Plan Your Business Using

FTUI, 04 March 2019

Our game plan today…

• Part 1 : Leading questions (10’)

• Part 2 : How he can help us in this? (10’)
• Part 3 : How it works for us? (20’)
• Part 4 : Examples from the greats (15’)
• Part 5 : Discussions & Team Work (45’)
• Part 6 : Presentations (2 x 10’ = 20’)
 Part 1 :
Leading questions

“When the ideas are not good enough”

It’s freezin’ here
Should I
start up a
business?
Should I do it in
a partnership?
What it usually
takes to start it
up?

Is the idea
I have good
enough to go?

How do I know?
 What about if..

The product
doesn’t sell?

Targeted buyer
is not around?

My pricing is
just wrong?
Oh God….. @%$@^%(?
Even worse…

Are the suppliers

not reliable?

Is the market place

saturated already?

Are we going to be
bankrupt then???

☠☠☠☠☠☠
Is there any way we do this in
a more structured approach?
We have to find someone
who can help us answering
all of these questions!
 Part 2 :
How he can help us in this?

“There’s always a better way to do everything”

Alexander Osterwalder, invented Business Model Canvas (BMC) in 2008, as
the simple yet reliable and user friendly tool for the business owners and the
business idea inventors to test their ideas and thoroughly conduct the proper
business plan for the start-ups.
BMC is a strategic management and lean startup template for developing new
or documenting existing business models. It is a visual chart with elements
describing a firm's or product's value proposition, customers, infrastructure,
partners, and finances.
Wikipedia
Value Propositions
Customer Relationships
Key Activities

Customer Segments
Key Partners

Distribution Channels

Key Resources

Cost Structure Revenue Streams

Why most start ups fail even in the beginning?
Here are typical mistakes of start ups…
1. Target market is not well defined
2. Type of relationship to build is not well
described
3. How to engage with prospect is not well
planned
4. The differentiation and competitiveness are
not well defined and are not well formulated
5. The business operations are not well designed
6. Key resources are not well identified
7. Partners they should work with are not truly
linked and managed to ensure sustainability
8. How we do the pricing is not well calculated
9. Ways they could earn money are not well
simulated
Then these are the main challenges most start
ups must face
1. Customer Segment is not well defined
2. Customer Relationship to build is not well
described
3. Distribution Channel with prospect is not
well planned
4. Value Proposition are not well defined and
are not well formulated
5. Key Activities are not well designed
6. Key Resources are not well identified
7. Key Partners we should work with are not
truly linked
8. Cost Structure is not well calculated
9. Revenue Stream is not well simulated
What are the difficulties start ups have to visualize
those all challenges in a picture?

1. Formulating the full chain

of business challenges
2. Defining the contents of
each block in the chain
3. Linking the solution of
each block into a big
single conclusive picture
 Here’s how we put it all in one page
canvases available for us – ready to use
And this is how we should start to work with it
 Part 3 :
How it works for us?

“Define how it works, work on the way it defines”

 Value Propositions
Customer Relationships
Key Activities

Customer Segments
Key Partners

Distribution Channels

Key Resources

Cost Structure Revenue Streams

Customer Segment → Reflect on your own Business :
Who are you creating value for?
The first step is to find out what type of customers your organization is targeting. Below
are the 5 types of customer segments.

Select which one(s) apply to your organization and reflect how.

1. Mass Market : One large group of customers with broadly similar needs and problems.
An example would be customers who need shoes.
2. Niche Market : One group of customers with specific needs and problems. An
example would be customers who need children's shoes.
3. Segmented : Multiple groups of customers with slightly different needs and problems.
An example would be college students attending a university.
4. Diversified : Multiple unrelated groups of customer segments with very different needs
and problems. An example of this use would be Amazon utilizing online shoppers with
Amazon.com and web developers with selling cloud computing services.
5. Multi-Sided Platform : Multiple independent groups of customer segments that may
have different needs and problems, but the business model requires both. An example
would be a credit card company that needs credit card holders and merchants who
accept those credit cards.
Value Proposition → Reflect on your own Business :
What value do we deliver to the customer?
Once you know who you are providing to, then you can appeal to them with a value
proposition. This part goes further than just stating your product/service, by expressing
why your product/service is valuable. Below are 11 elements that contribute to customer
value creation. Select which one(s) pertain to your value proposition and reflect how:

1. Newness : Fulfills an entirely new set of needs that customers previously didn't
perceive because there was no similar value proposition.
2. Performance : Improves product or service performance.
3. Customization : Tailored to the specific needs of individual customers.
4. Getting the job done : Helps customers get a certain job done.
5. Design : Stands out because of superior design.
6. Brand/Status : Stands our because of the popularity or respect of a brand/status.
7. Price : Offers a similar value but at a lower price.
8. Cost Reduction : Helps customers reduce their own personal costs they would take on
without the product/service.
9. Risk Reduction : Offer customers a chance to reduce their own risks. (Ex 1yr guarantee)
10. Accessibility : Provides to customers that previously lacked access to product/service.
11. Convenience/Usability : Provides an easier way to use a vital product/service.
Channels → Reflect on your own Business :
How do you want our Customer Segments to be
reached?
These channels include communication, distribution and sales.

