COURSE INFORMATION

Catalog Course Code: GEB 650

Three-Letter Course Abbreviation: EBF-O

COURSE DESCRIPTION

The Entertainment Business Finance Course focuses on the financial decisions and issues facing the entertainment in-dustry professional. During this course, students identify and evaluate entertainment business opportunities and projects using financial principles, while also learning how to raise the necessary finances to fund an entertainment company and/or project. Students develop financial projections includ-ing startup funds and pro forma income statements for their chosen business. Additional topics in the course include the development of financial decision-making skills, financial plan-ning, capital management, operations expense management and personal finance.

COURSE MATERIALSyy Entrepreneurial Finance (Fifth Edition) (EF), Philip J. Adel-

man and Alan M. Marks, Pearson Publishing (e-book version)

yy Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money—That the Poor and Middle Class Do Not! (RDPD), Robert T. Kiyosaki and Sharon L. Lechter, Busi-ness Plus

COURSE OBJECTIVES

Through the various components of study and application, students will realize these objectives by completing the fol-lowing milestones:

yy Interpret financial statements

yy Understand how to create, read, analyze, and present business and personal financial statements

yy Understand how to create and present financial state-ments and other data to others as a way to tell the business story—how it has done financially, is doing now, and will do in the future

yy Employ online and additional resources to find financial information for entertainment and other companies

yy Utilize pro-forma forecasts and budgets as tools to properly manage business and personal financial affairs

yy Assemble a first draft of the pro-forma financial state-ments for the Business Plan and present the plan to the class for input and critique

yy Understand how businesses make money

yy Study and learn how to make money in business by identifying various revenue streams and effectively controlling expenses

yy Develop an understanding of how to use financial reports and analytical tools to monitor and improve profitability

yy Learn what is required in order for a business to break even and begin making a profit

yy Understand some of the unique financial issues spe-cific to entertainment-related businesses as compared to more traditional industries

yy Identify and avoid the most common business finan-cial pitfalls

yy Identify issues involved in finding and securing financing

yy Learn how to finance a startup entertainment business

yy Understand the difference between debt and equity and how the proper mix of both can provide funds needed to launch a business

yy Understand the likely sources of funding for a specific entertainment business and how the nature of each unique venture impacts potential financing sources and strategies

yy Develop a strategy to find and approach lenders and investors, and learn how successful ventures are structured so that everyone wins

yy Create an effective personal financial plan

yy Learn how to get started in building a solid financial future, beginning with a plan for getting out of debt and a commitment to start to acquire and build assets and personal wealth

yy Study and understand the tremendous power of the time value of money

yy Research a wide variety of possible investment vehicles and use various tools and resources to evaluate them

yy Comprehend the concept of risk and the tax implica-tions of investing and financial decision making

COURSE SYLLABUS

ENTERTAINMENT BUSINESS FINANCE—ONLINE

COURSE OUTCOMES

By the end of this course, students will be able to:

yy Create, read, analyze, and present financial statements

yy Develop a plan to ensure a new entertainment business is profitable

yy Identify potential sources and the proper debt/equity mix for financing a business

yy Create a personal financial plan for debt reduction and wealth creation

DEGREE CONNECTION

EBF builds on prior courses, such as MLR, EXL, PTM, and BSB, in which students utilize previous knowledge and skills gained in the study of available research methods and re-sources, project management, and brand development and differentiation to begin to develop a viable financial plan for the proposed new entertainment venture that is worthy of financing. EBF provides a valuable piece for the creation of a business plan and asks students to begin putting a financial plan together that will be further supplemented in upcom-ing courses. For example, EBF requires students to consider the various revenue streams their company creates for its products or services, the various expense categories, and re-sulting overall profitability. Students will discuss the potential sources of financing and outline the most appropriate mix of debt and equity financing. A key project is the development of a three-year pro-forma income statement projection. After completing the projection, students will present and explain their projections to the class and field questions that demon-strate their understanding and mastery of pro-forma financial reports. Using these projections, students will be asked to

carefully consider their final project business plan and create a comprehensive personal financial plan with a strategy for debt reduction and management, achievable goals and time-tables, as well as wealth creation and investment strategies for sustained future growth.

INDUSTRY CONNECTION

Financial decision making and critical thinking are essential skills for an entertainment entrepreneur and leader of a company. Creating a new entertainment-business venture requires understanding financial statements and important in-dustry benchmarks and performance measures, including the unique aspects of entertainment businesses that set them apart from making widgets and more traditional consumer products. Understanding these key financial concepts will be crucial for graduates presenting their company’s financial pro-jections to investors or lenders with the goal of obtaining the necessary capital to finance their dream company.

