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  • National Innovation Challenge 2009 University of Pretoria

    28 August 2009

  • Table of contents:

    1. Deadline - 31 August 2009
    2. Innovation Fund NIC 2009 FAQ's
    3. UP Awards Ceremony
    4. Business Plan Framework

  • 1. Deadline - 31 August 2009

    The Deadline for UP NIC 2009 student Business Plans submissions is 31 August 2009.
    You can register at www.younoodle.com
    Once you register you can download your Business Plan to the younoogle site.
    You can also submit your Business Plan directly via e-mail to Stanly.Ehlers@up.ac.za
    You can also deliver a hard copy of your Business Plan to Rm 3-14, Marketing Services Bldg. Main Campus, University of Pretoria.
    All of these methods of submission will be accepted.

  • 2. Innovation Fund NIC 2009 FAQ's

    FREQUENTLY ASKED NIC 2009 QUESTIONS
    http://www.innovationfund.ac.za/nic-overview
    Q. Who May Enter the NIC?
    Q. May I Enter as Part of a Team?
    Q. What Type of Innovation Should my Business Plan Describe?
    Q. What Can I Win and Do I Get to Keep All the Prize Money?
    Q. If I Am Selected As One of the Top Three Entrants at My HEI, Who Will Pay For My Travelling and Accommodation to Participate in the Exhibition and to Attend the Awards Ceremony?
    Q. Where Do I Find Help to Write My Business Plan?
    Q. Who Are the Adjudicators and What Would They Be Looking For in a Business Plan?
    Q. Who May Enter the NIC?
    A. The competition is open to all South African students under the age of 35 years, who are registered at South African Higher Education Institutions (HEI’s). This includes part-time, distance learning and post doctorate students as well as postgraduates and undergraduates. Visiting foreign students may only assume a supporting role within a project team, with the prior written approval of the Innovation Fund (IF).
    Q. May I Enter as Part of a Team?
    A. You may enter as an individual student or as a part of a team, but we recommend that you participate as part of a team, as teams will be favoured.
    Q. What Type of Innovation Should my Business Plan Describe?
    A. Any technological innovation with the potential to result in a tangible product or process improvement or service (or a combination of these) will qualify for entry into NIC, subject to the business process. Besides being potentially financially viable, resultant business plans must demonstrate either proof of concept or evidence that achieving it is in process.
    Q. What Can I Win and Do I Get to Keep All the Prize Money?
    A. Prizes for the top three entrepreneurial students / student teams are as follows:
    Phase 1: Institutional Phase Prizes
    1st Prize: R 50 000
    2nd Prize: R 30 000
    3rd Prize: R 20 000
    * Prize money to be used at sole discretion of the student(s)
    Phase 2: National Phase Prizes
    1st Prize: R 300 000
    2nd Prize: R 200 000
    3rd Prize: R 150 000
    75% of the prize money is to be used by the student(s) for commercialisation of the business plan and the remaining 25% to be allocated to the relevant department(s). Should it prove impossible to commercialise the business plan, any surplus of the amounts allocated to commercialisation activities, must be paid into a bursary fund to be set up by the HEI to support historically disadvantaged students registered for science or engineering degrees at the Institution. The HEI shall provide the IF with a report on the establishment and allocation of funds from the bursary fund.
    Best Exhibition Prize (R10 000): Attendees viewing the NIC student exhibitions will vote for their best display on the day. The prize money shall be utilised at the sole discretion of the winning student exhibitor.
    International Competition: The IF will make every attempt to market the winning team internationally. The best business plan will receive up to R100 000 to cover costs for possible travel to participate in an international business plan competition to present their winning business plan. Where this is not relevant, the money is to be spent participating in a relevant international conference in line with their professional line of study.
    Q. If I Am Selected As One of the Top Three Entrants at My HEI, Who Will Pay For My Travelling and Accommodation to Participate in the Exhibition and to Attend the Awards Ceremony?
    A. The IF will make all the travel and accommodation arrangements, as well as settle the bill! You will be our guests!
    Q. Where Do I Find Help to Write My Business Plan?
    A. Speak to your lecturer and/or Professor, search for help on how to write business plans on the Internet, in a bookstore, or in a library. You can also visit the IF website or contact us.
    Q. Who Are the Adjudicators and What Would They Be Looking For in a Business Plan?
    A. The HEI Steering Committee will select the panel of adjudicators to evaluate the business plans received, but if need be, the IF will assist in obtaining relevant adjudicators with the desired and suitable expertise.
    The adjudicators selected to evaluate the relevant business plans should have multi-disciplinary expertise and the necessary experience to ensure a thorough, high-quality evaluation and scoring. The panel of adjudicators should also be representative of gender and race.
    Names and CVs of adjudicators selected must be forwarded to the IF for approval BEFORE evaluation of any business plan starts. If the IF, at any stage, feels that an erroneous choice of adjudicator/adjudicators has been made, the HEI Steering Committee, with the help of the IF, must appoint a 'replacement' adjudicator.
    The HEI judging panel should consist of a minimum of four and a maximum of six adjudicators, with at least two business experts and/or multi-disciplinary, technology-based experts. It is imperative that these adjudicators are not involved with the 'grooming' and/or guiding of student business plan processes at any stage. The selected adjudicators should not have been involved in, or a part of any preparation of business plans at Phase 1 of the NIC.
    Before receiving any business plans for evaluation and rating, adjudicators should sign a non-disclosure agreement (NDA) that will be supplied by the HEI Steering Committee. Copies of this NDA will be kept on record by the IF.

