The document discusses key concepts related to developing a business model for a startup home-based business. It defines terms like business model, value proposition, startup costs, and marketing strategy. It explains that a business model identifies how a company will make a profit by selling products/services to target customers. The business model covers costs, marketing, competition and financial projections. Successful business models fulfill customer needs at a competitive price and sustainable cost.
Entrepreneurship Summit Iit Kgp How To Write A Business Plan 03 11 2007Prof Parameshwar P Iyer
This presentation makes a strong case for engineers to turn their technical ideas into creative businesses. It explains the benefits of risk taking, taking ownership, and creatively innovating for new businesses. It also gives the do's and don'ts of writing an effective business plan.
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Emerging markets already offer a wide range of business opportunities
and the number of attractive business cases is growing at a rapid
pace. Population growth, urbanization, industrialization, improved
governance structures and the massive development in modern ICT
technology are making the markets even more attractive and accessible
for foreign companies...
Entrepreneurship Summit Iit Kgp How To Write A Business Plan 03 11 2007Prof Parameshwar P Iyer
This presentation makes a strong case for engineers to turn their technical ideas into creative businesses. It explains the benefits of risk taking, taking ownership, and creatively innovating for new businesses. It also gives the do's and don'ts of writing an effective business plan.
Chapter 2 Developing Marketing Strategies and PlansNishant Agrawal
Developing Marketing Strategies and Plans
Value Delivery Process
What is the Value Chain?
Core Business Processes
Core Competencies
What is Holistic Marketing?
Levels of a Marketing Plan
Corporate Headquarters Planning Activities
Emerging markets already offer a wide range of business opportunities
and the number of attractive business cases is growing at a rapid
pace. Population growth, urbanization, industrialization, improved
governance structures and the massive development in modern ICT
technology are making the markets even more attractive and accessible
for foreign companies...
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/deconstruct-and-innovate-your-business-model/
The business model is at the core of any company’s corporate strategy. It defines how the company creates, delivers, and captures value.
Most tech startups fail because they lack a viable business model. Even for enterprises with established business models, they often need to revisit and innovate on their business models.
To understand the essence of a successful business model, first, let’s look at its 4 core components:
• Customer Value Proposition,
• Profit Formula,
• Key Resources, and
• Key Processes.
Customer Value Proposition
A successful company helps its customers get a “job” done. Doing the “job”—this is the “value” the business is delivering for its customer. For instance, Google helps customers with the job of finding information online. McDonalds helps customers with the job of feeding a greasy appetite quickly and cheaply. Flevy helps customers with the job of finding business documents they need for work.
High customer value proposition is correlated with
• Importance of the job to the customer;
• Low customer satisfaction with alternative options in the market; and
• Higher quality (or lower price) of your product relative to alternative options.
Profit Formula
It’s great to offer customers great value, but, as a business, the economics still need to work in your favor. We need to make money! This is the profit formula.
The profit formula is the blueprint that defines how the company creates value for itself, while providing value for the customer. The profit formula consists of numerous economic components, including:
• Revenue model
• Cost structure
• Margin model
• Asset turnover and velocity
The journey from random to strategic business development activities/strategies starts with the understanding of your peculiar Business Development Space and the possibilities therein. This presentation is the first in a series. It enables you evaluate your Business Development Space and what you can do with it.
FACULTY OF COMPUTING AND BUSINESS MANAGEMENTVILA COLLEGEBM.docxmydrynan
FACULTY OF COMPUTING AND BUSINESS MANAGEMENT
Vila College
BMMK 5103
ENTERPRISE DEVELOPMENT
ASSIGNMENT
Date Assigned: 2nd t March 2013
Due Date: 6th April 2013
Lecturer: Mr.Hamid Sodique
Student ID: s111023248
Student name: Imad Mohamed
Imad MohamedACKNOWLEDGEMENT
First of all I would like to thank God as I am able to finish this assignment given by Mr.Hamid Sodique, lecture of the Module: Marketing Management.. This task cannot be completed without guidance and continued support of from lecture. Therefore I would like to take this opportunity to tank lecture, Mr.Hamid Sodique for his guidance for and explanation of the subject, and kind extension of deadline for submitting the assignment. I also appreciated those Villa College’s facilitations, to grant me late registration and extension for submitting the assignment.
