1. Joel Adams Ken Stuart Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12: Cash Flow, Careers, and Course Review April 1, 2004

2. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 Career Development Review Presentations & Business Plan Assignment Personal Opportunity Statement (Assignment) Feedback and Questions 12.1: Lesson Plan

3. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.2: Some Engineering Careers Founder and SVP of $2 Billion MDS Inc. Vice Chair of IBM Corporation SVP Sales & Distribution, IBM Corporation President & CEO, Canada Trust President, Stiller Centre for Biotechnology Commercialization Chair, London Region Manufacturing Council Retired City Engineer, London, Ontario Human Resources Manager, Ballard Power Applications Engineer, Hydrogenics (fuel cells) Development Engineer, Ember Networks (MIT spin-off) Mobile.NET Manager, Microsoft Corporation Ph.D. Engineering Candidate, Cambridge University Distribution Engineer, London Hydro Customer Service Representative, Unifin International Captain and SCUBA Instructor, Sunset House, Cayman Islands Sahara Adventurer, www.swashbuckleradventures.com

4. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.3: Entrepreneurship and Innovation Entrepreneurship is a “Process not a Person” –Finding/Evaluating Opportunities –Planning the Business/New Venture –Managing the Business/New Venture Innovation Drives the Economy –Technical and Business Innovations –Revolutionary vs. Evolutionary –Disruptive vs. Sustaining Technologies

5. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.4: Marketing Technology (Research and Analysis) Technology vs. Product vs. Market vs. Market Chain –Where are the opportunities? –Where will you focus? Market Research –Competitive Analysis –Primary and Secondary Sources Market Analysis and Evaluation –Porter’s 5/6 Forces, –PEST Analysis –SWOT Analysis –Market Sizing and Evaluation

6. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.5: Key Marketing/Development Concepts Whole Product Solution Generation Evaluation Business Case (Plan) Outline Product Definition Technical R&D/Market R&D Prototype Testing & Evaluation Engineering Prototype Engineering Pilot Run Evaluate Competition Pre-Production Product Refinements Product Model Market Development Increased Competition Maturity Decline Phase-Out IDEAR&D DEVELOPMENTPRODUCTIONDISTRIBUTION Activities Innovation Chain Technology Adoption Life Cycle

7. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.6: Financing the New Business Venture Pre-Seed Seed 1 st Round 2 nd Round … Founder Angel University Government Founder Angel University Government VC Government VC Government Stages of Financing Visit CVCA.ORG or NVCA.ORG for list of VC’s

8. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 Prof. Charlene Nicholls-Nixon’s Biz Plan Advice (Ivey): 1.Start with a clear product concept. 2.Provide strong evidence to support why customers would want it. 3.Show the growth potential and know what is driving it. 4.Be very specific about why you think you have a basis for a sustainable competitive advantage. 5. Develop a compelling business model. 12.7: Top Ten Business Plan Weaknesses (1-5)

9. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.8: Top Ten Business Plan Weaknesses (6-10) 6. Map out the key steps in technical and market development and understand the resource requirements associated with each. 7.Be honest about the strengths and weaknesses of your management team and use external resources to fill in the gaps. 8.Identify the key assumptions/risks and have contingencies in mind to address them. 9. Have specific strategies for growth and exit. 10. Know how much capital you want, what you will give up to get it and who is most likely to give it to you. Source: C. Nicholls-Nixon/Ivey Institute for Entrepreneurship

10. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.9: Business Plan Review (Exec. Sum./Intro) 1. Executive Summary (1 Page) Summarize all key components of your business plan What you sell? How large is the opportunity? Who are management team members? What resources do need including funding? …any thing else you feel is important to executing your business successfully 2. Introduction (½ Page) Some high-level background on your product and the industry/market’s history.

11. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.10: Business Plan Review (Industry/Opportunity) 3. The Industry (1 Pages) More detailed information on the industry Who are the major players? What are it’s dynamics? What is it’s estimated growth? Use more quantitative numbers 4. The Opportunity ( ½ Page) What is the Technology? What is your Product/Service? What is the Market?

12. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.11: Business Plan Review (Product) 5. The Products/Services (1-2 Pages) More detail on the products and services. What is the current state of your product (R&D, Proto-type)? Where do you want to take it over the next 1,2-5 years? How much does this product cost to build? How much can you sell it for?

13. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.12: Business Plan Review (Market) 6. The Market (2-3 Pages) Who are your customers? How will you distribute your product? What are your market share objectives? What are other important factors What are the alternative solutions? Level of Sales for the next 5 (or ten) years

14. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.13: Business Plan Review (Comp/Management) 7. Competition (1-3 Pages) Identify the Competitors List Strengths and Weaknesses SWOT 8. Management Team (1-2 Pages) 1-2 Paragraphs on each member of your management team List the teams strengths and weaknesses Identify how you will strengthen weaknesses and when?

15. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 9. Financial Projections (4-5 Pages) Assumptions/Notes/Projections/Risks Income Statement –1 st year – monthly –2nd year – quarterly – 3 rd,4 th, 5 th – annual Cash Flow Balance Sheet 12.14: Business Plan Review (Financials)

16. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 10. Investment Requirements (1-2 Pages) –How much to you need? –What will it be used for? –How much equity are you willing to give up? –What is the exit strategy for the investors? 12.15: Business Plan Review (Investment Needs)

17. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 NEXT WEDNESDAY! One or more speakers from your group will present –Formal PowerPoint Presentation (Casual Dress is OK) –10-12 minutes long –Cover all Key Components required in executing a successful business Your Product/Service The Market Competitors Management Team Financial Need –Hand in your PowerPoint 12.16: Presentation

18. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 Individual Assignment (10% of Grade) 1 Page (2-3 Paragraphs) –What did you learn (about yourself) from this class? –What are your near term and long term career goals? –Do you want to be an entrepreneur? Why or why not? –Outline a possible career path over the next 10 years –Use examples from guest speakers and class readings –Include specific industries/companies that interest you Due before end of Exam Period (April 30 th ) by E-MAIL 12.17: Career Development Statement

19. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.18: Next Week and Exam Period Tuesday – InterNETwork London (www.internetwork.ca)www.internetwork.ca Sign-up to attend or get on the mailing list WEDNESDAY April 7 th 7:00PM -- GROUP PRESENTATIONS April 23 rd Business Plan DUE (ES 498G Section 2 Locker AND e-mail) April 30 th (Last Day of Exams) Career Assignment DUE (by e-mail)

20. Cash Flow, Careers, and Course Review Engineering Science 466b © J. Adams & K. Stuart 2002-2004 12.19: Thanks! Congratulations Class of 2004!!! (good luck class of 2005…)