This document provides guidance on developing an effective business plan by outlining the key elements and questions to consider in each section. It recommends including: 1) a brief company history and product/service description, 2) market needs, competition and financial projections summary, and 3) funding request details. It then discusses the nine building blocks of a business model - customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost structure - and prompts questions to analyze each component.

1. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
VIABILITY STUDY
PROFESSOR:
ARCH. RODRIGO MEJIA

2. How much detail should your business
plan contain and in what order?
What will help make it effective in communicating your
proposed or existing company's strengths and potential?
What factors must you take into consideration ?
The following presentation will give you
GENERAL GUIDE LINES to
tailor your plan.

3. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
PLAN SUMMARY
• A brief history of your business or business concept;
• A description of your products or services with emphasis on
their distinguishing features, the market needs they will meet,
the market potential and assessment of the competition:
• How the products will be made, or services performed;
• An outline of your management team's experience and talent;
• A summary of your financial projections; and
• How much money you are seeking, in what form, for what
purpose and how it will be repaid.
SEE REFERENCE WORD DOCUMENT: VIABILITY STUDY.docx

5. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
WHAT ARE THE 9 BUILDING BLOCKS
GO TO VIDEO: http://www.youtube.com/watch?v=2FumwkBMhLo

6. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
HOW TO UNDERSTAND YOUR BUSINESS PLAN
Image taken from Osterwalderbusinessmodel.pdf – Edited in Picasa 3 by Rodrigo Mejia

7. Images taken from Osterwalderbusinessmodel.pdf – Edited in Picasa 3 by Rodrigo Mejia

8. Image taken from Osterwalderbusinessmodel.pdf – Edited in Picasa 3 by Rodrigo Mejia

9. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
VALUE PROPOSITION
CHANNELS
CUSTOMER RELATIONS
For whom are we creating value? REVENUE STREAMS
KEY RESOURCES
KEY ACTIVITIES
Who are our most important customers? KEY PARTNERS
COST STRUCTURE

10. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
What value do we deliver to the customer? VALUE PROPOSITION
Which one of our customer’s problems are we
helping to solve? CHANNELS
What bundles of products and services are we CUSTOMER RELATIONS
offering to each Customer Segment?
Which customer needs are we satisfying? REVENUE STREAMS
KEY RESOURCES
characteristics
KEY ACTIVITIES
Newness Cost Reduction
Performance Risk Reduction
KEY PARTNERS
Customization Accessibility
“Getting the Job Done” Convenience/Usability COST STRUCTURE
Design
Brand/Status
Price

11. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
Through which Channels do our Customer VALUE PROPOSITION
Segments want to be reached?
How are we reaching them now? CHANNELS
How are our Channels integrated? CUSTOMER RELATIONS
Which ones work best?
Which ones are most cost-efficient? REVENUE STREAMS
How are we integrating them with customer routines?
KEY RESOURCES
channel phases: KEY ACTIVITIES
1. Awareness
2. Evaluation KEY PARTNERS
3. Purchase
4. Delivery COST STRUCTURE
5. After sales

12. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
What type of relationship does each of our VALUE PROPOSITION
Customer Segments expect us to establish and
maintain with them? CHANNELS
Which ones have we established? CUSTOMER RELATIONS
How are they integrated with the rest of our
business model? REVENUE STREAMS
How costly are they?
KEY RESOURCES
examples
Personal assistance KEY ACTIVITIES
Dedicated Personal Assistance
Self-Service KEY PARTNERS
Automated Services
Communities COST STRUCTURE
Co-creation

13. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
For what value are our customers really willing VALUE PROPOSITION
to pay?
For what do they currently pay? CHANNELS
How are they currently paying? CUSTOMER RELATIONS
How would they prefer to pay?
How much does each Revenue Stream REVENUE STREAMS
contribute to overall revenues?
KEY RESOURCES
types: fixed pricing
Asset sale List Price KEY ACTIVITIES
Usage fee Product feature dependent
Subscription Fees Customer segment dependent KEY PARTNERS
Lending/Renting/Leasing Volume dependent
Licensing COST STRUCTURE
Brokerage fees dynamic pricing
Advertising Negotiation( bargaining)
Yield Management
Real-time-Market

14. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
What Key Resources do our Value Propositions require? VALUE PROPOSITION
Our Distribution Channels?
Customer Relationships? CHANNELS
Revenue Streams? CUSTOMER RELATIONS
types of resources REVENUE STREAMS
Physical
Intellectual (brand patents, copyrights, data) KEY RESOURCES
Human
Financial KEY ACTIVITIES
KEY PARTNERS
COST STRUCTURE

15. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
VALUE PROPOSITION
What Key Activities do our Value Propositions
require? CHANNELS
Our Distribution Channels?
CUSTOMER RELATIONS
Customer Relationships?
Revenue streams? REVENUE STREAMS
KEY RESOURCES
categories
Production KEY ACTIVITIES
Problem Solving
Platform/Network KEY PARTNERS
COST STRUCTURE

16. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
VALUE PROPOSITION
Who are our Key Partners?
Who are our key suppliers? CHANNELS
Which Key Resources are we acquiring from partners?
CUSTOMER RELATIONS
Which Key Activities do partners perform?
REVENUE STREAMS
KEY RESOURCES
motivations for partnerships:
Optimization and economy KEY ACTIVITIES
Reduction of risk and uncertainty
Acquisition of particular resources and activities KEY PARTNERS
COST STRUCTURE

17. ENGLISH VOCABULARY
IN
PRACTICE
BUSINESS PLAN
ASK YOURSELF: CUSTOMER SEGMENT
VALUE PROPOSITION
What are the most important costs inherent in our business model?
Which Key Resources are most expensive? CHANNELS
Which Key Activities are most expensive?
CUSTOMER RELATIONS
REVENUE STREAMS
is your business more: KEY RESOURCES
Cost Driven (leanest cost structure, low price value proposition,
maximum automation, extensive outsourcing) KEY ACTIVITIES
Value Driven ( focused on value creation, premium value proposition)
KEY PARTNERS
sample characteristics:
Fixed Costs (salaries, rents, utilities) COST STRUCTURE
Variable costs
Economies of scale
Economies of scope

18. REFERENCES:
Concept of the 9 Building Blocks - http://alexosterwalder.com/
Business Plan Appendix B –
http://www.ildceo.net/NR/rdonlyres/C14C9C44-C30D-46C9-96CC-7F2912DC7C06/0/bizplan.pdf
Is my business idea viable? - http://www.startups.co.uk/is-my-business-idea-viable.html
Business Model Canvas - http://www.businessmodelgeneration.com/canvas