I am a civil servant having heavy workload especially during the time there is much challenges for our work to uphold decentralization system in Maldives. My studies and work towards this assignment is completed because of the flexibility and support given by my office management and staff as well. I recognized the support of office management and thanks management of Local Government Authority
This task has been done with the help of and discussion with colleague students of the class, and I would address big thanks to all fellow students.
Finally I thanks to my beloved family and friends that always stick together and also work hard to produce good assignment.EXECUTIVE SUMMARY
The case presented discusses Singtrix’s activities that outline its strengths and weaknesses. This paper clearly identifies the company’s life in the industry. The paper also provides information that will help in depicting a clear picture in the company’s operations and activities.
This paper discusses the strengths and weaknesses of the company and the main reason behind these occurrences. This paper clearly explains the position of the company in the musical instrument industry. It will outline the main strategies that the company needs to adopt in order to ensure that the new product penetrates and is fully accepted into the market. The information provided best explains what the company needs to do and what it needs to change when introducing a new product into the market.
An analysis of the internal practices of the company help outlines the company's SWOT. The strengths related to the company are; producing quality, producing unique products with unique features, changing the unthinkable, that is, making bad singers good singers and producing user-friendly devices. The company's weaknesses include; poor marketing; its products get only known by a certain class of individuals and limited brands. Its opportunities include; its quality products help attract new clients, stands a great chance of becoming one of the best in the industry, its ability to make music stars acts as a way of advertisement and have a chance of creating new p ...
The ten elements of a strong business modelGnowit Inc
Here are the ten basic elements of a strong business model. It is important for startups to understand the fundamentals of creating a sustainable business
Better Business Planning: Your Comprehensive Guide to Building Success
Introduction:
Embarking on a new business venture or seeking to elevate an existing one? Whether you're a budding entrepreneur or aiming to secure funding from venture capitalists, the importance of a well-crafted business plan cannot be overstated. Welcome to "Better Business Planning," an e-book that serves as your indispensable guide to creating a comprehensive, thoughtful, and compelling business plan. Here, you'll find all the essential information you need to transform your business vision into a strategic roadmap for success.
Chapter 1: The Crucial Role of a Business Plan
The e-book commences with a deep dive into the significance of a business plan in the entrepreneurial journey. Whether you're at the inception stage or looking to attract investment, a well-constructed business plan is your roadmap to success. This chapter lays the foundation for understanding why a business plan is more than just a document—it's a strategic tool that aligns your aspirations with sound business reasoning.
Chapter 2: Comprehensive and Well-Thought-Out
Building a business plan goes beyond mere documentation; it requires a comprehensive and well-thought-out approach. This chapter delves into the key components that make a business plan effective. From market analysis to financial projections, every aspect is explored to ensure your business plan is not only thorough but also resonates with clarity and purpose.
Chapter 3: Crafting Sound Business Reasons
Success hinges on sound business reasons, and your business plan is the platform to articulate them effectively. This chapter explores the art of presenting compelling reasons for your business's existence, growth, and potential success. By understanding how to convey your ideas with conviction, you'll be better equipped to engage potential investors and stakeholders.
Chapter 4: Your One-Stop Source for Business Info
The e-book positions itself as your ultimate source for all things related to business planning. Whether you're a novice or a seasoned entrepreneur, you'll find valuable insights and practical tips to enhance your business planning skills. This chapter sets the tone for a comprehensive learning experience that empowers you to navigate the intricacies of the business planning process.
Conclusion:
"Better Business Planning" is more than just an e-book; it's your partner in the journey toward business success. From understanding the crucial role of a business plan to crafting sound business reasons, this guide is designed to equip you with the knowledge and skills needed to create a compelling roadmap for your venture. As you delve into the comprehensive and well-thought-out strategies outlined in this e-book, remember that a successful business plan is not just a document; it's a strategic tool that propels your vision toward tangible success. Get ready to transform your business planning approach—your journey begins here.
Marketing checklists – love them or loath them, they are at the heart of management thinking and practice. And they serve two purposes.
The first is to provide a framework to improve marketing performance. The second is to help managers and business owners with an easy to follow system for crafting today’s - and tomorrow’s - breakthrough marketing strategies and plans.
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/deconstruct-and-innovate-your-business-model/
The business model is at the core of any company’s corporate strategy. It defines how the company creates, delivers, and captures value.
