29 a-earthsoft-be enterpreneur

Slide 1

Architecting Business

Earthsoft Foundation of GuidanceEdge-Aggressive-Reliable-Trust-Honesty-Soft-Obedient-Fun-Transparent

Making earth little softerEarthsoft Foundation of Guidance (EFG) has uploaded following presentations at http://myefg.in/downloads.aspxAlso https://dl.dropbox.com/u/83265908/Links-events.xls has linksBe mentor using your education, knowledge & experience to contribute for a social cause & do conduct free training seeking help of existing platforms. Kindly share with your friendsMotivation for higher study, Planning for study, Education guidance, Career guidance, Career available after SSC & HSCPersonality development 3 files How to prepare resume, Tips to attend interview successfullyReligion related To understand basic religion, Do &Dont tipsHealth related - Be vegetarian, Be healthyCorporate - Project management, Assertiveness, Ownership - Effective communicationFinance - To avoid speculation in stock marketSocial - Women empowerment, Choosing life partnerAbout us

Making earth little softer2

Index


Define a problemWho are the stake holdersPopulation of actors who are sufferingSince when problem continuingWhat is the cost of the problemWhat is the current alternativeQuote from analyst regarding the needTo define the nature of product/service opportunities available while attempting to resolve those problems

Problem definition


To specify vision statement leading to solution of the problemChange one can witness post implementing the solution in futureVision involves the foresight needed to acquire the necessary expertise to organize & mobilise the resources, to accomplish the desired results

Vision


Gems of Wisdom


Technological changePublic policy shiftsChanges in public opinionChanges in tasteSocial and demographic changeNeed of a dayComfortOne umbrella solutionScarcityDesireSources of opportunities


Brainstorming Individually or in groups/teamsOwn personal experiencesWhat businesses have been done in the past?Have you started businesses before? What was learnt from success and failures?Innovation and invention A flash of individual inspirationSpotting trends and anticipating their impacts on peoples livesSurveysPotential sources of ideasOpportunityYesNoIdeaYesNo


Copying ideas from other countriesTaking a scientific approach, working in a laboratorySpotting flaws and errors in existing products Can something be done better?Noticing a gap that is not currently being producedWanting to do something different & may be bigAmbitionsWillingness to invest fundsDeep understanding of problems around & desire to solve those using technologies

Generating business ideas


Creation of IdeasCreative thinking, ideas, Opportunities


Value proposition?What are differentiators?Reaching to customers?Build long term relationship?Revenue stream?Profitable?

To start a business


Know yourself & what is important to youSet goals & Plan to achieveBe a rising star - try to be always on topBrand yourself, know strengths & saleable skillsBalance work, family, life enjoyment, pressureBe ready for changeBe entrepreneur - Think starting your own, implement what you think is right, grow as much to build empire, convert idea into businessCreate achievable business planTo start a business


Think of something you need/wantThink of something others need/wantFigure out whats broken and how can you fix itFind out whats working for other companies and apply it in a new wayInvent a new technology and figure out how to apply itThink of a marketing/growth strategy and then fit a product into itGetting started


Gems of Wisdom


To specify solution, preferred graphicalHow is solution solving the problemTo capture all the actors involvedIs solutionLife changing?Path changing?Stylish?Simple to adopt?Difficult to copy?Unique in its kind?Affordable? As well as not very costly?Reachable?

Solution


Anything innovative?


Key pointers could beAvailabilityPredictabilityCheaperComfortableEazy to useSecuredTechnology savvyEfficientChanges it will bring

Key features


Benefits expected


A business model is a blueprint that describes future organization & forecasts of the growth. This can be from a quarter to several yearsHow an organization intends to create valueBusiness model componentsThe missionStrategic resourceswhat we needPartnership networkwho we will work withService interfacehow we connect to clients, donors, etc.Need to check opportunity & threat (Supply & demand)Business model


InfluencesBusiness Model


Business model frameworkWhat it offers to various customersWhat is the capabilities for creating, marketing, and delivering the valueWhat is relationship capital with the goal of generating profitable & sustainable revenue


