ENTREPRENEURIAL BEHAVIOR

COLLEGE OF BUSINESS, ACCOUNTANCY, & ENTREPRENEURSHIP

UNIVERSIDAD DE MANILA

Ms. SHIRLY D. CUSAY-YU, CPHR, MBA, LLb, BBM, AB Psychology

School year 2021-2022

PART IV - BUSINESS DESIGN

1. Defining and Differentiating Business Model
from Business Plan.
2. Identify different business case analysis.
3. Preparation of Business Model and
Business Plan.

BUSINESS MODEL
is a description of the means and methods a firm employs to
generate sales revenue, profit, and cash flow, while providing
a template for the business to scale up.

is an outline of how a company plans to make money

with its product and customer base in a specific market.

What product or service a company will sell?

How it intends to market that product or service?
What kind of expenses it will face?
How it expects to turn a profit?






BUSINESS PLAN
is  a written document describing a company's core
business activities, objectives, and how it plans to
achieve its goals.

include an executive summary, products and services,

marketing strategy and analysis, financial planning,
and a budget.
BUSINESS PLAN VS. BUSINESS MODEL
BUSINESS MODEL - mechanism
through which the company
generate its profit.
- for start-up, or still checking and
testing out different ways to roll
out your business.
B U S I N E S S P L A N - i s a  d o c u m e n t
presenting the company's strategy and
expected financial performance  for the
vs. years to come.
- is a document explaining how a business
might become profitable.
- looking for a loan from a bank or an
investment for your business

COMPONENTS OF BUSINESS MODEL

OFFERING MODEL OPERATING MODEL

target market value chain

resources & processes
value proposition
complementors
channel
configuration
customer bonding strategy
revenue model cost
 OPERATING MODEL
Value Network
The strategic linkage of
extended supply chain for the
Complementors firm to provide specific products
or services to the customers.
People or groups who will
help, both directly & indirectly, Resources &
to enhance the value Processes
proposition.
Resources - the hard & soft
assets deployed by the firm to
carry out its value proposition for
Configuration the customers.
Processes - the critical repetitive
Re-arrangement of resources, activities that are routinized by
processes, activities & the company to deliver the value
offerings that can help to the customers & the company
enhance the profit goal of the in a sustainable way.
company.
Cost
The monetary consequences of
the means to carry out the value
proposition.
OFFERING MODEL
Target Market
The intended recipients of
a firm’s products or
Channel
services.
The distribution system
where products or services
will be made available to the
Value Proposition customers.
The relevant and unique
benefit that the consumer
gets from buying or Customer Bonding
owning the firm’s product Strategy
or services.
The relationship as well as the
solution that will be established
with buyers and end users.
Revenue Model
The compensation a firm will
get for providing its value
proposition to support its
intended profit.

OFFERING MODEL CHANNEL

TARGET MARKET

CUSTOMER BONDING STRATEGY

VALUE PROPOSITION

REVENUE MODEL
OPERATING MODEL COMPLEMENTORS

VALUE NETWORK CONFIGURATIONS

RESOURCES & PROCESSES

COST
HONEST HENRY X ANTHILL
Open kiosk launched in October 2016
located inside the reception side of The
Henry Hotel in Cebu.

less number of guests, they do not hire

a full-time salaried staff to man the
store
customer will put they payment in an
envelope and drop in the box

hence, the name “Honest Henry” was

adopted in “Honest Cafe” of Batanes
FRANCHISING BUSINESS MODEL OF DR. CARL BALITA REVIEW CENTER
Dr. Carl Balita Review Center (CBRC) was established in 1993 and has some 100 branches in the Philippines
and abroad, including Abu Dhabi, Dubai, Jakarta and Hong Kong. The review center for nurses started in
2007 after Carl’s 2004 book “Ultimate Learning Guide to Nursing Review” became a bestseller.
There were 2 factors that made the center expand to other areas as a review center for teachers,
criminologists, midwives, civil service and international English - 1) review centers for nursing were having a
price war fighting for market shares, and 2) demand for nurses was expected to be on the decline due to
previous over supply. Instead of focusing where the market is, CBRC looked into where the market will be in
the future and made its strategic move to be profitable. There was no turning back since Dr. Balita took this
direction 2013 after suffering declining enrollment for nursing earlier, unable to pay for the salaries of his
people for a time.
To enable CBRC to expand to other review areas, the owner, Carl Balita, a media personality with over
300,000 followers, decided to pursue various educational degrees, including 2 doctoral degrees (humanities
and education). Dr. Balita is a registered nurse, midwife and professional teacher, a car credentials as part of
his personal branding, in order to gain credibility for CBRC.

