MODULE

#1

MODULE G ALS FLEX Course Material

Use innovative thinking to
generate potential start-
ups
Identify and evaluate

Planning for
potential entrepreneurial
opportunities

Entrepreneurs
Describe ways in which
entrepreneurs can
manage risk, organize

and Creating
resources and add value
Create the Customer

Revenue Models
Value Proposition (CVP)
Canvas with Presentation

“Failed plans should not be interpreted as a failed

vision. Visions don’t change, they are only refined.
Plans rarely stay the same, and are scrapped or
adjusted as needed. Be stubborn about the vision,
but flexible with your plan.”
—John C. Maxwell, American author

“Remind people that profit is the difference

between revenue and expense. This makes you look
smart.”
—Scott Adams, Dilbert cartoonist
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 LESSON

#1
LEARNING
OUTC MES
1. Examine
“planning” from an
entrepreneurial
Planning for
2.
perspective.
Define TRIM and Entrepreneurs
explain its
importance to
entrepreneurial
planning.
3. Explain the
different types of
plans used by
entrepreneurs.

Planning is a written description of the future

you envision for your business, including what
you plan to do and how you plan to do it.
Plan is a written description of the future you
envision for your business, including what you
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plan to do and how you plan to do it.

 LESSON #

The TRIM
#2 (Team, Resources, Idea,
Market)
Framework
TRIM FRAMEWORK
1. Team
2. Resources
3. Idea
4. Market
• A planning tool that identifies the
types of people needed for the team,
the resources available and needed,
the details of the idea, and the
potential market for the product or
service.
• It serves as a toll for determining the
types of people you would like on
your team and how you might go
about attracting them to your
business, the resources you have
available to grow the business and
the types of access you may have to
other resources, the validity of your
idea and the potential market for
your product or service.
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 LESSON #

The TRIM
#2 (Team, Resources, Idea,
Market)
Framework
TRIM FRAMEWORK
1. Team
2. Resources
3. Idea
4. Market
Team
• Who needs to be on the team at the
star?
• Do you have ways of attracting new
team members?
• What skills does each person bring to
the table?
• What are the personal and business
goals of each member?
• Are there any skill gaps? Can these
gaps be outsourced?
• What is the role of each member, and
is each role distinct?
• What type of work experience is
related to the idea?
• How are you dividing ownership?
What is the network of each
member?
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 LESSON #

The TRIM
#2 (Team, Resources, Idea,
Market)
Framework
TRIM FRAMEWORK
1. Team
2. Resources
3. Idea
4. Market
Resources
• What do you currently have that you
can get started?
• Can you lease equipment, or it use to
necessary to own?
• What cash resources do you have at
your disposal?
• Do you rent space, or can you
leverage your apartment, a garage, or
an incubator?
• What people resources cam you use
beyond the founding team?
• How can you use limited resources to
get the business started?
• Can you tap into advisors or mentors
for knowledge and other resources?
• What are your start up costs?
• What assets (equipment, people, and
technological) are needed to start?
• What are your primary expenses?
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 LESSON #

The TRIM
#2 (Team, Resources, Idea,
Market)
Framework
TRIM FRAMEWORK
1. Team
2. Resources
3. Idea
4. Market
Idea
• What is the clearest and most simple
description of the idea?
• Is there anyone what you’re doing? If
yes, how are you doing it better?
How can you learn from what they
have already done? If no, how are
people solving the problem
currently?
• How is the idea unique or
differentiated?
• What is the most important benefit
of your product/service? Do
people really care about this benefit?
• What problem is being solved? How
do know this is a problem?
• Is there intellectual property you
involved? Is there anything
patentable?
• What needs are being met? How do
you know this is a need? What is the
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value proposition?
• What trends support the idea?
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 LESSON #

The TRIM
#2 (Team, Resources, Idea,
Market)
Framework
TRIM FRAMEWORK
1. Team
2. Resources
3. Idea
4. Market
Market
• Who are your primary customers?
• What do they care about?
• How will you reach them?
• How will they hear and learn about
your products/services?
• How much does it cost to acquire a
customer?
• How will you keep them? How much
does that cost?
• How many potential customers are
there? Is this number growing?
• What are they willing to pay?
• What feedback have you received
from your customers?
• What is the overall size of the market
in dollars?
• What percent of the market can you
realistically acquire in year 1, 2, and
3?
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 LESSON #