Business Plans is as simple as possible, more effective & interesting forecast of business idea, defines strategies, balancing and gaining edge utilising the strengths over the weaknessesThe main motive of a business is profit. Business men dont rush unless they forecast & address the weaker areas first. It should reflect the realistic goalsWhere you want to be? How? How much time?How clients would be better served?How the quality of the product & services be improvedFeatures


Goal The purpose towards which organisation is directed to achieve (generic action), may not be measurableObjectives - Something that one's efforts or actions are intended to accomplish the target or purpose (Specific action),measurable & tangibleFive-year specific & measurable goals objectives. Market shareRevenue & profitability

Goals & Objectives


Definition of successIntermediate goals and success measuresEvidence that goals can be achievedTimelineStart of the enterpriseIncorporation date, if anyHiring, space, and equipment acquisitionStart of service deliveryBeginning of cash flow from fees, grants, and donationsEnterprise growth milestonesGoal attainmentGoals & objectives


Mission is the process of defining objectives and developing strategies to reach those objectivesA clear statement of long-term mission of your organisationTo use the words that will help direct growth of your organisationBe concise as possible.

Mission Statement


What will the enterprise do, and what will it not do?What does value mean for this enterprise, and how is it measured?What is this enterprises unique innovation or adaptation?What is competitive advantageWhat is gap between demand & supplyWhat constitutes success for this enterprise?Mission related


Gems of Wisdom


Define concept & key technologyMarket SegmentCustomer base: B2B, B2CPrimary revenue source: Product Sales, ServiceSecondary revenue sourcesScalabilityCaptive or service orientedOverhead: Low, Medium, HighInvestment till breakevenDuration till breakeven, stable, grow & sustainLosses if closed before breakevenProfitability expected after stabilityBusiness Concept


Benefits for customersDifferentiators for customersStrategic or nice-to-haveValue added servicesWhat is sensitivity for the business Cost, Quality, Services, Distribution, Trust?Exit strategy: IPO, Buyout, Private & Profitable

Business Concept


To specify detailed flow chartTry to capture processes, actors & entitiesProduct or servicePerformance characteristicsCost characteristicsDelivery mechanism

Business Detail


Business Detail


Business Detail


Business Detail


List 5 competitive attributesDraw a graph for expected performanceDecide Eliminate, Reduce, Raise or Create

Attributes


Edge over your competition is your strengths. This also a key feature.Special achievement & knowledge in team may be a key differentiator and can result into growthSpecial viewpoints and ideasCore competenciesEducation or experience

Edge


Commitment statement on serviceabilityParameters to measureDefining numbers for pathetic, poor, bad, ok, good, better, excellent servicesClient is God. Profit and salary of all employees come from their money.Always attempt for the best of the client servicesCommunicationAdvicesResponse TimeSuggestionsDelivery schedule & Quality

Serviceability


Characteristics of customersValue propositionDecision makerHow desperate for solution?

Customer Profile


One time or every time effort to grab new customerPull or push type?Probably most important feature of the business. Understand Who are customers? Whom to target and how?Know the users mindWho could they be the potential customersWhy would they be customers?Potential customers

Making earth little softer38If you provide Baby food to a teenager probably this wont sell.

Significant competitor nameFocus of their businessCompetitive advantage of your organisation to define differentiatorsWeaknessesWeakness and how we exploit itStrengthsStrength and how we address itCompetition


Target market valueAdditional prospect baseExisting organisations, their attributesSignificant competitorsTotal competitorsTrends Past, Present, ExpectedTo capture & review changes in market share, leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for success of your organisationCompetition & trends


Gems of Wisdom


Stage 0 : discuss with close friends & expert, seek views, make a judgement & decideMarket survey & feasibility studyStage 1: Founding the BusinessTeam, Incorporation, legal documentsManaging fundingHiringGround work, basic systems, building initial product, offer services for selected geographyBeta test and rework product or pilotInitial product offeringMarketing activityMilestones


