1. MIT Enterprise Forum of Pakistan
7th Annual BAP – 2013
Workshop: “Writing an Effective Business Plan”
Azhar Rizvi

2. [Idea Titile]
Business Plan Presentation
[Presentor_name]
[Other_Team_Members_name]
Note:
• Slides should not exceed 7 (including this and the thank you slide)
• Total Time – 7 mins (5 mins presentation & 2 min Q&A)
• Give a 30 sec Elevator Pitch on this slide

3. Market Need
What is the problem or unmet need that your plan solves
• Value creation
– Does this technology or scientific idea create something of value
for customers?
• Value capture
– Can we capture the economic value inherent in this idea in the
face of competition

4. Value Creation
• What is your value proposition?
• What does this idea do for a group of customers?
• Valuable attributes belong to products not technologies
Technology Product/
solution
Market

5. Value Capture
• Can we protect our competitive advantage (value proposition)?
• How will we deliver value to customers?
Technology Product/
solution
Market
What protective layer can we wrap around our technology, product &
customers?

6. Market Analysis
• Market Size
• Target Market
• Opportunity Size

7. Customer Focus
• List the type of customers who want a
solution to the problem
• For each type of customers indicate the
market size and also the total size
• Roadmap for Future

8. Your Solution
• Briefly describer your solution
• Describe your competitive advantage
• Describe the Value Proposition – What
economic benefit does your solution provide
to the customers

9. Business Model, Go-to-Market Strategy
and key Risks
• Describe your business Model – Especially how will
you make money
• Describe your Go-to-Market Strategy – how will
your target customers find out what you are
offering (product/service)
• Indicate Key risks to your business and the
mitigation strategies for the same

10. The Business Model
def: A method by which a firm uses its resources
(cash, technology and people) to offer its
customers better value than its competitors and
make money doing so.
It tells who pays, how much and how often.

11. Highly Complex

12. Simplified

13. Your Business Model is NOT your
Business
Business Model Innovation is
critical to developing a quality
business, attacking new markets
and driving profitability

14. Components of the
Business Model

15. Components of the
Business Model
1. Value Proposition
2. Market Segment
3. Value Chain Structure
4. Position in the Value Network
5. Revenue Generation and Margins
6. Competitive Strategy
7. Stage of Development

16. Value Proposition
• A description of the customer problem
• The solution that addresses the problem
• The value of this solution from the
customer's perspective (price, speed, design)
Market Segment
• The target audience
• Recognizing that different market segments
have different needs

17. Value Chain Structure
• The firm's position in the value chain
• Activities in the value chain
• How the firm will capture part of the value
that it creates in the chain.
Position in the Value Network
• Identification of competitors
• Identify complementary companies and
technology
• Identify network-effects that can be utilized
to deliver more value to the customer.

18. Revenue Generation and Margins
• How revenue is generated
(sales, leasing, subscription, support, etc.)
• The cost structure
• Target profit margins.
Competitive Strategy
• How will the company attempt to develop a
sustainable competitive advantage?
• How will it use that advantage to improve
the competitive position in the market?

19. Different types of Customer Segments
Mass
Market
Niche
Market
Segmented
Market
Diversified
Multi-sided
Platforms

20. Different Types of Customer
Segments &
Different Models to Evaluate

21. Different Models to Evaluate
Direct Mass Media
Retail Telemarketing/ Phone
Sales
Channels, Distributors
and Partners
Trade Shows and
Conferences
OEM Channels Internet - Web

22. Direct Sales
Consumer or Business
Positives:
• High Contact
• Customer relations
• More Control
• Multi Purpose
• Experts in the field
Negatives:
• Free Consulting
• May not like rep or rep
leaves firm
• High Cost
• Retention

23. Distributors & Channel Partners
Positives:
• Cost of Sale is Low
• Hands-off Sales
• Exposure in new
markets
• Credibility
• Competitive Edge
Negatives:
• Up-front fees
• No control
• Distant clients
• Performance
• Technical Pressure
• Require lots of
attention and
training

24. OEM Channels
(Original Equipment Manufacturer)
Positives:
• Prestige and
Publicity
• List Sharing
• Royalties / steady
revenue stream
• Increase Market
Presence
• Technical Control
Negatives
• Competitor envy
• Technical pressure
• Channel Conflict
• Your reputations
are linked

25. Other Examples
• Retail
• Internet
• Service Providers…….

26. What Business Model and Why?

27. What Business Model and Why?
• Apple - Dell
• Citibank - American Express
• SouthWest - Virgin Air
• Patek Philippe - Swatch
• Cuisinart – Nespresso
• Bentley – Cadillac
• Vertu – Nokia
• AT&T vs. SKYPE

28. Standard Coffee Maker vs. Keurig

29. Nespresso…

30. Swatch vs. Movado…

31. Super high end

32. Financials and Exit Strategy
• Exit Strategy – Sale, Merger, IPO
• Financial Projections
Year 1 Year 2 Year 3
Total Revenues
Gross Profit
Net Income
Investment Needed

33. Thank you
Q & A