Title: 2005-06 Dare to Dream Grants
12005-06Dare to Dream Grants
- Sponsored by the
- Samuel Zell Robert H. Lurie Institute for
Entrepreneurial Studies
2Agenda
- What is the Dare to Dream program
- Two types of grants
- Applications and review
- Moving beyond Dare to Dream
3- Dare to Dream is a program to encourage students
in the thoughtful development of their own
businesses and business concepts. - The team leader must be an RSB current student.
Team members can be from outside RSB and/or the
University.
4Development Stages ZLI Programs
ZLI Business Challenge Intercollegiate
Competitions
Entrepreneurial MAPdomestic international
opportunities
Williamson Early Stage Commercialization
Frankel Fellows Program
Wolverine Venture Fund
Marcel Gani Internship Program (including
JumpStart!)
Michigan GrowthCapital Symposium
Entrepalooza overview of entrepreneurship across
multiple industries, business stages and
entrepreneurial concepts
Emerging Industries in-depth exploration of an
industry and family of technologies emphasizing
entrepreneurial opportunity
5Dare to Dream Grants are not
- A competition
- An endorsement of the business or business
concept - An endorsement of the management team
- For academic credit
6Dare to Dream Grants
- Encourage the creation, launch and development of
new student-led businesses - Develop student entrepreneurial skills
7Dare to Dream Grants are
- Awarded to businesses and concepts for which the
student-led team has convinced ZLI of the - Innovation
- Value
- Motivation
- Encouragement for students to
- Take risks
- Explore opportunities
- Expend effort and dedicate time
8Dare to Dream Applications
- Assessment Grants force answers the questions
- Is there enough there there to justify
assembling a full plan? - Are market need, proposed solution and target
market in line? - Integration Grants drive the team to
- Dive deeper into the issues of formation and
launch - Assemble full business plan to address all
concerns of launching and growing a business
9Dare to Dream Grants and Business Stage Activities
Ideate Business
Assess Business
Opportunity Identification
Integration
Business Launch
- Do you have a solution that delivers benefits and
solves market pain?
- Are you in the process of deciding what your
business model will be?
- Have you completed a Porters 5 Forces analysis?
- Are all key managers and board members lined up
or in place?
- Is your in-depth primary market research complete?
- Can you articulate the innovation in your idea?
- Have you identified the initial market?
- Do you know the industrys critical success
factors?
- Is the whole or complete product package
finalized?
- Have you recruited and partnered with a beta
customer?
- Have you articulated the value proposition?
- Are initial financial and cost estimates
complete?
- Has your business plan been distributed for
funding?
- Have you identified and validated operational
milestones?
- Do you understand how this company fits within
the industry?
- Have you conducted your target market research?
- Have you validated assumptions and have a
dynamic financial model?
- Have you developed a full investor pitch?
- Do you have a preferred market entry strategy?
- Has the company begun generating revenues?
If no to either of these two questions, you are
too early for Dare to Dream. Consider applying
next term.
If you can answer yes to the two opportunity
identification questions, but not to the all of
the questions in these two columns, apply for the
Assessment Grant.
If you can answer yes to the questions in the
first three columns but not all in integration
and business launch, apply for the Integration
Grant.
If yes to all the questions on this page, you
are most likely beyond Dare to Dream, contact
the Zell Lurie Institute BEFORE applying.
10Dare to Dream Applications
- Student-led teams convince ZLI of
- Innovation
- Value
- Motivation
- Application and review criteria
- Different requirements and evaluation for
Assessment and Integration
11Applications
- Linked to the Zell Lurie Institute web site
- www.zli.bus.umich.edu
- Three sections
- Team information
- Business concept information
- Application and award agreement
- KNOW WHAT YOU ARE APPLYING FOR!!!
12Assessment Application
- What is innovative about the product or service
you are proposing? Is this a new or better
product, service, technology, business model, or
process? - Describe the benefits of your product or service
for your target market segment. - What is the target market for this product or
service? - What are the initial indications of market
potential in terms of customers, units or
revenues?
13Assessment Application
- What is the nature of the competition in your
market? If you are entering a new market, how are
customers needs being met now? - Describe the entrepreneurial aspirations of the
management team. - Describe the information needed and steps to
launch your business.
14Integration Application
- What is innovative about the product or service
you are proposing? What features make this
superior? - Describe the benefits of your product or service
for your target market segment. What will your
solution displace? - What is the market potential for this product or
service in the initial target market segment?
What other attractiveness is there for that
segment? - What is the nature of the competition in your
chosen market? What is the anticipated response
from current competitors and potential new
entrants?
15Integration Application
- What are the industry conditions that allow this
company to be competitive in the market? - Describe the entrepreneurial aspirations of the
management team. - Identify the critical success factors for this
business. How are they addressed by the team? - Provide a one-page financial summary for 2 years.
16Critical Success Factors
- CSFs are particular to the business model in a
specific industry. - In any concern, there are dozens of variables
that will determine the success or failure of a
business. - CSFs are those 2 5 variables which trump all
the others. - Example general retailing
- CSF location, location, location
- McDonalds, Starbucks
- Example mass market retailing
- CSF logistics and inventory management
- Target, Wal-mart
- Example high-end retailing
- CSF customer relationships
- Neiman-Marcus, Mercedes
17Critical Success Factors
- Which decisions or activities, done right, will
(almost) always deliver disproportionately
positive effects on performance? - Corollary Fatal flaw
- What few decisions or activities, if wrong, will
(almost) always have severely negative effects on
company performance? - How will you build your team and/or business
model to take full advantage of CSFs?
