BLUEPRINT (ENT600) : GUIDELINES & TEMPLATE

TECHNOLOGY ENTREPRENEURSHIP
(ENT600)

WRITTEN REPORT TECHNOLOGY VENTURE BLUEPRINT (20%)

OVERVIEW

A technology venture blueprint is a document that details out what a business wants to accomplish
with its new technology product. It is a detailed road map used to convert ideas and visions int o a
real and functioning product that is profitable and viable for the business to market.

INSTRUCTIONS

1. This is a group project and the students are required to form groups comprising of 3
MEMBERS ONLY.

2. Each group needs to choose and write one viable business idea (product or service).

3. The group needs to write and present final report blueprint using the given format. The
written report should not be less than 4,000 pages (original; excluding appendices).

4. Use Times New Roman 12 or Arial 11 with 1.5 spacing for written blueprint report.
5. The report must be submitted on or before ______________. Failure to do so will
jeopardize the student’s grade for this subject.

IMPORTANT NOTES ON TURNITIN

Students also required to submit soft copy of the report via Turnitin. Only reports that achieve less
than 20% similiarity index are accepted (those exceeding >10% will be gradually penalized).
Please ensure:
a. Put the title of the submission using the new product name (e.g. Kid+Safe - Car
Seat Child Detection Sensor).
b. Name of group members should be listed on the first page.
c. The uploaded soft copy must reflect the hard copy report submitted.
d. Include the front cover in the Word file before uploading it to Turnitin (together with
the student’s name, group etc).
e. The transcript can be excluded from Turnitin (to prevent from similiarities), but
included in the final soft copy & hard copy submission.

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TABLE OF CONTENTS

Page Number

Contents

1.0 EXECUTIVE SUMMARY 1

2.0 PRODUCT OR SERVICE DESCRIPTION 2

3.0 TECHNOLOGY DESCRIPTION 5

4.0 MARKETING STRATEGY 8

5.0 MANAGEMENT TEAM 16

6.0 FUNDING PLAN 19

7.0 FINANCIAL ESTIMATES 21

8.0 COMMERCIALIZATION & INTELLECTUAL PROPERTY 24

9.0 PROJECT MILESTONES 25

10.0 CONCLUSIONS 26

11.0 REFERNCES 27

12.0 APPENDICES 28

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BLUEPRINT OUTLINE
Note:

Before you begin writing within this section make sure that you have done some research. Blueprint
research helps you make informed decisions and create a successful direction for your blueprint.

• Gather information sources

• Record relevant information
• Analyze the information you have gathered and note the associated opportunities and risks
• If you are going to submit the blueprint to investors, research what types of investment
opportunities are available to you, why you need investment (banks, government, private equity
investors, etc.)

1. EXECUTIVE SUMMARY

The executive summary is usually short and concise. The summary articulates what the
opportunity conditions are and why they exist, who will execute the opportunity and why they
are capable of doing so, how the company will gain entry and market penetration; it answers
the questions: “for what reason does this venture exist and for whom?”

Essentially, the executive summary needs to reflect the criteria presented in the Business
Opportunity Analysis Exercises. This is your chance to clearly articulate how your business is
durable and timely, and how it will create or add value to the end user. This summary is
usually prepared after the other sections of the blueprint are completed.

1.1. Brief description of the business and product concepts

1.2. The target market and projections
1.3. The competitive advantages
1.4. The profitability
1.5. The management team

(Do not use numbering in Executive Summary. This is just a guide).

2. PRODUCT OR SERVICE DESCRIPTION

2.1. Describe in some detail the product or service to be produced/sold.

2.2 Discuss the application of the product or service and describe the primary end use as
well any significant secondary applications.

2.3. Emphasize any unique features of the product or service and how these will create or
add significant value; also, highlight any differences between what is currently on the
market and what you will offer that will account for your market penetration.

2.4. Define the present state of development of the product or service and how much time
and money will be required to fully develop, test, and introduce the product or service.

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Provide a summary of the functional specifications and photographs, if available, of the

product.

2.5. Describe any patents or other proprietary features of the product or service.

2.6. Discuss any opportunities for the expansion of the product line or the development of
related product or service.

3. TECHNOLOGY DESCRIPTION

Areas to be covered are the key components related to the product/service or technology,
the intellectual property involved, specialized knowledge, experience and skills involved and
regulations that may govern the use of the technology to deliver the product/service. It
should also cover research & development (which outlines your plans for the future), and
future technology trends that you and the market can foresee. Most of the technology and
specifications have been described in your NPD project (avoid copy & paste). Summarize
and introduce your technology in a simpler way.