FRANCHISING BUSINESS MODEL OF DR. CARL BALITA REVIEW CENTER

While franchisees invest at least 1M, which can be recovered in at least 9-12 months based on historical average,
CBRC has 1 strict rule - franchisees and branches have 1 year to be the biggest in the territory or they have to
close. The survival and dominance of CBRC is premised on the top performance of their reviewers. In 2016,
CBRC has 35 board topnotcher, including the 1st and 10th place, while in 2017, CBRC improved further to 42
topnotcher. These board topnotcher served as attraction and buzz, giving credibility to CBRC. Hence, the
franchisees and branch heads they look for must be driven to support this ambitious drive for dominance. The
number of topnotcher further support their premium pricing, reinforcing their superior value proposition.
CBRC launched unique marketing strategies to support their franchisees and branches as well. They produced
a movie entitled “Maestra”, which was graded “A” by the CEB and won awards in the Venezuela Film Festival.
The movie was meant to motivate the younger generation to be teachers in the future. 10 years earlier, at the
height of nursing career, CBRC produced “NARS”, a movie about nurses.
CBRC’s process is centralized. They supply the reviewers to the franchisees and branches for a uniform review
experience. Even the marketing campaign is centralized and just executed locally. Instead of spending for
marketing, they offer seminars and conferences which are even revenue generating.
In 2017, CBRC won the Franchise Excellence Award from the Phil Franchise Association and DTI, a testament to
the support given to franchisees.

FRANCHISING BUSINESS MODEL OF DR. CARL BALITA REVIEW CENTER

OPERATING MODEL OFFERING MODEL

Value Network Target Market

Course Designers Franchisees adequately
Test Materials Reviewers, funded, educated and willing Channel
Marketing, Branches, to make their franchise the no.
Complementors Franchisees, Reviewees 1 in their territory in 1 year Some 100 branches in all major
cities in the Phil, plus
Reviewers, which are supplied
from CBRC central system for Resources & Value Proposition international sites via
franchising.
consistent review experience. Processes Alternative access via online
Proven holistic teaching &
Hard Assets - personal branding coaching methodologies, review.
of founder, track record of board including spirituality.
Configuration Track record of producing
Customer Bonding
topnotcher, branch network.
board topnotcher consistently. Strategy
Movie “Maestra” and “Nars” to
Soft Assets - centralized supply Scholarships to honor
motivate younger generation Leverage in social media
of reviewers, teaching students.
to become teachers and
methodologies, referrals fr board Franchise excellence awardee (personal branding & educator) of
nurses. Mr. Balita for awareness creation.
passers of DTI and PFA.
Convert marketing efforts Offer books, seminars &
(seminars, etc) into revenue conferences as part of trial &
generation rather than Cost Revenue Model ongoing education.
expense.
Premium price, facilitation fee act
rent, marketing, events, payroll,
15% of gross revenue, franchise
commissions, printing, special fee, royalty fee, seminar fee,
projects, online investment conference fee, book sales

TYPES OF BUSINESS PLAN

START-UP
INTERNAL
STRATEGIC

FEASIBILITY

OPERATIONS
GROWTH
START UP BUSINESS PLAN
New businesses should  detail the steps to start the
new enterprise with a start-up business plan.

includes: describing the company, the product or service your business will
supply, market evaluations and your projected management team.

Potential investors will also require a financial analysis with spreadsheets

describing financial areas including, but not limited to, income, profit and cash flow
projections.
INTERNAL BUSINESS PLAN
target a specific audience within the business

describe the company’s current state (operational costs and profitability),

calculate if and how the business will  repay any capital  needed for the
project.

Internal plans provide information about project marketing, hiring and tech
costs, market analysis illustrating target demographics, market size and the
market’s positive effect on the company income.
STRATEGIC BUSINESS PLAN
provides a  high-level view of a company’s goals  and how it will
achieve them, laying out a foundational plan for the entire company

business vision, mission statement, definition of critical success factors,

strategies for achieving objectives and an implementation schedule. A strategic
business plan brings all levels of the business into the big picture, inspiring
employees to work together to create a successful culmination to the company’s
goals.
FEASIBILITY BUSINESS PLAN
answers two primary questions about a proposed
business venture:  who, if anyone, will purchase the
service or product a company wants to sell, and  if  the
venture can turn a profit.

