Module Code and Title:                EDP302 Building a Start-up

Programme:                                      Bachelor of Business Administration

Credit Value:                                      12

Module Tutors:                                 Shreejana Pradhan, Enchu Lhamo,Dip Raj Pradhan,Kezang Wangchuk,Carl Wonder,Priyanka Sharma,Jeroen Uittenbogaard

Module Coordinator:            Jeroen Uittenbogaard

General Objective: This module will build upon the basic entrepreneurship concepts contained in EDP101 Entrepreneurship module. It will focus on theoretical approaches to evaluate and start a business enterprise. Based on this foundation, the module builds the student’s understanding of the most widely applicable frameworks and strategies for generating viable business ideas. Using the widely used Business Model Canvas, the student will learn to conduct a series of analytic iterations looking at all facets of an integrated business plan, with continual refinement based on research and fieldwork. 

Learning Outcomes – On completion of the module, students should be able to:

1. Identify the most appropriate startup theories and strategies for a given business proposal
2. Determine appropriate types of support for developing the business, such as using accelerators and incubators
3. Develop an initial business model by using the 9 building blocks of the Business Model Generation “canvas”
4. Determine the interaction between the 9 building blocks of the canvas in any given business
5. Redesign an effective business model through both academic research and fieldwork appropriate to the business model
6. Obtain appropriate market feedback to enhance business model
7. Identify all the assumptions underlying the initial business model
8. Test assumptions through academic research and real-world interactions with the relevant stakeholders (validation and iteration)
9. Update the business model canvas according to new findings through iterative process with special reference to financial projections
10. Evaluate the business idea for feasibility and sustainability through testing of the assumptions and updating of the canvas
11. Demonstrate skills appropriate to convince potential investors to invest in business using the Business Model Generation canvas as a basis

Teaching and Learning Approach:

Assessment Approach:

Quiz: Conceptual theories and strategies for starting an enterprise: 10%

Assignment 1: Analysis of a failed business start-up 

(10% = 5% for individual + 5% Group); 1000-word write-up

Assignment 2: Analysis of a successful business start-up 

(10% = 5% for individual + 5% Group); 1000-word write-up

Assessment for (1) and (2) will be based on the criteria below:

1%       background, summary of key factors impacting situation

1%       definitions of the issues to be addressed

1%       analysis of the impact of various actions

2%       recommendations, with rationale

5%       individually assessed process score (contribution to the group output)

There are in total 5 written project assignments, starting with idea generation/evaluation and ending with an initial implementation plan for the business.

Assignment I: Idea Generation and Evaluation: 7%

Each student will deliver a 1000-word write-up detailing their business idea and explaining how their idea was generated and evaluated using the appropriate tools and concepts.

1.5%    demonstrated use of appropriate tools and concepts for idea generation and evaluation

2%       viable business idea generation 

2%       business idea evaluation process

1.5%    quality of the writing (language, organization, referencing)

(See Assessment C, Presentation I for the corresponding 3-minutes pitch on their business idea)

For all of the following assignments on the Business Model Generation (BMG) canvas students are expected to prepare an exhaustive written report containing also a visual of the up-to-date canvas. 

Assignment II: Initial canvas: 7%

1.5%    demonstrated use of the BMG canvas approach with a visual of the initial canvas

2%       identification and explanation of any initial assumptions / initial validations

2%       appropriateness of initial research and/or field-work

1.5%    quality of the writing (language, organization, referencing)

Assignment III: 2nd canvas: 7%

1.5%    demonstrated use of the BMG canvas approach with a visual of the 2^nd canvas

2%       Identification and explanation any new assumptions / validations /

pivots

2%       appropriateness of additional research and/or field-work

1.5%    quality of the writing (language, organization, referencing)

Assignment IV: 3rd canvas: 7%

1.5%    demonstrated use of the BMG canvas approach with a visual of the 3^rd canvas

2%       identifying initial assumptions and initial validation

2%       additional research and/or field-work

1.5%    quality of the writing (language, organization, referencing)

Assignment V: Final canvas: 7%

1.5%    demonstrated use of the BMG canvas approach with a visual of the final canvas

2%       identifying and explaining any new assumptions / validations /

pivots

2%       additional research and/or field-work

1.5%    quality of the writing (language, organization, referencing)

(see Assessment C, Presentation II for the corresponding 10-minutes presentation on their business model generation canvas journey)

Two presentations will be given by each student during the project.

