Vice Chancellors Cup of Student Entrepreneurship

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Vice Chancellors Cup of Student
Entrepreneurship Booz Allen HamiltonSocial
Venture Challenge
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Eligibility for Both Competitions

• Groups of one to five CUHK degree program
  students
• full time and part-time
• undergraduate and post-graduate

Format for Both Competitions

• Double spaced
• Maximum
• 20 pages of text
• 10 pages appendices
• 30 pages overall

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Prizes
VCCE
BAH

• 1st    HK5,000
• 2nd   HK3,000
• 3rd    HK1,000

• 1st    HK8,000
• 2nd   HK3,000

All teams learn about a start-up Interact with
VCs, investors and partners Winner represents
CUHK at international competitions You may start
your own company
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How to compete

• Get an idea
• Form a team
• May include persons who are not CUHK students but
  they may not present at competition
• If team includes non-CUHK people, CUHK student
  role must be substantial
• equity gt 20
• Management gt 50
• Your company must not have substantial sales pre
  Sept 06
• Find an Advisor any CUHK professor
• Register for VCCE by Friday September 28, 2007
• Develop and write the plan
• Submit your plan by Monday October 22, 2007
• Top 5 present plans on Saturday November 3, 2007

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Timeline for BAH

• March 5, 2008 Deadline for Teams to register
• MarApr 2008 Writing the business plans
• 28 April 2008 Submission of Business Plans
• 10 May 2008 Competition and Awards Dinner

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Judging Criteria
VCCE

• Moot Corp Three-part Evaluation
• Part I Written business plan
• Part II Presentation and QA
• Part III Viability of the venture
• Maximizing investor returns
• Maximizing Social Good
• Subject to Feasibility

BAH
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but the bottom line is
Which plan presents the most attractive
investment opportunity?
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VCCE Examples of Plans

• Apex an optical device to identify viruses for
  use in research laboratories
• BSL auto lubricants made from plant oils
• Rat Climbing Preventer replace environmentally
  harmful pesticides in orchards with a mechanical
  device on the trunks of fruit trees.
• Nano-Pure Selon provide Chinese high-tech
  manufactures with ultra-clean laundering services
  and clean room consulting
• Colisa Golden Health design, patent and market
  cuffless blood pressure monitoring device
• Sengital MIDS Mouse Terminator design, patent
  and market products based on low-power wireless
  motion sensing technology.
• Anti-Coro installation servicing of
  anti-corrosive grounding system for power grids

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The Plan is Obsolete as Soon As It is Written

• New discoveries are made, new products and
  processes displace old
• Prices change, competitors enter, partners leave,
  suppliers merge, buyers go bankrupt, investors
  commit
• You learn something new

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The Investor Knows That the Plan is
Work-in-Progress

• In discussions (with partners and in QA),
  express flexibility
• In the plan, describe one course of action
• get the money and invest it in one way
• Finance, set up operations, source inputs, sell
  output, realize return on investment

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A good plan

• anticipates the concerns of the investor
• addresses those concerns to the investors
  satisfaction
• is a pleasure to read
• is as short as practical

No filler ! If less than 30 pages is sufficient,
use less
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The Concerns of the Investor
Is there a value proposition?

• Does it create value for end users?
• Is it a must buy so the end user is willing to
  pay a premium?
• Is that must buy market
• large?
• high growth?
• high margin?
• with significant barriers to entry?
• Does the ventures team fit the opportunity?

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A Value Proposition

• You wake up in the middle of the night to the
  sound of a smoke detector. Immediately your
  thoughts go to your children. Will they wake up?
  Will they know what to do?
• The chance of dying in a fire is cut in half by a
  smoke alarm.
• Tests have shown that most children (1) do not
  wake up to the sound of a smoke alarm and (2) do
  not know what to do if they do wake up they
  remain in their rooms
• A Child will wake to the sound of a parent
  calling his name and will do what a voice message
  from his parent tells them
• KidSmart is a pre-recorded voice smoke detector
  and instruction system that can save your childs
  life
• KidSmart
• winner of Moot Corp Competition in Texas

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Be Honest
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Forecasts

• Aim for middle ground -- your best guess
• List your assumptions and potential ranges
• Back up those assumptions with full references to
  
• Historical trends
• Expert and industry opinion

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Your Business Plan is a Prospectus

• Statements about past and present must be true
• Investor will do due diligence
• Lies will be discovered if the plan is taken
  seriously
• If an investor relies on false information in the
  prospectus and suffers a loss because of that
  reliance, you are personally liable

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No Plagiarism
Plagiarism is easy to spot
Merriam Webster Dictionary plagiarize
(Etymology plagiary Date 1716)  Transitive
senses to steal and pass off (the ideas or
words of another) as one's own use (another's
production) without crediting the
source.   Intransitive senses to commit
literary theft present as new and original an
idea or product derived from an existing source.
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So how do I write the plan?

