1. Planning
for
your
business
Prajakt
Raut
President
–
Angel
Investors
Consor2um
Execu2ve
Director
–
The
Hatch
Visit
the
Virtual
Learning
Center
for
startups
at
www.thehatch.in
www.facebook.com/TheHatchforStartups

2. An
idea
is
not
a
business
A
business
has
to
be
constructed
around
an
idea
• What
do
you
do
• How
do
you
do
it
• How
do
you
make
money

3. A
business
plan
is
useless
product.
But
it
is
a
priceless
process.
Provides
a
structured
and
logical
framework
for
planning
your
business
Plans
means
nothing.
Planning
is
everything.

4. Should
address
the
following
ques>ons
o What
problem
or
opportunity
are
we
addressing?
The
market/Target
Audience
o How
are
we
addressing
it?
Product
/
service
o How
are
we
planning
to
do
it?
Organiza>on
&
Opera>ons
planning
o Why
are
we
doing
it?
Business
case
:
measure
against
YOUR
goal
Create
wealth
Serve
the
poor/reduce
unemployment/make
people
happy
Do
what
I
enjoy
Etc.,
etc.

5. A
business
plan
has
internal
as
well
as
external
uses
Internal uses External uses
• Understanding business case • Funding
• Planning your business • Alliances
• Provides parameters to evaluate and • Board members /
made adjustments advisors
• Monitoring progress • Partnerships
• Ensures team alignment • Mergers and
acquisitions
• Help recruit senior personnel

6. What’s
the
process
of
working
on
a
business
plan?
o Start
with
a
‘story’
-­‐
‘See
the
film
in
your
mind’
o Work
out
rough
milestones
and
goals
o Think
deeply
of
how
you
will
implement
it
o Work
out
the
‘structure’
of
an
excel
sheet
–
with
costs
and
revenues
o Start
working
in
the
excel
sheet
–
assump>ons
are
cri>cal
o Work
on
mul2ple
‘scenarios’
o Finally,
ar2culate
it
into
the
‘presenta2ons’
It’s
a
liNle
bit
like
planning
a
journey

7. Idea
Implementa>on

8. Can
solve
a
problem
Fulfill
a
need
Improve
quality
of
life
Improve
something

9. Examples
of
cheaper:
Lower
price
0r
accessible
to
more
people
e.g
.EMI?
Cheaper
Faster
BeNer
Fuller
Nicer
Nearer
Improve
something

10. Product
Service
Value
Business
model
New
users
New
uses

11. Having
a
good
idea
is
not
the
same
as
having
a
business
plan.

12. SeVng
up
a
chain
of
coffee
shops
is
more
than
just
making
great
coffee

13. Building
a
coffee
chain
requires
the
following
competencies
• Real
estate
procurement
• Food
handling
• Facili2es
management
• Supply
chain
/
procurement
• Brand
iden2ty
• Processes
• Standardiza2on
• Marke2ng
• HR
–
hiring,
training,
reten2on
• Sales
• Service
management
• Legal,
finance,
audit
• Vendor
management
• MIS
Etc.
etc.,
etc….

14. Dynamics
of
an
e-­‐commerce
business
Procurement
Produc2on/Packaging
Technology
PlaYorm
Supply
chain
Look
&
Feel
–
user
experience
Portal
Product
Vendor
management
Ordering
mechanisms
–
including
‘order
on
phone’
Capacity
u2liza2on
Payment
gateways
&
methods
Value
proposi2on
&
Delivery
&
fulfillment
posi2oning
mechanisms
E-­‐ Brand
Target
Audience
Logis>cs
commerce
Warehousing
Strategy
Pricing
Logis2cs
partners
Brand
Personality
Order
Management
Marke2ng
strategy
as
well
as
tac2cal
Roles
&
Responsibili2es
iden2fica2on
idea,
sales
strategy
Team
Marke>ng
Media
Plan
&
Budgets
HR
policies
CRM
Strategies
&
Ideas
including
Team
hiring
&
reten2on
plan
loyalty
programs,
referrals,
etc.