Below are 5 channel types, select which one(s) best reflect your organization's structure
and how:

1) Sales Force : In-person sales.

2) Web Sales : Online sales.

3) Own Stores : In-store sales.

4) Partner Stores : In-partner-store sales.

5) Wholesaler : Distributed sales.

Customer Relationship → Reflect on your own
Business : What type of relationship does each of our
Customer Segments expect us to establish and
maintain with them?
Connecting with your customer base is important in keeping your reputation as a caring
organization. Below are 6 types of relationships to have with customers. Select which
one(s) pertain to your organization and reflect how:

1. Personal Assistance : Customers can talk with human assistance.

2. Dedicated Personal Assistance : Customer representatives are directly and solely
connected to an individual customer.
3. Self-Service : Customers are given resources to help themselves. (Ex. FAQs)
4. Automated Services : Customers are given customized help usually through software
and automation.
5. Communities : Customers are able to connect with other customers for help. (Ex.
Forums)
6. Co-Creation : Customers are able to create value for the company. (Ex. YouTube video
uploads)
Revenue Streams → Reflect on your own Business :
How do your Customer Segments purchase your
Value Proposition?
In this step, we will find out how exactly your customers buy your product/service.

Below are 6 common types of Revenue Streams. Select which one(s) pertain to your
company and reflect how:

1. Asset Sale : One time sale of ownership rights of a physical product.

2. Usage Fee : Ongoing costs to continue use of product/service. (Ex. Pay-Per-View)
3. Subscription Fees : Cost allowing customers to use product/service for specific time
period.
4. Lending/Renting/Leasing : Temporarily granting someone the exclusive right to use a
product/service for a specific time period.
5. Licensing : Granting customers permission to use protected intellectual property.
6. Advertising : Income through fees for advertising a particular product/service/brand.
Key Resources → Reflect on your own Business :
What Key Resources does our business require?
This section describes the most important assets required to make a business model work.

Below are 4 types of resources. For each of the 4, think of an example of what your
organization uses:

Physical : Facilities, buildings, vehicles, machines, distribution networks, ect.

Intellectual : Brands, proprietary knowledge, patents, copyrights, partnerships, customer

databases, etc.

Human : Key people involved in business activities.

Financial : Capital, financial guarantees, lines of credit, ect.

Key Activities → Reflect on your own Business :
What does your business do with its resources?
In this step, we will discover the most important actions a company must take to operate
successfully.

Below are 3 ways activities can be categorized, think of an example of how each of them
connect to your business:

Production : Relate to designing, making, and delivering a product.

Problem Solving : Relate to creating solutions to ongoing customer problems.

Platform/Network : Relate to continually maintaining Key Resources.

Key Partnerships → Reflect on your own Business :
Who are your suppliers and service providers?
In this section, we will discover what partnerships your business has forged.

Below are 4 types of partnerships, select which one(s) pertain to your company and how:

Strategic Alliances : Partnership between non-competitors.

Coopetition : Partnership between competitors.

Joint Ventures : Partnership between ventures to develop new a business

Buyer-Supplier : Partnership between buyers and suppliers to assure reliable supplies.

Cost Structure → Reflect on your own Business :
What are your most important costs?
In this step, we will develop how your company views costs and what costs it requires to
operate. Below are two types of cost structures, reflect how your company chooses to
utilize them:
1. Value-Driven : Focus on improving high value propositions.
2. Cost-Driven : Focus on reducing costs whenever possible.
(Attention: many business models fall in between these two structures)

Below are 4 characteristics of cost structures, reflect on how each of them may pertain to
your company's costs:

1. Fixed Costs : Costs that remain the same no matter the volume of goods or services
produced.
2. Variable Costs : Costs that change proportionally to the volume of goods and services
produced.
3. Economies of Scale : Costs are reduced with the increase of the volume of goods and
services produced.
4. Economies of Scope : Costs are reduced with the increase of business operations.
 Part 4 :
Examples from the greats

“Idea can be simple. Planning and Execution

are things that make simple idea looks great”
Curious about how they modeled their business?
 Part 5 :
Discussions & Team Work

“Inspiration sparks it. Elaboration initiates it.

Collaboration that makes it done.”
2 teams +
2 ideas +
2 BMC =
2 presentations :
- 50 mins to prepare
- 5 mins/team to present
Get the simple Inventorize the Present how
business idea details in your the idea would
to be discussed team’s BMC to work well along
in your team be presented with your plan
Before we continue…
 Part 6 :
Presenting Your Own BMC

“Learning is a process. The result that counts.”

Links for your study reference

http://bit.ly/2ExkLP2 http://bit.ly/2SreZSG
Thanks and
Good Luck !
Teguh Eko Winiharto, ST, MM, FLMI
+6281290888895 | winiharto@gmail.com
www.linkedin.com/in/teguhekowiniharto