The Business Model definition “A business model describes the value an organization offers its customers and illustrates the capabilities and resources required to create, market and deliver this value and to generate profitable, sustainable revenue streams”. The business model is set upon a pattern. It could be identified five different patterns. Look to the following link to external siteweb to understand the content and examples of the different patterns https://www.haikudeck.com/business-model-patterns-business-presentation-ZE1zeVHxIk#slide13

The Canvas (1/2) To describe a Business Model we suggest a Canvas that is a visual tool created by Alexander Osterwalder to facilitate the design process. The visual component of the tool simplifies the design process by making it easier to understand how the various components of a business affect each other. It also enables you to involve the rest of your team and advisors in the process. The following link illustrates the principles of business modelling containing examples and a first description of the Canvas Model http://www.marsdd.com/wp-content/uploads/2012/12/Business-Model-Design-WorkbookGuide.pdf The guide contains interesting link to other optional materials useful to improve your knowledge

The Canvas (1/2) To better understand the content of each sections of the Canvas watch the following video of Alexander Osterwalder https://www.youtube.com/watch?v=RzkdJiax6Tw

From Business Model to Business Plan Business model describes the rationale of how an organization creates, delivers and captures value while the business plan is a communication tool , a snapshot of your business at one point in time – constantly evolving!!! The business plan provides the details of your business. It takes the focus of the business model and builds upon it. It explains the equipment and staff needed to meet the details of the business model. It also explains the marketing strategy of your small business, or how your business will attract and retain customers, and deal with the competition. Furthermore, the business plan explains the financial stability of your business at a particular point in time, as well as in the forecasted future. Overall, the business plan supports the business model and explains the steps needed to achieve the goals of that model. The business plan is completely dependent upon the business model. The business model explains the flow of money within the company and the business plan the structure needed to obtain that flow of money. If you change the business model, you will also need to change the business plan. Although the entire business plan may not require change, you may have to address changes in staff, equipment, location or marketing. These changes may also require changes within the financials if additional purchases or other drastic changes are required. The business plan is used as a part of a broader communication strategy towards investors & other stakeholders . Consider that Investors are time constrained, under pressure; all competing for the next Google, usually not experts on the technology and unforgiving.

The structure of a business plan Usually the content of a business plan could be summarize as following: 1. Executive Summary 2. Problem – What is the problem? 3. Solution – What are you doing to solve it? 4. Business Model – How are you going to make money? 5. ‘Underlying Magic’ = technology – Competitive advantage 6. Marketing and sales – How are you reaching your customers? 7. Competition – Who is your competition? 8. Management team – Describe your team 9. Financial projections and key metrics – BS, P&L and cash flow 10. Current status, accomplishments to date, timeline and use of funds The following link give you some useful suggestions and rules to follow during the switching from business model to a business plan. http://www.sbs.ox.ac.uk/sites/default/files/Entrepreneurship_Centre/Docs/diehl-nikolou.pdf Take care that to examine in depth each part of a business plan you can refer also to the materials presented in the mini courses 1.1 and 1.2. The financial projections will be the content of the next mini course 1.4.