  • 3. UP Awards Ceremony

    All students that submit formal Business Plan entries are invited to attend the UP Awards Ceremony for the Institutional Phase 1 of the IF NIC 2009. The Awards will take place on 21 September 2009 at 12h00 in the SRC Council Chamber, UP Conference Centre, Bldg 52, Main Campus, University of Pretoria.Please confirm your attendance with Staly Ehlers at stanly.ehlers@up.ac.za

  • 4. Business Plan Framework

    Please ensure that you use the IF Business Plan Framework for your 10 Page entry - http://www.innovationfund.ac.za/downloads/nic/NIC2009Busi...

    This Business Plan Framework is intended to give you additional resources.
    1. Title Page / Cover Page
    Name of business, names of principles, contact details. Ensure that the front page is professional looking, business-like, neat and eye-catching. Include your logo.
    2. Executive Summary
    A summary outlining the contents of the business plan and all the main issues, preferably 1 - 2 pages in length. The potential investor must be able to get a clear overview of your business, it's environment, why it is different to the competition, and your financing requirements, by reading this summary.
    3. Table of Contents
    Titles of different sections and page numbers for easy reference.
    4. Business Vision / Mission Statement
    This is a short, concise paragraph (can even be a one-liner) that outlines the goal of the proposed business and briefly how the goal will be accomplished. What is the crux of the value proposition? How do you want your company to be perceived in the market? What are your long-term business goals?
    5. The Business Environment / Industry
    5.1 Industry outlook and growth potential
    Examine industry trends (historical and future forecasts). Summarize all relevant historical developments in the industry and any expected future developments and their impact. Always quote credible information sources. Critically assess industry competitive forces and the attractiveness of operating in the industry.
    5.2 National / International and economic trends
    Discuss relevant economic indicators, interest rates, inflation, consumer trends, population shifts etc; the factors that inevitably change, and affect your business, but are beyond your control. Describe how changes in these factors could impact on the business venture, and what strategies you would employ to counteract unfavorable effects. Always consider favorable and unfavorable scenarios for the future of the business when changes in these external factors occur.
    5.3 Legal and regulatory environment
    Details of any legislation, policies etc that affect the business environment in which you plan to operate. Refer to www.acts.co.za
    6. The Business
    6.1 Description of the Business
    Possibly the most important part of the business plan. The objective of this section is to explain
     what your business is;
     how you are going to run it;
     why you think your business will be successful.
    Deciding 'what your business is' is one of the most important decisions in starting a business, as it will affect the entire planning process for the venture. Be clear on what the central activity of your business is. This way you can concentrate your efforts and use resources efficiently.
    The basic questions you are seeking to answer in this section are:
     What type of business are you in? Is your business primarily merchandising, manufacturing or service? What are your products / services? Who are your customers?
     What is the status of the business - eg start-up, expansion of existing business, new division etc?
     What is the business form / structure - sole proprietorship, partnership, CC, company? www.cipro.co.za
     When and where will the business operate? Why did you choose the particular premises / location?
     Why will you succeed in this business?
     If you are buying an existing business, then provide a brief history or background information.
    6.2 Description of products or services
    Key issues to be addressed in this section are:
     What are you selling? What are the features? If your product is technological, remember to describe it in plain language, without jargon, suitable for a non-technical investor to read and understand. Will you seek patent protection of any sort?
     If you intend producing or manufacturing a product, explain in detail the processes involved, machines you intend using etc.
     What are the perceived benefits for customers who buy your product or service?
     What differentiates your product / service from those of competitors? Benchmark your product / service to existing ones and clarify differentiating features.
     If your product / service is fairly generic, what added value do you offer eg lower price, convenience, wide product line, superior product knowledge?
