UNB’s CIBC4th Annual

Business Plan Competition

COMPETITION PACKET

University of New BrunswickFaculty of Business Administration

www.ibec.ca(506) 453-4557

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Table of Contents

UNB’s CIBC Business Plan Competition..........................................................................3Schedule of Events..........................................................................................................4Eligibility...........................................................................................................................4Entry and Competition Process........................................................................................5The Business Plan...........................................................................................................6Sample Business Plan Outline.........................................................................................7Suggested Organization...................................................................................................8The Presentation............................................................................................................10The Elevator Pitch..........................................................................................................10The Podcasting Competition..........................................................................................11Evaluation Criteria and Judging.....................................................................................11Plan Evaluation..............................................................................................................12Prizes.............................................................................................................................13Confidentiality and Agreement.......................................................................................14Helpful Hints and Evaluation Questions.........................................................................14

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UNB’s CIBC Business Plan Competition

UNB’s CIBC Business Plan Competition creates an atmosphere for university students and entrepreneurial-minded individuals to celebrate talent, to encourage entrepreneurship as a viable option for the future and to prepare for the challenges of a global marketplace.

UNB’s CIBC Business Plan Competition gives participants a chance to organize, direct and present a business plan to a panel of judges. These judges will select the most plausible and promising business plan in each track and cash prizes will be awarded to each successful team. Secondary prizes will also be awarded, as well as individual awards, such as the best financial plan. UNB’s CIBC Business Plan Competition is proud to announce that there is over $17,500 in prize money available for successful teams in the competition.

UNB’s CIBC Business Plan Competition is hosted by the University of New Brunswick in conjunction with the Faculty of Business Administration. This years’ competition is being coordinated under the guidance of Dannie Brown and Karen Murdock. In addition, it involves a number of faculty and staff members, as well as student volunteers. Coordinators manage the operations of the Competition which include:

StructureFinancesJudgesMarketingPublic RelationsSponsor RelationsInformation

Technology

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UNB’s CIBC Business Plan Competition is a tremendous undertaking that has been made possible only through the generous support from sponsors, judges, faculty and administration of the participating schools and the community. A special thanks to the CIBC, our major contributor.

Other sponsors include:

Schedule of Events

A finalized agenda outlining the schedule of events will be provided to each Team upon registration.

This year, UNB’s CIBC Business Plan Competition will be held over the course of two days. Day One (November 30th, 2006) will be a half-day event that will be utilized primarily for registration, a welcome ceremony and The Pitch Competition. There will also be a reception that will allow students and entrepreneurs the opportunity to network within and between universities, financial institutes and business agencies. Practice rooms will be available for teams to book upon registration. Each team is responsible for providing its own laptop and backup materials for team practice.

On Day Two, (December 1st, 2006) each team will be required to present their business idea, through a PowerPoint presentation, to a panel of judges. Business Plan presentations and judging will be scheduled throughout the afternoon. The order of team presentations will be determined through a random draw during the Welcome ceremonies on Day One.

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A dinner, public address and awards ceremony will follow the competition. The winning teams will be announced at the beginning of the public address and awards will be presented. The evening will close with a wine and cheese reception.

Eligibility

The UNB’s CIBC Business Plan Competition is open to all Canadian and International graduate and undergraduate student teams, as well as entrepreneurs from the private sector. Each graduate and undergraduate applicant must register a team consisting of a minimum of 2 and a maximum of 4 members. Entrepreneurs from the private sector may register as an individual or a maximum 2-person team. University students should be accompanied by either the team Coach or a University representative. Teams are required to compete in their division as dictated by the qualifications of the team members. For example, if a team consists of 2 undergraduate members and 1 graduate member they are required to compete at the graduate level. This rule also applies to those in the private sector. Business plans must be for a new business in the planning stages. Any business plan that has been prepared within the last calendar year will be eligible for entry. Each team may submit only one plan to the competition. We regret that business plans that have been previously submitted to UNB’s CIBC Business Plan Competition are not eligible.

