SMB350: Funding Sources for Small Business/Entrepreneurial Organizations

Credit Hours: 3

Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 10-25 hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research.

Course Description and Outcomes

This course presents an analysis of the options for financing small entrepreneurial organizations. Students will gain knowledge of the best types of financing options for the various stages and types of small business.

Risk to the business owner is closely examined for each of the financing options available, and the significant role of investors is considered. Several topics surveyed in this course are important in this assessment. These include venture capitalists, angel investors, initial public offerings, business valuation, debt structuring and the critical nature of the business plan toward gaining an understanding of the impacts of financing choices to business operations. The readings include many case studies of real companies as well as exercises involving the application and reinforcement of learning. On completion of this course, students should be able to identify financing opportunities, complete a risk assessment and a business plan, and apply finance models to specific scenarios and situations.

Course Learning Outcomes:

1. Assess the risk of investment of personal resources or independent loans for initial start up. 2. Identify the role of angel investors in second stage of business development. 3. Discuss the process of attracting venture capital and their role in the initial public offering of stock (IPO). 4. Explain the process of business valuation and stock ownership. 5. Describe the process of debt structuring and re-financing. 6. Explain the role of the executive staff in raising capital and market expansion.

Participation & Attendance

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor. SAMPLE

Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible.

Course Materials

Textbook Information is located in the CSU-Global Booklist on the Student Portal.

Course Schedule

Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday.

Discussion Boards: The original post must be completed by Thursday at 12 midnight MT and Peer Responses posted by Sunday 12 midnight MT. Late posts may not be awarded points.

Mastery Exercises: Students may access and retake mastery exercises through the last day of class until they achieve the scores they desire.

Critical Thinking Activities: Assignments are due Sunday at 12 midnight MT.

Week # Readings Assignments

1 Chapters 1 & 3 in Essentials of Entrepreneurship and Small Business

Management Discussion (25 points)

Mastery (10 points)

2

Chapter 4 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (10 points)

Critical Thinking (85 points)

3 Chapter 5 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (10 points)

4 Chapters 6 & 7 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (20 points)

Critical Thinking (90 points)

5 Chapter 11 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (10 points)

Critical Thinking (85 points)

6 Chapter 12 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (10 points)

7 Chapter 13 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (10 points)

Critical Thinking (90 points) SAMPLE

8 Chapter 15 in Essentials of Entrepreneurship and Small Business

Management

Discussion (25 points)

Mastery (20 points)

Portfolio Project (350 points)

Assignment Details

This course includes the following assignments/projects:

Module 1

Portfolio Project: Initial Review (0 points) Review the Portfolio Project Description on the Module 8 Assignments page. Post any questions or comments about the assignment and its requirements of the assignment, this week or at any time during the course, to the discussion forum called Portfolio Project Discussion and visit the forum periodically to read your peer’s thoughts on the project.

Whether you have a question about the assignment or not, contribute a question or comment about the Portfolio Project by the end of Week 1. This is a required component of the Portfolio Project assignment, due this week. No points will be assigned for this deliverable, but points will be deducted from your final grade on the Portfolio Project is you fail to submit this deliverable on the weeks required (see the Portfolio Project Rubric).

Module 2

Critical Thinking Activity: Key Success Factors with Wrightspeed (85 points) Take a look at the web site for Wrightspeed, Inc.

http://www.wrightspeed.com

Wrightspeed, Inc., is an entrepreneurial new entrant into the automotive industry that specializes in very fast, fairly expensive electric cars. Imagine that Wrightspeed needs an infusion of capital to build manufacturing capacity. If you were the owner/entrepreneur, explain the risks and rewards of personally investing in the venture. Is it the burden of the owner alone to raise capital? What options can you describe for the owner to enlist others on the executive staff in raising capital? Your paper should be 3-5 pages in length, in conformity with CSU-Global guidelines for APA Style, and include at least 3 outside resources, which may include credible sources in print or from the Internet; (.org and .com sites are not to be used, but books, journal articles, .edu and .gov sites may be considered as possible avenues for resource materials). The CSU-Global Library is also a good place to search for scholarly sources.

Module 4

Critical Thinking Activity: Franchise Opportunities (90 points) There are many examples of franchise systems. Most people think of fast–food franchises, such as McDonald’s and Burger King, but many franchises also provide a variety of other goods and services including auto repair, tax advising, consulting, real estate, fitness, educational, and dental services. Research a franchise opportunity other than fast-food. Identify and describe the opportunity. Analyze SAMPLE

the benefits and drawbacks of buying that franchise, and how this may be unique to this business segment. Review the services and support provided to the small business entrepreneur by the franchise. Discuss how you would use the business valuation techniques mentioned in Chapter 7 of the textbook to determine a value for purchasing an existing franchise opportunity.

Your paper should be 3-5 pages in length, in APA format with at least 3 outside resources, which may include credible sources in print, or from the internet (.org and .com sites are not to be used, but books, journal articles, .edu and .gov sites may be considered as possible avenues for resource materials).

Module 5

Critical Thinking Activity: Understanding Financial Ratios (85 points) Financial plans and statements are an important part of identifying how much money is needed and of determining the health of the company through company valuation. Completing financial statements is part of the role of the entrepreneur in raising capital.

Reread “All is Not Paradise in Eden’s Garden,” parts 1 and 2, found at the end of subsection LO 4, of this week’s chapter of your text.

