Business Plan Preparation

1
Business Plan Preparation

• Frank MoyesLeeds School of BusinessUniversity
  of ColoradoBoulder, Colorado

2
Tonights Agenda

• Topics
• Value Proposition
• Business Analysis
• University Parent Business Plan with founder
  Sarah Schupp
• In the Fire - Opportunity/Need
• Team meetings

3
Next Week

• Topics
• PRODUCT/SERVICE DESCRIPTION
• Margins
• OneButton Business Plan with founder Matt Emmi
• Assignment read BP pp 6-7
• Hand-in
• 3 Alternative Value Propositions
• Customer survey questionnaire
• Activity In the Fire
• Market analysis
• Interview results

4
Market Segmentation

• Groups of customers (demographics
  psychographics) baby boomers, grandparents
• Products features, benefits, prices
• Benefits enhance image, trend setter, weather
  protection, save money
• Geography see Hecho en Casa business plan
• Distribution channels
• Sector industrial (see MRT business plan),
  consumer, government

5
Value Proposition

• Product/service features
• Target market
• Benefits

6
Product/Service Features

• Description of attributes environment
• What is unique?
• How produce deliver?

7
Target Market

• Targeted entry point based on segmentation
• Demographics psychographics
• Must understand how make buying decisions
• Business sector, size, characteristics

8
Benefits

• Emotional ambition, power, independence,
  achievement, ambition, pride of ownership,
  comfort, love, friendship, security, style, self
  improvement, etc.
• Social status, image, popularity with friends or
  family members, reputation of brand, personal
  relationships, style, fashionable, etc.
• Health stress, fitness, mental capacity,
  strength, sex life, quality of life, muse, etc.
• Financial revenue, costs, savings, productivity,
  pricing, profitability, market share, save time,
  productivity, etc.

9
Simple Value PropositionSST Corporation
0
SST is a stainless steel toothbrush company. By
its one bristle brush made of high tensile
stainless steel, it provides an exhilarating
tooth cleaning experience to thrill-seeking X-gen
consumers
http//gizmodo.com/gadgets/gadgets/tifinity-titani
um-toothbrush-like-a-metal-scouring-pad-for-your-t
eeth-235314.php
10
Simple Value Proposition Petes Coffee
Petes Coffee is a Denver based coffee house.
Its gourmet coffee, convenient and fast service
provide a welcoming environment for people who
want to meet with their friends and a
stimulating morning coffee for the on-the-go
business person.
11
Value Proposition

• Why segmentation is important
• Differentiation is essential
• Home work for next week
• 3 alternatives value propositions
• So what! Why should your customer should care?

12
Business Analysis Assignment

• Present Mar 5 PowerPoint 10 minutes, 6-8 slides
• Market Analysis
• Industry Analysis
• Product/Service Description
• Profitability

13
Business Analysis Assignment (cont)

• Hand-in 3 ring binder
• Market Analysis - draft
• Industry Analysis - draft
• Product/Service Description - draft
• Value Chain analysis
• Competitive matrix
• Financial COMPs
• Revenue Model
• 20 interview Call Reports

14
Differentiation Road Map
Brand Trademark Bundling
Delivery Warranty Installation Time of
sale Service After sales Special
terms Usergroups Design help
Communications
Augmented Attributes
Features Packaging Quality Color Size Style Option
s Timeliness Customize
Tangible Attributes
Core Needs
Whats it for? Whats it do?
Example Morton Salt