• The classic solution go to the net!
• http//www.pasware.com/

Caution Focus on Content!! NOT FORM!!!
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There are over 400 books listed in the library on
how to write of business plan
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The cookbook software / textbook approach

• A Good Checklist have I covered all of the
  points?
• May not yield a good sales document
• After you have produced all of the ideas, rewrite
  them

Remember 95 of plans are not seriously
considered by the investor.
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Be Clear and Credible. Avoid

• Ambiguity
• Unclear statements
• Unsubstantiated statements
• Jargon and undefined acronyms
• Lies
• Typos, spelling mistakes and grammatical errors

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A good plan illuminates a market opportunity

• This is the heart of plan and most difficult to
  write
• must be based on real investigation
• exhaust secondary sources
• industry analysis
• trade associations
• Trade periodicals
• Talk to potential customers, suppliers,
  competitors
• The investor looks for creativity

but the investor is cynical and will look for
your plans fatal flaw
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The Offering
The investor will not take your advice

• How much money are you asking for?
• When are the equity contributions to be paid in,
  and in what amounts?
• What percent of equity does the investor receive?
• What else besides money do you want from your
  investor?

but the offering may be a starting point
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The Presentation in 15 minutesGary Cadenhead

• Bait
• Pitfall
• Rescue
• Bread and Butter about 10 min
• Close -- about 2 min

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About 3 minutes
?
?
?
?
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Some nice examples of plans

• Moot Corp www.mootcorp.org
• ID mootcorp2
• Password GMC1984a

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Booz Allen HamiltonSocial Venture Challenge

• An Innovative Business Plan Competition to foster
  community development
• Write a business plan
• For an attractive new venture
• Requesting resources from an external investor
• Where you maximize social welfare subject to
  feasibility

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Booz Allen Hamilton

• One of worlds largest consulting firms with
  11,000 staff worldwide, serving clients on six
  continents.
• Strategy, organizational change and leadership,
  operations, information technology and technology
  management.
• Committed to philanthropy and community service.
  
• Supports charitable and nonprofit organizations
• Employees volunteer in the community
• Provide management and consulting to nonprofits

supports the SVC through prize money covering
expenses and offering internships
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BAH Social V-Challenge Mission

• Business, university and the community
  collaborate on a program that has constructive
  and worthwhile outcomes for the community.

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Potential Sources of Social Value

• Enable disenfranchised groups to start and run
  businesses.
• Rehabilitate segments of the community
• single mothers
• recovered drug addicts
• able-bodied elderly
• triad members
• sex workers
• ex-convicts
• under-educated youth
• mentally-ill, physically disabled
• Redress environmental ills

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Why are social ventures important?

• Develop spirit of social responsibility
• Build capacity for entrepreneurial action
  Entrepreneurial Executive
• Know - corporations have multiple bottom lines
  and performance objectives financial, social
  and environment.
• Know - Making profit and creating wealth - means
  to an end not the end in itself.
• Make Social impact to uplift the quality of the
  community and contribute to fostering the civil
  society.

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How you benefit

• Learn to apply the entrepreneurial approach to
  solving social problems
• Expand career opportunities in more sectors
  non-profit organizations for-profit community
  development businesses hybrid organizations with
  for-profit and non-profit elements
• Build global network with BAH, partners and
  clients

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Booz Allen Hamilton Social Venture Challenge 2006

Kids Tour (BPCPM)
Benny Zhong Peter Liu Caly Xiao Phoebus Ng Map
Tang
In 2003 the OECD determined Hong Kong students
were "in the bottom tier globally" in terms of
self-concept and school life. To help primary
school students and their educational
institutions start off on the right foot, Kids
Tour is a multidisciplinary tourism project
combining the use of Multiple Intelligence (MI)
Instruction, activities and community relations.
Kids Tour encompasses educational tourism based
on the Tai-Po region of Hong Kong. Supporting the
Salvation Armys current eco-tourism program,
Kids Tour brings together the expertise of CUSP
and the MI instruction group ISPC.
Booz Allen Hamilton
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Booz Allen Hamilton Social Venture Challenge 2006

Bridge Garden
TEAM MEMBERS Victor Leung Billy Ma Allen
Shen Grace Wu Isabella Zhang
Family
Community
Retired Teachers ( Gardeners )
Children (Seeds of the Future)
School ( The Soil)
Achievement
Quality after school education
Care Guidance
Bridge Garden ( Pollen / Fertilizers )
Market
Talent Expertise
Bridge Garden is a social enterprise aimed at
addressing the problems facing an ever-increasing
level of stress in teachers, retirees and the
families they serve. Using the analogy of
gardening to raise a confident, socially adjusted
and naturally healthy crop of future citizens,
Bridge Garden bridges the gap" between - the
needs of children, - their over-stressed
parents - and the overlooked and extremely
valuable resource of retired professional
teachers. Bridge Garden incorporates and matches
proven educational programs offered by various HK
NGOs with families in the greatest need.
Booz Allen Hamilton
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Your Group Can Enter in Multiple Competitions

• VCCE and Booz Allen Hamilton
• Change focus to achieve different aims
• YDC Challenge HSBC e-Challenge
• Open competitions worldwide

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Contacts Rosanna Lo Phone(852)
2609-7542 Fax[phone] E-mail
entrepreneurship_at_cuhk.edu.hk Web site
http//www.cuhk.edu.hk/centre/entrepreneurship/
Profs Kevin Au kevin_at_baf.msmail.cuhk.edu.hk
Hugh Thomas hugh-thomas_at_cuhk.edu.hk KF Wong
kfwong_at_cintec.cuhk.edu.hk