RESEARCH COMPONENT

Research is an essential component of developing a viable financial plan for an entertainment company. In developing the financial projections for a new entertainment venture, students will learn to conduct research on a publicly traded company and discover the wealth of information that is readily available through online resources. Students will also gain insight into their proposed entertainment-business venture by researching potential competitors, revenue sources, and expense catego-ries for their proposed companies and will use the research findings to forecast projected sales and expenses. These pro-forma forecasts will form the basis for more detailed financial projections for the Business Plan.CO

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ENTERTAINMENT BUSINESS FINANCE—ONLINE Course Outcomes

ADDITIONAL RESOURCES

To develop a better understanding of Entertainment Busi-ness Finance, be sure to take advantage of the many resources available. Resources including lecture slides, prac-tice exercises, resource documents, podcasts, and links to websites with pertinent information will be posted on FSO. Sites that we will use regularly include:

yy Yahoo! finance http://finance.yahoo.com/

yy Google finance http://www.google.com/finance

TOPICS COVERED

Entertainment Business Finance covers a variety of topics related to both business and personal financial issues. These topics include concepts such as:

yy Financial Management and Planning

yy Analysis of Financial Statements

yy Profit, Profitability, and Break-Even Analysis

yy Forecasting and Pro-Forma Financial Statements

yy Working Capital Management

yy Time Value of Money

yy Capital Budgeting

yy Finding and Talking to Investors

yy Getting Out of Debt

yy Investment Strategies

LEARNING ACTIVITIES

Reading AssignmentsReading assignments are carefully selected to inform stu-dents’ exploration of key concepts and provide knowledge of available research and learning technologies. The course relies on articles and online resources in order to provide stu-dents with the most current content possible. Video lessons augment students’ understanding of certain key concepts and provide helpful tidbits of information, including conduct-ing effective research, using professional communication, and working in teams.

Weekly AssignmentsWeekly assignments present an opportunity for students to apply course concepts in terms of the entertainment indus-try by examining the financials of a film production company, record label, and recording studio. Weekly assignments and

case studies consist of a quantitative analysis section and/or a qualitative/short answer section. Detailed information such as specific goals, requirements, specifications, and grading criteria is provided in each online assignment posting. Be sure to review these assignments at the beginning of the course to provide adequate time to complete them with a high degree of quality.

In these assignments, students will explore creating and analyzing financial statements, break-even analysis, capital investment decisions, and personal finance decisions.

Revenue Think Tank Peer Evaluation The Revenue Think Tank is a peer-evaluation group activity in which students will collaborate and share ideas about how to generate revenue streams for their companies. Using either Wimba or Viddler, students will meet in groups of four or five and discuss how the company will generate revenue by iden-tifying the products and services being sold, their pricing, and their consumers. Members of the group will provide feedback on each company’s revenue streams with the goal of refining the company’s sales projections for the Pro-Forma Project. More information on the Revenue Think Tank will be provided in the directions of the activity on the FSO course page.

ENTERTAINMENT BUSINESS FINANCE—ONLINE Additional Resources

DiscussionsThe discussions are designed to engage a level of collaborative critical thinking as it pertains to the real-world application of the topics at hand. Due to the collaborative nature of the discussions, it is important to provide responses that fit the flow of the discus-sion. The big picture understanding gained from the flow and collaboration in discussions will dramati-cally improve students' understanding of the skills required for assignments and case studies. Thus, grades earned for the more heavily weighted activi-ties are largely reflected upon by the effort put forth in discussions.

The weekly themes for the discussions are Week 1—Ratio Analysis, Week 2—Break-Even Analysis, Week 3—Capital Budgeting Decisions, and Week 4—Personal Finance.

Professional Blog PostsDuring the month, students will publish two blog posts to their professional blog. Each post should demonstrate a contribution to the student’s chosen field of expertise. Students are encouraged to tap into their PLN using social media tools such as Twitter and online forums to meet prospective industry experts for interviews and conduct ongoing research. Stu-dents may also choose to write a website review or comment on a current event pertinent to the industry.

Pro-Forma Financial Statement WorkshopFor the Pro-Forma Financial Statement Project, students will be required to create a three-year forward-looking income statement with the goal of obtaining external financing from an equity investor or a lender. Students are provided an Excel worksheet template for the creation of a three-year income statement projection, as well as a listing of expected startup costs and working capital requirements.

GRADE WEIGHTS

All assignments are graded on a 100-point scale then are weighted to determine the final course grade as indicated by the Grade Weights table below.

Weekly Assignments (4 at 10% each) 40%

Discussion Boards (4 at 5% each) 20%

Revenue Think Tank 5%

Pro-Forma Financial Statement 15%

Professional Blog Posts (2 at 5% each) 10%

Professionalism (GPS) 10%

Total 100%

Professional communication is critical to projecting a professional image and establishing positive profes-sional relationships. All projects, as well as written and verbal communications, should be appropriate for a professional setting in content, tone, and format.

STRATEGIES FOR SUCCESSFUL LEARNING

Some tips to keep in mind when studying Entertain-ment Business Finance:

yy Stay on top of the reading assignments. Es-pecially for those students who may not have previous exposure to finance, keeping up with the assigned reading is essential.

yy Check your understanding of key concepts by answering the review and discussion questions at the end of each chapter.

yy Ask questions and share ideas. Interact with peers as well as your instructor.

yy Check FSO for all course resources.

yy For the major assignment—the pro-forma financial projection—planning ahead and con-sistent incremental progress will ensure proper completion.

yy Make sure that all of your work is presented pro-fessionally—this is a very important career habit to develop. Always have someone proofread writ-ten assignments and be sure to cite your sources when presenting research results.

yy Keep in mind that the key financial concepts you are learning in EBF will have a practical applica-tion in both your career and personal life.

COURSE-SPECIFIC RUBRICS

Rubrics for each EBF assignment are posted on the FSO course page.

ENTERTAINMENT BUSINESS FINANCE—ONLINE Learning Activities