Group Project

The group project will simulate the early stages of creating a new, entrepreneurial venture.

Students will begin by forming teams of 4 members.  Teams will then generate new business ideas.  Sources for ideas might include brainstorming solutions to existing customer pain, commercializing new technologies developed at UC Berkeley or other research institutions, or pursuing opportunities identified by family members or work colleagues.

Over the course of the semester, teams will evaluate their ideas and make presentations in class.  The final project will include a detailed development of the team's proposed idea. 

Each team will deliver the following presentations:

1. Ten high-potential initial ideas brainstormed within your group and five ideas based upon UC Berkeley research.

2. Select the most promising idea and detail a) elevator pitch b) customer pain c) value proposition.  Also develop an initial plan to build the founding team, develop the product, forecast cash flows and attract customer interest

3. Final presentation -- convince an investor to write you a check to launch your business

FAQ's

* Can our group work on a project in coordination with other UCB courses?

Yes.  You should prepare a statement describing which part of the project will be submitted for credit in which class.  This statement will be approved by all instructors affected.

* Where can we find ideas for new ventures?

Focus on identifying customer pain in industries you know well.  Look for major customer frustration with existing products, or lack thereof.  Think of John Osher wandering the aisles of Wal-Mart and identifying the need for SpinBrush.  Or think of Robin Chase identifying frustration of urban-dwellers' transportation options.

To identify customer pain, speak to your friends, family members, professors, people on the street, Usenet participants, former co-workers, current co-workers, guest speakers from classes, guest speakers at campus organizations, fans at sporting events, customers at shopping malls, travelers in the airport, bloggers, recruiters, etc, etc, etc.

Generate many ideas -- be creative and also look for seemingly small opportunities.

* How large a business opportunity must our venture address?

There's no single right answer.  Think about the frameworks we discuss in class.  As a general rule of thumb, you'd be doing fine if you identified a realistic business which could plausibly generate $20MM of revenue within three years of inception.  Don't worry if your company would only generate $19MM.  However, also think ambitiously -- plan a venture that capitalizes on an attractive opportunity in a large and growing market.

* What's required for an "A" on the project?

First, the class project represents many of your "homework" assignments as well as your final exam.  Therefore, expect to invest significant time and energy into producing your output.

Generally, you'll receive an "A" if you develop a detailed plan that convinces prospective investors to invest in your new venture.  There are many ways to convince an investor to do so!  You are free to pursue your own creative approaches.

A "tried and true" way to convince an investor would be to apply the frameworks, analytical techniques and philosophies in class to develop:

1. Solid idea solving a real customer pain with a value proposition that's attractive to both your venture and the customer.

2. Detailed, written business plan.  Many formats are acceptable, though the PwC works well in many instances (see the sample plan, detailing topics to address).

3. Concise, convincing presentation.  May include PowerPoint, video, product demonstration, customer feedback, etc.

4. Product mock-up, prototype, simulated software, beta-version software, etc.

* How "real" should we make our plan?

Absolutely, positively as real as possible.  Consider everything required to make a successful venture, and develop specific plans to achieve those goals.  For example don't write, "To do: hire someone to focus on manufacturing the product."  

Instead, write a precise job description, generate ideas of where to find candidates, detail the incentives used to hire that person, etc.  You'll receive an even better grade if you identify the actual person to fulfill the job and convince him/her to join your team and participate in your final presentation!

Links:

Final presentation outline format

PwC Sample Business Plan

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