Welcome http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Why Trigger

Business Models: How will you make money from it

The Entrepreneurship Process Discovery Evaluation Action Opportunity

Business plan? Increasingly questioned as method of evaluation Time-consuming, so may miss opportunity All based on assumptions – often wrong Not used in practice by entrepreneurs – only to get bank loans Plans more used at exploitation stage for detailed planning of launch or later developments

Evaluation Testing the opportunity before writing a plan ‘will this work and if so how? how will we make money from this?’ Any admin? Remind about deadline for bids _ 6th Dec

Business Idea to Business Model The Enterprise Design The business idea is a robust vision relating to a business opportunity – a solution which satisfies a need The business model describes how the business captures the opportunity in order to make money

What’s A Business Model? The design of the enterprise – how it works as an on-going enterprise Working through a business model is a process of designing, trialling, and evaluating an idea for an enterprise, product or service. Businesses need to try different models to see what works – and expect to change them over time.

A common problem.... What’s the pain? How can you fix it?

Business Ideas to Address the Problem The talking cure Matchmaking Diversion Surgery

Business Models for Matchmaking Business Idea Business Model Speed Dating Events organising service, offering face to face meetings with at least 15 possible dates. Participants pay per event. Benefits are… Target market is… Online Club Subscription service. Opportunity to look at personal entries online without face to face. Premium service also available, allowing ‘chat’ and ‘flirt’ online. Sole Trader Researches and finds appropriate partners. Takes a fee for introductions, bonus for success. Benefits are… Target market is… Each requires different resources, and attracts revenue from different activities

Some typical Business Models Subscription – a small amount paid regularly in exchange for regular benefits Utility – payment for usage only Ad-supported – newspapers, magazines, FB Freemium – something for free, plus pay for premium

Subscription A small amount paid regularly in exchange for regular benefits – magazines, sky tv, professional associations Merchant Direct selling products from a shop (online or not) – John Lewis, Amazon Utility Payment for usage only – electricity, water Freemium Something for free, plus pay for premium – ft.com, freeserve Ad-supported Targeted access to users / readers - Newspapers, magazines, FB Brokerage Bringing buyers and sellers together for a fee - insurance broker Auction Providing a pricing method E-Bay, Sotheby’s

We need a tool to work with So How Can I Evaluate? We need a tool to work with

Developing a model: a circular not a linear process Building a validated learning cycle

Why will or won’t this work Why will or won’t this work? Market, Industry , Team attractiveness model From: John Mullins ‘New Business Road test,’ Prentice Hall 3rd edition 2010 See: www.newbusinessroadtest.com for free download of Chap 1 for overview Basis of www.venture navigator.co.uk

Market attractiveness Markets are buyers – not products Industries are sellers – compete with each other Macro- market attractiveness No. of customers; money spent; units bought Size and growth rate of overall market Micro-market attractiveness Target market segments Benefits offered compared to competitors or alternatives

Industry attractiveness Macro-level: Porters Five Forces Threat of entry Buyer power Supplier power Threat of substitutes Competitive rivalry Micro-level: sustainable competitive advantage Intellectual property (patents etc) Financial structure (income vs. investment; gross margins; cash cycle; customer acquisition and retention costs)

Effectiveness of the Entrepreneurial Team Match of business opportunity to entrepreneurs’ personal aims and abilities Experience, industry-know how and skills Relevant connections and networks Most professional investors heavily weight their assessment of the entrepreneurial team

The Building Blocks of Enterprise... Is a template to play with Helps you to design your enterprise Provides a basis for evaluating your proposals Is ‘a shared language for describing, visualising and changing business models’ (Osterwalder & Pigneur, 2010)

Try Out The Canvass An e-book publisher Work out the business model for An e-book publisher 15 minutes

What is the business model? Key Activities & Resources Think About the Kindle Key Activities & Resources What do we need to develop and sell the product / service? How should we organise ourselves? What will make us different from competitors? Networks Who do we share resources with? Who do we share costs with? Who do we need internally and externally to deliver? Fit into the Market What are the key elements of the offering? What are the key benefits to the customer? How do they match their needs? Routes to Market How do we reach them? Do we work with partners? Are the customers (who pay) different from the consumers (who use)? Customers What different customers are there? What are they like? What do they need? How do they behave? Cost Structure What are the costly elements of our resources and activities? Revenue Streams Who will pay? What will they pay for? (Modified from Osterwalder and Pigneur 2010)

