TOPIC 4,PART 1 BUSINESS PLAN.

What is a Business Plan (emerging business models)

One of the crucial questions that someone needs to think about when starting a new business is how companies are organised. What is the correct way to start putting an idea into action?

A business model is nothing more than a plan outlining how a company aims to make money. It identifies the new business’ target market, outlines how the business provides value to them, and considers the financial aspects.

There are many tools to help you easily define your business model.

Types of Business Plans

• You can use two business plan formats, depending on your purpose.
• Your decision considers who the audience for your business plan is.
• There are the business model canvas format (BMC) and the traditional one.

Pro tip: Make sure to work your business idea on the BCM first. It will really help you make critical decision, before drafting your traditional business model!

Business model canvas

The business model canvas will guide you in developing a concise business plan.  Additionally, you can clearly visualise your business by filling out the canvas.

Pro Tip: You can use the app at https://miro.com/app/dashboard/, which has a free Business Model Canvas Template.

Traditional format

The traditional format is essential when you search for third-party money.  It is a document with a cover page and complete information about your business.

The Lean start-up methodology uses a “scientific method”, consisting of a series of iteration between hypothesis and test with live customers: asking questions, constructing hypothesis, testing hypothesis by doing an experiment, analysing data, and drawing conclusion, before actually taking the step to develop your business model.

The lean start-up approach could help young entrepreneurs in saving time and money in executing a wrong plan (wrong meaning “building a product/service that the customers don’t want”).

The methodology of lean start-up is based on the same assumptions:

• to acquire a customer perspective by building hypothesis about the costumers’ needs;
• to validate this hypothesis by testing them;
• to learn by data analysis;
• to take decisions and plan, relying on validated data.

The Lean start-up allows entrepreneurs to design their products and test the underlying assumptions of their business models with the minimum required capital and in the shortest period of time.

Image source: https://www.linkedin.com/pulse/what-business-model-innovation-robert-brodnick/