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Business Plan and Model Framework

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15 views

Business Plan and Model Framework

Uploaded by

snooze.akshat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Plans and Models

Business Plan: Hypothesis that is constantly updating

Strategy is more like a hypothesis


driven product plan.

It is constantly iterated based on


knowledge of the market

Product strategy should be short and


clear for everyone in the company to
understand.
Business Plan: Hypothesis of where the need will be
Business Plan Framework

Market
Customer
Trends and Competitive Value
Segments
Opportunitie Landscape Proposition
and Needs
s

Marketing Key
Key Metrics
Channels Activities

Revenue
Costs Risks
Streams

Source: Ideas inspired from https://blog.leanstack.com/author/ashmaurya/


Business Plan Framework (1 / 3)
1. Customer Segments and Needs:

● Who are your target customers? Define the specific groups or individuals who will use your technology product.
● What are their needs and problems? Clearly identify the pain points your product addresses and the value it brings.

2. Market Trends and Opportunities:

● What are the emerging market trends relevant to your product? Identify new trends that could impact your business model.
● How can you leverage these trends to gain a competitive advantage?

3. Competitive Landscape:

● Who are your main competitors? Analyze their products, strengths, and weaknesses.
● What are the customers unmet needs that the competition is not addressing?

4. Value Propositions:

● What unique value does your product offer? How does it solve your customer's problems better than existing solutions?
● What key features and functionalities differentiate your product?

Source: Ideas inspired from https://blog.leanstack.com/author/ashmaurya/


Business Plan Framework (2 / 3)
5. Marketing Channels:

● How will you reach your target customers? Identify the channels you'll use to acquire users (e.g., online
marketing, app stores, partnerships).
● What is your expected CAC (Cost of Customer Acquisition) for these channels?

6. Key Activities:

● What are the essential activities to build and deliver your product?
● What are the key resources (e.g., technology, talent) required for these activities?
● List on spreadsheet the activities and milestones for each quarter for the first year

7. Key Metrics:

● What are the key metrics to track your progress and success? Define metrics for customer acquisition,
engagement, revenue, and other relevant aspects.
● How will you measure and monitor these metrics?
● List on spreadsheet the metrics along with the expected value you hope to achieve
Business Plan Framework (3 / 3)
8. Revenue Streams:

● How will you generate revenue?


● How will you price your products?
● List on spreadsheet the expected revenue broken up by each quarter for Y1 to Y5

9. Costs:

● What is the one-time costs (infrastructure, labor, compliance)?


● What is the ongoing (variable) cost?
● List on spreadsheet the costs broken up by each quarter for Y1 to Y5

10. Product Risks:

● What can go wrong in your plan to build the product, market it and scale the business?
● How do you plan to address this risks?
Business Plan Framework Example - PathAI

We are transforming pathology by developing


AI models that optimize the analysis of patient
tissue samples and support our customers with
solutions from wet lab services to algorithm
deployment for clinical trials and diagnostic use.
Business Plan Framework - PathAI (1 / 3)
Note: For each of the below points, you should Provide more explanation and cite the data/source

1. Customer Segments and Needs:

● PathAI's primary customers are pathologists, hospitals, and pharmaceutical companies.


● The needs of these customers include accurate pathology diagnosis, efficient workflow, and effective
drug development.

2. Market Trends:

● The healthcare sector is increasingly adopting AI for various applications, including disease diagnosis and
drug discovery.
● Providers are pushing Pathology labs to reduce time to diagnose and costs

3. Competitive Landscape:

● PathAI's main competitors include other AI healthcare companies like Insilico Medicine and Atomwise.
These companies also leverage AI for drug discovery and disease diagnosis.
● However, PathAI differentiates itself with its focus on image based pathology analysis, a niche yet critical
area in healthcare.
Business Plan Framework - PathAI (2 / 3)
4. Value Propositions:

● PathAI offers AI-powered tools that improve the accuracy and efficiency of disease diagnosis and
research.
● Its platform uses image based machine learning analysis to assist pathologists in diagnosing diseases,
thereby reducing errors and improving patient outcomes

5. Marketing Channels:

● PathAI reaches its target customers through partnerships with hospitals and diagnostics labs.
● It is also partnering with pharmaceutical companies for clinical trials
● GTM channels include participation in healthcare and technology conferences and outbound sales.

6. Key Activities:

● Key activities include continuous development and improvement of the AI platform, maintaining
partnerships with hospitals and pharmaceutical companies, and staying updated with the latest research
and trends in AI and pathology.
● List these on a spreadsheet
Business Plan Framework - PathAI (3 / 3)
7. Key Metrics:

● Show a spreadsheet of the metrics identified and the expected value you plan to achieve
● Number of diagnoses assisted by the platform,
● Time for diagnosis
● Accuracy rate of the diagnoses made with the help of the platform.

8. Revenue Streams:

● Show a spreadsheet of revenue by each quarter for the next 5 years.


● PathAI generates revenue by providing AI-powered pathology services to hospitals and pharmaceutical
companies.
● ~100 pathology labs and hospitals as customers
● Each customer sends about 10,000 labworks per year.
● PathAI gets ~$50 per lab diagnosis.
● Revenue = 100* 10,000 * $50
● Revenue is expected to be ~$75 Mn in 2024 and grow at a rate of 50% YoY
Business Models
● Software as a Service (SaaS): This model involves delivering software
applications over the internet as a service. Instead of buying and installing
software, customers subscribe to access it online. Key examples include
Salesforce, Zoom, and Google Workspace.

● Subscription Business Model: Customers pay a recurring fee (monthly or


annually) to access a product or service. This model is common in software
(SaaS), media (Netflix, Spotify), and other digital services.

● Marketplace Business Model: In this model, a platform connects buyers and


sellers, taking a commission or fee on transactions. Examples include eBay,
Airbnb, and Uber.

● Freemium Model: A product is offered for free, but customers can pay for
additional features, services, or content. This model is popular in apps and
services like Spotify and Dropbox.
Business Models
● Enterprise Business Model: This involves selling software or services to large
organizations or enterprises, often through long-term contracts. Products like
SAP, Microsoft Azure, and Oracle serve this segment.

● E-commerce Business Model: A traditional online retail model where


businesses sell physical or digital products directly to consumers or other
businesses. Examples include Amazon and Alibaba.

● On-Demand Services: This model provides services instantly when demanded


by customers, often via an app. It includes companies like Uber and DoorDash,
providing transportation and food delivery services.

● Advertising-Based Model: This model generates revenue by offering free


content or services and earning money through advertising. Google and
Facebook are prime examples of companies that thrive on this model.
Business Models
● Data as a Service (DaaS): Companies offer data solutions on a subscription or pay-per-use basis,
allowing clients to access and analyze data. Examples include companies like Snowflake or Google
Cloud’s BigQuery.

● Platform as a Service (PaaS): This is a cloud computing model where a third-party provider delivers
hardware and software tools over the internet. Companies like Amazon Web Services (AWS) and
Microsoft Azure follow this model.

● Hardware as a Service (HaaS): This involves leasing hardware to customers instead of selling it
outright, often paired with maintenance and support. Examples include Cisco’s and Dell’s offerings in this
space.

● Open-Source Business Model: Companies provide open-source software for free but earn revenue
through services like support, consulting, or enhanced features. Examples include Red Hat and
MongoDB.

● Licensing Business Model: In this model, companies license their technology to other companies or
individuals. This is prevalent in sectors like telecommunications and software.

● Affiliate Marketing: Businesses pay commissions to third parties to generate traffic or sales from the
third party’s marketing efforts. Amazon's affiliate program is one of the most popular.

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