TYPES OF PLANS
#2
used by Entrepreneurs

Type of Plans
1. Back of a Napkin
2. Sketches on a 1. Back of a Napkin
page
-The simplest of all entrepreneurial
3. Business Model plans is sketching out the idea on the
Canvas (BMC) back of a napkin.
4. The Business
Brief
-Has connotations of social settings in
cafes, restaurants, and bars, where
5. Feasibility Study people meet to discuss their ideas and
6. The Pitch Deck find themselves jotting down
7. The Business spontaneous ideas on the closest thing
Plan to hand.
2. Sketches on a page
- Help you think about the idea today
and also what it could become in the
future.
-You can sketch your idea by hand on
blank paper, or you can do this
electronically using PowerPoint, Prezi, or
ther software of your choosing.
-A simple technique is to create a gallery
sketch. With a large piece of white
paper as your “canvas” use color,
arrows, and labels to indicate all of the
major components of the ideas. Add
clarifying notes as needed. Make an
effort to sketch, boldly, avoiding faint
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lines and small pictures. If the idea is for

a service, try sketching a map of the
events that
8 take place when the service
is provided.
 LESSON #

TYPES OF PLANS
#2
used by Entrepreneurs

Type of Plans
1. Back of a Napkin
2. Sketches on a 3. Business Model Canvas (BMC)
page
-Another type of visual plan. Visual
3. Business Model because the entire business is depicted
Canvas (BMC) on one page by filling in the nine blocks
4. The Business of the business model, how all the
Brief various parts work together: the valued
5. Feasibility Study created for customers, the processes
6. The Pitch Deck you must have to deliver value, the
7. The Business resources you need, and the way you
Plan will make money.
-It is especially useful for identifying any
gaps in the business idea and integrating
the various components.
4. The Business Brief
-Is less visual than the two previous
types of plans, and requires a bit more
detail and writing.
-Typically a business brief is a 2 to 3
page document outlining the company
overview, value proposition, customer
and milestones.
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 LESSON #

TYPES OF PLANS
#2
used by Entrepreneurs

Type of Plans
1. Back of a Napkin
2. Sketches on a
page
5. Feasibility Study
3. Business Model
Canvas (BMC) -Is an essential planning tool that allows
4. The Business entrepreneurs to test the possibilities of
Brief an initial idea to see if it is worth
pursuing.
5. Feasibility Study
6. The Pitch Deck
-It serves as a solid foundation for
developing a business plan when the
7. The Business
time comes.
Plan
-It focuses on the size of the market, the
suppliers, distributors, and the skills of
the entrepreneur.
-Every entrepreneur should conduct a
feasibility study because it determines
whether your idea is workable and
profitable.
-It is typically created to assess the
viability of business concept.
6. The Pitch Deck
- Is a brief presentation highlighting
many of the essential elements found in
a feasibility study and a business plan.
Some call this the launch plan.
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 LESSON #

TYPES OF PLANS
#2
used by Entrepreneurs

Type of Plans
1. Back of a Napkin
2. Sketches on a 7. The Business Plan
page
- A formal document that provides
3. Business Model background and financial information
Canvas (BMC) about the company, outlines your goals
4. The Business for the business and describes how you
Brief intend to reach them.
5. Feasibility Study -It supports the business model by
6. The Pitch Deck outlining the steps necessary to attain
7. The Business the necessary goals.
Plan -In the order of entrepreneurial
activities, business plans come after idea
generation, business model canvas,
feasibility study and pitch deck.
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 LESSON

#3
LEARNING
OUTC MES

Business
1. Define a revenue
model and
distinguish it from
the business models.
2. Illustrate the ten
most popular
revenue models
being used by
Model Canvas
entrepreneurs.
3. Identify the drivers
that affect revenue
as well as cost.
4. Identify different
strategies
entrepreneurs use
when pricing their
product and service.

Revenue: the income gained from

sales of goods or services.
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 LESSON #

#3 Revenue
Model
Revenue Model
-Is a key component of the business
model and identifies how the company
will earn income and generate profits.
-It explains how entrepreneurs will make
money and capture value from
delivering on the customer value
proposition .
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 LESSON #

#4 Types of
Revenue
Models
Types of Revenue 1. Unit Sales Revenue Model
Models
-The amount of revenue generated by the
1. Unit Sales number of items (units) sold by a
Revenue Model
company.
2. Advertising
-Two (2) types of unit sales:
Revenue Model
3. Data Revenue 1. Physical goods – include clothing,
Model food, and beverages, housewares,
hardware, furniture, and cars.
4. Intermediation
Revenue Model 2. Razor and razor blade model - It was
coined by Gillette, which generates huge
5. Licensing
Revenue Model revenue from offering a physical product
like razors at no or low cost to encourage
6. Franchising sales of the more expensive razor blades.
Revenue Model
2. Advertising Revenue Model
7. Subscription
Revenue Model -The amount of revenue gained through
8. Professional advertising products and services.
Revenue Model Types of Advertising Revenue Model:
9. Utility and Usage a. Cost per click – which charges the
Revenue Model advertiser a fee every time a user
10. Freemium clicks on the ad. The model is
Revenue Model intended to attract traffic to the
advertiser’s business while
generating income for providing the
AdWords service (is a type of
advertising revenue model).
b. Promoted content (also known as
“sponsored” or suggested content)
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which works by having ads appear in

the flow of the content that the
users are reading.
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 LESSON #