Presentation I: 3-minutes pitch on their business idea: 5%

1.5%    communication skills (use of appropriate business terminologies, audibility, fluency, confidence)

2%       quality of the presentation materials (content relevancy, appropriate design) and convincingness

1.5%    appropriate answers to the questions from the audience

Presentation II: 10-minutes presentation on their BMG-journey-10%

2.5%    communication skills (use of appropriate business terminologies, audibility, fluency, confidence)

2.5%    quality of the presentation materials (content relevancy, appropriate design) and convincingness

2.5%    clear explanation of the followed process from the initial canvas to the final canvas detailing at the minimum for each iteration the main assumptions, the (un)validations and pivots

2.5%    answering questions from the audience (potential investors)

The module will have a semester-end exam for 2 hours covering the entire syllabus. The question will be divided into two parts – Part A (carrying 40% of the exam weightage) will be mostly of short answer including objective questions. Part-B (carrying almost 60% of the exam weightage) will be mostly of essay type or an extended response to the given question. This part of the question requires students to apply, analyse, and evaluate or construct knowledge and skills. Cases will also be used to test the levels of knowledge.

Pre-requisites: EDP101 Entrepreneurship

Subject Matter:

1. Last/first mover advantages and strategies
2. Lean start up theory
3. Organizational stage theory
4. Use of accelerators or incubators
5. Business Model Generation (BMG) Canvas

1. Last/first mover strategic issues
   1. Strength of potential competition
   2. Capital availability 
   3. Ability of entrepreneur to assess the competitive response
2. Lean start up strategy
   1. Slow start; opportunities for competitors
   2. Starves enterprise needing growth capital, human resources
   3. Appropriate for mature entrepreneurs who move quickly
3. Organizational stage: New venture launch
4. Business model canvas          
   1. Meaning
   2. Purpose of a business model canvas- 
      1. Risk reduction
      2. Integrate all aspects of the business
      3. Viability of the business
      4. Underdeveloped markets (inexperienced entrepreneurs)

1. Business idea vs. Business plan vs. Business model
   1. Customer/product orientation
   2. Integrated (not functional) approach to building model
   3. Process to refine and improve initial ideas
2. The 9 building blocks –
   1. Customer segments
   2. Value propositions
   3. Channels
   4. Customer relationships
   5. Revenue streams
   6. Key resources
   7. Key activities
   8. Key partnerships
3. Cost structure
   1. The business model canvas
   2. Using canvas effectively
   3. Developing initial canvas
4. Assumptions
   1. Identification
   2. Testing and validation
5. Pivots
   1. “Pivot” based on testing and evaluation
   2. Importance of pivoting
6. Iterations
   1. Repeated testing of assumptions, modify canvas
   2. Importance of iterating

1. Market Research and Analysis
   1. Importance of research and analysis in the Business Model Generation approach
   2. Use of online sources: market data; financing sources; research
   3. Use of offline sources: networks of relevant business contacts; direct contact with customers, suppliers, and other relevant stakeholders.

1. Field Work
   1. Importance in relation to the Business Model Generation approach
   2. Interviews
      1. Importance of interviews
      2. Purpose of interviews
      3. Types of interviews
      4. Ethical conduct
   3. Surveys
      1. Importance of surveys
      2. Purpose of surveys
      3. Types of surveys
      4. Ethical conduct

1. Overview of Regulatory Approval Process in Bhutan
   1. General principles
   2. Identifying regulations and laws affecting each particular business
   3. Proper sequencing of approval steps

1. Prototyping
   1. Importance in relation to the Business Model Generation approach
   2. Differences between prototyping and production design
   3. Characteristics and limitations of prototyping
   4. Making an effective prototype
   5. Revising business canvas based on prototype results

1. Attracting Potential Investors
   1. Strategies to attract potential investors 
   2. Use of financial projections within the canvas framework

Reading Lists:

1. Essential Readings
   1. Osterwalder, A., & Pigneur, Y. (2011). Business model generation: A handbook for visionaries, game changers, and challengers. John Wiley and Sons Inc.
   2. Blank, S., & Dorf, B. (2012). The start-up owner’s manual: the step by step for building a great company, (1st ed.). K & S Ranch.
   3. Fisher, S., & Duane, J. (2016). The start-up equation: a visual guidebook to building your start-up, (1st ed.). McGraw-Hill.
   4. Clark, T., Osterwalder, A., & Pigneur, Y. (2012). Business model you: One page method for re-inventing your career. Wiley.
   5. Ries, E. (2011). The Lean Startup. http://www.stpia.ir/files/The%20Lean%20Startup%20.pdf
2. Additional Readings
   1. David Macmillan 11/03/2013 Six Steps for scaling up a startup http://www.trinet.com/documents/white_papers/GIG_Scaling_a_Startup.pdf
   2. Hoffman, R., & Casnochen, B. (2012). The start-up of you: adapt to the future, invest in yourself, and transform your career (1st ed.). Crown Business.
   3. Ries, E. (2011). The lean start-up: How today’s entrepreneurs use continuous innovation to create radically successful business (1st ed.). Crown Business. 
   4. Osiri, J.K. (2014). Entrepreneurial marking: Creating a customer base. Unleash Publishing.
   5. Strauss, S.D. (2002). The business start-up kit. Kaplan Publishing
      1. Veblen, T. (1999). Theory of business enterprise. Blackmark Online.
         1. Druk Holding and Investments Ltd. (2012). Guidebook for entrepreneurs. Thimphu, Bhutan.

Date: July, 2017