Lecture 5 Flashcards
DEFINITION Business Model
A company´s plan for making profit
DEFINITION Business Plan
A comprehensive document that dentifies business opportunities with their risks and chances and decribes measures to be able to use the resulting future business
Sense and purpose of business Plan
- Identification, description, analysis of business opportunity
- examination of technical, economic and financial feasibility (Durchführbarkeit)
Business plan components
- executive summary: brief overview, intresseweckend
- Business idea: idea/origin (key application), main selling point, state of technology, business model
What is th 3 component model?
- value proposition
a. clients
b. costumer benefits (price, time) - Value creation
a. configuration (development, production, marketing, service)
b. value chain (core and support, process) - value capture
a. how to earn money
b. turnover
3 steps of value chain analysis
- identify value chain activities (primary: creation of product), secondary (so primary is more efficient)
- Determine the cost and value of activities
- Identify Opportunity for competitive analysis
Entrepreneurial team
showing expert knowledge for investors –> balanced team!
Market analysis
SWOT basis
Marketing
4 P’s: Product, Price, Place, Promotion
4 C’s: Costumer needs, Cost to Costumer, Convenience, Communication THEY FOCUS FROM PRODUCT TO COSTUMER
SIVA: Solution, Information, Value, Access RESPOND TO COSTUMER WISHES
Market entry barriers
- Patent
- Vertical Integration
- being first mover
- Geographical
- brand loyalty
–> explain and identify how to face barriers
Organization and Management
ORGA: Structure of business and people
MANA: responsibilities of managers
1. Explain hierarchy of Management (owners, directors, partners)
2. who is in charge of which aspects
DEFINITIONFinancial Plan
- Determines whether your business idea is viable and will be the focus of any investors who might be attracted to your business idea
profit+loss, balance sheet, cash flow, financing
1. Financial estimation
2. plausibility and financial feasibility check
What are Start-up expenses
- Registration
- Licening, permits
- starting inventory
- rent deposit
- down payments (property and equipment)
- set up utilities
What are operating expenses?
- Salaries
- Rent
- telecommunication
- utilities
- raw materials
- storage
- maintenance
What documents are needed?
- income Statement
- cashflow projection
- balance sheet (assets = liabilities + equality)
- statement of shareholders equity
