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Business plans: foundation of business - Coggle Diagram
Business plans: foundation of business
Business model canvas
favors experimentation
explain or start business quickly
visualise business model
showcases business framework
connects dots beween business components without intricate knowledge
useful visual to kick off discussions, pitch, strategy discussions
relatively simple business or adapt or refine business plan
simplified and focused
ditches linear structure in favor of cell-based
connections between business elements rather than disjointed expenses, value propositions and potential customers
good introduction to business
Disadvantages
difficult to adapt to full business plan
financiers want grester details on functions and business financials
lack of backup on milestones, startup and operational costs, potential revenue streams, marketing activities and financial forecasts
potentially need to start over when develop full business plan (formatting, simplfied section of canvas)
difficult to expand on during exection
No room for validaton
may encourage making connections when they do not exist
not arriving at the issue of customer segments earlier to validate if idea is attractive
need to find target market that has athe problem
No focus on product/market fit
does not focus on making sure real problem is solved for customers
businesses need to have a unique take on customer segment's problem
value proposition as a key ingredient in solving problem
Solved through a lean plan template
Simplicity
easily understood
no training or business background required
Flexibility
revising ideas
Focus
key drivers
strategy
Elements
Our solution
produces and services
Target market
Problem worth solving
Competition
competitors
alternative solutions customers buy and use
Identity
one line business overview (value proposition)
simple, concise
Sales channels
How will products and services be sold to customer?
Marketing activities
key activities or approaches to reach customers
pricing or cost structure
Revenue streams
Expenses
Mulestones
roadmap to test and start business
Team and key roles
Partners and resoucres
do you need to work with other businesses to make business work
Outline of business model canvas
key resources
what the value proposition require
important assets eg. staff, capital, intellectual property
what distribution channels will use?
revenue streams
what will your customer relationships look like?
Customer relationships
type of relaionship customer segments expects to be established and maintained
automated
personal
in person
online
how customers and business interact
costs
customer experience from start to finish
key activities
ways
the business gain competitive advantage
what the value proposition require
distribution channels
what will customer relationships look like?
what are revenue streams?
focus on how you are unique: selling direct to customers or using technology to tap into sharing economy
channels
channels customer segments want to be reached through
how they are reached now
how channels are intergrated
most effective and cost efficient
integration with customer routines
transport value to customers
mix of channels and optimization
customer segments WHO
create value for
most important customers
Cost structure
most important costs in business model
most expensive key resources and activities
define strategy: focus on reducing cost or maximising value?
Key partners
other businesses or services worked with to run business eg. suppliers, manufacturers, subcontractors, similar strategic partners
key suppliers, key resources acquiring from partners
key activities partners performing
Revenue streams
how the company make money eg. direct sales, membership fees, selling advertising space (List all revenue streams)
what customers are paying for
what customers are willing to pay
how customers are paying
how they prefer to pay
how much each revenue stream contribute to overall revenues
Value proposition
customers' problems we are helping to solve
products or services offering
clear and compelling statement about unique value to customer
Helps to run business
start and manage business (structure, run, grow)
funding, new business partners
Traditional business plans VS lean startup business plans
similarity: standard structure
differences
how common
More common: traditional business plans
Less common: lean startup business plans
amount of work
More work: traditional business plan (dozens of pages, more time to write)
Less work: lean startup business plan (one page, can take as little as 1 hour)
amount of details
More details: traditional business plan (for each section)
Less details: lean startup business plan (high level focus, summarize only most important points of key elements)
lenders and investor pov
Traditional business plans are commonly requested. Some investors and lenders may ask for more info for lean startup plan
Traditional business plan format
Organisation and management
legal structure
organisation chart
unique experience contributing to success
resumes, CVs of key members
Service or product line
how it benefits customers
PLC
intellectual property plans
patent
copyright
R&D detailed description
Market analysis
target market
industry outlook
trends
themes
competitive research on other businesses and strengths
why it works
can it be better
Marketing and sales
thorough description of marketing and sales strategies
Marketing strategy evolve and change to fit unique needs
how to attract and retain customers
how a sale actually happen
Company description
detailed information
problem solved by business
specific
consumers
organization
businesses
competitive advantages
experts
location
Funding request
over next 5 years
funding purpose
equipment or materials
salaries
specific bills
debt or equity, request, time request will cover
future strategic financial plans
pay off debt
sell business
Financial projections
supplement funding request
convince that business is stable, financial success
established
graphs and charts to tell financial story
prospective financial outlook for the next 5 years
forecasted income statements, balance sheets, cash flow statements, capital expenditure budgets
first year: more specific, quarterly, even monthly
explain projectons and match to funding requests
Executive summary
why it will be successful
mission statement
what the company is
product or service
basic information of leadership team, employees, location
financial info and high level growth plan (if asking for financing)
Appendix
supporting documents or materials specially requested
common items eg. credit histories, resumes, product pictures, letters of references, licenses, permits or patents, legal documents, permits, other contracts