Start-Up Transportation Company

Each team participating in the SV must submit a team paper on or before the deadline. The paper must include the elements listed below, but teams may add other information that they deem pertinent. All papers shall be written in essay form with appropriate subheads, grammar, punctuation, usage, and structure. There is no page minimum or maximum for this assignment, but a range of 7 to 10 pages excluding financial statements is anticipated. All papers are to use 12-point Times New Roman font and have one-inch margins all around with numbered pages. Photographs of products and samples of marketing materials may be included and are encouraged.

Cover page
Name of proposed business including form (i.e., Joe’s Lawn and Garden, LLC)
Venture Financing Proposal
Name of business owner(s)
Names of team members
Date
Course number
Abstract (200 words maximum) – Brief summary. Include who, what, when, where, how and why. Also state the funding requirements and desired funding types and exit strategy.
Company and Owner Backgrounds (from SV profile)
Owner (or owners)
Name
Demographics (age, education, employment)
Family
Financial status (income, savings, home equity, net worth, etc.)
Company Background
Problem that it solves – Why it exists.
Solution (product/service) – What it does.
Stage (pre-venture, startup, expansion, etc.) – When it will do what you say.
Location and geography – Where is it located? Where are its customers?
Target customers – Who are its customers? Be specific?
Required resources (including human, physical & financial capital) – How will you make it happen?

Strategies for Creation/Expansion and Success – How will you fit into or disrupt an industry and what industry is it? What is the current and anticipated situation? (product/service, markets, marketing, operations, and the like) – Cite these in APA format.
Industry/Market selection – process & facts (see prior research that you did)
Competitive environment
Marketing strategy (note methods & budget)
Value proposition/Unique selling proposition/Competitive advantage
Other market info
Financial Statements and Analysis
Verbal description of the financial information and analysis thereof – Give a paragraph of information introducing the reader to the financials of the company. Then introduce each statement, give a brief analysis of it, refer to the Exhibit number for the summary statement, and the Appendix number for the complete statement. Include the Exhibits in the main body of the paper as close to the call out as possible without splitting them between pages…each statement should be whole on a page. Also, add graphs or other figures and call them out.
Startup Costs (may be summarized in the text and included in the Appendices)
Income Statement (4 quarters and years 1, 2, 3)
Balance Sheet (4 quarters and years 1, 2, 3)
Cash Flow Statement – direct or indirect method (Same time periods)
Key Ratios – annual with comparison to industry ratios (Be sure to analyze where and why you are different from the industry.)
Personal Net Worth Statement for the owner (SBA.gov has a good form)
Assumptions for each financial statement (state the main ones in the body copy and the entire list in the appendices.)
Financing Sources
Specific sources (i.e., savings, 401K, angel investor Jane Smith, Venture Capital Fund Golden Seeds, Natural Capital Investment Fund – Food Services Fund, NC CEED, LCMIF Sandhills, BB&T) with academic and other (web, phone call) research on the requirements, deadlines, fees, rates, terms, and the like. Remember to include your own resources in this.
Amounts and specific repayment or buy out terms for the simulated business
Rationale for the options identified. Note that if you are gaining equity you need to state $x for y% of the company and give a justification for the valuation of the company.
Any back-up strategy. What other funding sources might help?
Summary Financing Request ($$$, form, repayment, exit strategy – include all planned options – one clear, concise paragraph). Include a version of this table for your exhibit if you have three or more sources including yourself.
Source Type of Financing (debt or equity) Amount of Financing ($) Ownership (%) Length of Financing Interest rate or Earnings Multiple
Founder
Friends/Family
Crowdfunding
(specific site)
Debt Source
(specific)
Angel Investors (specific name or group)
Venture Capitalists (specific fund)
TOTAL FINANCING

References (APA 6th format) – Remember to include any demographic research sources and those that you used to find financing information.