MATERIAL BY: RANIA EZZAT & SARA AHMED PRESENTED BY: NASHWA MAHMOUD Today’s Topics • Business Plan • Business model Canvas (part 1) WHAT’S A BUSINESS PLAN? A business plan Is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for achieving the goals. A business plan Is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for achieving the goals.
Business plan conveys:
• Your business goals. • The strategies you'll use to meet the goals. • Potential problems that may confront your business • ways to solve those problems. Who writes the plan? The business plan should be prepared by the Entrepreneur. The entrepreneur may consult with many other sources in its preparation, such as lawyers, accountants, marketing consultants, and engineers…etc. Who writes the plan? The business plan should be prepared by the Entrepreneur. The entrepreneur may consult with many other sources in its preparation, such as lawyers, accountants, marketing consultants, and engineers…etc.
Who Reads The plan?
The business plan may be read by employees, investors, bankers, suppliers, customers, and consultants. Why Have a Business Plan? The business plan is valuable to the entrepreneur, potential investors, or even new personnel, who are trying to familiarize themselves with the business, its goals, and objectives. Why Have a Business Plan? The business plan is valuable to the entrepreneur, potential investors, or even new personnel, who are trying to familiarize themselves with the business, its goals, and objectives. It’s important because: • It helps determine the viability of the business in a designated market • It provides guidance to the entrepreneur in organizing his or her planning activities • It outlines each area of the business. • It serves as an important tool in helping to obtain financing • It can be a tool to attract investors and find funds. • It helps in setting up entrepreneur’s achievements. • It helps in devising contingency plans. • It helps in monitoring your business. Why Have a Business Plan? Although business plans especially useful for new businesses, every company should have a business plan.
Ideally, the plan is reviewed and updated periodically to
see if goals have been met or have changed and evolved.
Sometimes, a new business plan is created for an
established business that has decided to move in a new direction. Why Have a Business Plan? Business plans are used for external audience as well as the internal audience of the company.
1- A business plan is used to attract investment before
a company has established a proven track record or to secure lending.
2- They are also a good way for companies’ executive
teams to be on the same page about strategic action items and to keep themselves on target towards the set goals. Elements of a Business Plan 1. Overview This section outlines the company and includes the mission statement along with any information about the company’s leadership, employees, operations, and location. 1. Overview This section outlines the company and includes the mission statement along with any information about the company’s leadership, employees, operations, and location. A company’s mission statement defines its culture, values, ethics, fundamental goals, and agenda. Furthermore, it defines how each of these applies to the company’s stakeholders’, its employees, distributors, suppliers, shareholders, and the community at large. 2. Message The Problem That your company solve for customer 3. Marketing strategy This area describes how the company will attract and keep its customer base and how it intends to reach the consumer.
• This means a clear distribution
channel must be outlined.
• It will also spell out advertising
and marketing campaign plans and through what types of media those campaigns will exist on 3. Marketing strategy Market analysis: A company needs a good handle on the industry as well as its target market.
It will outline who the COMPETITIORS are and how they
factor in the industry, along with their STRENGTHS and WEAKNESSES.
It will also describe the expected consumer demand for
what the business is selling and how easy or difficult it may be to grab market. 4. Products and services Here, the company can outline the products and services it will offer, and may also include pricing, product lifespan, and benefits to the consumer. Other factors that may go into this section include production and manufacturing processes. 5. Production & Delivery PRODUCTION: any of the methods used in industry to create goods and services from various resources.
DELIVERY: any means or
process for conveying a product or service to a recipient. 6. Goals New businesses will instead include targets and goals for the first year and few years of the business. 7. Financial planning The company should include its Financial planning and future projections.
Financial statements, balance
sheets, and other financial information may be included for already-established businesses. 7. Financial planning The company should include its Financial planning and future projections.
Financial statements, balance
sheets, and other financial information may be included for already-established businesses.
Budget Any good company needs to have a budget in place. This includes costs related to staffing, development, manufacturing, marketing, and any other expenses related to the business. What is the Business Model Canvas? The Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach. What is the Business Model Canvas? The Business Model Canvas is a visual representation of the 9 key building blocks that form the foundations of every successful business. It’s a blueprint to help entrepreneurs invent, design, and build models with a more systematic approach. The business model canvas allows us to carry out a high- level analysis without drilling down and getting lost in the details. You just draw out the 9 building blocks on a blank canvas, fill them in as each concept relates to your business, and hang it somewhere everybody can see. 9 Blocks of business model canvas 1. Customer Segments 2. Value Propositions 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partners 9. Cost When laid out on the canvas the model will look something like this: How do I fill out the Business Model Canvas? Let’s use the fashion retail giant Zara as a case study . 1. Customer segment The first block of the Business Canvas Model is about understanding who is the most important customer(s) you’re delivering value to 1. Customer segment The first block of the Business Canvas Model is about understanding who is the most important customer(s) you’re delivering value to
Great exercise to define your customer segments is to
brainstorm and create your company’s buyer persona(s).