     Can you leverage the business to extend the product range in the future?
    6.3 Target market and geographic focus
    Your business succeeds or fails according to how well you satisfy your markets perceptions, wants and expectations. Therefore you must know who your customers and prospects are, where they are and what their characteristics are. How does the customer make decisions to buy this product / service? Include evidence of customer interest shown to date.
    6.4 Competition analysis
     Who are your nearest direct competitors?
     Who are your indirect competitors?
     How are their businesses performing and what insights can you offer as to why they may be underachieving?
     How are their operations similar to and different to yours?
     List, in point form, the strengths and weaknesses of your major competitors.
    6.5 Supply, value chain / product delivery process
     How will you deliver the product?
     Which other parties / outside agents will be involved and what will be your relationship with them?
     Who are your suppliers and what is their reputation?
     How will you handle delays at any stage in the supply chain, what are the costs involved at the various stages?
    6.6 Competitive advantage of your business concept
    Summarize what will give your business 'the edge' over competitors, eg price, product differentiation, uniqueness of value chain.
    7. Marketing Strategy / Marketing Plan
    7.1 Situation Analysis: SWOT
    Summarize, in point form, the Strengths, Weaknesses, Opportunities and Threats of your business model relative to competitors (remember even the most successful businesses have areas of weakness - pointing them out shows a thorough analysis of your business's operating environment), demonstrating strategies to combat the weaknesses and threats as far as possible.
    7.2 Marketing plan
     Provide a description and substantiation of your specific target market & geographic focus.
     Estimate the size of the market and the resources you will require to reach it.
     What percentage (or Rand value) of the market share do you intend capturing?
     The marketing plan must include genuine statistics relating to sales and markets.
     What evidence do you have that there is a market for your product / service?
     What do you intend to price your product / service at and how did you arrive at this pricing strategy?
     Competition analysis.
     Outline advertising philosophy and budget. Make sure to link advertising to your overall market positioning strategy.
    8. Organizational Structure
    8.1 Directors and managers
    Names and roles in proposed venture Brief job descriptions, responsibilities of key personnel For larger organisations, show proposed organisational chart and identify reporting relationships.
    8.2 Background of key management personnel
    Resumes of key managers, employees and founders. Highlight all relevant skills from each person's background.
    8.3 Recruitment plan / requirements
    Acknowledge any required skills missing in the management team, and demonstrate that you have profiled the type of people that you will seek to bring on board once the venture is financed. Proposed employment and organisational structure. What training will be provided for staff?
    8.4 Supporting professionals
    Professionals contracted in specialized or deficient areas; would include lawyer, accountant, insurance agent, consultant or a technical advisor of any sort.
    9. Development and Operational Plans (As Applicable)
    This section provides an overview of the physical infrastructure you require to actually run the business, as well as an account of procedures to be followed in the day-to-day operation of the business (the basis of an 'Operating Manual'). www.seda.co.za
    Examples of items to be summarized in this section are:
     Regulatory requirements / approvals / licenses which will have to be administered prior to commencement of business operations. What is the current status of any such applications?
     Describe the chosen location, and why it is appropriate for the business. If there is to be a construction phase, when is it programmed to begin, and which contractors and consultants are being proposed to handle the project, on what basis?
     Where will equipment be sourced? Details of major equipment, will it be leased or purchased?
     Where and how will labor be recruited? What initial training will they receive?
     Outline employment conditions?
     What computer hardware installations are required? What systems will be used to run operations (Enterprise Resource Planning systems, databases, etc)? http://www.intoweb.co.za/articles-define-erp.html
