Any MBA students here? JD here with a question about a business planning project?

[pg600rr]

So I am not a MBA I am a JD, however I am taking a business planning course this semester. Our grade is basically based on a paper and presentation. For my paper I am planning on doing a model business plan for a fictional business created by me. My prof. said that pretty much all MBA students have to do this as a class assignment in route to getting their MBA.

Here is how I am planning on setting it up:
-create a fact scenario where a group of people are interested in starting a business including all the relevant facts that may come into play in which model they choose and why
-choose the model that is the best fit (ie partnership, llc, corp.)
-create a sample agreement (prob. from template)
-discuss all the benefits of the chosen business focusing on tax considerations (issues & benefits)

For the presentation I will do a power point going through everything I discuss in the paper.

My questions are:
1. does this look something like the type of set up used in created a model business plan in your MBA class
2. whether it is or not, do you know of where there are any sample type business plans or directions on how to create one, maybe an MBA assignment?


Thanks!!!

 

[Milhouse]

That, to me, looks like you are focusing on the legal aspects of a new venture. In b-school, I never did anything like that.

Usually, we took the standpoint of being in a corporation and explored a new business venture from that standpoint.

Do we make or buy? Where do we do it (import & export)? Joint venture? Greenfield? M&A? License it?

How do we finance it? Is it a better option than others (NPV, IRR, etc)?

How do we market it?

So on.

Since I wasn't doing accounting, I never gave a damn about taxes. They are what they are, and someone else (e.g. lawyers and accountants) can figure out how to minimize that stuff.

I don't even know that a class was offered on legal structures for new businesses. Maybe at an entrepreneurship heavy school, but again, it seems to law related and too variable state by state (and country by country) to warrant inclusion in a lot of MBA programs.

 

[pg600rr]

ahh I see. It was after all a law school prof. saying that 'he thought' MBA students do something similar so maybe he was wrong. I hate the tax stuff but on the other hand it is great to know how to start a business and I actually find it interesting (once again not the tax part of it). Unfortunatley taxation issues tend to be a large concern along with liabilty...

 

[crazyquik]

Make sure you include the following:

Make a graph with Excel, and put it into a powerpoint slide. Bonus points for any use of a graph that required a pivot table.

Do a SWOT analysis! MBA's love them like Catholics love the Pope. It can look as simple as this but someone might think you actually have an MBA for using it. Make sure when you talk about Strengths and Opportunities you say "leverage" a lot, and when talking about Weakness and Threats you say "vulnerable" or "exposed" a lot.

One reason I went to law school was to escape the incessant Powerpoint wars and SWOT diagrams

 

[fredfred]

milhouse and cq are both correct.

A typical business plan includes what you are going to do, who the market is, how big it is, and (most importantly) a financial spread sheet projection that shows where and when the money will come in.. and where and when it goes out.

That's waaaaay more important to running a business than any of the legal questions. Without profit, you do not have a viable business.

There are plenty of online sources for business plan help. Amazon's got a zillion books, too.

 

[crazyquik]

Do you have any idea what kind of business it has to be? Does it have to be realistic? Is it going to be plain vanilla like "buy t-shirts in China, spray paint a logo on them, and sell them for 400% markup" or something more exotic? Like a company that gives solar ovens to Third World peasants who were cooking on kerosene, thus cutting back on CO emissions, and finances this by selling $10 bumper stickers in Berkeley, CA as 'visible carbon credits' which people can put on their car to show to the world how 'green' they are, even while driving.

Of you could do both! Sell t-shirts at marked up prices, which have logos on them to inform the public that the wearer has bought the shirt and the carbon credits that go along with it, and use part of the profits to plant trees or replace stoves in Africa.

Hmm, maybe I should start a company like that

 

[Milhouse]

Originally Posted by crazyquik

Make sure you include the following:

Make a graph with Excel, and put it into a powerpoint slide. Bonus points for any use of a graph that required a pivot table.