A feasibility plan ends with recommendations for going

forward.

include, but are not limited to, sections describing the need for the product or
service, target demographics and required capital.
OPERATIONS BUSINESS PLAN
Operations plans are internal plans that consist
of elements related to company operations.

Specifies implementation markers and deadlines for the

coming year.

Outlines employees’ responsibilities.

GROWTH BUSINESS PLAN
or expansion plans are in-depth descriptions of proposed
growth and are written for internal or external purposes. 

If company growth requires investment, a growth plan may include complete

descriptions of the company, its management and officers. The plan must provide
all company details to satisfy potential investors. If a growth plan needs no capital,
the authors may forego obvious company descriptions, but will include financial
sales and expense projections.
SMART + ER
can be attributed to Peter Drucker’s
MANAGEMENT BY OBJECTIVES
(MBO) concept

George Doran (1981) - “There is a

SMART way to write management’s
goals and objectives.

NEW YEAR’S SYNDROME

SMARTER
SPECIFIC - (simple, sensible, significant) and specific
will answer the five (5) “W” questions
WHAT do I want to accomplish?
WHO is involved?
WHY is this goal important?
WHERE is it located?
WHICH resources or limits are involved?
Example: Marketing Executives
“I want to gain skills and
experience necessary to become
head of marketing within my
organization, so that I could build
my career and lead a successful
team.”

SMARTER
MEASURABLE - (meaningful, motivating) in order to track your
progress and stay motivated for you to focus, meet deadlines
and feel the excitement of getting closer to achieving your goal.

HOW much? Example :

HOW many? You might measure your skills to become a
successful Entrepreneur by determining
HOW will I know when it is that you have completed the necessary
accomplished? training courses and gained the relevant
experience within five year’s time.

SMARTER
ACHIEVABLE -(agreed, attainable) goal must be realistic and
attainable to be successful, and be able to identify previously
overlooked opportunities and resources that can bring you
closer to it.

HOW can I accomplish this goal? Example:

HOW realistic is the goal, based on
restraints, such as financial factors?
You might need to ask yourself whether in
developing the skills required is realistic,
based on your existing experience and
qualifications. Do you have the time to
complete the required training effectively?
Are the necessary resources available to
you? Can you afford to do it?

SMARTER
RELEVANT -(reasonable, realistic & resources, results-
based) ensures that your goal matters to you and align
with other relevant goals.
A relevant goal can answer “YES” to these Examples:
questions: You might want to gain the skills to become
• Does this seem worthwhile? head of marketing within your organization,
• Does this match our other efforts/ but is it the right time to undertake the
required training, or work toward additional
needs? qualifications? Are you sure that you're the
• Is this the right time? right person for the head of marketing role?
• Am I the right person to reach this Have you considered your spouse's goals? For
example, if you want to start a family, would
goal? completing training in your free time make this
• Is it applicable in the current socio- more difficult?
economic environment?

SMARTER
TIME BOUND - (time-based, time limited, time/cost
limited, timely, time-sensitive) refers to your target date
or deadline to focus on and something to work toward.

When? Gaining the skills to become head of marketing

What can I do six months from now?
What can I do six weeks from now?
What can I do today?
may require additional training or experience , as
we mentioned earlier. How long will it take you to
acquire these skills? Do you need further training,
so that you're eligible for certain exams or
qualifications? It's important to give yourself a
realistic time frame for accomplishing the smaller
goals that are necessary to achieving your final
objective.
SMARTER
EVALUATED - where we move beyond goal characteristics
and into goal interaction, and review and reflect on our goal.
What were the results?
How much control did we have over those results?
Did we set the right goals?
Are we satisfied or perhaps even happy with those results?
What caused the results we got?
Did we track our goal progress in a way that promoted transparency and
accountability?
SMARTER
REVISED - (re-adjustment) doesn’t mean throw away
the goals and get new ones, it’s a means to an end, a
way of getting around your problems.

