WORKSHOPS/MAHI

Go through this simple checklist and process to make sure you buildthe right business model for your idea.

Action steps

  • Write down your answers to ten questions below in the template provided, evaluate, develop metrics for defining success, then create your elevator pitch and complete the scorecard.
  • Who are your competitors and how do they operate? Who could you partner with?
  • What stage of the Unitec entrepreneurial pathway do you need to enter (workshops and coaching)

Customers

1. Customer Acquisition. How do you acquire customers?

2. Post Acquisition. After you have landed a new customer, how do you plan to connect with that customer and manage the relationship (if at all)?

3. Revenue.How do you charge your customer? What is your revenue model?

4. Cash Flow.How much do you charge your customers? Can you calculate your revenues for the next month, quarter, and year?

Assets

5. Assets. What assets do you own/have available to you or under your control?

Activities

6. Partners.Who are your key partners?

7. Activities.What key activities do you need to engage in to deliver your value proposition?

Financials

8. Fixed Costs. What are your fixed costs?

9. Variable Costs.What are your variable costs? Can you calculate your total cost for the next month, quarter and year?

10. Profit. Does your revenue forecast demonstrate increased profitability towards the end of the forecast period? Do you know your breakeven point?

Write your answers in the below template to build your own business model


Business ModelEvaluation

•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?

Clarify your business model assumptions:

Check each response in the Building Model Template against the following criteria:

  1. 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.”

  1. Complete the activity by listing all the assumptions regarding your business model in the table below.

No. / Question / Fact (with evidence) / Assumption
1
2
3
4
5

Prepare to measure success and pitch - to customers, investors, partners…

Prepare the materials needed before you pitch: (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

Developing success measures is an important step to ensuring commercial returns. It helps you create a business plan and elevator pitch that details how you will handle all the important aspects of your business and helps you attract investors, customers & partners. Metrics might include:

  • Customer acquisition targets
  • Sales volume targets
  • Sales value targets
  • Cost targets/budgets (direct and indirect)
  • Cash burn rate and Break-even point
  • Profit Targets.

Defining success for your idea assists you to develop a clear elevator pitch, be this to customers, investors or other audiences such as the media.

.

The process of commercialising your idea always involves an elevator pitch, be it to customers, investors or partners. The basis of every elevator pitch is your positioning statement.

Create your positioning statement using the following template.

•For…

•Who….

•Our product/service is…

•That provides…

•Unlike…

•We have assembled/created/invented a product/service that….

Updated Business Model

•


BUSINESS MODEL
1.Do you have a clear strategy for customer acquisition?
2.Have you got a plan for managing customer relationships?
3.Do you know how and how much you will charge your customers?
4.Do you know the direct and indirect costs to produce your idea?
5.Can you partner with suppliers and/or do you have a choice of suppliers in producing and selling your idea?

Key Points

______

MEASURE SUCCESS
1.Do you know how many customers you need to obtain to be successful?
2.Do you know how much revenue you need to generate for the idea to be successful?
3.Do you have month on month growth targets?
4.Do you know your break-even point and cash burn rate?
5.Do you have a clear budget for direct and indirect costs?

Key Points

______

ELEVATOR PITCH
1.Can you explain the uniqueness of your idea?
2.Can the customer touch, feel, taste, see, sense, or use your idea right now?
3.Do you have any significant advantages in your favour that competitors don’t have?
4.Can you clearly show returns available to potential investors?
5.Have you developed a clear value proposition and can you communicate this to various audiences (customers, partners and investors)?

Key Points

______

NOTES

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Whanganui and Partners – 101 Guyton Street – Whanganui 4500