Products, services & marketing forsustainable [youth]markets

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Programme 09.05.02005Business models

¤ The CLIENT

¤ General layout of a business plan for a social enterprise– Basic idea– Structure of plan & details

¤ Deadline for draft business plans: 01.06.02005

¤ End (approx. 16.30)

Programme 23.05.02005 Business models

No programme, but…

Available for individual appointments

To be made just now or later on

Programme 06.06.02005 Business models

10.00 – 16.00

Elevator pitchFishbowl (brief feedback on plan in learning set-up)

Issues following from business plans & fish bowl

Programme 20.06.02005 Business models

No programme, but…

Available for individual appointments

To be made just now or later on

The client

What is the client or customer benefit;or, what problem does the idea solve?¤ Market success comes from satisfied customers

¤ A clear statement what need it will satisfy, and in what form (product or capacity)

¤ The distinctiveness of the product is often referred to by marketing specialists as its ‘Unique Selling Proposition’

Unique selling points (USP’s)

Traditional business¤ More convenient¤ More attractive¤ Safer¤ More flexible¤ Less expensive¤ Quicker¤ Smaller¤ Lighter¤ Simpler¤ More comfortable¤ More reliable

The clientUSP’s

Social entrepeneurship¤ Additional norms and values

that built a world that is

¤ More in balance / equal¤ More diverse¤ More equal¤ More honest / social¤ Less consuming¤ Less harming environment¤ Etc.

The client

Who is the client?

¤ In the case of the Emmaus project?

¤ In the case of the ProRail project?

Client generally is the one paying the bill ;-)

1. Try to sketch all stakeholders2. Try to sketch the flow of money

What is a business plan?

Business idea

¤ Business idea of Kuyichi:

– We sell high priced designers clothing

– Our clients contribute to the well being of those farmers & sewers in a fair, direct and commercially sensible way

What is a business plan?

Business idea with graphic symbols

¤ Explore with small groups the business idea of

¤ neau [www.neau.nl, Dutch only]¤ NOTS [www.nots.nl]¤ Free Energy Int. [www.free-energy.net/fei]¤ F0 [www.formulazero.nl]¤ sprmrkt [www.sprmrkt.nl]

Why develop a business plan?

Why develop a business plan?

¤ Consumer market¤ New product introduction

% of succesful market introductions?% of start ups that succeed?

Why develop a business plan?

Purpose of a business plan [1]

¤ Getting your ideas across

¤ So others are willing to invest time and/or money in it

¤ This is mainly an issue of getting new ideas accepted by others (convince people of your plans)

¤ Indicating risk versus security

Why develop a business plan?

Purpose of a business plan [2]

¤ Indicate how it will make money (business idea or revenue mechanism)?

¤ What are the costs/investments?

¤ Why you and not somebody else???

¤ Direction for further development: planning

What is a business plan?

Checklist for your business plan [1]Does you business idea answer the followingquestions?¤ Who is the customer?¤ Why should the customer buy the product?

What need does it meet?¤ What exactly is innovative about the business

idea?

What is a business plan?

Checklist for your business plan [2]Does you business idea answer the followingquestions?¤ Why is the product better than comparable

alternatives?¤ What do you actually sell? A product or

capacity?¤ How unique is the business idea? Can it be

protected? Who owns the design?

What is a business plan?

Business plan [3]A business plan ideally addresses:¤ Setting up the company¤ Building up the organisation and management¤ Building up production¤ Publicity¤ Market entry¤ Reaction to threats: competition, technological

developments¤ Expanding production¤ Entering new markets¤ Developing new products

What is a business plan?

Business plan [4]Characteristics of a promising business plan:

¤ Meets a customer need - a problem is solved¤ Innovative¤ Unique¤ Clear focus¤ Offers long-term profitability

What is a business plan?

How will it make money?¤ Most products make money directly, from sales to

customers

¤ In some cases, however, the ‘revenue mechanism’ can be more complicated– For example, the product is given away for free to the

consumer, and paid for by advertisers

¤ How money will be made, and how much

What is a business plan?

How will it make money? Revenuemechanisms [1]Classic profit calculation for a business works asfollows: ¤ A business buys materials or services from

suppliers, the payments for which represent costs for the business.

¤ The business then sells products or services to its customers, and this produces revenue.

¤ Leasing and renting are other common revenue mechanisms.

What is a business plan?

How will it make money? Revenuemechanisms [2]¤ License fees charged to franchise holders.¤ ViaVia, a classified ads newspaper, is financed

by the price paid by the people buying the paper; the advertisements appear for free.

¤ If your business idea is also based on an innovative form of revenue mechanism, you will need to explain it at the business idea stage.

Your business plan

Requirements for your business plan 01.06.02005¤ Maximum of two pages of text, including:

– Elevator pitch – Your name/group name– Name of product or service– Illustration– Description of product or service (are you offering

mainly a product or a capacity)?– Customer benefit– Description of customer(s)– Innovative characteristics– Some ideas for traffic generation (especially for

Emmaus)– Who will pay the bill & estimation of price

Your business plan

Feedback on the following aspects:

¤ Elevator pitch: is the basic idea of the business plan clear in about 1 minute¤ What is the customer benefit?¤ What problem does the idea solve for

whom?

¤ Feasibilty of the business idea & directions for improvement

¤ Business model: revenue mechanism (how will it make money)?

Your business plan

¤ 01.06.02005¤ Deadline to mail/deliver draft business plan

¤ sander.mulder@yppah.comNieuwe Emmasingel 7c5611 AM Eindhoven

(across the street opposite Design Academy)(email smaller than 2 Mb, else print)