#4 Types of
Revenue
Models
Types of Revenue 3. Data Revenue Model
Models
-They generate revenue by selling high
1. Unit Sales
Revenue Model quality, exclusive, valuable information
to other parties.
2. Advertising
Revenue Model 4. Intermediation Revenue Model
3. Data Revenue -Describes the different methods by
Model which third parties such as Brokers (or
4. Intermediation middlemen) can generate money.
Revenue Model -Brokers are people who organize
5. Licensing transactions between buyers and sellers
Revenue Model
5. Licensing Revenue Model
6. Franchising
Revenue Model -A way of earning revenue by giving
7. Subscription
permission to other parties to use
Revenue Model protected intellectual property
(copyrights, patents, and trademarks) in
8. Professional
Revenue Model
exchange for fees.
9. Utility and Usage 6. Franchising Revenue Model
Revenue Model -Describes the process whereby an
10. Freemium existing business allows another party to
Revenue Model trade under the name of that business.
7. Subscription Revenue Model
- Involves charging customers to gain
continuous access to a product or
services.
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 LESSON #

#4 Types of
Revenue
Models
Types of Revenue 8. Professional Revenue Model
Models
-Provides professional services on a time
1. Unit Sales
Revenue Model and materials contract.
2. Advertising 9. Utility and Usage Revenue Model
Revenue Model -A pay-as-you-go model that charges
3. Data Revenue customers fees on the basis of how
Model often goods or services are used.
4. Intermediation 10. Freemium Revenue Model
Revenue Model
- Involves mixing free (mainly web-
5. Licensing
based) basic services with premium or
Revenue Model
upgraded services. In this model,
6. Franchising businesses create at least two versions
Revenue Model
or tiers of products or services.
7. Subscription
Revenue Model
8. Professional
Revenue Model
9. Utility and Usage
Revenue Model
10. Freemium
Revenue Model
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 LESSON #

#5 Revenue
Drivers
Sample: Idea for a new funky coffee
Revenue Drivers shop. The coffee shop provides
1. Customer unlimited coffee for free, but charges a
per-minute flat fee for the amount of
2. Frequency
time your customers spend in the café.
3. Selling Process
4. Price
1. Customer
-How many customers come into your
coffee shop? How much willing to pay
to stay? How will you attract customers
to your location?
2. Frequency
- How often will your customers come
into your coffee shop? What incentives
can you offer to keep them coming
back?
3. Selling Process
-How much time will you be able to sell?
What kind of upselling or cross-selling
opportunities can you find? For example
you might add products such as snacks
to sell alongside the unlimited free
coffee to generate more revenues.
4. Price
- What are the factors that increase the
value of your product? If you raise or
lower prices, what will be the impact on
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your customer base?

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 LESSON #

#6 Types of
Pricing
Strategies
Types of Pricing 1. Competition-Led pricing
Strategies -Prices are guided by other businesses
1. Competition-Led selling the same or very similar products
pricing and services.
2. Customer-Led 2. Customer-Led pricing
pricing
-A type of pricing strategy when you ask
3. Loss leader customers how much they are willing to
4. Introductory pay and then offer it at that price.
Offer
3. Loss leader
5. Skimming
- A pricing method whereby a business
6. Psychological
Pricing
offers a product or services at a lower
price in an attempt to attract more
7. Fair Pricing customers.
8. Bundled 4. Introductory Offer
Pricing
-A pricing method to encourage people
9. Cost-Led to try a new product by offering it for
Pricing free or at a heavily discounted price.
10. Target-Return 5. Skimming
Pricing
- A form of high pricing method
11. Value-Based generally used for new products or
Pricing service that face very little or even no
competition.
6. Psychological Pricing
- A pricing method intended to
encourage customers to buy on the
basis of their belief that the product or
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service is cheaper than it really is.

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 LESSON #

#6 Types of
Pricing
Strategies
Types of Pricing 7. Fair Pricing
Strategies -The degree to which both businesses
1. Competition-Led and customers believe that the pricing is
pricing reasonable.
2. Customer-Led 8. Bundled Pricing
pricing
-A type of pricing strategy whereby
3. Loss leader
companies package a set of goods or
4. Introductory services together and then sell them for
Offer
a lower price that if they were to be sold
5. Skimming separately.
6. Psychological
Pricing
9. Cost-Led Pricing
7. Fair Pricing - Involves calculating all the costs
involved in manufacturing or delivering
8. Bundled the product or services, plus all other
Pricing expenses, and adding an expected profit
9. Cost-Led or margin by predicting your sales
Pricing volume to get the approximate price.
10. Target-Return 10. Target-Return Pricing
Pricing -Involves setting your price based on the
11. Value-Based amount of investment you have put into
Pricing your business.
11. Value-Based Pricing
- A pricing method that involves pricing a
product based on how it benefits the
customer.
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 REFERENCES

1. H.M. Neck, C.P. Neck, & E.L Murray (2018).

Entrepreneurship - The Practice and Mindset, Sage
Publications Inc.
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