Now It’s Your Turn... Take an idea from someone on the table Now try to develop a business model which makes sense and develops value 20 minutes

What is the business model? Key Activities & Resources What do we need to develop and sell the product / service? How should we organise ourselves? What will make us different from competitors? Networks Who do we share resources with? Who do we share costs with? Who do we need internally and externally to deliver? Fit into the Market What are the key elements of the offering? What are the key benefits to the customer? How do they match their needs? Routes to Market How do we reach them? Do we work with partners? Are the customers (who pay) different from the consumers (who use)? Customers What different customers are there? What are they like? What do they need? How do they behave? Cost Structure What are the costly elements of our resources and activities? Revenue Streams Who will pay? What will they pay for? (Modified from Osterwalder and Pigneur 2010)

Useful links A. Osterwalder & Y. Pigneur, ‘Business Model Generation’ Wiley, 2010 http://thestartuptoolkit.com/ http://www.venturenavigator.co.uk http://faculty.london.edu/jmullins/assets/documents/chapter_1_for_website.pdf Andrew and Mary Bragg ‘Developing new Business Ideas’ FT Prentice Hall 2005 www.digitalenterprise.org

Evaluation Use questions to articulate and challenge your ideas

Business Models http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

From start-up to success Key Note Speaker Jayne Chance From start-up to success

Business Models http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Welcome Back http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

What was one thing you learned this morning? #TriggerKU http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Business Models http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Working with Coaches http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

How have I found today? #TriggerKU http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

What Next? http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Thank You http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Welcome Back http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Morning Briefing http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Working on Ideas “Value Proposition?” http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Working on Ideas “Value Proposition?” http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Key Note Speaker Rishi Chowdhury Idea to Business

The Mayor’s Low Carbon Competition http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Lunch Start your entry Social Conversation http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Welcome Back http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

Communicating Your Idea http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/

HUMAN FEARS... 8. Flying

HUMAN FEARS... 7. Death

HUMAN FEARS... 3. Insects

HUMAN FEARS... 1. Public Speaking

WHY MIGHT WE… Present? Examples

PRESENTING In Education Case Studies

PRESENTING For a Job Interviews

PRESENTING At Work New Ideas

PRESENTING Business Owner For Investment

PRESENTING All the Time! Be Ready

PRESENTING IS… Telling a story

BUT HOW……….

BUT HOW………. 1. WHAT

BUT HOW………. 2. TELL THEM

And finally…. 3. REMIND THEM

THINK …… Identified Problem(s)

THINK …… Problem(s) Solution Identified Problem(s) Researched Solution

THINK …… The key!!!! Why should they care?

THINK …… Problem(s) Solution Identified Problem(s) The key!!!! Why should they care? Researched Solution

PRESENTING Who Does It Best Examples

DON’T …… 1. STATISTICS This market is worth £160b, I only want to take 1%

DON’T …… 2. TOO MANY WORDS My name is Dwain Reid I have a great business idea that will solve some of the worlds biggest problems, my ideas is to start a company that will teach people how to present perfectly, after all communication is the key to life and if you learn how to communicate you will be able to get anything. Right? This presentation will explain how.

DON’T …… 3. WAFFLE Everything I touch turns to sold Apprentice 2010, Stuart Baggs

DO …… 1. STATISTICS 3. WAFFLE Be Factual 1. STATISTICS 36pt on slides 2. TOO MANY WORDS Keep it simple 3. WAFFLE

PRESENTING... KEY TIPS

PRESENTING... SMILE

PRESENTING... PASSION

PRESENTING... STORY

PRESENTING... VISUAL

PRESENTING... PRACTICE

PRESENTING... STRONG START AND END

PRESENTING All the Time! Be Ready

Pitch Practice http://www.entrepreneurmag.co.za/advice/starting-a-business/start-up-advice/slideshow-6-things-i-wish-somebody-had-told-me-when-i-started-my-small-business/3/