18Example of 2-year financials
Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006
Unit Price 5.99 5.99 5.99 5.99 5.99 5.99 5.99 5.99
Units Sold 150 188 516 593 682 784 902 1037
Sales (Dollars) 898.50 1123.13 3088.59 3551.88 4084.67 4697.37 5401.97 6212.27
Cost of Goods Sold Initial Cost (.30/Unit) (45.00) (56.25) (154.69) (177.89) (204.57) (235.26) (270.55) (311.13)
Gross Margin 853.50 1,066.88 2,933.91 3,373.99 3,880.09 4,462.10 5,131.42 5,901.13
G A Expenses Printing and Mailing (150.00) (150.00) (150.00) (150.00) (150.00) (150.00) (150.00) (150.00)
Office Supplies (25.00) (25.00) (25.00) (25.00) (25.00) (25.00) (25.00) (25.00)
Website Development (200.00) (2,200.00) (1,500.00) (300.00) (300.00) (300.00) (300.00) (300.00)
Monthly Website Fee (119.85) (119.85) (119.85) (119.85) (119.85) (119.85) (119.85) (119.85)
Officer's Wages (300.00) (300.00) (300.00) (500.00) (500.00) (500.00) (500.00) (500.00)
Worksheet Editing Service (200.00) (300.00) (400.00) (400.00) (400.00) (400.00) (400.00) (400.00)
Accounting and Legal Fees (500.00) (300.00) (300.00) (300.00)
Selling Expenses Travel (Promotion) (300.00) (600.00) (500.00) (500.00) (500.00) (500.00) (500.00) (500.00)
Advertising and Promotion (75.00) (1,000.00) (700.00) (700.00) (500.00) (500.00) (500.00) (500.00)
Paypal Fees (26.36) (32.87) (89.87) (103.30) (118.76) (136.52) (156.96) (180.46)
Net income before tax (542.71) (3,660.85) (850.81) 575.84 766.49 1,530.73 2,179.61 2,925.83
19Evaluation of Applications
Most attractive for Assessment Most attractive for Integration
Description of product or service Clearly articulated and understood. Clearly articulated and understood.
Innovation Solution uses new or better technology, process, or business model to deliver product or service that adds value to customer. Solution uses new or better technology, process, or business model to deliver product or service that adds value to customer.
Market needs, benefits, value Value for the customer is clear and likely to be captured by the firm. Clear value that is likely to be captured by the firm and the firm has an understanding of the degree of displacement of current market solution.
Market size Some preliminary and believable indication that market is large enough. Market data supports large or large, growing market. Relationship between target and broader market is clear.
Industry Attractiveness Market dynamics and forces are supportive of new players OR dynamics can be easily considered and addressed by firm.
Competition Competitive environment is favorable to firm and team has identified modes to address. Response expected to be weak and/or competently addressed.
Competition and Industry Shows understanding of competitive and industry landscape.
Entrepreneurial Aspirations Clearly articulated convinced of ambitions will likely continue to engage ZLI. Clearly articulated convinced of ambitions will likely continue to engage ZLI.
Next Steps Shows understanding of business development process.
Critical Success Factors (CSFs) The right CSFs have been identified and it is clear the team has the understanding to capture.
Financial Planning Based on realistic assumptions, the financials are justifiable and actionable.
20Moving Beyond Dare to Dream
- Encouragement for students to
- Take risks such as
- Executing primary research with customers and
technologists - Undertaking incorporation process
- Recruiting and building a team
- Explore opportunities
- Is your solution the right solution for market
need? - Is there a better application or market for your
solution - Expend effort and dedicate time
- Fit these activities into your already busy
Michigan schedule
21Moving Beyond Dare to Dream
- Tie in to other entrepreneurial activities
- ES electives
- ES615 New Venture Creation
- ES Innovation (new for Winter 06)
- Michigan Business Challenge
- Iterative, multi-cycle tournament for student-led
start-ups. Over 30,000 in prize money - Marcel Gani JumpStart! internships
- Opportunities for student CEOs to intern at their
OWN start-ups
22Process and Timeline
23Questions?Dare to Dream Grants
- Paul Kirsch
- pskirsch_at_umich.edu
24Dare to Dream Grants and Business Stage Activities
Ideate Business
Assess Business
Opportunity Identification
Integration
Business Launch
- Do you have a solution that delivers benefits and
solves market pain?
- Are you in the process of deciding what your
business model will be?
- Have you completed a Porters 5 Forces analysis?
- Are all key managers and board members lined up
or in place?
- Is your in-depth primary market research complete?
- Can you articulate the innovation in your idea?
- Have you identified the initial market?
- Do you know the industrys critical success
factors?
- Is the whole or complete product package
finalized?
- Have you recruited and partnered with a beta
customer?
- Have you articulated the value proposition?
- Are initial financial and cost estimates
complete?
- Has your business plan been distributed for
funding?
- Have you identified and validated operational
milestones?
- Do you understand how this company fits within
the industry?
- Have you conducted your target market research?
- Have you validated assumptions and have a
dynamic financial model?
- Have you developed a full investor pitch?
- Do you have a preferred market entry strategy?
- Has the company begun generating revenues?
If no to either of these two questions, you are
too early for Dare to Dream. Consider applying
next term.
If you can answer yes to the two opportunity
identification questions, but not to the all of
the questions in these two columns, apply for the
Assessment Grant.
If you can answer yes to the questions in the
first three columns but not all in integration
and business launch, apply for the Integration
Grant.
If yes to all the questions on this page, you
are most likely beyond Dare to Dream, contact
the Zell Lurie Institute BEFORE applying.