4. MARKETING STRATEGY

4.1. Overall marketing strategy.

• Describe the specific marketing philosophy and strategy of the company, given the
value chain and channel of distribution in the target market. Include, for example, a
discussion of the types of customer groups that you are targeting for initial intensive
selling effort those that you are targeting for later selling efforts.
• Highlight the unique selling proposition (USP) of your product.

4.2. Pricing.
• Discuss the pricing strategy, including the prices to be charged for your product and
service, and compare your pricing policy with those of your major competitors.

4.3. Sales tactics.

• Describe the method (e.g., own sales force, sales representatives, direct mail, or
distributors) that will be used to make sales and distribute the product or service.

4.4. Service and warranty policy.

• If your company will offer product that will require service, warranties, or training,
indicate the importance of these to customers’ purchasing decisions and discuss your
method of handling service problems; also, highlight the kind and term of any
warranties to be offered, whether service will be handled by company service people,
agencies, dealers and distributors, or return to the factory.

4.5. Promotion.
• Describe the approaches the company will use to bring its product or service to the
attention of prospective buyers.

4.6. Distribution.
• Describe the methods and channels of distribution you will employ.
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4.7. Estimated market share and sales.

• Based on your assessment of the advantages of your product or service, the market
size and trends, customers, competitors and their products, estimate the share of the
market and the sales in units and ringgit that you will acquire in each of the next three
years. Remember to show assumptions used.

Product/service Market Share and Sales

Year

Market share (%)

Total sales in units

Total sales in RM

4.8. Branding and advertising.

• Design the logo of your brand and product.
• Design an advertisement poster that would entice customers to become a potential
prospect. Use graphic programs and online tools (e.g. Canva.com,
PosterMyWall.com) to design the ad. Be creative not just in graphics, but in
copywriting too (attract people using influential heading and words).

5. MANAGEMENT TEAM

This section includes a description of the function that will need to be filled, a description of
the key management personnel and their primary duties, an outline of the organisational
structure for the venture, a description of the board of directors, a description of the
ownership position of any other investors, and so forth. You need to present indications of
commitment, such as the willingness of team members to initially accept modest salaries,
and of the existence of the proper balance of technical, managerial, and business skills and
experience in doing what is proposed.

5.1. Organisation

a. Present the key management roles in the company and the individuals who will fill
each position.

Key Management Roles Name

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b. If it is not possible to fill each executive role with a full-time person without adding
excessive overhead, indicate how these functions will be performed (e.g., using
part-time specialists or consultants to perform some functions), who will perform
them, and when they will be replaced by a full-time staff members.

5.2. Key Management Personnel

a. For each key person, describe in detail career highlights, particularly relevant know-
how, skills, and track record of accomplishments that demonstrate his/her ability to
perform the assigned role.

Names & Positions Career Highlights

b. Describe the exact duties and responsibilities of each of the key members of the
management team.

Names & Positions Duties & Responsibilities

5.3. Management Compensation and Ownership

a. State the salary to be paid, the share ownership planned, and the amount of equity
investment (if any) of each key member of the management team.

Names & Positions Monthly salary Share of ownership Amount of Equity Invested

5.4. Supporting Professional Advisors And Services

a. Indicate the supporting services that will be required.

b. Indicate the names and affiliations of the legal, accounting, advertising, consulting,
and banking advisors selected for your venture and the services each will provide.

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Name of Professional Advisors Services Provided

6. FUNDING PLAN

The amount of funds needed to start a technology-based venture may go beyond the
personal financial capacity of the entrepreneur. Thus, access to externa fundingl sources are
needed.

• Explore the funding arrangement required: either equity-based or debt-based

financing; or even a mix of both options. Elaborate your reasons (consider the
advantages and disadvantages of both options).
• Refer to Chapter 8 of your text book.
• Explore on a particular government agency that might be suitable to fund your
venture. Do research on the requirement needed by the agency.

7. FINANCIAL ESTIMATES

Sound financial management is one of the best ways for the business venture to remain
profitable and solvent. In this section think through some of the general issues you will have
to address in your formal business plan.

• To effectively manage your venture finances, plan a sound, realistic budget by

determining the actual amount of money needed to start your venture (start-up costs)
and the amount needed to keep it open (working capital or operating costs).
• Use the Ms Excel template given to you to generate the financial reports (balance
sheet, income statement, cash flows etc.)
• Insert the Financial Reports as tables in the Appendices section (not in the main
content). Assign appropriate numbering and refer accordingly (e.g. please refer to
Table 7.1 in Appendix).
• The write-up of the Financial Plan section should not be more than 2 pages (as the
tables are displayed at the Appendix section).