Buyer personas Fictional depictions of an ideal or hypothetical client. Typically when brainstorming a buyer persona you’d want to define certain characteristics (age, demographic, gender, income, industry, pain points, goals, etc.) 1. Customer segment In the case of Zara, there are three distinct customer segments to whom they offer different products. Men Women Children Once we know exactly who it is we are targeting, it’s time to look at what we as a company have to offer. 2. Value proposition The second phase is about figuring out your company’s value propositions, and importantly, your UVP (unique value proposition).
The “what” that makes customers turn to you, over your
competitors? Which of their problems are you best at solving? 2. Value proposition Zara’s principal value propositions are fairly clear. They offer various ranges of stylish men’s, women’s, and children’s clothing and accessories at an affordable price. But there’s more to it than that. If we dive a little deeper we see Zara’s value propositions are more complex, which are behind the success of the brand. 2. Value proposition A- Fast fashion Zara adds new clothes and designs to its collections every 2-3 weeks.
both in its stores and online.
It keeps the brand updated, fresh, and modern while maintaining its all-important medium price point 2. Value proposition B- Great e-commerce experience Once you enter Zara’s online store you’re presented with a clean, easy-to-navigate, and high- end feel. The customer segments are visible on the left navigation bar with a search tab to further aid customers with their online experience. 2. Value proposition C- Localized stores You can find a store in nearly all major retail locations (shopping malls, retail outlets, airports, etc.)
This Means that accessibility
is not an issue for the majority of consumers. Once you enter Zara’s online store you’re presented with a clean, easy-to- navigate, and high-end feel. The customer segments are visible on the left navigation bar with a search tab to further aid customers with their online experience. 2. Value proposition D- Flagship stores Zara demonstrates its aesthetic evolution to customers through its flagship stores. The recent opening of their Hudson Yards, New York City flagship is a great example of this. Customers shop around its vivid, minimalist layout offering them an experience aligned with the brand’s deeper, eco-friendly values. 2. Value proposition When writing your value proposition it’s so crucial to think about the Minimum Viable Product (MVP)
It is the first form of a product that you can release
to users. It provides core functionality without any additional features. Entrepreneurs use MVPs to assess how customers feel about an idea. If the idea does have potential, they use customer feedback to develop the next version of the product.
https://www.youtube.com/watch?v=ixpphYTDiOM 2. Value proposition Examples of MVP
1. Dropbox Dropbox explained the benefits of storing data in one place. Thefeedback from users helped then-startup receive the funds it needed to develop its offering. 2. Value proposition Examples of MVP
1. Dropbox Dropbox explained the benefits of storing data in one place. Thefeedback from users helped then-startup receive the funds it needed to develop its offering. 2. Amazon Most people know that Amazon began as an online bookstore. Jeff Bezos started out by buying books from distributors and shipping them to customers every time his online store received an order. The high book sales meant it made sense to keep adding more products to the store, then acquire warehouses, and finally provide each user with a personalized experience on the website. 3- Channels The next step is to ask yourself how you are reaching your customers, and through which channels?
• This includes both the channels that customers want
to communicate with you as well as how they’ll receive your products or services. • Is it going to be a physical channel? (store, field sales representatives, etc.) Or is it a digital channel? (mobile app, website, cloud, etc.) 3- Channels Zara has 3 primary channels in which they communicate and deliver products to its customers: 1. Direct sales through their stores 2. Online (both app and website) 3. Social media 3- Channels Did you know that Zara invests less than 0.3% of its sales revenue into advertising?
• This is only possible due to an A-rated social media
presence. Customer queries are not only dealt with quickly, but recommended re-works are sent back to Headquarters, forwarded onto in-house designers who then apply the feedback to future collections.
• This customer-first approach through fluid
communication channels has saved them thousands of dollars in marketing, strengthened their brand, and created a loyal customer base. Assignment 1/ part 1 Write the first 3 components of Business model Canvas for a project of your choice that is related to a creative industry.
• Choose any project or any idea to make the business
model canvas. • Fill out the first 3 components of Business model Canvas
Progress: 5 Marks
Rubric: Weight (40%)
• Creativity (25 marks) • Presentation (25 marks) • Achieving elements of Business Model (40 marks) • Progress (10 marks) ANY QUESTIONS?