Do a SWOT analysis! MBA's love them like Catholics love the Pope. It can look as simple as this but someone might think you actually have an MBA for using it. Make sure when you talk about Strengths and Opportunities you say "leverage" a lot, and when talking about Weakness and Threats you say "vulnerable" or "exposed" a lot.

One reason I went to law school was to escape the incessant Powerpoint wars and SWOT diagrams

This is a very good answer, but incomplete. You forgot a 2 by 2 matrix with cute quadrant names like "sacred cow" and "lazy dog" or whatever the hell they are called.

 

[pg600rr]

Originally Posted by fredfred

milhouse and cq are both correct.

A typical business plan includes what you are going to do, who the market is, how big it is, and (most importantly) a financial spread sheet projection that shows where and when the money will come in.. and where and when it goes out.

That's waaaaay more important to running a business than any of the legal questions. Without profit, you do not have a viable business.

There are plenty of online sources for business plan help. Amazon's got a zillion books, too.

Yea that sounds more like a 'true' business plan from a business side viewpoint whereas I have to look at it from a legal aspect, not so much concerned with the funding in terms of starting the business but rather in terms of liabilities. From talking with a few joint MBA's at my school and from the helpful post above it seems like what I need to do and the typical MBA style business plan are quite different. Thanks everyone for the input though.

 

[crazyquik]

Maybe your problems can be solved with the powers of the 2 by 2 matrix?

 

[Milhouse]

Holy ****! Someone actually wrote a book about 2 by 2s???

I have to wonder. . . are MBAs actually worth anything?

Originally Posted by crazyquik

Maybe your problems can be solved with the powers of the 2 by 2 matrix?

 

[Agnacious]

Originally Posted by Milhouse

This is a very good answer, but incomplete. You forgot a 2 by 2 matrix with cute quadrant names like "sacred cow" and "lazy dog" or whatever the hell they are called.

If you don't mention synergies (without snickering) as leveragedsellout illustrates you presentation will be:

On a more serious note, these guys have a good template:

http:://www.exinfm.com/excel files/Financial Projections Model v6.8.4.xls

It will probably be more than you need, but you can look at it to see what goes into the financials and maybe be able to pull out the relevant bits.

edit: that link might not work go:
http://www.exinfm.com/excel files/
and go to :
Financial Projections Model v6.8.4.xls

 

[lpresq]

JD, you may consider the following (it was similar to an essay on my bar exam): Focus on the a hypo that brings several issues w/ respect to opting an llc or partnershp such as shareholders, raising $$, tax implications as well as ethical concerns re the best judgment rule as it may relate to "piercing the corporate veil." Off the top of my head, broadly focus on tax and liability concerns related to LLC vs. Partnerships, then shift to the implications w/ an LLC vs S-Corp.

For ex., have a investment capitalist (silent partner) w/ an existing side-company in a vaguely related business. He uses funds from the hypo business llc to facilitate growth in his own business, which may or may not benefit the hypo business. This will raise issues of BJR, loyalty, and liability with respect to the possibility of piercing the corp. veil. Also, you may choose to develop a fact pattern where he no longer functions as a silent partner in the hypo business and becomes active in corp. decision making (Liability issues), or that he seeks to expand his side-venture by purchasing property to expand his located near the hypo business . Goodluck.

 

[suited]

Things like SWOT and Porter's 5 Forces contain information that should be pretty obvious, it seems pointless to even bother-but for some reason you can't escape them in certain curriculum.

 

[DNW]

Please excuse the resurrection. I'm writing a bplan for a service business, and rather than trying to reinvent the wheel, I'd like a couple of samples from which to pilfer. There's a technology component in the plan as well. Resources would be appreciated.

 

[pg600rr]

Originally Posted by DNW

Please excuse the resurrection. I'm writing a bplan for a service business, and rather than trying to reinvent the wheel, I'd like a couple of samples from which to pilfer. There's a technology component in the plan as well. Resources would be appreciated.

If I remeber correctly from one of my classes last semester, there was a book called emerging companies guide that had some very useful info and templates, also came with a Cd.