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Always put the business problem in the larger industry, demographic, economic, political context…– What external factors influence the business idea? • Demographic change: Population shift that affect changing demand? • Economic conditions: How do interest rates impact profitability? • Competition: Are imports of better quality and price? • Partner organizations: Complimentary goods in the market? • Barriers to entry: Legal restrictions?– You can plan everything, but there will always be factors outside of your control • Way to think creatively about a problem…
Hans from Germany is going to retire from his company inone year. He wants to start off retirement with a trip toNepal. He wants an adventure experience with his friends.Are there adventures experiences that can help just retiredforeigners likes Hans get a taste of his youth but in a wayhis body can handle it? Product?
Ride through Nepal’s hills on a classic Enfield and rejuvenate yourself!– Does it fill a gap in the industry? • Different: Driving vs trekking in Nepal • Execution: Marketing different – Adventure magazines. • Features: Value added - Insurance. Movie of adventure.– Value Proposition • Experience to be free and reborn. • Commodity vs Product– Impact on: sales, marketing, customer, profitability…
Shyam hajurba is now 80 years old. He is in good health but slowly aging. He is starting to forget things; he takes longer to recover from a cold; he can’t go on a walks alone; and most, because his children live in a different house he is alone on most days. Shyam hajurba thinks he might be better off in a nursing home where he can interact with others, and get care 24/7. His children also would feel better and willing to pay if there was somebody looking after hajurba. Target Market?
Target MarketElderly people who need to taken care of…• How large is your target market? – Age range: 65+ – Location: Urban areas? Areas of high migration? – Income range: Cost of service Rs. 20,000. What % of savings or income do people spend on healthcare? – Frequency of care: Sick or just old• These are ultimately your customers – Your service adds value to them – They are willing to pay for your service• Impact on: marketing decisions, service offerings, human resource…
Vidhan and Abhinab went around Bag Bazaar to print theirbusiness cards and a sign-board. After a week they finallygot their new cards, but had wasted multiple days runningaround. They noticed the design and formatting hadchanged from what they had requested.They wondered why there wasn’t a website they couldupload their designs, made request for other officestationary, and they would all be printed and delivered.Didn’t other businesses face a similar problem and prefer astreamlined solution? Competition?
CompetitionThe industry is crowded, but the competition does not provide a web based service and are not reliable on delivery or quality…• Threats, barriers, weaknesses? – Competitors price, other services like advertising… – Who is the market leader, and why? – What does the market like?• Strengths, opportunities? – A streamlined web interface – A talented team of creative professionals – An untapped customer profile• Impact on: pricing, marketing, profitability…
Behind the music and laughter, Sita, the bride was workinghard to make sure everything went smooth. She does nothave an extended family to help her arrange everything.She was frustrated, there was so much to co-ordinate: thepriest, the ingredients, the booking, the food, and thecosts kept on increasing.Sita wanted to enjoy her wedding. She would of liked tohave hired someone to manage the logistics, and evenpicked the rituals and ceremonies for the priest toconduct, and most importantly managed the costs. Marketing- Channel?
Marketing Mix: ChannelPotential brides and grooms visit: matrimonial sites; and event vendors like catering, party halls…• How do you communicate with your target market? – Matrimonial sites, facebook, newspapers, catering, photographers, priest…? – Cost effectiveness of marketing channel: Cost of customer acquisition – Is one strategy more scalable than another: Going viral – What are your customers patterns and preferences – spending, fashion, traditional?• Impact on: branding, promotions, pricing…
Ramesh was watching a discovery channel episode onTrekking in Nepal with his two children. He suddenlyrealized that his kids hadn’t traveled in Nepal, and theyhadn’t traveled together as a family. When he went to thetravel agent most of the packages catered to tourist –Everest, Annapurna Circuit and they were expensive.Ramesh wanted his children to experience Nepal. Hewondered why there weren’t tourist agencies and marketscatering to the Nepali market at Nepali prices. Marketing- Pricing?