Teams are required to have personally conducted the business plan analysis and prepared all financial projections. Any Business Plans that are prepared in full, or in part, by an outside professional firm are not eligible.

Entry and Competition Process Outline

Entrants must submit Individual and Team Registration Forms by no later than Friday November 17th, 2006 by 4:00 pm. Registration forms can be downloaded on-line at www.ibec.ca and then mailed or faxed to:

University of New BrunswickFaculty of Business AdministrationInternational Business & Entrepreneurship Centre (IBEC)PO 4400 Fredericton, NB E3B 5A3Fax: 506-447-3081Attention: Karen Murdock

Please ensure that any dietary restrictions or allergies are identified on registration form.

Further questions may be addressed to Karen Murdock at kmurdock@unb.ca

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Release Forms will be available for signature at the registration desk on the day of the Competition. These forms grant UNB Audio Visual Services and legal representatives the irrevocable and unrestricted right to use and publish photographs taken on the day of the competition for editorial, advertising and promotional purposes.

Teams will also be required to submit a PowerPoint Presentation, 3 hard copies of their business plan and one electronic copy by no later than Friday November 24th, 2006 at 4:00pm. Failure to submit the above documents by the deadline will place your team at a disadvantage as judges will have less time to review your submitted business plan. For more specific information about the business plan refer to the section under the heading The Business Plan.

Each team will present their business plan to the panel of judges. For more specific information about the presentation refer to the section under the heading The Presentation.

Teams will be required to deliver a one-minute verbal pitch of their business plan to a

panel of judges. All elevator pitches will be videotaped. Prize money will be awarded for the best pitch. For more specific information about the elevator pitch and the elevator pitch competition refer to the section under the heading The Elevator Pitch.

Interested teams may compete in the Podcasting Competition. Teams will be required to video-tape a two-minute pitch of their business plan and submit to a secure website where it will be reviewed by a panel of judges prior to the competition. Prize money will be awarded for the best pitch. For more specific information about the podcasting competition and the elevator pitch competition refer to the section under the heading The Elevator Pitch.

Business Plans will undergo a detailed review and will be judged for completeness, quality and other factors. For more specific information about the evaluation of plans and judging process refer to the section under the heading Evaluation Criteria and Judging and Plan Evaluation.

The Business Plan

The Business Plan should include a cover page, executive summary, company description, marketing plan, advertising/communications budget, management plan, competitive analysis, financial statements (income statement, balance sheet and cash flow statement and any other pertinent sections necessary to complete a comprehensive document).

The necessary function of the Business Plan is to achieve the following:

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Present the simple structure of the business, including detailed information about key individuals in the organization, the team’s ability to work well together, and information on their growth strategy.

Determine and prepare for the risks and benefits of operating the business.

Identify the resources needed to accomplish day-to-day business.

Explain the market for the goods or services provided, including a detailed review of the results of thorough market research (market size, anticipated growth, key changes, driving forces of the market, competition, unique capabilities of your company, market penetration, etc.) If applicable, present the findings of thorough patent research.

Present a positive reason for investors to take interest.

The business plan should be easy-to-read, concise, and interesting. It should address specific strategies, goals, prospective markets and investors, and the actions needed to accomplish or obtain them.

The function of the financials in the business plan is to indicate the expected margins and financial growth. It should indicate how much money is going where and for how long. It should include any planned investments, savings, and necessary expenditures and a realistic projection of sales and revenues. Like the business plan, it should be concise and easy to follow. Charts and graphs are an exceptional manner of presentation. The financial section should support and defend all information presented in the Business Plan.

The following Sample Business Plan Outline and Suggested Organization are based on the judging criteria.

Helpful Links: http://www.acoa.ca/e/business/tools.shtml http://www.bsa.cbsc.org

Sample Business Plan Outline

The following is only to be used as a sample business plan outline. It should be stressed that every business plan is unique and should thus deviate from this sample as deemed appropriate.