Assume the role of Shelly Edison. Using the financial statements for Eden’s Garden, calculate the following ratios:

Current Ratio

Quick Ratio

Debt Ratio

Times Interest Turnover Ratio

Average Inventory Turnover

Average Collection Period o Average collection period in days

Average Payable Period o Payable period in days

Net Sales to Net Assets

Net Sales to Working Capital

Net Profit on Sales

Net Profit on Equity

What recommendations can you make to the Eden’s to improve their company’s financial performance in the future?

Your paper should be 3-5 pages in length and in conformity with CSU-Global guidelines for APA Style. Calculations of the ratios should be shown in an appendix in APA format, while the body of the paper is used for explanations and recommendations.

Module 6

Portfolio Project: First Draft (0 points) Before the end of Week 6 you are required to complete a preliminary draft of your Portfolio Project. The draft should be of at least four pages in length, in addition to a properly APA-formatted bibliographic list of the sources for the project. SAMPLE

This is a required component of the Portfolio Project assignment, due this week. No points will be assigned for this deliverable, but points will be deducted from your final grade on the Portfolio Project is you fail to submit this deliverable on the weeks required (see the Portfolio Project Rubric). Additionally, you will be expected to account for the instructor’s feedback in the final version of the assignment.

Module 7

Critical Thinking Activity: Bootstrapping (90 points) It is essential for any entrepreneur to understand the concept of bootstrapping. Bootstrapping is doing anything and everything to conserve capital for only the things that generate revenue. That may mean bartering for services, approaching friends and family for financial assistance, using rental furniture instead of buying new, and many other creative ways of saving money.

Explain how firms conserve capital. Select a fictitious or real new venture and describe their alternatives for preserving capital. Identify at least five ideas for bootstrapping; describe how these save precious capital as compared to their alternatives. Give examples for each, and justify how much money may be saved in the budget.

Your paper should be 3-5 pages in length, in conformity with CSU-Global guidelines for APA Style, and include at least 3 outside resources, which may include credible sources in print or from the Internet. (.org and .com sites are not to be used, but books, journal articles, .edu and .gov sites may be considered as possible avenues for resource materials.) The CSU-Global Library is also a good place to search for scholarly sources.

Module 8

Portfolio Project: Funding a New Small Business (350 points) Initial Review: By the end of Module 1, any questions or comments about the assignment and its requirements of the assignment, this week or at any time during the course, to the discussion forum called Portfolio Project Discussion and visit the forum periodically to read your peer’s thoughts on the project.

Whether you have a question about the assignment or not, contribute a question or comment about the Portfolio Project by the end of Week 1. This is a required component of the Portfolio Project assignment, due this week. No points will be assigned for this deliverable, but points will be deducted from your final grade on the Portfolio Project is you fail to submit this deliverable on the weeks required (see the Portfolio Project Rubric).

First Draft: You will be required to submit a draft of your proposed Portfolio Project by the end of Week 6. It must be a Word document at least four pages in length in, with an additional bibliographic list, properly APA-formatted, of the sources for that project. No points will be assigned for these, but points will be deducted from your final grade on the Portfolio Project if you fail to submit this during Module 5. Additionally, you will be expected to account for the instructor’s feedback in the final version of the assignment.

In Module 8 you complete your portfolio assignment. In it, develop a plan to approach an “angel investor” for funding a new small business. Include at a minimum the following:

an elevator speech

pertinent business plan information for large capital asset requirements SAMPLE

a determination of how much capital the company will need and in what time frame

attracting venture capital and the benefits of “angel investors” over other forms of investment

government aid available

valuation of the small business

based on the type of business you selected for your Project, evaluate legal issues such as the types of ownership, liabilities, and compliance with laws

an accounting of how you applied the instructor’s feedback from your draft submitted in Module 5

Present your information in at least an 8-slide PowerPoint presentation with notes and reference page, or 8-page Word document, excluding the title, abstract and reference page. Whichever method you choose, cite at least 4 outside resources (.org and .com sites are not to be used, but books, journal articles, .edu and .gov sites should be considered as possible avenues for resource materials) in addition to the course text and materials you studied in Modules 1-7 including feasibility analyses, business plans, and valuation of the business.

Be sure that you have all of the necessary components as set forth in the portfolio rubric. Spend time to assure that the formatting complies with CSU-Global APA, and thoroughly proofread and grammar-check your final product. This, and all other course Portfolio Projects, will become an important part of your individual Program Portfolio.

You should begin to consider your portfolio project in Module 1. Start an outline of the information you wish to discuss. As more material is covered in future modules, you can add to what you have started.

Course Policies

Course Grading 20% Discussion Participation 10% Mastery Exercises 35% Critical Thinking Activities 35% Final Portfolio Paper

Grading Scale and Policies

A 95.0 – 100

A- 90.0 – 94.9

B+ 86.7 – 89.9

B 83.3 – 86.6

B- 80.0 – 83.2

C+ 75.0 – 79.9

C 70.0 – 74.9

D 60.0 – 69.9

F 59.9 or below

In-Classroom Policies For information on late work and Incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.

Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information

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on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources.

Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should also be provided within most assignment descriptions on your course’s Assignments page.

Netiquette Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words?

Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by email, or on discussion boards and other postings within or connected to the online classroom.

If you have concerns about something that has been said, please let your instructor know.

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