Most tech startups fail because they lack a viable business model. Even for enterprises with established business models, they often need to revisit and innovate on their business models.
To understand the essence of a successful business model, first, let’s look at its 4 core components:
• Customer Value Proposition,
• Profit Formula,
• Key Resources, and
• Key Processes.
Customer Value Proposition
A successful company helps its customers get a “job” done. Doing the “job”—this is the “value” the business is delivering for its customer. For instance, Google helps customers with the job of finding information online. McDonalds helps customers with the job of feeding a greasy appetite quickly and cheaply. Flevy helps customers with the job of finding business documents they need for work.
High customer value proposition is correlated with
• Importance of the job to the customer;
• Low customer satisfaction with alternative options in the market; and
• Higher quality (or lower price) of your product relative to alternative options.
Profit Formula
It’s great to offer customers great value, but, as a business, the economics still need to work in your favor. We need to make money! This is the profit formula.
The profit formula is the blueprint that defines how the company creates value for itself, while providing value for the customer. The profit formula consists of numerous economic components, including:
• Revenue model
• Cost structure
• Margin model
• Asset turnover and velocity
The journey from random to strategic business development activities/strategies starts with the understanding of your peculiar Business Development Space and the possibilities therein. This presentation is the first in a series. It enables you evaluate your Business Development Space and what you can do with it.
FACULTY OF COMPUTING AND BUSINESS MANAGEMENTVILA COLLEGEBM.docxmydrynan
FACULTY OF COMPUTING AND BUSINESS MANAGEMENT
Vila College
BMMK 5103
ENTERPRISE DEVELOPMENT
ASSIGNMENT
Date Assigned: 2nd t March 2013
Due Date: 6th April 2013
Lecturer: Mr.Hamid Sodique
Student ID: s111023248
Student name: Imad Mohamed
Imad MohamedACKNOWLEDGEMENT
First of all I would like to thank God as I am able to finish this assignment given by Mr.Hamid Sodique, lecture of the Module: Marketing Management.. This task cannot be completed without guidance and continued support of from lecture. Therefore I would like to take this opportunity to tank lecture, Mr.Hamid Sodique for his guidance for and explanation of the subject, and kind extension of deadline for submitting the assignment. I also appreciated those Villa College’s facilitations, to grant me late registration and extension for submitting the assignment.
I am a civil servant having heavy workload especially during the time there is much challenges for our work to uphold decentralization system in Maldives. My studies and work towards this assignment is completed because of the flexibility and support given by my office management and staff as well. I recognized the support of office management and thanks management of Local Government Authority
This task has been done with the help of and discussion with colleague students of the class, and I would address big thanks to all fellow students.
Finally I thanks to my beloved family and friends that always stick together and also work hard to produce good assignment.EXECUTIVE SUMMARY
The case presented discusses Singtrix’s activities that outline its strengths and weaknesses. This paper clearly identifies the company’s life in the industry. The paper also provides information that will help in depicting a clear picture in the company’s operations and activities.
This paper discusses the strengths and weaknesses of the company and the main reason behind these occurrences. This paper clearly explains the position of the company in the musical instrument industry. It will outline the main strategies that the company needs to adopt in order to ensure that the new product penetrates and is fully accepted into the market. The information provided best explains what the company needs to do and what it needs to change when introducing a new product into the market.
An analysis of the internal practices of the company help outlines the company's SWOT. The strengths related to the company are; producing quality, producing unique products with unique features, changing the unthinkable, that is, making bad singers good singers and producing user-friendly devices. The company's weaknesses include; poor marketing; its products get only known by a certain class of individuals and limited brands. Its opportunities include; its quality products help attract new clients, stands a great chance of becoming one of the best in the industry, its ability to make music stars acts as a way of advertisement and have a chance of creating new p ...
The ten elements of a strong business modelGnowit Inc
Here are the ten basic elements of a strong business model. It is important for startups to understand the fundamentals of creating a sustainable business
Better Business Planning: Your Comprehensive Guide to Building Success
Introduction:
Embarking on a new business venture or seeking to elevate an existing one? Whether you're a budding entrepreneur or aiming to secure funding from venture capitalists, the importance of a well-crafted business plan cannot be overstated. Welcome to "Better Business Planning," an e-book that serves as your indispensable guide to creating a comprehensive, thoughtful, and compelling business plan. Here, you'll find all the essential information you need to transform your business vision into a strategic roadmap for success.
