Venture Planning Module

1. An Introduction to Postgraduate Training in Innovation and Entrepreneurship Venture Planning Module AzamMazani Jamal Ithnin Wee

2. Educational Aims and Objectives Aims Objectives To generate an understanding of the difference between an idea and an opportunity and the role of key factors, e.g. personal ability, legal constraints and marketing, in translating ideas into tangible outcomes To enable students to translate an idea into an achievable opportunity through the construction of a basic business plan To develop transferable skills such as written and oral communication, critical analysis and team-working skills • To examine the nature of business planning and promote an understanding of the business planning process with consideration to the role of markets, finance and strategy in translating ideas into achievable opportunities. • To validate the proposed business model through customer development process

3. Learning Outcomes On successful completion of this module, students should be able to: • Devise a business model canvas to exploit a research-based opportunity; • Validate the proposed business model; • Demonstrate transferable skills such as team working, verbal and written communication skills, analysis and problem solving skills through critical analysis and associated exercises.

4. Syllabus • Lesson 1: What We Know Now • Business Models and Customer Development • Lesson 2: Value Proposition • Lesson 3: Customer Segments • Lesson 4: Channels • Lesson 5: Customer Relationships • Lesson 6: Revenue Models • Lesson 7: Partners • Lesson 8: Resources, Activities and Costs

5. KEY PARTNERS VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY ACTIVITIES CHANNELS KEY RESOURCES • COST STRUCTURE • REVENUE STREAMS Lesson 1: What We Know Now Business Models and Customer Development Lesson 7: Partners Lesson 8: Resources, Activities and Costs Lesson 2: Value Proposition Lesson 5: Customer Relationships Lesson 3: Customer Segments Lesson 8: Resources, Activities and Costs Lesson 4: Channels Lesson 8: Resources, Activities and Costs Lesson 6: Revenue Models

6. KEY PARTNERS VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY ACTIVITIES CHANNELS KEY RESOURCES • COST STRUCTURE • REVENUE STREAMS Lesson 1: What We Know Now Business Models and Customer Development Lesson 7: Partners Lesson 8: Resources, Activities and Costs Lesson 2: Value Proposition Lesson 5: Customer Relationships Lesson 3: Customer Segments Stage I: Charting Your Proposed Business Model Activity 1 - 3 Lesson 8: Resources, Activities and Costs Lesson 4: Channels Stage II: Validating Your Proposed Business Model Activity 4 - 7 Lesson 8: Resources, Activities and Costs Lesson 6: Revenue Models

7. Stage I: Charting Your Proposed Business Model Activity 1: Key business model questions Write a brief response to the following questions. • How do you acquire customers? • After you have landed a new customer, how do you plan to relate to that customer and manage the relationship (if at all)? • How do you charge your customers? What is your revenue model? • How much do you charge your customers? Can you calculate your revenues for the next month, quarter and year? • What assets are available to you or under your control?

8. Activity 1: Key business model questions (cont’d) Stage I: Charting Your Proposed Business Model • Who are your key partners? • What key activities do you need to engage in to deliver your value proposition? • What are your fixed costs? • What are your variable costs? Can you calculate your total cost for the next month, quarter and year? • Does your revenue forecast demonstrate increased profitability towards the end of the forecast period?

9. KEY PARTNERS VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY ACTIVITIES CHANNELS KEY RESOURCES • COST STRUCTURE • REVENUE STREAMS Activity 2: Create your own business model << list your partners here>> << describe your key activities here>> << insert your value proposition here>> <describe how you plan to establish and manage the relationship between the customer and your brand here>> << describe your target customer segment here>> Stage I: Charting Your Proposed Business Model << describe 1) how you plan to acquire customers, 2) how you plan to deliver your value proposition to them and 3) how you plan to communicate with your customers >> << list the key resources available to you here>> << Describe your cost structure here>> << describe your revenue streams here>>

10. Activity 3: Consider your business model Stage I: Charting Your Proposed Business Model • Does it work? Do the revenues outweigh the cost? Try estimating revenues and cost for the next month ( or the first month of sales, if you are without revenue for now) • What are the risks to your business model? What parts of your business model are most critical for your business to grow in a profitable manner? • Are there things that can or should be changed to strengthen the business model or reduce its risk?

11. Activity 4: Clarify your business model assumptions Stage II: Validating Your Proposed Business Model Check each response in the Building Model Canvas against the following criteria: • How do you know what you wrote in each building block is true? Have you made an assumption or do you have solid evidence—in the form of documented facts? • In the cases you have facts, label the response as “Fact” and make a note of your evidence. • In the cases you have made assumptions, label the response as “Assumption.” • Complete the activity by listing all the assumptions regarding your business model on the next slide. The next section will address how to test those assumptions.

12. Activity 4: Clarify your business model assumptions (cont’d) Stage II: Validating Your Proposed Business Model List your assumptions about your business model

13. Activity 5: Prepare to meet customers Stage II: Validating Your Proposed Business Model Prepare the materials needed before you meet potential customers: (create a checklist of the points below) • Sales materials • Website • Product information • Customer presentation • Other (demo/prototype/case study) • Channel strategy description • Sales process description: • Economic buyer • Other stakeholders involved in customer’s buying process • Steps in and duration of sales process • Expected deal size • Pricing options

14. Activity 6: Update your documentation Stage II: Validating Your Proposed Business Model Document your sales roadmap by answering the following questions. • Who are the stakeholders involved in the customer's buying process? • Who typically plays the roles of influencer and economic buyer? • What are the stages and the length of the sales cycle? • What is the profile of the typical buyer? • What is the best sales strategy?

15. Activity 6: Update your documentation (cont’d) Stage II: Validating Your Proposed Business Model Create your positioning statement using the following template. • For… • Who…. • Our product is… • That provides… • Unlike… • We have assembled/created/invented a product that….

16. KEY PARTNERS VALUE PROPOSITIONS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS KEY ACTIVITIES CHANNELS KEY RESOURCES • COST STRUCTURE • REVENUE STREAMS Activity 6: Update your documentation (cont’d) Stage II: Validating Your Proposed Business Model

17. Stage II: Validating Your Proposed Business Model Activity 7: Plan your next steps Take the required steps to implement your business model (make a checklist of the items below):

18. Assessment Methods Business Idea Challenge (40%) Ongoing Offsite Activities (30%) Customer Development Usability Testing Evaluate Data Build Prototype • 10 min pitch • Poster presentation (Lean Business Model Canvas) • Competition Reminder: Weekly Reflections (30%) • What did your team like about this week? • What challenges did your team have this week? • Anything else your team would like to share?