Stage 2: Developing the BusinessManage fundingCrank up marketing activityAggressively obtain customersBegin offering second product or expand service offering in various geographiesEmphasize customer acquisitionEntertain any acquisition offers that ariseStage 3: Stabilizing the BusinessBring in efficiency in operation & managementManage funding, cash flow, profitabilityFile for IPO, step towards exist policyMilestones


Target Market, Segment or DemographicsDistribution and sales channelsFranchisee or own sales and marketing officesPricing and positioning This is most critical decision & iterative mechanismBranding and strategic positionMedia & advertisement : Web / Magazine/ Inserts/ NEWS paper/ Trade Shows/ Billboards/ TV/ RadioMarketing, franchisee, sales team developmentMarketing Plan


Resource plan


Pricing ModelPreferably at least for 5 yearsTo forecast direct & indirect costTo consider every small possible expenseUse conservative price point, may be input as a result of feasibility studyDetail price evolution over time, iterative mechanismStabilized gross marginsGross revenue, net income and growth by yearCash flow and capitalization needsSay no to business If margin is less than 25%!Financial Plan


Financial summaryMonthly plan from 1st year to 5 yearsRevenuePercentage and absolute profitAccumulated profits/lossHeadcount Customers countCash flow, capitalization needs, assetsOther detailsAccumulated profits/loss till stabilisation phaseMonth of breakeven & accumulated profits/lossMaximum accumulated loss% margins post stabilisation


Most important one pointHave right people at right slotGather the gemsKnow the strengths of the people & work with thoseList Board of directors & CEOVice presidents or Head for various divisionsPrevious accomplishments & track recordDomain wise number of years of experience

Team


Interested PartiesInvestor - Lead Investor organisationInvestor - Venture organisationLaw Firm & Attorney NameExperienced in aggressive venture planningPartnerships


Risk & Issues#DescriptionIssue/RiskMitigation

Risk likely issue in future, probability < 100%Issue A problem to be solvedManage the risk by mitigating & solve the issueFinancial riskLegal riskTalent riskEnvironmental riskPolitical and governmentalEconomicDemographic


To list likely barriersWhat is plan to overcome the barriersTo categorise the barriers like social, government, financial, legal, talent, mental, resources, finance, machinery, communication, etcTo specify level of control & grip to address

Barriers


Manage time wellPlan the work and work out the planConsider efficiencies of various systems to be dealt with & which are out of your control

Time management


Keep revisiting BP & revising as you go in details, make it dynamicKeep loopholes as minimumGet it reviewedMake another BP as a Plan B, so that anytime you can seek in more resources or change the variablesKeep revisiting


Keep measuring progress on monthly basisSet the process & systemList the experiences and possible improvements Measure success


Plan to expand business by way of additionalCustomersProductsServicesFranchiseesGeographiesDefine measurable target quarterly & increase it till saturationPlan to improve on quality of the product & services

Expansion Potential


Is there a new market ?How do you plan to grab a new target market ?Define quarter wise segments to be tappedIs there any growth in specific sectors ?How can these be tapped ?Any specific segment wise strategy needed?New Potential segments


Gems of Wisdom


Aim for sound business model & its executionManage implementation & changeTo keep evaluating, learning and redesigningTo manage improvementManage change


Gems of Wisdom


Failing to communicate realistic goalsFailing to anticipate problems, lack of evident commitment or dedication to the ventureLack of experienceFailure to demonstrate market nicheCommon pitfalls of B Plan


What is the venture ?Why is it new and important?Who will benefit from it, and how?How will the idea be executed?Who is the social entrepreneur, and what unique skill, service, or background does he or she (or they) bring to the venture?What kind of support for the enterprise is needed, and how much of it?How much will be the margins?What will constitute success?Summary


To specify immediate, short term and long term needs & actionsNext Steps


How determined am I?Am I an expert in the business domain?Would I be able for form a team of experts?Am I willing to invest my own money?What would happen to me if business doesn't work? What are the risks to my career & life?Am I comfortable taking direction from others? Would I be able to work with partners?Am I in accounting & keeping track of profits?Am I good in relationship management?Do I have patience to work within the systems?Checklist


