ENTREPRENEURSHIP MARKET VALIDATION

WEEK XI

ENTREPRENEURIAL FINANCIAL
 Subtopics

• Resource and Cost of Production

• Market Size
• Assignment II - Story Of Validation Journey
• Taxation for SMEs
Student Activities
 Student Activities

• Students send Resource and Cost of Production and Market Size to the forum.
 Product and Resources: https://binusianorg-my.sharepoint.com/personal/gguzman_binus_edu/_layouts/15/
guestaccess.aspx?docid=034f80d889dab469da9290682ff5b1165&authkey=AfPiKfmWDSZtVEjrGuU76sU&e
=71R4tn
 Video Market Size
o https://www.youtube.com/watch?v=q2hD8CqeTw8
o https://www.youtube.com/watch?v=WizYXN61WDc
o https://binusianorg-my.sharepoint.com/personal/gguzman_binus_edu/_layouts/15/guestaccess.aspx?
docid=0e3f480516ea74783b1a711e81e508f8b&authkey=AacpKhmP-eqBXxLEsN1Y280&e=I3NbRx
• Lecturers provide feedback.
• Upload Story Of Validation Journey to Assignment II Binusmaya (Link template https://binusianorg-
my.sharepoint.com/personal/gguzman_binus_edu/_layouts/15/guestaccess.aspx?
docid=0835a4d71facb479ea3114670d7ceae63&authkey=AY7Y2ibeUM09wurNvxDVHOc&e=fSsyXK )
Story o validation Contents are:
 Link compilation videos of 2-3 minutes duration about products offered to customers. Video point content: Sales
experience, Customer Interest and un interest , customer recommendations.
 Bisanara.com – Proof of product display screenshots in Bisanara
 Feedback or Testimonials from 30 customers
 5 w 1 h around market validation implementation
• Lecturer gives Assignment II grade to students
• Students understand about Taxation for SMEs:
 https://binusianorg-my.sharepoint.com/personal/gguzman_binus_edu/_layouts/15/guestaccess.aspx?
docid=075c207ef26894096bc75780711c3ff59&authkey=AT9Wj8FjiwRLkMKr8rP59uE&e=yXklYR
Resources & cost production
 Cost structure

Cost structure refers to the various types of expenses a business

incurs and is typically composed of fixed and variable costs.

FIXED COST VS VARIABLE COST

 Fixed Costs Vs Variable
Costs

All the costs faced by companies can be broken into

two main categories:
Fixed Costs that are independent of output

Costs
These remain constant throughout the relevant range
and are usually considered sunk for the relevant range

Fixed costs often include rent, buildings, machinery, etc.

Variable Costs that vary with output

Costs
Generally variable costs increase at a constant rate
relative to labor and capital

Variable costs may include wages, utilities, materials

used in production, etc.
 Fixed Costs Vs Variable
Costs

https://www.bbc.co.uk/education/guides/zxq2hyc/revision/1
Total Addressable Market
 Total Addressable
Market

The Total Addressable Market (TAM) for your beachhead market

is the amount of annual revenue, expressed in dollars per year,
your business would earn if you achieved 100 percent market
share in that market.
 Total Addressable
Market

https://theharrisconsultinggroup.com/total-addressable-market/
 Total Addressable
Market

https://www.toptal.com/finance/market-sizing/total-addressable-market-example
Next Session Preparation
 Next Session Preparation week 12

• Some groups presented Market Validation Reflection:

1. What problems and solutions do you want to solve?
2. Explaining product excellence
3. Link a compilation video duration of 2-3 minutes about the products offered to
customers.
4. Resources & production costs
5. Supply chain
6. Business Model Canvas
7. Proof of product display screenshots in Bisanara
8. Feedback or Testimonials from 30 customers
9. Reflection notes on what will be done next to the student's business based on the
validation process that has been run lecturers provide feedback to students.
• Lecturers provide feedback to students
• Lecturer Reminds students to watch infographic videos:
 https://www.youtube.com/watch?v=nLxQAa5Sras
• Lecturers are reminded to create infographics to collect At the final test moment
 References

BBC - GCSE Bitesize: Why business needs finance. (n.d.). Retrieved December 3,
2017, from
http://www.bbc.co.uk/schools/gcsebitesize/business/finance/sourcesoffinancere
v1.shtml

Lovering, C. (n.d.). How to Calculate the Valuation of a Company | Chron.com.

Retrieved December 10, 2017, from
http://smallbusiness.chron.com/calculate-valuation-company-23616.html

Glossary of Funding Types – Crunchbase | Knowledge Center. (2017). Retrieved

December 10, 2017, from
https://support.crunchbase.com/hc/en-us/articles/115010458467-Glossary-of-F
unding-Types

Types of Investors for Startups. (n.d.). Retrieved December 10, 2017, from
https://www.rocketlawyer.com/article/types-of-investors-for-startups.rl
 References

PPT10-Presentation10.ppt
10 Basic Principles of Financial Management,
http://www.quicken.com/10-basic-principles-financial-management
The basics of financial management,
http://knowhownonprofit.org/organisation/operations/financial-management/mana
gement
Financial Management, http://www.entrepreneur.com/article/21926
Entrepreneurship and small business
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