15. How
many
vendors
are
involved?
19
Partners
/
Vendors
involved
in
the
implementa>on
process
Technology
&
portal
Marke>ng
&
Brand
Opera>ons
partners
development
partners
Communica>on
partners
1. Packaging
&
prin2ng
partners
1. E-­‐commerce
capable
1. Brand
iden2ty
specialists
2. Logis2cs
partners
Technology
partners
2. Photographer
3. Recruitment
consultants
2. Hos2ng
partner
3. Direct
Marke2ng
agency
4. CRM
partners/CRM
plaYorm
3. User
Interface
partner
4. Social
Media
Agency
vendors
4. Payment
Gateway
5. Adver2sing
Agency
5. Database
vendors
5. Tes2ng
&
bug
fixing
6. Media
Buying
agency
6. Process
Training
Consultants
experts
7. Sod
Skill
Training
Consultants
8. Outsourced
Call
Centre

16.
Objec>ve
of
today’s
session
To
make
a
business
case
around
a
good
idea.

17.
Fall
in
love
with
a
PROBLEM.
Don’t
get
infatuated
with
a
solu>on.
[Allows
you
to
try
new
solu2ons
if
one
does
not
work]

18.
To
have
one
great
idea,
have
many
of
them.
Thomas
Edison

19.
Exercise
1
Iden>fy
the
problem
or
need
that
you
want
to
own
Present
it
as:
1. The
situa>on/environment
[e.g.
accommoda2on
choices
in
Gurgaon
are
either
too
expensive
or
too
basic
&
dirty]
2. The
problem
you
want
to
address
[e.g.
“We
want
to
address
the
problem
of
finding
smart,
cheerful
accommoda2on
at
reasonable
prices]

20.
Exercise
2
State
the
ideas
that
address
the
problem
that
you
chose
Present
all
the
ideas
you
considered
and
explain
why
you
discarded
some.

21. Implementa>on
planning
The
most
cri>cal
component
of
the
plan

22. Implementa>on
planning
–
things
to
consider
• Customer
segments
and
value
proposi2on
• B2B,
B2C,
B2B2C
• Channels
to
reach
them
• Marke2ng
strategy
• Sales
strategy
• Revenue
streams
• Key
ac2vi2es
• Key
partnerships
• Key
resources
• Cost
structures

23. Crea>ng
an
overview
of
your
business
• What
is
the
pain
point
you
are
addressing
or
what
is
the
opportunity
you
are
targe2ng?
i.e.
the
need/value
proposi>on
• What
is
your
service/product/concept?
i.e.
what
do
you
do?
i.e.
Concept
• Whom
is
this
service
targeted
at?
i.e.
your
customers/consumers?
i.e.
The
Target
audience
• What
is
the
business
model?
I.e.
Who
will
pay
how
much
and
to
whom
• What
is
the
scale
of
aspira2on?
i.e.
how
large
do
you
see
yourself
as
in
a
3-­‐5
year
>me
period?

24. Example of a business model
Types
of
business
models
• Free
for
users
–
adver2sers
pay
• SAAS
–
pay
only
for
service
/
rental
• Pay
per
use
• Pay
up
front
• Annual
/
periodic
payments
• Pay
in
installments
• B2B2C
Example
of
a
business
model
“We
have
a
B2B2C
model.
We
will
charge
parents
Rs.250
per
child
per
month.
This
will
be
collected
by
the
school
from
parents
who
subscribe
to
our
service
and
will
be
paid
to
us
at
the
beginning
of
every
quarter.
Students
will
be
pre-­‐registered
but
subscrip2on
is
not
compulsory
and
parents
can
choose
to
opt
out.
School
will
keep
20%
of
total
revenues,
which
we
will
give
them
at
the
end
of
the
year
on
achieving
a
pre-­‐agreed
minimum
revenue
commitment.”

25. Your goals
• In
the
next
3
–
6
months
• In
the
next
12
–
18
months
or
24
months
• In
the
next
5
years
• Indicate
when
you
become
profitable
Current achievements / status:

26. Competitive landscape
• Who
will
you
compete
with?
[current
or
in
future]
• Why
would
someone
choose
you
over
them?
• Why
do
you
have
a
chance
to
be
a
dominant
player?

27. Planning
for
your
business
Prajakt
Raut
President
–
Angel
Investors
Consor2um
Execu2ve
Director
–
The
Hatch
Visit
the
Virtual
Learning
Center
for
startups
at
www.thehatch.in
www.facebook.com/TheHatchforStartups