Business planning Chapter 8

Business model canvas definitions

Customer relationships, customer segments, customer channels.

Key partners, key resources, key activities.

Costs, revenue streams, value proposition.

Functions of a business plan

Attract investment - provides potential investor with evidence they need to judge whether business is worth financially backing or not

Identify risks and challenges - helps business identify obstacles such as competitors, financial risks and staffing issues.

Ethics and sustainability of business plan

Brand reputation - ethics and sustainability help build trust and strengthens brand image values can be expressed in sales and marketing

Improves legal compliance - acting sustainably helps business avoid costly legal issues have to comply with labour and environmental laws

Importance of business plan at start up stage

Supports start up and initial funding helps clarify the idea and value proposition and whether the here is demand in market for the product / service

Importance of business plan at maturity / operations stage

Acts as a tool for monitoring goals, performance and maintaining efficiency. Seeing where improvements can be made to keep increasing profits

How franchise generates income

Franchising fees and royalties

How franchise captures value

Brand consistency provides consistent product and quality throughout all locations

How retail generates income

Buying stock at a low price from wholesalers and selling to consumer at a profit at a marked up price

How retail capture value

Wide range of choice

Loyalty rewards programs to entice returning customers

Great convenice wide range of products in own place