Entrepreneurial skills of EntrepreneursSkills of the individual ownersImportance of market researchExternal factors offering opportunity to develop a product ideaImportance of spotting a gap Successful business


To address any question or doubtTo encourage frank discussionsQ & A


Taxi servicehttps://dl.dropbox.com/u/83265908/Earthsoft-City%20Cab%20Proposal.ppsxhttps://dl.dropbox.com/u/83265908/Earthsoft%20-%20Travel%20cab%20proposal.xlsTraining across Indiahttps://dl.dropbox.com/u/83265908/Earthsoft%20Foundation%20of%20Guidance-%20Proposal%20for%20NSDC.ppthttps://dl.dropbox.com/u/83265908/Proposal%20for%20Soft%20skill%20development%20-%20India%20NSDC.xls

Reference business proposal


http://www.slideshare.net/tosime/how-to-write-a-business-plan - Excellenthttp://www.boardofinnovation.com - okhttp://www.slideshare.net/colinraney/planningness-2011 - okwww.companieshouse.gov.ukhttp://www.canadabusiness.ca/enghttp://www.slideshare.net/infe/web-20-business-models-270855 excellenthttp://www.slideshare.net/joestump/starting-your-startup - Excellenthttp://www.entrepreneur.comhttp://www.referenceforbusiness.comhttp://www.sba.govhttp://www.carnegielibrary.orghttp://www.slideshare.net/vinaya.hs/business-planhttp://www.slideshare.net/arnabray/business-planning-startup-strategieswww.bdc.cahttp://www.slideshare.net/startmeupryerson/rabbani-bdc-start-ups-2

Good to refer


Gems of Wisdom


Thank You

Making earth little softerBPProblemSolutionUnique value propositionUnfair advantageCustomer segmentKey activityChannelsCost structureRevenue streamProductMarket

modelKey PartnersKey activitiesUnique value propositionCustomer relationshipCustomer segmentKey resourcesChannelsCost structureRevenue stream

SystemGrowth strategyPartnersCostValue propositionChannelMarket segmentCapabilitiesPricing modelCompetitive strategy

IndexProblem definitionInfluencesPotential customersExpansion PotentialVisionFrameworkCompetitionPotential segmentsSources of ideasFeaturesCompetition & trendsTime managementCreation of IdeasGoals & objectivesMilestonesKeep revisitingTo start a businessMission StatementMarketing PlanMeasure successGetting startedMission relatedResource planManage changeSolutionBusiness ConceptFinancial PlanCommon pitfallsAnything innovative?Business DetailFinancial summarySummaryKey featuresAttributesTeamNext StepsBenefits expectedEdgePartnershipsSuccessful businessBusiness planServiceabilityRisk & IssuesQ & ABusiness modelCustomer ProfileBarriers

BPProblemSolutionUnique value propositionUnfair advantageCustomer segmentKey activityChannelsCost structureRevenue streamProductMarket

modelKey PartnersKey activitiesUnique value propositionCustomer relationshipCustomer segmentKey resourcesChannelsCost structureRevenue stream

SystemGrowth strategyPartnersCostValue propositionChannelMarket segmentCapabilitiesPricing modelCompetitive strategy

IndexProblem definitionInfluencesPotential customersExpansion PotentialVisionFrameworkCompetitionPotential segmentsSources of ideasFeaturesCompetition & trendsTime managementCreation of IdeasGoals & objectivesMilestonesKeep revisitingTo start a businessMission StatementMarketing PlanMeasure successGetting startedMission relatedResource planManage changeSolutionBusiness ConceptFinancial PlanCommon pitfallsAnything innovative?Business DetailFinancial summarySummaryKey featuresAttributesTeamNext StepsBenefits expectedEdgePartnershipsSuccessful businessBusiness planServiceabilityRisk & IssuesQ & ABusiness modelCustomer ProfileBarriers