Home assignment 2 : Home assignment 2 11.01.2007 The business plan : The business plan According to ”Fra idé til ny virksomhet” the business plan should consist of:
The business idea
The market plan
The business model and organization
The carrying through plan
Profitability and financing
The assignments will pretty much follow and address these different parts. The business idea : The business idea The assignment consists of specifing:
the business idea
how you are to protect the idea
the competences of you and the team behind the idea.
The assignment is to be presented Tuesday the 23rd.
Presentations should be ~ 5 minutes and on transparency films Specifying the business idea : Specifying the business idea In specifying the business idea you need to describe the business story:
Background – current situation and problem
Challenge – challenges and conflicts to solve the problem
Resolution – Portray a solution to the problem
And provide the answers the followings questions
Who is the customer / what is the market?
For example, is it companies and if so what kind of companies (e.g. what size), in what industries are they situated. Or is it persons and if so what persons (e.g. aged 30-55, sporty).
Remember that the customer does not need to be the user!
What is the customer value / what problem do you solve?
What are the unique benefits?
Why the customer will pay for the solution.
Will you sell a product, a service or both? Specifying the business idea cont. : Specifying the business idea cont. These questions could be summarized in the value proposition which states who the customer is and the value offered to this customer? Often, the key values can be summarized as:
Product: performance, quality, features, brand, selection, easy to use, safe.
Price: Fair, visible, consistent, reasonable.
Access: Convenient, location, nearby, at-hand, easy to find, in a reasonable time.
Service: Ordering, delivery, return, check-out.
Experience: Emotional, respect, ambiance, fun, intimacy, relationships, community.
Example: The value proposition for Amazon.com could be described as: An easily accessible Internet site that is convenient all of the time to provide a wide selection of books, CDs, and videos at a fair price to the busy, computer-literate customer Specifying the business idea cont. : Specifying the business idea cont. You also need to say something about how you are to make money on the idea / how you are to take a share in value created?
For example, are you to license or sell products.
For example, are you to use cost-, market-, or value-based pricing?
You do not need to be very elaborate here, but you need to have an idea about it. Protection and competencies : Protection and competencies You also need to describe:
How you will protect the idea?
For example, will you patent, do you have copyrights and so on.
How important are patents / protection in your area?
as well as describe
The current phase of development of the product/service
The competencies of the team
You and potential people behind the idea if external Specifying the business idea : Specifying the business idea You do not need to:
Calculate the market size
Make a complete competitor analysis
Describe the organization, management etc.
This comes later on Specifying the business idea : Specifying the business idea Remember that the description of the business idea is to be directed towards the investor.