A BUSINESS CONCEPT is a concise
description of an opportunity that
contains four essential elements:
The customer definition
The value proposition and compelling story
The distribution channel
THE CUSTOMER DEFINITION
– The customer is the one who pays.
– The end use customer is as important as the
THE VALUE PROPOSITION
• The compelling story is the benefit that
the customer derives from the product
It is often intangible
• The compelling story answers the
Why the interest?
What problem does this solve?
• The Product/Service
– What does the customer need?
• The Distribution Channel
– How will the benefit be delivered to
THE CONCEPT STATEMENT
• Creating a clear and concise concept
statement is not difficult but telling a
compelling story can be.
• A compelling story consists of a
problem and a solution.
• The problem being solved should be
presented in a simple clear way.
• Can you make a good pitch for the
CONCEPT QUICK TEST
• Is anyone else interested?
• Will people pay for what is being offered?
• Why me?
• Why now?
THE VALUE CHAIN AND THE
• Upstream activities, those related to the production
of a product or service, which may include raw
materials, product development, manufacturing, and
• Downstream activities, those associated with selling
the product or service such as customer acquisition,
sales transactions, and logistics.
THE VALUE CHAIN AND THE
• Developing a distribution strategy:
– Evaluate strategies of similar companies
– Look for the opportunity gaps
• Factors affecting
– Market coverage
– Speed and reliability
A “Business Plan” is a “Selling/Strategy
Document” that conveys the excitement
and promise of your business to any
potential backers and stakeholders.
BUSINESS PLAN, WHY?
To sell yourself on the business
To obtain bank financing
To obtain investment funds
To establish strategic alliances
To obtain initial contracts
To attract key employees
To assist in the completion of mergers and
To motivate and focus your management
THREE TYPES OF A BUSINESS PLAN
10 pages, 3 important points
10-40 pages, seeking capital or
alliances ideally 25 pages
40+ pages, for going concerns, part of
an annual process
WHAT INVESTORS LOOK FOR
• Experienced & passionate management
• Real customer need (pain and/or pleasure)
• Large market
• Salable business
• Cost-effective way to target the market
• Sustainable competitive advantages
• Realistic revenue model
• Return on investment
A GOOD BUSINESS PLAN …
• … tells a compelling story.
• … is clear and concise.
• … is based on documented facts.
• … does not waste the reader’s time or
attention with extraneous material.
• … drives to a conclusion.
• … is not a guarantee of success.
BUSINESS PLAN DOCUMENTS
Two (2) pages
Business Plan Provide details for
Span of 3 to 5
close the deal
10-15 slides max.
BUSINESS PLAN DEVELOPMENT PROCESS
BUSINESS PLAN FORMAT
• Pages: 10 to 30
• Kinko’s white bond
is good enough
• Simple binding
– Handout – a good
example B Plan
– Discuss examples of
INTRODUCTION AND BUSINESS PREMISE
MARKET ANALYSIS AND CUSTOMER NEEDS
BUSINESS OPERATIONS PLAN
MARKETING AND SALES
TRANSITION TO REVENUE SERVICE
MANAGEMENT TEAM AND ADVISORS
KEY BUSINESS METRICS
CAPITAL STRUCTURE/FINANCING PLANS