Business Model
I’m Confused...• What is a Business Plan?• How does it differ from a Business Model?
Business Plan• A document your investor make you write that  they don’t read• A useful place for you to collect your guess...
Business Model• A diagram that shows all the flows between  your company and its customers• describes the rationale of how...
Business Plan Hypothesis       • your business plan is a set of         untested hypothesis (see         your business pla...
Hypothesis..• Size of Opportunity: TAM, SAM• Customer: who’s the end user?• Sales: what’s the distribution channel?• Marke...
Business Plan - Sum of      Hypothesis• Business plan collects your hypothesis• Adds facts as you know them today• Contain...
Business Model...  Start with the Pieces...
Business Model• Goal is to get to a SINGLE DIAGRAM of your  business• Start by drawing pieces of your business - Problem/O...
Problem/Opportunity   Why are you in Business?
Recognize Your Market        Type       - Can Save a Ton of Rupiahs             - Market Type?(Existing Market, Re-segment...
How Big is it?Sizing up the market
Distribution ChannelHow Does Your Product Get to Your Customer?             Two key questions:- How to get users to try ou...
Demand CreationHow Do You Drive Demand into Your Channel?
Financial AssumptionsWhat are the Ten Numbers that Matter?         - Average selling price             - Life time value  ...
Business Model...How Do The Pieces Work Together?
Business Model
Group Task 1• please work with your friends in a team that  consist of max. 5 person.• find one business that already run ...
Welcome to aBusiness Model Creation         ClassBusiness Model Creation         Class        Thank You
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Meeting 1 business model definition

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  • how to differentiate between business plan and business model (they already got a business plan creation project before on Entrepreneurship 1)
  • refers to their previous activities were doing business plan project at entrepreneurship 1
  • Business model: - everybody understand. - start from the same point - talk about the same thing. - concept must be simple, relevant, and intuitively understandable. - not try to oversimplifying the complexities of how enterprise function.
  • - all guesses items in your business plan report. - find it directly from market/field, internet, etc.
  • Existing Market: Faster/Better or High End Re-segmented Market: Niche (marketing/branding driven) or Cheaper (low end) New Market: cheaper enough to create new class products or innovative/never existed before.
  • Example of unique idea: website and iPhone app form symbiotic relationship (distribution and demand creation)
  • an example of business model in a single diagram.
  • Meeting 1 business model definition

    1. 1. Business Model
    2. 2. I’m Confused...• What is a Business Plan?• How does it differ from a Business Model?
    3. 3. Business Plan• A document your investor make you write that they don’t read• A useful place for you to collect your guesses about your business - size of opportunity - Customers - Channel - Demand Creation - Revenue / Expenses / Profit
    4. 4. Business Model• A diagram that shows all the flows between your company and its customers• describes the rationale of how an organization creates, delivers, and captures value• how do all the parts work to create profits?
    5. 5. Business Plan Hypothesis • your business plan is a set of untested hypothesis (see your business plan report in Entrepreneurship1) • what are they? • how do you test them? • how do you execute them?
    6. 6. Hypothesis..• Size of Opportunity: TAM, SAM• Customer: who’s the end user?• Sales: what’s the distribution channel?• Marketing: how do you create end-user demand• Customer Development: how do you test your hypothesis• Financing: what is the path to cash flow positive
    7. 7. Business Plan - Sum of Hypothesis• Business plan collects your hypothesis• Adds facts as you know them today• Contains a plan of how to turn hypothesis into facts• Extrapolates results if hypothesis turn into facts• Has a business model which is clearly articulated
    8. 8. Business Model... Start with the Pieces...
    9. 9. Business Model• Goal is to get to a SINGLE DIAGRAM of your business• Start by drawing pieces of your business - Problem/Opportunity, Market Size, Distribution Channel, Demand Creation, Financial Assumptions.• Then put it all together
    10. 10. Problem/Opportunity Why are you in Business?
    11. 11. Recognize Your Market Type - Can Save a Ton of Rupiahs - Market Type?(Existing Market, Re-segmented Market, New Market)
    12. 12. How Big is it?Sizing up the market
    13. 13. Distribution ChannelHow Does Your Product Get to Your Customer? Two key questions:- How to get users to try our product or how they are going to buy or consume it? - How to get users to stay?
    14. 14. Demand CreationHow Do You Drive Demand into Your Channel?
    15. 15. Financial AssumptionsWhat are the Ten Numbers that Matter? - Average selling price - Life time value - Material Cost - Distribution Channel Cost - Customer Acquisition Cost - Time to market etc
    16. 16. Business Model...How Do The Pieces Work Together?
    17. 17. Business Model
    18. 18. Group Task 1• please work with your friends in a team that consist of max. 5 person.• find one business that already run for at least 1 year in Bandung.• try to collect some information about them.
    19. 19. Welcome to aBusiness Model Creation ClassBusiness Model Creation Class Thank You

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