7.1 Start-up Cost

Estimate the costs incurred in conjunction with one-time activities that the venture undertakes
when it opens a new facility, introduces a new product or service, conducts business in a new
territory or with a new class of customer or beneficiary, initiates a new process in an existing
facility or commences some new operation after considerable research and discussion.

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7.2 Working Capital

Working capital represents the amount of initial expenditure required to finance the daily
operation until the business gets its first sale. The amount of working capital is therefore
dependent upon the period until the firm can generate enough sales to cover its short-term
expenditure.

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7.3 Start-up Capital and Financing

Total start-up capital incorporates both start-up cost and working capital needed to start a
project. The most common source of finance for new venture is the entrepreneur’s own equity
contribution. The equity contribution can be in the form of cash or assets. The next most
common source of finance is term loan. This is a form of long term financing offered by most
commercial banks. The term loan can be used to finance fixed assets as well as working
capital requirements. The interest rate and the loan period depend on the current interest rate
and the amount of loan required respectively.

7.4 Cash Flow Statement

A cash flow pro-forma statement refers to the projected statement of cash inflow and outflow
throughout the planned period. Under normal circumstances, the pro forma cash flow
statement is prepared between three to five consecutive years. However, longer periods are
sometimes needed depending upon the projects undertaken. The pro forma cash flow
statement must be able to show the following information:

• Cash inflows – the projected amount of cash flowing into the company.
• Cash outflows – the projected amount of cash flowing out of the company.
• Cash deficit or surplus – the difference between cash inflows and cash outflows.
• Cash position – the beginning and ending cash balances for a particular period.

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7.5 Income Statement

The next step in developing a financial plan is to prepare the pro forma income statement
which shows the expected profit or loss for the planned period, usually for three to five
consecutive years. Generally, the pro forma income statement consists of the following
elements:

• Cost of good manufactured (production cost)

• Gross profit
• Net profit

Cost of goods manufactured (also known as production costs) refers to the total production
cost involved in producing the finished goods. It includes all costs such as direct materials,
direct labour, manufacturing overheads and the differential value between the beginning and
ending balances of the work-in-progress (if any). Gross profit is the gross margin realised
after deducting the cost of goods sold from sales. It represents the amount of profit before
deducting other operating expenditure. Net profit (or net loss) is defined as the difference
between gross profit and operating expenses for the planned period.

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7.6 Balance Sheet

While the pro forma income statement shows the financial performance of the company for
the planned period, the pro forma balance sheet shows the financial position of the company
at a specific point in time in terms of assets owned and how those assets are financed. The
pro forma balance sheet is prepared for a period between three to five years.

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8. COMMERCIALIZATION AND INTELLECTUAL PROPERTY

Determine if the newly designed product should be protected. Explain based lessons from
Chapter 6 & 7 of text book.

• Highlight the type of protection sought (is it copyright, trademark or patent). Provide
reasons (why) and methods (how).
• Explore the commercializing options available (page 128 of text book), and highlight
the option that is most suitable for your product. Provide justifications.

9. PROJECT MILESTONES

This section includes a month-by-month schedule that shows the deadlines or milestones of
activities critical to the venture’s success. Examples of activities that are critical to the
success of the venture are: Incorporation of the venture, completion of design and
development, completion of prototypes, obtaining of sales representatives, signing of
distributors and dealers, ordering of materials in production quantities, starting of production
or operations, receipt of first orders, delivery of first sales.

Activities Deadlines

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10. CONCLUSIONS

End with a brief conclusion and the next step of action to be taken. The conclusion can
include the entrepreneur’s decision on how to proceed next. It can be a statement providing
viability of the proposal business and seeking grants or loan approval.

11. REFERENCES

Make sure all references are cited correctly using APA 6th edition. Recommend that you
source interviews, business journals, periodicals, and textual references as well as some
online research. Make sure you support your ideas with facts and figures. Please try to use
your own words and ideas based on research rather than copy and paste other’s words from
the internet.

12. APPENDICES

Attach any material that does nots easily fit into the body of a blueprint such as:
• Resumes of the top management team members.
• Photos or diagrams of product or prototype
• All charts, financials, visuals, and other related items can be placed here and referenced
in the report.
• Market research projections.

ASSESSMENT BREAKDOWN

Section Marks
Preliminary materials 5
(2) Product Description (3) Technology Description 10

(4) Marketing Plan 30

(5) Management Team 5
(6) Funding Plan 10
(7) Financial Estimates 20
(8) Commercialization & Intellectual Property 10
(9) Project Milestones
(10) Conclusions 5
Originality (Turnitin) 5

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