EP Ch. 6: Business planning

Small Business Administration (SBA)

connects entrepreneurs with lenders, funding, to help them plan, start and grow their business

traditional business plan

a very detailed and comprehensive plan that sets out business objectives and strategies for achieving them

executive summary

a section of the business plan that summarizes the whole report, so that a reader can become acquainted with the plan without reading the whole document

business objectives allow companies to define their ______ and ________

goals and direction

characteristics of the business environment

A combination of internal and external factors that influence the company's operating situation

• competition

• laws

• technology

• government

products/services section of the business plan describes what the business will ———- or ——- that will be offered

sell + services

what are the two questions you can ask about the present market?

section of the business plan that describes the industry and target market

• who are your customers?

• what section of the market are you in?

competition

section of the business plan that details current market conditions that can impact products/services

marketing plan

a comprehensive plan that shows steps that will be taken to advertise a target market

management plan

a detailed plan describing the planning, monitoring, and controlling efforts in an organization

financial plan

a plan for future projections

1. income statement

2. balance sheet

3. cash flow statement

value proposition

the reason why customers turn to one company over another. It should solve a customer problem and satisfy a need.

Uber: 

• fast pickup

• lower cost

• fare estimate 

• convenient

• easy payment

• rating system

key partners

the external companies or suppliers that are needed to perform key activities and deliver value to customers

Uber: 

• drivers with cars

• map providers

• investors

• payment processors

key activities 

1. value

2. distribution

3. customer relationship

4. revenue

key resources

1. office

2. human resources

3. transportation

• These should correspond with key activites

Example (Whatsapp): 

• developers 

• software

• whatsapp brand

• marketing team

• servers

cost structure

all costs that will be incurred to operate the business model

• marketing

• website costs

• manufacturing

• packaging and raw materials

customer relationships

describe the types of relationships a company established with customer segments

Should be drive by customer acquisition retention

Uber:

• social media

• customer support

• reviews

• rating/feedback

• rewards

channels

how a company communicates with and reaches a customer segments to deliver a value proposition

Uber:

• website

• app for Android/iOS

customer segments

different groups of people or organizations that an enterprise wishes to reach and serve

Uber:

• those who do not own a car

• those who don’t want to drive to/from a party

• affordable airport transportation

• cost savers

Revenue streams

how a company generates revenue from customer segments

Uber:

• car rides per mile

• surge pricing (time/holidays)

• UberX, taxi, black, SUV

• Uber eats