If you are facing a continuous problem with your goals, it’s time
to take a step back and re-adjust.
SWOTT ANALYSIS
framework used to evaluate
a  company's competitive
position  and to develop
strategic planning.

assesses internal and

external factors, as well as
current and future potential.
 SWOTT ANALYSIS
INTERNAL FORCES (WE HAVE CONTROL)

STRENGTH - positive: capitalize WEAKNESS - negative: mitigate or

on, leverage, or protect
• What advantages does your organization have?
• What experience do you have?
• What defines your business? (why is your business
the best?)
• What unique resources can you offer that others
can’t?
• What factors mean that you “get the sale”?
• What is your organization’s USP? (unique selling
point)
eliminate
• What could you improve?
• What should you avoid?
• What are people in your market seeing as weaknesses?
• What factors lose you sales?
• In what areas do you need to improve?
• What resources do you lack?
• What parts of your business are not very profitable?
• Where do you need further education and/or
experience?
• What costs you time and/or money?

SWOTT ANALYSIS
EXTERNAL FORCES (WE DO NOT HAVE ANY CONTROL)
OPPORTUNITIES - positive:
potential areas to invest or pursue
• What good opportunities can you spot that will
help your business goal?
• Are there any social or event opportunities? (this
will help  your organization spread brand
awareness)
• What interesting trends are you aware of?
• Are there new target audiences you have the
potential to reach?
• Are there related products and services that
provide an opportunity for your business?
THREATS - negative: to shore up
against, mitigate
• What obstacles does your business face?
• What are your competitors doing?
• What are your competitor’s strengths?
• Have you checked if Technology is threatening
your company?
• What’s going on in the economy?
• What’s going on in the Industry?

SWOTT ANALYSIS
TRENDS - that could affect your business or you
personally; tracking the other world e.g. industry
magazines, trade shows, new products and news.
When you started your business, what did you see that you wanted to
change?
What trends have your competitors tried and are trying?
What changes in trends are you seeing? How does your brand fit in?
What social trends are benefiting your business?
What social trends are hurting your business?
What trends are approaching your organization’s niche?

PORTER’S FIVE FORCES

P o r t e r 's F i v e F o r c e s i s  a
framework for analyzing a
company's competitive
environment. The number and
power of a company's
competitive rivals, potential new
market entrants, suppliers,
customers, and substitute
products influence a company's
profitability.
INDUSTRY ANALYSIS: THE WATER REFILL STATION CASE
Water refill stations are being franchised everywhere. These water
stations provide a low-cost alternative to expensive bottled water in
the supermarkets. Filipinos have shifted their behavior from boiling
their drinking water at home to simply buying from those water refill
stations, many of them providing delivery service even if a “suki” (loyal
customer) neighborhood customer orders only one five-gallon bottle,
which is the standard used in these stations.
But how does one know if franchising a water refill station is
attractive or not?

5 FORCES OF WATER REFILL STATION FRANCHISING

HIGH = UNATTRACTIVE
5 FORCES WHAT IS IT?
LOW = ATTRACTIVE

The extent to which firms within an industry put

RIVALRY OF HIGH: Proliferation of water stations with
pressure on one another & limit each other’s
COMPETITION declining prices or promo war.
profit potential.
HIGH: Water refilling stations are easy to
THREAT OF NEW Threat new competitions pose to existing
put up w/o many barriers, and franchises
ENTRANTS competitors in an industry.
are cheaper to acquire.
The availability of a product or service that the HIGH: Bottled water/boiled water/ own
THREAT OF
consumer can purchase instead of the indusrtry’s home water purifier on installment plans
SUBSTITUTES
product. are readily available.
BARGAINING The pressure suppliers can exert on businesses HIGH: Franchisor has parts & provides
POWER OF by raising prices, lowering quality or reducing service, franchisee can not buy fr other
SUPPLIERS availability of their products. suppliers.
The pressure customers can exert on businesses HIGH: Customers have many water refill
BARGANING POWER
to get them to provide higher quality products, stations to choose from, most products
OF CUSTOMERS
better customer service, & lower prices. are not differentiated.

INDUSTRY ANALYSIS: RECOMMENDATION

Other than having a lot of resources to give credit
terms or provide free use of hot/hot dispensers,
being a monopoly or being an early entrant in a
geographical ares, the five forces of industry are
pointing to an industry generally unattractive to
franchisees. It is important to carefully choose an
industry that is attractive to invest in to get better
return on investment.
PESTLE ANALYSIS
is a framework to analyze the
key factors in influencing the
organization from the outside.