Cover PageCompany nameContact person and info (mailing and e-mail addresses, phone number)

Executive SummaryMore brief than the submitted Executive Summary

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Current Position of the CompanyBusiness descriptionStrategic alliances and/or partnerships

The MarketIndustry analysis (target market, market size and growth trends)Customer profile and current customersCompetitive analysis (include website URL, phone numbers, street address, etc.)Establish what need your product/service will fulfill in the market

Products and/or ServicesCurrent products/services and the need/backgroundFeatures and advantages of products/services compared to competitionProduction, distribution and facilitiesProprietary position, research and development and future products/servicesPackaging/DistributionService and warranty policiesCompetitive Advantage

The Marketing StrategyMarketing strategy (pricing, promotion, advertising, sales method, distribution, and public relations)Advertising/Communications BudgetAnticipated date of market entry

ManagementOfficers, key employees, and board of directorsAccountants, attorneys, bankers, insurance agents, or other external supportOrganizational Chart

Capital RequirementsUse of funds (include proposed business application of competition funds)Sources for repayment

Financial StrategyAssumptions about revenue, costs, asset requirements, obtaining funding, etc.Break-even analysis with proposed debt and competition funds

AppendicesDetailed 12-month and 3-year pro forma cash flow statements (source and use)Exhibits including marketing materials, company product reviews, clips from industry and trade journals, patents, photographs or facilities, etc.

Suggested Organization

The Company9

Explain the purpose of your business and why your company will be successful. State your company’s long-term objectives and strategy (i.e. to go public, to command 10% of the market share after ten years, to reach $50 million in sales after five years, etc.).

The Market

Give a detailed description of the needs in the market that your product(s)/service(s) will satisfy. Consider what market factors or issues are driving the need for your product and identify your target market. Assess the market size, anticipated growth and any potential changes. Decide and justify who your target market is. Thoroughly assess the competition and their competitive and strategic positions in the market. Explain any competitive advantage(s) that differentiates your company from the competition and that will drive your company’s success.

The Product(s) or Service(s)

First, identify specific planned products and projects. Describe distinctive features and user benefits relative to market needs and the product(s)/service(s) of the competition. Explain any proprietary positions such as copyrights, trademarks, patents, trade secrets, special production processes or technological skills. Discuss pricing and margins both for your product(s)/service(s) and those of your competitors. Carefully consider any governmental regulations and/or environmental issues that will affect your product or service.

Marketing Strategy

Describe your market strategy including distribution, place, price and promotion. A communications plan should be developed explicating how you will advertise your product to the chosen target market. An advertising budget should be developed in accordance with the selected communications methods.

Management

Explain the current or anticipated organizational structure of the company and the history of the management team. Provide brief backgrounds of key individuals in your organization including skills relevant to this job, the specific value they add to the company, and past successes and achievements. Assess the synergy between these key individuals and explain why they would be an effective management team. Identify any immediate personnel needs. Development of job descriptions and compensation plans will aid with the pro forma cash flows statement in the financial summary section.

Financial Summary

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Specify initial and subsequent funding needs and estimate the timing and nature of expected investor returns. Evaluate, if possible, the returns to investors of similar businesses and indicate an exit strategy (i.e., merger, acquisition, or initial public offering). You must provide realistic projections of sales, revenues, expenses, and income over a three-year period via a pro forma cash flows statement. State and briefly justify the financial assumptions used to generate these projections.

The Presentation

Each team will be required to present their business idea to a panel of judges via a PowerPoint presentation.

Equipment necessary for the presentation will be provided. This will be a closed session with only the Teams, Judges and Timekeepers present.

Since the time is limited to twelve minutes, the presentation must be well organized and emphasize only the most important features of the business. The presentation will be followed by an eight minute Question and Answer period. If these times are exceeded the team’s total score will be reduced accordingly.

The presentation information does not have to be in any particular order. It is important that you first build enthusiasm for your idea and then prove that you can be successful in the market. Organize your presentation to emphasize the most important features of your business in the time allotted.

All team members must participate in the presentation of the business plan. Failure to do so results in disqualification of your team.