Chapter 1: The Crucial Role of a Business Plan
The e-book commences with a deep dive into the significance of a business plan in the entrepreneurial journey. Whether you're at the inception stage or looking to attract investment, a well-constructed business plan is your roadmap to success. This chapter lays the foundation for understanding why a business plan is more than just a document—it's a strategic tool that aligns your aspirations with sound business reasoning.
Chapter 2: Comprehensive and Well-Thought-Out
Building a business plan goes beyond mere documentation; it requires a comprehensive and well-thought-out approach. This chapter delves into the key components that make a business plan effective. From market analysis to financial projections, every aspect is explored to ensure your business plan is not only thorough but also resonates with clarity and purpose.
Chapter 3: Crafting Sound Business Reasons
Success hinges on sound business reasons, and your business plan is the platform to articulate them effectively. This chapter explores the art of presenting compelling reasons for your business's existence, growth, and potential success. By understanding how to convey your ideas with conviction, you'll be better equipped to engage potential investors and stakeholders.
Chapter 4: Your One-Stop Source for Business Info
The e-book positions itself as your ultimate source for all things related to business planning. Whether you're a novice or a seasoned entrepreneur, you'll find valuable insights and practical tips to enhance your business planning skills. This chapter sets the tone for a comprehensive learning experience that empowers you to navigate the intricacies of the business planning process.
Conclusion:
"Better Business Planning" is more than just an e-book; it's your partner in the journey toward business success. From understanding the crucial role of a business plan to crafting sound business reasons, this guide is designed to equip you with the knowledge and skills needed to create a compelling roadmap for your venture. As you delve into the comprehensive and well-thought-out strategies outlined in this e-book, remember that a successful business plan is not just a document; it's a strategic tool that propels your vision toward tangible success. Get ready to transform your business planning approach—your journey begins here.
Marketing checklists – love them or loath them, they are at the heart of management thinking and practice. And they serve two purposes.
The first is to provide a framework to improve marketing performance. The second is to help managers and business owners with an easy to follow system for crafting today’s - and tomorrow’s - breakthrough marketing strategies and plans.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
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What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
2. OBJECTIVES:
apply the process in creating simple start-up home
based business
analyze the preparation of a simple home-based start-
up business
do the business experimentation – the business
model
3. Understanding the key terms:
1.Business model refers to a company's plan for making a
profit. It identifies the products or services the business plans
to sell, its identified target market, and any anticipated
expenses.
2.Value proposition - a description of the goods or services that
a company offers and why they are desirable to customers or
clients, ideally stated in a way that differentiates the product
or service from its competitors.
3.Startup costs are the expenses incurred during the process
of creating a new business.
4.Pre-opening startup costs include a business plan, research
expenses, borrowing costs, and expenses for technology.
4. 5.Post-opening startup costs include advertising, promotion,
and employee expenses.
6.Marketing strategy refers to a business's overall game plan
for reaching prospective consumers and turning them into
customers of the products or services the business provides. A
marketing strategy contains the company’s value proposition,
key brand messaging, data on target customer demographics,
and other high-level elements.
7.Demand is an economic principle referring to a consumer's
desire to purchase goods and services and willingness to pay a
price for a specific good or service.
8.Investment is an asset or item that is purchased with the hope
that it will generate income or appreciate the in value at some
point in the future.
5. 9. Appreciation refers to an increase in the value of an asset
over time.
10.Marketing costs are all expenses that the company makes
to market and sell its products and develop and promote its
brand.
A business model is not a business plan
It is a common misunderstanding to think of business modeling
as a one-page business plan.
A business plan is a document with a specific aim. It contains a
bunch of assumptions about your business. It also contains
financial projections about the business for the next 3-5 years.
However, those assumptions can be hardly tested. The business
plan thus remains a document that lives in the imaginary world.
6. Written to impress friends
and potential investors not for
any use for experimentation.
As we will see the primary
purpose of business modeling is
about experimentation. Another
misconception around business
models is to confuse them with
the monetization strategy or the
revenue model of a company.
While this is an essential piece of
the puzzle, it is just one of the
components of a successful
business model.
7. Understanding Business Models
Creating a business model is essential, whether you are starting
a new venture, expanding into a new market, or changing your
go-to-market strategy. You can use a business model to capture
fundamental assumptions and decisions about the opportunity
in one place, setting the direction for success.
