The University of Chicago Graduate School of Business

1. New Enterprise and Small Business Management and the YourCo. Simulation GameDeveloped by Waverly Deutsch, Ph. D.Clinical Assistant Professor of EntrepreneurshipUniversity of Chicago Graduate School of Business The University of Chicago Graduate School of Business 5807 South Woodlawn Avenue, Chicago, Illinois 60637 Tel 773.834.1134 Fax 773.834.4046 gsbwww.ChicagoGSB.edu/entrepreneur

2. Introducing YourCo • Experiential Learning at Chicago GSB • The Class: New Enterprise and Small Business Management • YourCo. Simulation • Purpose • Play • Outcome

3. Elements of Performance Conceptual Knowledge Domain Knowledge Action Skills Actions Outcomes Source: Davis and Hogarth 1992

4. GSB Entrepreneurship Curriculum • New Venture Strategy • Opportunity identification • Private Equity and New Venture Finance • Funding start-ups • New Venture Challenge • Business plan creation But, what do you do? • New Enterprise and Small Business Management • Execution – “A vision without execution is a hallucination.” Steve Case, AOL

5. Overview of the Course • State of Entrepreneurship • Entrepreneurial Characteristics and Start-up Business Models • Market Segmentation and Selection • Marketing Tactics • Sales • Product Development • Operations • Growth Challenges • Alternatives to Starting Your Own Business • Diversification or Exit

6. YourCo. Simulation • “Year” in the life of a start-up • Idea, Proof-of-concept, Early Growth • Eight assignments paralleling course content • Launch • Market selection and 1st marketing campaign • Sale • Product improvement • Operations • Diversification or exit • CRISIS

7. Report Format • 2 Pages to address specific issue • Write a one paragraph elevator pitch describing your business. • Using your own backgrounds as the guideline, describe the management team. • Assess any critical holes in personnel and describe how you plan to fill those holes. • Determine the amount of seed funding you need to launch and describe how you raised it. • 3 additional pages each assignment • Page 3 -- Tell me anything else I need to know about what happened during this month of operations. • Page 4 – Week 1: Create a basic budget for 1 year of operation. Each week: show one month of burn. • Page 5 -- Describe how you arrived at the above. What data did you discover? What sources did you look at? Who did you talk to? • A limited number of exhibits – resumes, graphics, data, etc. – are allowed

8. Grading • There are 8 points per assignment • 5 for the answer to the specific question • 3 for how you arrived at it – methodology and research Plus 2 potential bonus points for follow-up or miscellaneous • Points are awarded for • Creativity • Completeness • Credibility • Businesses models are assigned a difficulty multiplier between .9 and 1.1 • Winning team is guaranteed a “A” in the course

9. “Play” of the Game and the ROLL of Luck • In class challenges of critical accomplishments • YourCo. Probability Calculators • ROLL a 10 sided die to determine success

10. LUCKY BREAK REPRIEVE INSTANT REPLAY Other Accoutrement

11. Outcomes • Key teaching points • Intellectual property, business licenses and permits, taxes, etc. • Insight learning • Networking • “I learned more in our one hour conversation with him than I could have learned reading on the Internet forever.” • Experience • “This class kept me awake at night worrying about all the details of our ‘fake’ business.” • “I learned more about being an entrepreneur through this class than I could have any other way, short of starting my own business.”

12. Thank you. Waverly Deutsch Waverly.deutsch@ChicagoGSB.edu