obtained about the core sustainable advantage of the business, as well as the key financial drivers. The plan is presented and "vetted" by a panel of real world experts, providing additional invaluable advice for both the entrepreneurs and students.

Impact

There are two main benefits of the business planning process for the real world participants. First, the process itself helps them to make well informed strategic decisions about their businesses. Secondly, it allows them to present their businesses in a professional manner to banks for loans and investors for equity funding.

The students benefit from applying a systematic process to the "messy" real world situation. They gain insight about the difficulties that may not be apparent to those working on simulated situations.

Funding Sources

• Private (e.g., commodity groups, foundations, companies)
• Failing Endowment

Topic Description

• Economic Development

Collaborators

• Entrepreneurship and Personal Enterprise

Key Personnel

• Deborah Streeter, Applied Economics and Management, Cornell University