A business model is a high-level plan for profitably operating a
business in a specific marketplace. A primary component of the
business model is the value proposition. This is a description of
the goods or services that a company offers and why they are
desirable to customers or clients, ideally stated in a way that
differentiates the product or service from its competitors.
8. A new enterprise's business model should also cover projected
startup costs and financing sources, the target customer for the
business, marketing strategy, a review of the competition, and
projections of revenues and expenses. The plan may also define
opportunities in which the business can partner with other
established companies.
When evaluating company investment, the investor should find out
exactly how it makes its money. This means looking through the
company's business model. Admittedly, the business model may
not tell you everything about a company's prospects. But the
investor who understands the business model can make better
sense of the financial data. Company and product builders must
think from the outside in, focusing on market needs and what
matters most to customers.
9. Successful businesses have business models that allow them to
fulfill client needs at a competitive price and a sustainable cost.
Over time, many businesses revise their business models from time
to time to reflect changing business environments and market
demands.
Business models are “at heart, stories — stories that explain how
enterprises work. A good business model answers the following
questions:
1.Who is the customer?
2.What does the customer value?’
3.How do we make money in this business?
4.What is the underlying economic logic that explains how we can
deliver value to customers at an appropriate cost?
10. Establishing this foundation guides the next planning tool — your
product roadmap.
Two primary levers of a company's business model:
1.Pricing which is the process whereby a business sets the price at
which it will sell its products and services. It may be part of the
business's marketing plan.
2.Product Costs which include materials, labor, production
supplies and factory overhead. Cost of the labor required to
deliver a service to a customer is also considered a product cost.
Product costs related to services should
include things like compensation, payroll taxes and employee
benefits.
11. A company can raise prices, and it can find inventory at reduced
costs. Both actions increase gross profit. Many analysts consider
gross profit to be more important in evaluating a business plan. A
good gross profit suggests a sound business plan. If expenses are
out of control, the management team can correct it. Companies
that run on the best business models are more profitable.
The Key components of a business model should include:
1. your target customers, the market
2.organization strengths and challenges
3.essential elements of the product
4.how it will be sold
12. Here is a list of essential components included in a business model:
Components Definition
Vision High-level introduction to the company and business
model
Key objectives Definition of the top-level goals and how they will be
measured
Customer targets and
challenges
Description of the different types of customers to be
targeted and their pain points
Solution How the product will solve those pain points
Value The key characteristics that differentiate the product
offering
Pricing A view into what the solution will cost and how it will be
sold
Messaging Explanation of why the offering will serve a customer’s
pain points
Go-to-market Channels that will be used to reach and sell to customers
Investment required Costs required to make the solution successful
Growth opportunity Identified ways the business will grow
13. Seven Key Elements of the business
model
1. Key partners mean that you and a company that you have no direct
competition with, industry wise, will partner together in ways that
will benefit the both of you.
14. Example: To maintain the quality of your product, you can
partner with a best peanut butter supplier to produce fillings
for your bread business products that you yourself may not be
able to make. In return, you have a contract to pay for these
products that your partner has made you.
2.Key activities represent what the company must do to make
the business model work. These activities can be producing a
product or providing a service, or a mix of both.
If your business focuses on production of a product, your
activities may include learning more about the customers and
new production techniques to improve the product.
15. Example: If you own a restaurant, some of your activities may
be to experiment on new recipes to provide your customers
with new dishes to bring new customers or provide more
varied options for your customers.
3.Key resources – describes the most important assets
required to make a business model work. These are the
resources that allow an enterprise to create and offer a Value
Proposition, reach markets, maintain relationships with
Customer Segments, and earn revenues.
4 Categories of Key Resources:
1.Physical – Buildings, vehicles, machines, raw goods, etc.
2.Intellectual – Brand, proprietary knowledge, patents,
partnerships, etc.
16. 1.Human – Creativity, experience, etc.
2.Financial – Cash, credit, stock, etc.
4. Distribution channel is to provide a link between production
and consumption. A distribution channel can be very simple,
with just two layers (producer and consumer). A distribution
channel can also be very complicated, with several levels.
17. What factors should be taken into account in choosing the best
distribution channel?