Marketing Mix: PricingA wholesome family experience at an affordable price for the Nepali family…• How much does your customer value the product? – Family travel budget. Cost if customer made tour on their own – Placement: luxurious, comfortable, budget… – Sought after destination? Manakamana Cable Car… – What does the competition charge? – What costs do you incur on the travel package: guide, travel gear, co-ordination, transport, seasonality…• Impact on: product, industry entry, market size,
Ishan was trying to decide where to go for lunch. Suddenly, ithit them – he should open an office kitchen. Maybe evendeliver to neighboring offices. It will be cheaper and healthier– like afnaighar ko khana. People will love it!But, would a lunch delivery service work? Ishan, needed abusiness plan. Supply, Production & Distribution
Supply, Production & DistributionA supply of fresh and healthy vegetables to produce and deliver lunches…• What supplies will you need, and who will provide them? – Who can provide fresh and hygienic vegetables? Are there volume discounts? – Can you outsource or contract certain supplies? – What size should inventory be? – What risks do you face in case of supply disruptions?• What factors will affect your production and distribution? – Method and time: What hours do you need to start cooking? – How will you manage orders? How can you deliver everywhere at lunchtime? – What equipment, machinery will you need?• Impact on: market entry, capital costs, human resources…
Arjun just graduated with his MBA and a got job at areputed bank. He has been working non-stop for the pastfew weeks to finish a lucrative deal. He hasn’t had time toclean and repair his apartment. He noticed the plumbingwas leaking, the electrical wires needed to be changed,and the apartment needed to be cleaned.Arjun couldn’t find a service that could meet his householdcleaning and maintenance needs. Then Arjun thoughtbigger, didn’t all these new malls and apartment buildingsalso need maintenance service? Human Resource?
Human ResourceAn on-call roster of electricians, plumbers, carpenters, masons, cleaning staff…• What staff will you need to hire to deliver your service? – How many people will you need to hire? Full time, part time? – What incentive structure do you give to enlist talent? Salaries, benefits… – How do you manage the different skill-sets? Hire managers, talent specialists… – How do you convince staff to support your vision?• Impact on: delivery, target market, marketing…
Load shedding is expected to go up to 18 hours this winter.I see that my neighbors have inverters, and some evenhave solar panels. I also want to get a power back-upsystem – maybe a solar. Will I save money over time if Iinstall a solar panel? However, I can only afford Rs. 8000now, but can play slowly over the next year or two.For a new start-up company, Surya Power Systems,customers like me can be a profitable market. After all, myneeds have not been met in the market. Financial?
FinancialA loan that will allow customers to immediately buy the solar panel but pay over a period of time…• How are the components of the business reflected in the financial statements ? – Balance sheet: Assets purchased, and liabilities assumed… – Income statement: Expected sales, revenues, expenses, profit, loss..• How will the loan affect cash flow and profitability? – How will the interest rate on the loan affect profitability? – What will happen if customers can’t meet monthly payments? – Will more customers sign up because of a financing mechanism?• Impact on: target market, capital expenditures, marketing…
Factors to Consider• Market Overview• Product: Just Retired Adventures• Target Market: Santhusta Briddha Ashram• Competition: Printed Perfect• Marketing – Channel: Memorable Wedding Services• Marketing – Price: Experience Nepal Tours• Supply Chain: Ghar ko Khana• Production, Manufacturing, Distribution: Ghar ko Khana• Human Resource: Sajilo Marmat ra Safie• Financial: Surya Power Systems• Other: …
Business Plan Outline1. Table of Contents 6. Operational Plan2. Executive Summary – Supply Chain – Production &3. Product Overview Distribution – Operations4. Industry Overview – Human resources – Industry trends 7. Financial Plan – Rules & Regulations – Competitive analysis – Cost Estimates – Cash flow statement5. Marketing Strategy – Income statement – Target Market – Balance sheet – Marketing Channel – Pricing Strategy 8. Appendix
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