1. The “one page” Business Plan
Before we begin: What stage best describes your business venture.
Ideation
Pre-planning
Start-up/launch
In existence for less than 1 year
In existence for 1 year or more
“If you fail to plan, you plan to fail”
Benjamin Franklin

2. Planning Methodology The classic business plan “A long Winded Guess!”
The one page business plan
Business model Canvas (Alex Osterwalder)
Lean Canvas (Eric Ries – Ash Maurya)
Planning Methodology

3. The Lean Canvas The One Page Business Plan
Simpler, faster, easier to both create and understand

4. Lean Canvas Version 3 9 4 1 2 8 5
The lean canvas helps you think through the following questions:
1. Who is my customer (Demographics and Psychographics) – that is who are they and how do they think
2. What is my product/service – what is the problem my business is trying to solve?
What is the solution - how does it solve a customer problem?
How is it unique – what prevents others from doing the same thing?
5. How am I going to find my customers? How will they find me? How will I deliver my product/service?
6. How many different products/services will I offer?
7. Can I make money when I’m done? 7 6

5. Customers Who will we serve? Amazon People who buy Books
Who will benefit most? 1
Amazon People who buy Books
Demographics who are they - age, gender, population density, geography, income level
Psychographics – how do they think? Political affiliation, values
For purposes of illustration, let’s assume we were Amazon in 1994 when it started:
Target customer= “People who buy books”

6. 2 The Problem Top problems customers face Unique needs and challenges
Existing Alternatives How else can customers address the problem? Products or services that already exist. (Research your competition) 2
A business solves a customer problem. The more dire the problem, the more the customer will pay. … and the more competitors you will draw
Key word is “Unique”
Amazon example problem: Bookstores are expensive; they have limited inventory/selections; hard to find books and get recommendations at bookstores
Amazon alternatives: Bookstores, catalogs, book clubs – these options didn’t really solve the problem very well
Amazon Problem Bookstores are expensive
Limited inventory/selection;
Hard to find books/ get recommendations
Alternatives Book stores, catalogs, book clubs

7. The Solution
How you will solve the problems Top features and capabilities
of your product or service
What aspects of your offering will
users find most beneficial? 3
How completely does your solution solve the customer’s problem? In terms of time, place, features, - even better if add-ons
Amazon example: Earth’s largest bookstore Describe the high-level concept: “Supermarket of bookstores….on-line”
Amazon
Earth’s largest bookstore
Supermarket of bookstores…on-line

8. 1a Customers Who will we serve?
Who will benefit most?
Early Adapters Who will be the first to buy? 1a
Refine the customer base to those who are early adopters – the “perfect” customer.
Amazon example: “Avid book readers that are using the internet; willing to make purchases on-line, and like to explore books”
Note: sometimes you may need a separate lean canvas for each customer segment you’ve identified
Amazon Avid book readers using the internet
Willing to make purchases on-line
Like to explore books

9. 3 9 4 2 8 5 7 6 Lean Startup Begins here 1
Make sure this foundation is realistic before you proceed any further. Don’t just plan it - test it with family, friends, potential customers 7 6

10. Lean Startup Theory Get out of the Office
“No plan survives the first contact with a customer” You are not smarter than your customers
Develop a “Minimum Viable Product”
Sitting on your behind analyzing “what if” does not result in the most important feedback of all: The customer’s.
Make the assumption that you do not have the answer? Try it out – pilot the idea with family, friends, potential customers to refine/get it right
Get out of the Office

11. 4 Value Proposition Why are we different?
Why are we worth buying?
Special benefits to the customer? 4
Amazon Website that sells all books available
Web-based customer reviews
Ship direct from warehouse
Efficient warehouse?
Amazon example: Website that sells all books available; web-based customer reviews; ship direct from distributor; efficient warehouse?
What if it’s a home business – a service? How will you be unique?

12. 5 Path to customers Where do we sell? How do we sell?
Channels
Path to customers
Where do we sell?
How do we sell?
How do we raise awareness?
How do we get feedback? 5
Amazon example: Direct to customer via a website; marketing
Amazon
Direct to customers via website
marketing

13. Revenue Streams Amazon 6 What are your sources of income? Book sales
Sales, Service, Usage, Subscription,
License, Delivery, Installation 6
Amazon
Book sales
Shipping Fees
Amazon example: Book sales; shipping fees;

14. All Variable and Fixed costs
Cost Structure
All Variable and Fixed costs
Define
Determine (price)
90 % of new businesses fail because
they do not properly consider the cost
of launching and operating the business 7
Amazon
Website developers, data center staff, servers, customer service staff & equipment, books, shipping costs
This is the number one reason small businesses fail. Don’t go through all the effort of getting ready then overlook this step.
Amazon example: Website developers, data center staff, servers, customer service staff and equipment, logistics & fulfillment staff; books and shipping of the books
SCORE templates: Business Startup Expenses /12 Month Profit and Loss Calculation

15. Key Metrics Amazon 8 Key activities to Measure
Determine how well you are doing 8
Amazon
Sales conversion/visitor
Average sales/transaction
Total sale transactions/total visitors
What gets measured, gets done. Sales/revenue, profit, time to market – helps you determine if you are on-track (or off the tracks)
Amazon example: Sales conversion per visitor, average sales per transaction, total sales to total visitors ratio

16. Unfair Advantage Amazon 9 Can’t be copied or bought
Patents/Licenses, Reputation, Location, staff skills. 9
Amazon
Unlimited book selection
Great prices
Superior customer service
This is how you keep competitors at bay.
Amazon example: Unlimited selection of books at great prices and superior customer service = first mover advantage

17. Write a Business Plan Financial Projections to be Included
Startup Costs
12 Month Sales forecast
12 Month Profit and Loss
12 Month cash flow projection
Opening Balance Sheet

18. Write a Business Plan The Executive Summary
Basic Highlights of the Business Concept
Convince the reader that:
There is a market for your product/service
You can manage a business
The business can be profitable
The lender will recover their funding
The investor will be rewarded

19. Lets Wrap Up
Questions? or
Comments!

20. Achieve Your Goal