is a tool  used to gain a macro

picture of an industry
environment.
It allows a company to form an
impression of the factors that
might impact a new business or
industry.
PESTLE ANALYSIS
Political factors include  tax policy, environmental
regulations, trade restrictions and reform, tariffs, and also
political stability.  These factors determine the extent to
which a government may influence an industry or a
company.
new tax reforms that might change the whole revenue-generating system of a
company.
Some tariff trade barriers that can prove to be a hindrance in the way we run our
business operations include customs policy and export subsidies. Non-tariff trade
barriers meanwhile include determining minimum import prices as well as bans and
restrictions on exports.
PESTLE ANALYSIS
Economic factors are determinants to an economy’s
performance that directly impacts a company and also have
resonating long term effects. 

economic growth/decline, interest, exchange, inflation and wage rates, minimum

wage, working hours, unemployment (local and national), credit availability, and cost of
living.
a rise in the inflation rate of any economy would affect the way companies price their
products and services, purchasing power of a consumer and may result in a change in
demand/supply models for that economy.
PESTLE ANALYSIS
Social factors include cultural norms and expectations, health
consciousness, population growth rates, age distribution,
career attitudes, health, and safety. These factors are helpful
for companies to better plan their  marketing analytics  and
strategy. 

Indian market generally witnesses a surge in demands for

vehicles during the last months of the year, due to marriage
and the festive season. 
PESTLE ANALYSIS
Technological factors mean the  innovations and
developments in technologies.  These factors impact an
organization’s operations.

Artificial Intelligence,  IoT, Machine

Learning, Deep Learning
PESTLE ANALYSIS
Legal factors include  changes to legislation impacting
employment, access to materials, quotas, resources,
imports/exports, and taxation. These factors have both
external and internal sides. Certain laws have an impact
on the business environment in a country.

Apart from these laws/rules, companies maintain their own set of rules and
regulations by which an employee is expected to abide by. So, the legal
analysis takes accounts of both these angles and forms strategies keeping
them in mind.
PESTLE ANALYSIS
Environmental factors - these are mainly concerned with the
effect of the surrounding environment and the influence of
ecological aspects. These include waste disposal laws,
environmental protection laws, energy consumption
regulation.
crucial for certain industries particularly example tourism, farming, agriculture,
etc. However, Global warming and the increased need to switch to sustainable
resources; ethical sourcing (both locally and nationally, including supply chain
intelligence) have compelled every organization to consider the environmental
factors. Corporate Social Responsibility (CSR) has been made compulsory for
organizations. 
GAP ANALYSIS
"where we are" (the present state) "where we want to be" (the target state).

method of assessing the differences in performance between a business' information systems

or software applications to determine whether business requirements are being met and, if not,
what steps should be taken to ensure they are met successfully. 
VRIO ANALYSIS

strategic analysis tool designed to help organizations uncover and protect the resources
and capabilities that give them a long-term competitive advantage.
VALUE CHAIN
is a step-by-step business model for transforming a
product or service from idea to reality.

help increase a business's efficiency so the business

can deliver the most value for the least possible cost.
PORTER’S VALUE CHAIN
ELEMENT’S IN PORTER’S VALUE CHAIN
Inbound logistics  – receiving, storing, and distributing
inputs internally (ex: supplier relationships)
Operations  – transformation activities that change inputs
into outputs that are sold to customers (operational
Primary Activities systems).
relate directly to the Outbound logistics  – activities deliver your product or
physical creation, sale, service to your customer (collection, storage, & distribution
systems [internal or external]).
maintenance and Marketing and sales  – processes to persuade clients to
support of a product or purchase from you instead of your competitors (benefits you
service. offer & how well you communicate them).
Service – activities related to maintaining the value of your
product or service to your customers, once it's been
purchased.

ELEMENT’S IN PORTER’S VALUE CHAIN

Procurement (purchasing) – getting the resources it needs
Support Activities to operate (finding vendors and negotiating best prices).
activities support the Human resource management  – recruits, hires, trains,
primary functions above motivates, rewards, & retains its workers (PEOPLE are a
significant source of value, so businesses can create a clear
(ex: procurement
advantage with good HR practice).
supports operations with Technological development  – managing and processing
certain activities, but it information, as well as protecting a company's knowledge
also supports marketing base (minimizing information technology costs, staying
and sales with other current with technological advances, & maintaining
technical excellence are sources of value creation).
activities). Infrastructure  – These are a company's support systems,
and the functions that allow it to maintain daily operations
( a c c o u n t i n g , l e g a l , a d m i n i s t r a t i v e, a n d g e n e r a l
management).