1)Nature of the product
Perishable, Perishable/fragile? A product with a short-life
Customised? A direct distribution approach often works best for
a product that the end consumer wants providing to a distinct
specification
Desired image of the product
Type of product – e.g. convenience, shopping, speciality
2)The Market
Is it geographically spread?
Does it involve selling overseas
The extent and nature of the competition – which distribution
channels and intermediaries do competitors use?
18. 3)The Business
Size and scope – e.g. can it afford an in-house sales force?
Marketing objectives – revenue or profit maximisation?
Does it have established distribution network or does it need to
extend its distribution option
How much control does it want over distribution? The longer the
channel, the less control is available
4) Legal issues
Are there limitations on sale?
What are the risks if an intermediary sells the product to an
inappropriate customer?
5.Customer segment are the community of customers or businesses
that you are aiming to sell your product or services to.
19. Customers can be segmented into distinct groups based on needs,
behaviors and other traits that they share. A customer segment may
also be defined through demographics such as age, ethnicity,
profession, gender, etc or on their psychographic factors such as
spending behavior, interests, and motivations. An organization can
choose to target a single group or multiple groups through its
product and service.
6.Cost structure defines all the costs and expenses that your company
will incur while operating your business model. This final step in the
process is important, because it will help your team decide whether to
pivot or proceed.
7.Revenue stream elaborates the earnings a business gets by
subtracting the costs from the revenue generated from each customer
segment. It represents the cash, not the profit, that the business has
20. present. Specifying the pricing and projected lifecycles of the list of
resources. If the cost of designing and producing a product is more
than what the customer is willing to pay for it or greater than the
revenues the product will rake in before its lifecycle ends, then it does
not make business sense to go ahead with the product.
A business model implies the understanding of operations,
customer acquisition, retention, supply chain management, besides
monetization. A designed business model of in every organization,
there will be a piece that plays a more critical role compared to others.
For example, the business model for an Services business may identify
benefits from an arrangement for referrals to and from a printing
company.
For instance, a vital component of the Julie’s Bakeshop business model
is its franchising strategy. For other companies like McDonald’s, the
key to its business
21. model success is the heavily franchised restaurants that helped the
company scale up all over the world.
Each company will develop a unique model among the many types of
business models which is what makes your company robust in the
long-run!
There are many types of business models. Each one varies
considerably based on the type of organization and offering. For
example, a manufacturing company will have a very different model
than an advertising agency. Even within a specific industry, business
models vary.
Here are a few common business models used by technology
companies:
1.Subscription 4. Affiliate
2.Transactional 5. Retail Sales
3.Freemium
23. In the real world of business scenario, it is very important to look at
the long-term vision of the company considering all the messy,
unpredictable, noisy and ambiguous business environment and
settings. Meaning, as an entrepreneur plays the marketing tools and
strategies on hand, he has to do understand the economic condition
that will directly or indirectly affect the business applying the
strategies of simple thinking tools, qualitative and quantitative
analysis with focus to attain the long-term vision aimed by the
company.
The Primary aim of a business model:
1)to create a sustainable chain
2)able to unlock value for several players in a market, industry or
niche
24. For instance, when Bo’s Coffee started it didn’t look to dominate the
whole market. It started from a niche. As Pether Thiel put it in his
book, Zero to One. Bo’s Coffee began as follows:
1.Identifying its most valuable partner
2.what at the time they called “power user.”
That was a choice driven by its business model design. Therefore,
instead of focusing on generically offering a coffee for everyone, Bo’s
Coffee focused on acquiring and attracting as many power coffee
drinkers as possible.
Those power drinkers were mostly on call center company areas that
had already scaled them up. Thus, Bo’s Coffee focused all its effort on
acquiring those power coffee drinkers from call center companies and
offices, fast! Only after Bo’s Coffee had drafted, tested, and validated
25. a clear value proposition for a small, yet a critical group of power coffee
drinkers, it could move on to take larger and larger segments of that market.
Business modeling is about experimentation
Where scientists use labs to test their hypothesis through experimentation.
Entrepreneurs build business model experiments to test their business ideas
in the real world. Study and carefully analyze the details and flow given.
27. The key components of any business model analysis are:
A compelling value proposition: How do you want your
people to think about your brand?
A unique brand positioning: What do you offer to your
people that make them want more?
