INTRODUCTION-2-

BUSINESS
By
Entrepreneurship cell
IIM Ranchi 1
Topics to be covered

IDENTIFYING
INTRODUCTION AND BUSINESS
EVALUATING PLAN
OPPORTUNITIES PREPARATION
INNOVATION

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Our Team

Neha Singh Nihal S Sarthak Munot

MBA HR MBA MBA
startup?
Think for 1 minute and give your opinion

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Triple helix model

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 • A handful number of startups ideas actually turn out to be viable business opportunities.
• The need of a well evaluated opportunity recognition.
• Important given the often high uncertainty, low information, and rapid decision making surrounding
start-up ideas.
• look into an analysis which is a heuristic designed for initial opportunity evaluation prior to preparing a
full-blown B-plan.

Identifying and Evaluating Opportunities 6

Product/Service
• Superiority Resources Individual
• Uniqueness • Defined • Skills
• Protection • Accessible • Traits
• Ethicality • Minimized • Aspirations
• Readiness • Sustainable Advantage • Relevant Experience
• Business Model • Synergies

PRIME Analysis
Evaluation of Opportunities
Markets
• Size Economics
• Targeted • Forgiving
• Reachability • Rewarding
• Other Choices • Enduring
• Need/Want • Stability
• Harvest Options
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• Product/Service Evaluation:-
• The mnemonic for Product/Service Evaluation is SUPERB. The offering is the nerve of the opportunity recognition process.
• Resource Evaluation:-
• The mnemonic for Resource Evaluation is DAMS. Key resources for new venture opportunities include financial, social, human, physical,
technological, and organizational.
• Individual Entrepreneurs Evaluation :-
• The acronym for Individual Evaluation is STARS. This section focuses on the entrepreneur or founding team, leaving the evaluation of key
employees as part of the resource evaluation.
• Market Evaluation:-
• The mnemonic for Market Evaluation is STRONG. This segment of the PRIME focuses the user's attention on fundamental issues for new
business concepts, market and marketing.
• Economic Evaluation:-
• The mnemonic for Economic Evaluation is FRESH. This analysis directs the user's attention to the potential outcomes associated with the
new venture.

Components of PRIME Analysis 8

Design Thinking

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What is innovation?
Think for 1 minute and give ur opinion

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What is innovation?
• “Innovation is the key to continued success” (c) Ajay Banga, CEO of MasterCard
• “We innovate today to secure the future” (c) Sophie Vandebroek, CTO, Xerox Innovation Group
• Innovation – taking creative ideas and turning them into useful products or work methods

•NEW! USEFUL! SUPRISING!

“What is the calculus of innovation? The calculus of innovation is really quite simple: Knowledge drives
innovation, innovation drives productivity, productivity drives economic growth.“
William Brody

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 INNOVATE OR DIE
• In The Boston Consulting Group’s tenth annual global survey • SUCCESS = INNOVATION
of the state of innovation: 79% of respondents ranked
innovation as either the top-most priority or a top-three • “The world leaders in innovation and creativity
priority at their company in 2015. will also be the world leaders in everything else”
Harold R. McAlindon
“Innovation is taking two things that exist and putting
them together in a new way.“
-Tom Freston , Co-founder of MTV

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The diffusion of innovations
✓Diffusion is the process by which innovations are adopted and used by consumers, or in the case of
process innovations, by other organisations.
✓Diffusion is the rate at which innovations are adopted
✓Whether a product or a process, it takes a long time for an innovation to diffuse across users/consumers.
✓The speed at which an innovation diffuses is critical to its (commercial) success.

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Diffusion of successful innovations follow a common
path (S curve)
Percentage of customer/user groups

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Diffusion of online social networks

(http://sephskerritt.com/2008/03/05/market-diffusion-of-online-social-networks/)
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Diffusion of various innovations

http://andrewgelman.com/2012/04/08/technology-speedup-graph/
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What to Include in a b Plan?
Think for 1 minute and give ur opinion

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Mind map FOR brainstorming

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Why do we make a B-Plan?

1 3
2 4
To communicate
the business To secure
objectives and funds for
goals business

To take critical Attract

decisions and contractors
avoid mistakes and Service
Providers
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Business plan types

Mini Plan 01

Working Plan
Presentation Plan
BUSINESS PLAN 01 Executive Summary

Financial Plan and

COMPONENTS 02 Company Synopsis

06 Revenue Model

07 Operations Plan

03 Industry overview

Management
08 Team
04 Competitor Analysis

09 Exit Strategy

05 Sales and Marketing Plan

10 Appendix
Executive summary

An introduction to the business plan

Critical for Investors

Contains the Mission and Vision Statements, and a summary

Visuals that help the reader see important information,

including market share projections, and customer demand
charts, etc. 25
Company Synopsis
Answers two basic questions:

What painful problem are you

1 solving for the customer?
VALUE
PROPOSITION
What is your unique and elegant
2 solution to the problem?

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Industry overview

1 2 3 4
MARKET SIZE AND GROWTH EXTERNAL FACTORS MARKET TREND INDUSTRY SUCCESS STORIES

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Competitor analysis
What products/services are my target customers using to solve this
01 problem now?

What products/services could they potentially use to solve this

02 problem now?

Direct Indirect
Competitor Competitor

Similarities and Differences

Strengths and weaknesses

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Sales and marketing plan
Marketing Sales

Define Customer Segment Target customer on the basis of

Stage of Sales Funnel

Marketing Mix and Establish Sales & Distribution

respective budget Channel
allocation

Strategizing InBound techniques

to establish good customer
Project Market Share
relationship
Financial plan - Revenue model
• The Financial Plan translates your company's goals into specific financial targets.
• The Financial Plan section may include:
• Important Assumptions
• Projected Cash Flow
• Key Financial Indicators
• Projected Balance Sheet
• Break-even Analysis
• Business Ratios
• Projected Profit and Loss
• Long-term Plan
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Operational plan
• The Operations section outlines how your company will operate.
• The Operations section includes:
• Provides a basis for projected operating expenses and financial statements. Because these statements are heavily
scrutinized by investors, the organizational structure has to be well-defined and realistic within the parameters of the
business.
• Expense and capital requirements to support the organizational structure. Provides a basis to identify personnel
expenses, overhead expenses, and costs of products/services sold. These expenses/costs can then be matched with
capital requirements.
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 BUSINESS PLAN
MANAGEMENT TEAM The Management Team section outlines:

COMPONENTS 01 Organizational Structure

02 Management Team

03 Working Structure

04 Expertise

05 Skills Gap

06 Personnel Plan
Exit strategy

Other option include:

1. IPO
2. Bankruptcy (Voluntary
& Involuntary)

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Business model canvas

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