STEPS IN USING PORTER’S VALUE CHAIN
Step 1 – Identify sub-activities for each
primary activity
• Direct activities create value by themselves
(ex. in a book publisher's marketing and
sales activity, direct subactivities include
making sales calls to bookstores,
advertising, and selling online)
• Indirect activities  allow direct activities to
run smoothly (ex. managing the sales force
and keeping customer records.
• Quality assurance  activities ensure that
direct and indirect activities meet the
necessary standards (ex. proofreading and
editing advertisements).
Step 2 – Identify sub-activities for each
support activity.
For HR Management, IT Development and
Procurement activities, determine the sub-
activities that create value within each
primary activity (ex: consider how HR
management adds value to inbound
logistics, operations, outbound logistics, and
so on).
Then identify the various value-creating sub-
activities in your company's infrastructure.
These will generally be cross-functional in
nature, rather than specific to each primary
activity & look for direct, indirect, and quality
assurance activities.

 STEPS IN USING PORTER’S VALUE CHAIN
Step 3 – Identify links
Find the connections between all of the
value activities you've identified.
This will take time, but the links are key to
increasing competitive advantage from the
value chain framework.
The link between developing the sales
force (an HR investment) and sales volumes
or link between order turnaround times,
and service phone calls from frustrated
customers waiting for deliveries.
Step 4 – Look for opportunities to
increase value
Review each of the sub-activities and
links that you've identified, and think
about how you can change or
enhance it to maximize the value you
offer to customers (customers of
support activities can be internal as
well as external).

WRITING THE BUSINESS PLAN

IMPORTANT POINTS IN FORMULATING BP:

1. Experiment - that many assumptions need to be defined and tested in order to

have a smooth execution.

2. Obstacles can be overcome by iteration - that it will not be 100% accurate as

situations may change between the time it was written and the time it will be
executed.

3. Learn from the process - need to have a regular assessment of what worked and
why and what does not work and why not - not just for themselves but for the team
to learn, and

4. Build capabilities - that business planning entails rigorous thinking but what will
really make the difference is the execution, i.e. making strategy come alive.
WRITING THE BUSINESS PLAN
TIPS IN WRITING BUSINESS PLAN
1. Start simply. Don’t get overwhelmed.

2. Learn to do research.

3. Be a disciplined strategist.

4. Write it down.
BUSINESS PLAN FORMAT
A3: INTENDED RECIPIENT: (The person who is to read this
BUSINESS PLAN document.)
A written document that describes in detail how a business
is going to achieve its goals.
A4: PURPOSE: (The reason for writing this document, e.g. To
look for investors, to have clarity internally.)
A1: COMPANY (The legal name of the organization.)

A2: PRODUCT/SERVICE (The tangible goods or intangible

services for sale.)

EXECUTIVE SUMMARY PORTION

Short section to allow recipient to have a quick understanding of this document before going into details of the business
plan.

A5: Does this firm have a vision and mission or higher purpose? If yes, please indicate.
The value creation chosen by the leadership team defining why the firm really matters strategically to its constituents and
how it will give meaning to the company and its people. (Example: What do you do in contrast to what you sell.

 How will you create value? (THE OPPORTUNITY)

The process of spotting, evaluation and pursuing relevant and sustainable revenue and profit generating activities in the
marketplace.
A6: WHO ARE YOU TARGETING AND A7: WHAT ARE THEIR UNMET NEEDS? A8: HOW ARE YOU SOLVING THEIR
WHY? (PAIN POINTS) PAIN POINTS SPECIFICALLY?

A fairly homogenous group of people or The barriers to and root causes of The features or solutions to remove
organization to whom a company wishes customer dissatisfaction that need to be barriers and root causes that will lead
to appeal. addressed so as to lead to greater to greater demand and customer
demand and customer satisfaction in an satisfaction in an industry.
industry.

A9: WHAT IS YOUR DISTINCTIVENESS? A10: WHAT INNOVATIONS HAVE YOU INTRODUCED AND WHY?

Perceived superiority in the marketing mix The development of new ideas or products requiring extensive problem solving
(USP or unique selling proposition) and/or behavior by the consumer.
business model (competitive advantage)
which are motivating to the target market
and stockholders, respectively.

 How will you capture value? (THE POTENTIAL GAIN)

A11: WHAT IS THE SIZE OF THE PRIZE?