The Elevator Pitch

You are in an elevator with a business executive with whom you have been trying to arrange a meeting with for months. The executive is not able to set up a meeting due to his/her busy time schedule, but is willing to listen to you for the duration of the elevator ride. You must convince this attentive business leader to invest in your product/service

in one minute. Absolutely NO visual aids are available.

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Teams will be required to deliver a one-minute verbal elevator pitch of their business plan to a panel of judges on the first day of the competition. UNB’s Audio Visual Services will videotape the elevator pitches. The teams’ presentation of the elevator pitch will be followed by a question and answer period. It is important to note that each team should select one person to present the elevator pitch on behalf of the team. This elevator pitch will prepare the teams for future presentations and provides the opportunity to show case their business ideas.

A panel of judges will evaluate the elevator pitches and an award will be given based on the teams’ ability to sell their product/service to the audience. Judges will be looking for enthusiasm, creativity, persuasion and public speaking ability. Winners of The Elevator Pitch Competition will be announced on December 1st at UNB’s CIBC Business Plan Competition awards ceremony.

Examples of Elevator Pitches can be found at:http://www.imakenews.com/techyvent/e_article000111463.cfm

Read about Elevator Pitches at:http://www.entrepreneur.com/article/0,4621,306110,00.html

Podcasting Competition

In addition to the Elevator Pitch competition, teams are encouraged to participate in the podcasting competition by submitting a video pitch that follows the above guidelines for the elevator pitch. Podcasts will be submitted to a secure website where they will be reviewed by the judges prior to the start of the competition. The winning podcast will be played during the awards ceremony and a prize will be issued.

For more information about Podcasting and for the secure website address, log onto www.ibec.ca under the CIBC Business Plan competition where links to sample pitches and tips on creating your own podcast can be found.

Examples of Elevator Pitches can be found at:http://www.youtube.com/watch?v=Tq0tan49rmc

Evaluation Criteria and Judging

The judges’ panel consists of venture capitalists, entrepreneurs, and other successful and knowledgeable business leaders. Judges will not be affiliated with, or involved in the preparation or funding of, any participating team. The decision of the judges’ panel will be final and will not be subject to appeal. The overall selection of winners is based on the viability and likely success of the business.

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The judges want to see a business concept that is realistic and viable in today’s volatile marketplace.  Other dynamics should include an understanding of the market, a complete set of essential skills to run the business and knowledge of the challenges and commitment level required for success.

The most important evaluation criterion is to articulate, through the presentation and the business plan, an opportunity that demonstrates a strong market outlook, solid prospects for full-scale commercialization and the likelihood to attract investments.  Judges want to see a clear, realistic, flexible business strategy combined with a financial strategy that has a viable model and a plan to manage investors.

Plans will be judged on the basis of potential success as a new business venture. The judges will evaluate the written plan and presentation on the following criterion:

Clarity and persuasiveness of the written planClarity and persuasiveness of the oral presentationSkill and directness in answering questionsViability of the proposed ventureVision for and potential of the proposed ventureProspective financial returnProbability that the plan will lead to a real businessTeam members’ participation in the presentation

Plan Evaluation

A panel of 3 judges will evaluate business plan submissions in each track. Teams and business ideas will be reviewed by the judges and given a score of 1-5 on various criteria. The scores will be averaged amongst the judges. The top score will be awarded the Grand Prize in that track. The basis for scoring plan evaluations follows:

Part I: Written Business Plan (40% of overall evaluation)Based on individual judges’ analysis(Rating system: 1=very poor, 2=poor, 3=fair/average, 4=good, 5=very good)

Executive SummaryProduct or ServiceCompetitive Analysis and Market AnalysisMarketing Strategy and Advertising/Communications BudgetManagement BiosFinancial Analysis and Break Even AnalysisViability Brevity and Clarity

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Appendices (pro forma cash flow statement, income statement, balance sheet, marketing/communications budget, marketing materials and any other supporting documents deemed necessary)

Part II: Team Presentation and Venture Viability (60% of overall evaluation)Based on individual judges’ analysis(Rating system: 1=very poor, 2=poor, 3=fair/average, 4=good, 5=very good)

