ViableBus.Model9-23v1
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Transcript ViableBus.Model9-23v1
Developing a Viable Business Model
Patrick Barry
Agenda
Overview
Aligning with Objectives
Elements of a Viable Business Model
Process of Building Viable Plan
Wrap-Up
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Viable Business Model
A sound and compelling Business Plan should include:
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Assessment of Market
Identification of Customer Segments
Description of Key Buyer Values
Assessment of strengths & weaknesses of Competitive Alternatives
Clear Distribution Strategy
Assessment of Risks
5 year Financial Pro-formas including Cash Flow Model, Income
Statement, and Balance Sheet
– Detailed Description of Management Team
– Clear Exit Strategy with Potential buyers identified
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Viable Business Model
A sound and compelling Business Plan should include:
–
–
–
–
–
–
–
Assessment of Market
Identification of Customer Segments
Description of Key Buyer Values
Assessment of strengths & weaknesses of Competitive Alternatives
Clear Distribution Strategy
Assessment of Risks
5 year Financial Pro-formas including Cash Flow Model, Income
Statement, and Balance Sheet
– Detailed Description of Management Team
– Clear Exit Strategy with Potential buyers identified
A Story that makes sense
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Align Business Model with Objectives
What are you trying to accomplish with this plan?
– Win the Competition?
– Pass a Class?
– Start a Business?
• Make a living?
• Fame & Fortune?
• Make a difference?
– Learn?
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Key Misconception(s)
Invention = Innovation
Good Plan = Winning Plan = Good Business Model =
Successful Business
Good Business Model = Big $
A Plan = The Answer
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A Compelling Story needs to cover the key
elements …
Sustainability
Market Need
Alternatives
Product / Service
Delivery & Execution
‘Go to Market’
Strategy
Financing & Capital
Needs
Management
Team
Plan to Scale &
Leverage
Exit Plan
Financial Projections
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… And it needs to fit together logically
Market Need
Sustainability
Alternatives
Product / Service
Delivery & Execution
‘Go to Market’
Strategy
Financing & Capital
Needs
Management
Team
Plan to Scale &
Leverage
Exit Plan
Financial Projections
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Key Element: Defining Market Need
Begin with the need not the product or service
Economic Buyers
Your Business
End-
Users
Distribution
Channels
Influencers
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Key Element: Alternatives
How is need being satisfied or addressed today
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Key Element: Meeting Needs
How will your product / service meet identified
needs?
Why it is better than alternatives from the
customer’s perspective?
What will compel them to buy?
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Key Element: Go to Market
Is there alignment with the other elements?
Why is the plan (the distribution channel, the
marketing plan, the sales message, etc.) the best /
most logical?
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Key Element: Identifying Critical Factors
Which aspects of the business are most critical?
Which aspects need to be done well and which ones
exceptionally well?
Which aspects, if done marginally, could sink the
business?
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Key Element: Management
What talent / expertise is needed to meet critical
needs of business?
How will you attract that talent?
Begin with needs and align talent with it
– Don’t start with people available
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Key Element: How will it make $
Who pays what and why?
– Specific customer groups
– Sell price - why reasonable?
– Volume
• Initial, Ramp up rate, Reasonable potential
Cost Structure
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COGS
Gross Profit ($ & %)
Distribution Costs
Marketing Costs
Support Costs
Net Potential
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Process: How to Build a Viable Plan
Onion Method
Check & Recheck Connections
Versions:
– 2 minutes
– 20 minutes
– 2 hours
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Process: How to Build a Viable Plan
Tips & Tactics (Top 10 List)
10. Talk to yourself
9. Be an actor
8. Make sure the numbers add
7. Answer the question: “How do I know …?”
6. Answer the question: “How would I find out?”
5. Get testimonials / references from those in the know
4. Sell one (or more)
3. Realize the product / service is only relevant through the market’s
eyes
2. Define the Bet
1. Constantly learn and adjust
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Wrap - Up
Tell a logical story => the rest is logistics and risk /
reward assessments
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Wrap - Up
Observations & Questions
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