What is the size of the whole market segment who might buy under ideal conditions?
A12/A13: HOW MUCH ARE YOU A14: WHAT IS YOUR COST? A15/A16: WHAT IS YOUR % GROSS
INTENDING TO SELL THE PRODUCT/ MARGIN?
SERVICE? The monetary consequences of the
m e a n s t o c a r r y o u t t h e v a l u e 1. Initially (the difference of price and
1. At retail (the amount of money proposition? cost of goods sold when there is no
charged to the end customers.) scale.)

2. At wholesale (the amount of money 2. At scale (the difference of price and

charged to the channel members in cost of goods sold when there is no
exchange for volume purchase. economies of scale.)

A17: WHAT IS YOUR BREAK EVEN A18: WHAT IS YOUR REALISTIC A19: WHAT IS YOUR REALISTIC
POINT? FORECAST OF REVENUES? FORECAST OF PROFIT?

The volume of sales revenues where The amount received from the total The financial gain after attaining
there is no gain or loss, or when you volume sold at specific prices. targeted sales volume at target prices
have recovered your investment. less all cost and expenses?

A20: CAPITALIZATION REQUIREMENT A21: FUND RAISING STRATEGY:

AND SCHEDULE:
Process of gathering financial contribution as capital investment or loan to a
Money and other types of assets needed firm.
to be injected into a firm to achieve
economic gain.

DETAILS OF YOUR BUSINESS PLAN

A22: WHAT ARE YOUR BUSINESS GOALS? A23: WHAT IS YOUR PERSONAL GOAL IN THIS
VENTURE? (GROW OR EXIT?)
The SMART (specific, measurable, attainable, realistic, time-
bound) targets of the company. The ultimate intent of the entrepreneur.

DETAILS OF YOUR TEAM

A24/A25: WHO ARE THE KEY TEAM MEMBERS? A22: WHAT ARE YOUR BUSINESS GOALS?

Indicate if full time or part time in the business. A description of educational and work preparation, as well
The names of persons involved in the operations of the firm. as work ethics and proof of drive of the team members.
Full time generally indicates a stronger drive to achieve goals
and objectives through focus and pro-active follow-through:
CEO, Marketing, Operations, Finance and HR.

 A27: WHO IS IN CHARGE OF WHAT AND HOW ARE MAJOR DECISIONS MADE (OR WILL BE MADE)?

The way conclusions and agreements are derived in the leadership team. (Example: Who has the ultimate power to
approve or veto? Is CEO fixed or rotated among leadership team?)
A28: WHO ARE MENTORING THE KEY TEAM MEMBERS? A29: DESCRIBE THEIR BACKGROUND

The trusted and experienced advisers who are interested in A description of education and work preparation, as well as
the success of the key team members. work ethics and proof of expertise of the mentors.

RIGHT TO WIN MARKET ANALYSIS

A30: WHAT ARE THE TRENDS? WHY A31: WHY WILL THE INDUSTRY BE PROFITABLE? (RATE HIGH OR LOW FOR
ARE THEY IN YOUR FAVOR? EACH ONE AND DESCRIBE).

Includes market trends as well as trends A market assessment of the attractiveness of a particular industry. (Example:
affected by political, economic, social, more high ratings = not attractive, more low rating = attractive)
technological, legal and environmental
(PESTLE)) factors. 1) Competitive rivalry - the extent to which firms within an industry put pressure on one
another and limit each other’s profit potential.
2) Threat of new entrants - the threat of new competitors pose to existing competitors in an
industry.
3) Threat of substitutes - the availability of a product or service that the consumer can
purchase instead of the industry’s product.
4) Bargaining power of suppliers - the pressure suppliers can exert on businesses by raising
prices, lower quality or reducing availability of their products.
5) Bargaining power of customers - the pressure customers can exert on businesses to get
them to provide higher quality products, better customer service, & lower prices.

 A32: WHO ARE YOUR KEY COMPETITORS? A33: WHAT ARE THE KEY FACTORS FOR SUCCESS IN
THE INDUSTRY? HOW DO WE COMPARE VS. THESE
How do we compare vs. them? The brand or company FACTORS?
target market buys that competes with us in satisfying their Key activities, factors or functions that must be done well to
needs. satisfy customers & outperform competition.

A34: WHAT ARE OUR STRENGTHS? HOW ARE WE EXPLOITING THEM?

What you are good at that can be exploited in the marketplace?

A35: WHAT ARE OUR WEAKNESSES? HOW ARE WE CORRECTING THEM?

Flaws that can prevent you from attaining your goals.
A36: WHAT ARE OPPORTUNITIES IN THE MARKETPLACE? HOW ARE WE PLANNING TO EXPLOIT THEM?
Trends or situations that are positive influences in making revenue and growth possible.

