BUS357: Ayman and Jimmy Have Been friends Since Secondary days Jimmy is Now Studying Graphic Design: Starting and Managing a Business Assignment, SUSS, Singapore

Section A
Background
Ayman and Jimmy have been friends since secondary days. Jimmy is now studying graphic design at a local polytechnic while Ayman graduated from ITE and is now doing a foundation diploma in journalism and web design. They both are 19 years old and will be enlisted for National Service in one-year time.

Their parents want them to pursue studying for a degree after National Service (NS). Both of them want to be entrepreneurs and start their own businesses. They started a small online business venture. They designed five original designs for polo shirts and got a manufacturer from India to produce 1,000 pieces of each design, i.e., a total of 5,000 pieces. The total cost of manufacturing and delivery to Singapore was S$6,000/- only. They are planning to sell them at S$5 for each t-shirt. They did their calculations and estimated their profits to be S$19,000 [(S$5/t-shirt x 5,000 t-shirts) – S$6,000].

They were excited about the potential profit and went to tell their parents about it. They explained that they would sell the t-shirts online via Instagram as both have followers of over 2,000 each. The parents tried to tell them that it is likely that not all the t-shirts would be sold and that selling might take a long time as they are unknown brands. The two young man argued that the brand can only grow and expand.
One of the parents suggested that they apply for the ‘Alibaba Cloud – SUSS Certificate/Minor in Entrepreneurship’. The parents’ view was that to be admitted into the program they have to present their ideas to a panel of judges who will only admit ideas that are viable. The SUSS website states the following:

Assessment criteria for business proposal applications:

• The uniqueness of the business concept
• Feasibility of the business model
• Strength of management team
• Potential market value
• Working prototype (preferred)
• Social impact (preferred)

Assessment criteria to receive 40 cu Certificate:
1. Participation in the Cloud Computing Course by Alibaba Cloud
2. Participation in the “Pitch to Investors” event organized by SUSS and Alibaba Cloud
3. Start-ups who have secured funding from any one of the following

• Venture Capitalist
• Angel Investor
• Incubator Programme
• Accelerator Programme
• Government Grants or Incentives

Ayman and Jimmy did not know of this certificate opportunity and were excited. They thought it was a good way to get feedback and to obtain funding. They also liked the idea of social impact and we’re keen to establish a social enterprise. They decided to go back to the drawing board to come up with a sustainable social enterprise idea.
They approached you (as a business consultant) for advice and help. The following information was given to you:
(a) They would like to apply for the Alibaba Cloud – SUSS Certificate in Entrepreneurship after they finish NS. However, they would like to start the process of setting up their
venture and even commencing the business (if possible) before that.
(b) They want to start a social enterprise but are not sure what cause they want to support or what social mission. They just felt that they want their business to be a social enterprise and have a social impact.
(c) They do not need to pursue the t-shirt branding idea and are open to any new ideas.
(d) The amount of capital between them (after paying for your professional fees) was only S$7,000. Hence, they would need to also seek funding. They are open to obtaining loans and/or equity investors.
(e) They are very clear that they DO NOT want to franchise a business

The deliverables they asked from you were:
1. Recommend a suitable social enterprise business and how it will help a social cause.
2. Prepare a complete (traditional) business plan for them to adopt.
3. Prepare slides for pitching.
4. Prepare an elevator pitch video.

Question 1
You are to construct a business plan to analyze the opportunities for launching a social enterprise business or a business with a social impact. In your comprehensive business plan, you should discuss the business’s internal and external environment and examine the market segmentation.

You will need to design a marketing plan and the organization structure and carry out a brief discussion of the legal issues relating to obtaining and operating the business. As part of the financial analysis, you need to apply a break-even analysis, including designing a strategy for capital funding in relation to the expected financial returns.

The business plan needs to be well written to appeal to Angel Investors for their consideration in investing in your business. The business plan must apply a valuation of the business and the amount of investment required.