A 10x goal setting: Can you offer a 10X better product or
service? (compared to existing solutions)
Customer segments: Who is your customer? (to notice here
we’re not talking anymore about people but customers, those
willing to pay for your product or service)
Distribution channels: How do you get your product or
service to your customers?
Profit formula: Is the business financially sustainable?
28. This business model framework has four aims:
1.simplicity: heuristics-based rather than complex models
2.noise reduction: choosing a few key data points, rather than
looking at a massive amount of data that only adds noise and
paralyze decision-making processes
3.branding and distribution: looking at a business model as a
systematic way to build a strong distribution network and a
strong brand. The two things walk hand in hand
4.and profitability: the financial viability of a business model is
a key element for its success
There are two dimensions of a business in this framework that
should walk hand in hand:
I. People dimension
29. 12
Elements of people dimension:
a)A compelling value proposition: How do you want your
people to think about your brand?
b)A unique brand positioning: What do you offer to your
people that make them want more?
c)A 10x goal setting: Can you offer a 10X better product or
service? (compared to existing solutions)
II.Financial dimension
Three elements of the financial dimensions are:
a)Customer segments: Who is your customer? (to notice
here we’re not talking anymore about people but customers,
those willing to pay for your product or service)
30. b) Distribution channels:
How do you get your product
or service to your customers?
c) Profit formula: Is the
business financially
sustainable?
This people dimension will help
you build a solid brand. A solid
brand builds up a tribe, a group
of people that can follow you
anywhere. Once you have a solid
brand, you can focus on the
second dimension: the financial
dimension.
31. Assessment
1.What is an assumption of your business that also contains financial
projections about the business for the next 3-5 years?
A.Business Model
B.Start-up costs
C.Business Plan
D.Value Proposition
2. What is a high-level introduction to the company and business model?
A.Business Plan
B.Objectives
C.Mission
D.Vision
32. Assessment
3. What is a high-level plan for profitably operating a business in a specific
marketplace?
A.Business Model
B.Start-up costs
C.Business Plan
D.Value Proposition
4. What is defined as a description of the goods or services that a company
offers and why they are desirable to customers or clients, ideally stated
in a way that differentiates the product or service from its competitors
and the primary component of the business model?
A.Business Model
B.Start-up costs
C.Business Plan
D.Value Proposition
33. Assessment
5. What is th term given for the description of the different types of
customers to be targeted and their pain points?
A.customer targets and challenges
B.Pricing
C.go-to-market
D.Value
6. What refers to a company's plan for making a profit. It identifies the
products or services the business plans to sell, its identified target
market, and any anticipated expenses?
A.Business Model
B.Start-up Costs
C.Business Plan
D.Value Proposition
34. Assessment
7. What channels that will be used to reach and sell to customers?
A.customer targets and challenges
B.Star -up costs
C.go-to-market
D.Value proposition
8. How the product will solve those pain points?
A.customer targets and challenges
B.Pricing
C.go-to-market
D.Solution
35. Assessment
9. What is an economic principle referring to a consumer's desire to purchase
goods and services and willingness to pay a price for a specific good or
service?
A.Demand
B.Start-up Costs
C.Solution
D.Value proposition
10. What is an aim element of the business model which is looking at a
business model as a systematic way to build a strong distribution
network and a strong brand?
A.Branding and distribution
B.Profitability
C.Noise and reduction
D.Simplicity
36. 16
11. It is a framework for how a company will create value. It answers
fundamental questions about the problem you are going to solve,
how you will solve it, and the growth opportunity within a given
market.
A. Business Model
B. Start-up costs
C. Business Plan
D. Value Proposition
12. What are the community of customers or businesses that you are
aiming to sell your product or services to?
A. Customer Data
B. Customer Segment
C. Customer Evaluation
D. Customer Structure
37. 16
13. It provides an answer to simple questions about a new business or
a business already under way: Which markets?, when?, who?
how? where?
A. Business Model
B. Start-up costs
C. Business Plan
D. Value Proposition
14. It is the process whereby a business sets the price at which it will
sell its products and services. It may be part of the business’s
marketing plan.
A. customer target
B. Marketing
C. go-to-market
D. Pricing
38. 16
15. What is a plan that develops all of the procedures and strategies
necessary in order to convert the business opportunity into an
actual business project?
A. Business Model
B. Start-up costs
C. Business Plan
D. Value Proposition