A37: WHAT ARE OUR EXTERNAL THREATS? HOW ARE WE NEGATING THEM?
Trends or situations that are negative influences in making revenue and growth possible.

OFFERING MODEL (The Strategy)

Answers where the firm win via identifying target market, value proposition, channel, customer bonding strategy and
revenue model.

 A38: TARGET MARKET A39: VALUE PROPOSITION

a) Beachhead market - the intended initial
recipients of a firm’s products or
services. Goal is to gain a dominant
market share, in order to enter
adjacent markets subsequently.
b) Subsequent market - the intended
subsequent major customer group of a
firm’s products or services.
A40: POSITIONING STATEMENT
The relevant & unique benefit that the consumer gets from buying or owning
the firm’s product or services.
a) Functional Benefit : Benefit related to the performance of the product or
service.
b) Economic Benefit : Benefit related to the price of the product or service.
c) Emotional Benefit : Benefit related to how the owner feels when owning
or using the product or service.
d) Social Benefit : Benefit related to how others will perceive the owner of the
product or service.

Communicating the overall positive

impression of a brand, relative to
competition.
A41: CHANNEL A42: CUSTOMER BONDING STRATEGY

The distribution system where products or The relationship as well as the solution that will be established with buyers and
services will be made available to the end-users.
customers (e.g. online, hardware stores) a) Awareness creation : The traditional and/or non-traditional media where the
A43: REVENUE MODEL target market will know about the firm and its offering (ex: TV, FB, sales calls)
b) Acquisition strategy : The plan that will induce product or service trial (ex
The compensation a firm will get for introductory price, sales promotions.)
providing its value proposition to support c) Retention Strategy : The way to ensure uninterrupted relationship (ex:
its intended profit. product quality.

 OPERATING MODEL (The Execution)

Answers how the firm will win via value chain/network, resources and processes, complementary, configuration and cost.

A44: Value Chain/Value Network (Draw the sequence, indicate timeline for each). Is the competition’s value chain any
different?

The value chain is the strategic linkage or a series of value-adding individual activities required to create, produce and
deliver products and services to the customers, that fit the the total business plan to create profit for the firm.

A45: What are the key hurdles in the value chain? What are you planning to do about these?

The obstacles expected or potential problem that will prevent the company from achieving its goals on schedule, on
budget, and on scope.
A46: RESOURCES: What are our hard assets? How can A47: RESOURCES: What are our soft assets? How can we
we exploit these? exploit these?

Tangible assets like brand, infrastructure, patent, and Intangible assets like knowledge, skills, & relationships
distribution deployed by the firm to carry out is value deployed by the firm to carry outs its value propositions the
proposition for the customers. customers.

A48: What are the critical processes we need to do well?

The critical repetitive activities that are routinized by the company to deliver sustainable value to the customers and to the
company

 A49: Who are the key complements who will help us deliver our value proposition? Are they in-house or outsourced?
What do we do so they are aligned?

The people or groups who will help, both directly and indirectly, enhance the value proposition.
POTENTIAL CONFIGURATION
A 5 0 : W h a t a r e t h e k e y c o s t A52: What reconfiguration do we need to do to increase differentiation
components?
The resources, process, activities and offering that can be rearranged to offer
The monetary consequences of the value to the customers and help enhance the profit goal of the company.
means to carry out the value proposition.
A51: What can we alter to lower cost
without sacrificing quality?
arangedr
The resources, process, activities and
offering that can be rearranged to reduce
cost and help enhance the profit goal of
the company.

 BUSINESS METRICS
A53: Cost of customer acquisition A54: Repeat Business Rate A55: Customer Lifetime Value

The total marketing cost spent to The total number of existing customers Total revenue and profit expected from
acquire all customers divided by doing repeat business with the firm. the future relationship with the
customers acquired in a given period. customers.

A56: Referral Rate A57: Sales Productivity

The total number of new customers The average sales revenues acquired
referred by others to try your product/ by the company’s sales force.
service as a percent of total customers
acquired.

A58: Appendix: Financials (please show five year projections, indicate when is breakeven and when will you be cash
flow positive.

SIMPLIFIED INCOME STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5
Sales Revenues
Less: Cost of Goods Sold
Gross Profit
Less: Direct Cost
Less: Indirect Cost
Net Profit
Less: Income Tax
NET PROFIT AFTER TAX