9: Business Model and Plan
- Page ID
- 158318
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 9.1: Prelude to Business Model and Plan
- This page outlines the journey of Michael Kirban and Ira Liran, who founded Vita Coco inspired by Brazilian coconut water. Despite initial regulatory setbacks, they succeeded by prioritizing customer needs and building a mission-driven brand, ultimately positioning Vita Coco as a market leader. Their experience highlights the significance of customer-centric design in entrepreneurship, emphasizing that a great product alone does not guarantee customer attraction.
- 9.2: Avoiding the "Field of Dreams" Approach
- This page emphasizes the importance of strategic planning in entrepreneurship while warning against misjudging customer demand. It contrasts various business models and underscores the significance of adaptability and creativity, supported by teams for innovation. The concept of disruptive innovation is explained, illustrating how startups capitalize on market gaps left by established firms.
- 9.3: Designing the Business Model
- This page explores business models, explaining how they differ from business plans and detailing tools like the business model canvas and lean canvas. It emphasizes customer empathy mapping for better product development.
- 9.4: Conducting a Feasibility Analysis
- This page covers the significance of feasibility analysis in entrepreneurship, detailing organizational, financial, and market aspects. Organizational feasibility assesses management and resources; financial feasibility analyzes profits, expenses, and cash flow; while market feasibility evaluates market dynamics and competition.
- 9.5: The Business Plan
- This page provides an overview of business plans, detailing their purpose, components, and variations, like executive summaries. The significance of compelling storytelling in sections such as market analysis and competitive differentiation is highlighted, with examples from a fictional food truck, La Vida Lola. It discusses growth in the food truck industry, targeted marketing strategies, and community engagement through social media.
- 9.6: Key Terms
- This page discusses key concepts in business planning and strategy, defining terms like balance sheet and breakeven point. It introduces analytical tools such as the business model canvas and SWOT analysis for evaluating business ideas. The importance of innovation, financial analysis, and market assessment in assessing project viability is highlighted, along with the role of value propositions and customer empathy in shaping business decisions.
- 9.7: Summary
- This page highlights essential aspects of entrepreneurial strategy, cautioning against the assumption that demand will follow creation. It explains the role of business models in value creation and capture, introduces the business model canvas, and stresses the importance of feasibility analyses for assessing ventures. Additionally, it discusses the importance of business plans for operational guidance and securing funding, underlining their significance for entrepreneurs and investors alike.
- 9.8: Suggested Resources
- This page covers business model design, showcasing tools like the Business Model Canvas and Lean Canvas, while highlighting the necessity of feasibility analysis in business planning. It references Bruce Barringer's insights on effective business plans and points readers to the SBA's resources for systematic entrepreneurial planning.
Chapter thumbnail: "Business Cat iPhone Wallpaper" by meowcrush is marked with Public Domain Mark 1.0.