Business Plan Preparation

1. Business Plan Preparation Frank MoyesLeeds School of BusinessUniversity of ColoradoBoulder, Colorado Value Proposition and Business Analysis

2. Tonight’s Agenda • Topics • Value Proposition • Business Analysis • University Parent Business Plan with founder Sarah Schupp • In the Fire - Opportunity/Need • Team meetings Value Proposition and Business Analysis

3. Next Week • Topics • PRODUCT/SERVICE DESCRIPTION • Margins • OneButton Business Plan with founder Matt Emmi • Assignment: read BP pp 6-7 • Hand-in: • 3 Alternative Value Propositions • Customer survey questionnaire • Activity: In the Fire • Market analysis • Interview results Value Proposition and Business Analysis

4. Market Segmentation • Groups of customers – (demographics & psychographics) baby boomers, grandparents • Products – features, benefits, prices • Benefits – enhance image, trend setter, weather protection, save money • Geography – see Hecho en Casa business plan • Distribution channels • Sector – industrial (see MRT business plan), consumer, government Value Proposition and Business Analysis

5. Value Proposition Value Proposition and Business Analysis Product/service features Target market Benefits

6. Product/Service Features • Description of attributes & environment • What is unique? • How produce & deliver? Value Proposition and Business Analysis

7. Target Market Value Proposition and Business Analysis • Targeted entry point based on segmentation • Demographics & psychographics • Must understand how make buying decisions • Business sector, size, characteristics

8. Benefits • Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self improvement, etc. • Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. • Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. • Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. Value Proposition and Business Analysis

9. 0 Simple Value PropositionSST Corporation “SST is a stainless steel toothbrush company. By its one bristle brush made of high tensile stainless steel, it provides an exhilarating tooth cleaning experience to thrill-seeking X-gen consumers” http://gizmodo.com/gadgets/gadgets/tifinity-titanium-toothbrush-like-a-metal-scouring-pad-for-your-teeth-235314.php Value Proposition and Business Analysis

10. Simple Value Proposition Pete’s Coffee “Pete’s Coffee is a Denver based coffee house. Its gourmet coffee, convenient and fast service provide a welcoming environment for people who want to meet with their friends; and a stimulating morning coffee for the on-the-go business person. Value Proposition and Business Analysis

11. Value Proposition Value Proposition and Business Analysis • Why segmentation is important • Differentiation is essential • Home work for next week • 3 alternatives value propositions • So what! Why should your customer should care?

12. Business Analysis Assignment • Present Mar 5 PowerPoint 10 minutes, 6-8 slides • Market Analysis • Industry Analysis • Product/Service Description • Profitability Value Proposition and Business Analysis

13. Business Analysis Assignment (cont) • Hand-in 3 ring binder • Market Analysis - draft • Industry Analysis - draft • Product/Service Description - draft • Value Chain analysis • Competitive matrix • Financial COMP’s • Revenue Model • 20 interview Call Reports Value Proposition and Business Analysis

14. Differentiation Road Map Brand Trademark Bundling Delivery Warranty Installation Time of sale Service After sales Special terms Usergroups Design help Communications Augmented Attributes Features Packaging Quality Color Size Style Options Timeliness Customize Tangible Attributes Core Needs What’s it for? What’s it do? Example: Morton Salt Value Proposition and Business Analysis