Presentation Questions and AnswersMarket Opportunity Viability of the IdeaEconomics ResourcesDistinctive CompetenceManagement Capability Financial Understanding

Prizes

This year, UNB’s CIBC Business Plan Competition is proud to announce that there is over $17,500 in prize money to be won. Once again, thanks to our generous sponsors. The following are some of the categories in which prize money will be awarded:

A Grand Prize winner will be awarded $5000 in each Track (Graduate, Undergraduate and Private Sector) to the teams with the best overall Business Plan. Additionally, funding of up to $1000 will be offered to the Grand Prize winning team in each track towards expenses incurred for participating in an upcoming national competition. (i.e. The Richard Ivey School of Business Competition)

A Secondary Prize will be awarded to the runners-up in each Track.

A Prize will be awarded to the plan with the best financial analysis.

A Prize will be awarded to the team with the best Elevator Pitch.

A Prize will be awarded to the team with the best Podcast

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Winners will be announced at the Awards Ceremony following the competition and dinner.

There are no restrictions applied to the use of these funds after they are awarded to the deserving participant.

Confidentiality and Agreements

All directors and judges that will have access to the plans agree verbally to a confidentiality agreement.

As a competitor, you are responsible to protect any information concerning your plan that you share with mentors, team members, and fellow participants of the competition. UNB’s CIBC Business Plan Competition takes no responsibility for unwanted disclosure in these instances.

Ultimately, protection of sensitive materials is the sole responsibility of the teams participating in the competition.

Helpful Hints and Evaluation Questions

Although the following questions are not all encompassing, they can be used as a guideline for items to consider when developing your business plan. Feel free to cover any other aspects of the business that you feel necessary in your submitted proposal.

Executive Summary Does the executive summary provide a well-rounded overview of the business plan

in no more than one page?

Business Purpose Why does the opportunity exist and why is now the time to take advantage of it? Is the business opportunity realistic and presented clearly?

Product/Service What is provided and how will the business work to provide it? What steps will be taken to protect your product/service? Are patents necessary? What niche/need will your product/service fulfill in the marketplace? Have the mechanics of the product/service been well thought out? Has a prototype

been developed? How will the product/service be distributed? Has there been any research and development done on the product/service?

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How will the product/service be packaged or delivered to customer? Does the product/service offer any warranties or guarantees?

Market Are there any barriers to entry? Who is your target market? Justify why they are your target audience. Have you performed a customer profile? Have market size estimates and growth trends been assessed? Has the team tested their product(s) or service(s) in the market or has market

research been performed to determine product/service demand? What is the marketing mix? Product, price, place and promotion. How do you plan to communicate/advertise your product to the marketplace?

(Advertising budget) What is the expected growth rate of your product/service over the next three years? What is the selling price and why have you decided on that price? Does your target

market demonstrate any price sensitivity? Who are the competitors (location, size, products, strengths, weaknesses, age,

sales tactics, pricing, financial position) and is the business capable of defending itself? How long will it take to bring the product(s) or service(s) to market?

What is the anticipated date of market entry? Have you come up with tentative timelines for implementation?

Management Does the team have a management structure that will be successful? What is the commitment level of the founders and what risks or investments have

they made? Will the founders create obstacles to success? Are the titles, responsibilities, salaries, and ownership of founders and team

members clear? Are there any necessary outside parties or other employees that will need to be

hired? (i.e. Accountants, attorneys, bankers, insurance agents, or other external support)

Finance How much capital is required and is that estimate justified? How will the business find the initial capital necessary? (Private investment, grants,

shares from interested investors) Does the Business Plan clearly outline the spending of any capital raised? (Your Pro

Forma Cash Flows Statement should demonstrate this) What are the expenses in the company? Are they in line with sales and designed to

advance the company rather than enrich the founders? How long until the company breaks even? Until positive cash flow? (Breakeven

Analysis) What is the business’ exit strategy?

General

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Do the team members present themselves professionally, clearly and in an organized fashion?

Why will this company be successful in 5 years; in 10 years?

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