     What outsourcing agreements will be formed as part of operations?
    10. Implementation programme and milestones
    This is the detailed 'action plan', which sets out everything that needs to happen to begin operating your business, and the time schedule of when you intend accomplishing these goals. Can be neatly presented in a spreadsheet / graphical format e.g. Gantt chart. Include plans for all labour, resource and equipment requirements, setting up or construction of premises, induction training of staff, legalities and regulatory approvals
    NB: Be Realistic in establishing time frames for all your objectives. Remember everything takes longer than planned - especially securing finance, premises and required skills.
    11. Social responsibilities and ethical standards
    Will any communities be adversely affected by your operation? How far will benefits extend (direct & indirect)? Does your business model conform to high ethical standards? Are there likely to be any environmental effects resulting from the formation or the long-term operation of your enterprise? For larger businesses entailing new physical developments or products of any sort, these issues will generally have to be addressed by a Professional Consultant, who will, for a fee, produce Environmental and Social Impact Assessment documents, summaries of which should be included in an Appendix to your Business Plan.
    12. Financial Analysis
    Funding request
     State how much financing you require, justifying why you need that amount, and set out exactly what you will do with the funds and when. Always ensure you are requesting ample funding for what you wish to achieve
     Never 'skimp' on what you will need; going back to investors later to ask for additional funding creates an impression that you are a poor planner or that the business is in trouble.
    Sources and Uses of Funds
     List all proposed sources of finance, including personal financial contributions of company members.
     State what securities are to be offered as collateral against loans, Outline the proposed ownership structure and equity distribution.
     Provide details, specifications, condition, and market value of any items (capital equipment) already owned by the business. State if they have been paid for or how they are being paid for.
     Detail all capital equipment that the business intends to purchase once funding is received. State who will be the preferred suppliers of the items, their costs and the timeframe for the intended purchases.
     State how any fixed assets will be depreciated.
     Provide details, with reference to pro forma financial statements, of other uses of the funds, such as inventory and supplies (working capital), trading licenses etc.
    Break-even Analysis
    This is necessary to calculate what sales objective you have to reach to cover all your expenses before you start making a profit. Your marketing plan will serve to confirm that these volumes are achievable.
    Financial Forecasts
    Use the information you have gathered on the environment, market, product and costs, and make realistic assumptions to build a financial scenario for your business for the next 5 years minimum. This should be by way of pro forma income statements, cash flow statements and balance sheets. Make sure your revenue forecasts are conservative and credible in light of your industry and market analyses.
    Pro-forma Financial Statements
     A detailed income statement (also called Profit & Loss Account) for a projected period of at least five years.
     A detailed cash flow forecast for the projected period.
     Pro-forma balance sheets for the end of each projected year.
     A loan repayment schedule.
    Investor Rate of Return
    Perform a Discounted Cash Flow analysis to determine the Net Present Value (NPV) of the investment opportunity and it's Internal Rate of Return (IRR). This is important for businesses seeking substantial investment through equity or partnership, where the investor wants proof that he will earn superior returns on his investment than he could do elsewhere.
    Accounting Policies
    How will you value stock? How often will you do stock-take? What terms will you afford debtors? What terms will you negotiate with creditors? Will you register for VAT?
    Include names and contact details of your accountant / bookkeeper / auditor.
    13. Appendices
     Copies of relevant legal agreements, insurance policies, contracts, leases.
     Testimonial letters from clients, references.
     Market survey information.
     Press cuttings relating to your business or industry.
     Architectural plans, sketches, production facility layouts as applicable etc.
    Contact: jonathan.youngleson@up.ac.za
    sehlers@up.ac.za

National Innovation Challenge 2009 University of Pretoria Newsletters