Products, services & marketing for sustainable [youth]markets ¤

Programme Business models ¤The CLIENT ¤General layout of a business plan for a social enterprise –Basic idea –Structure of plan & details ¤Deadline for draft business plans: ¤End (approx )

Programme Business models No programme, but… Available for individual appointments To be made just now or later on

Programme Business models – Elevator pitch Fishbowl (brief feedback on plan in learning set-up) Issues following from business plans & fish bowl

Programme Business models No programme, but… Available for individual appointments To be made just now or later on

The client What is the client or customer benefit; or, what problem does the idea solve? ¤Market success comes from satisfied customers ¤A clear statement what need it will satisfy, and in what form (product or capacity) ¤The distinctiveness of the product is often referred to by marketing specialists as its ‘Unique Selling Proposition’

Unique selling points (USP’s) Traditional business ¤More convenient ¤More attractive ¤Safer ¤More flexible ¤Less expensive ¤Quicker ¤Smaller ¤Lighter ¤Simpler ¤More comfortable ¤More reliable The client USP’s Social entrepeneurship ¤Additional norms and values that built a world that is ¤More in balance / equal ¤More diverse ¤More equal ¤More honest / social ¤Less consuming ¤Less harming environment ¤Etc.

The client Who is the client? ¤In the case of the Emmaus project? ¤In the case of the ProRail project? Client generally is the one paying the bill ;-) 1.Try to sketch all stakeholders 2.Try to sketch the flow of money

What is a business plan? Business idea ¤Business idea of Kuyichi: –We sell high priced designers clothing –Our clients contribute to the well being of those farmers & sewers in a fair, direct and commercially sensible way

What is a business plan? Business idea with graphic symbols ¤Explore with small groups the business idea of ¤neau[ Dutch only] ¤NOTS[ ¤Free Energy Int.[ ¤F0[ ¤sprmrkt[

Why develop a business plan? ¤Consumer market ¤New product introduction % of succesful market introductions? % of start ups that succeed?

Why develop a business plan? Purpose of a business plan [1] ¤Getting your ideas across ¤So others are willing to invest time and/or money in it ¤This is mainly an issue of getting new ideas accepted by others (convince people of your plans) ¤Indicating risk versus security

Why develop a business plan? Purpose of a business plan [2] ¤Indicate how it will make money (business idea or revenue mechanism)? ¤What are the costs/investments? ¤Why you and not somebody else??? ¤Direction for further development: planning

What is a business plan? Checklist for your business plan [1] Does you business idea answer the following questions? ¤Who is the customer? ¤Why should the customer buy the product? What need does it meet? ¤What exactly is innovative about the business idea?

What is a business plan? Checklist for your business plan [2] Does you business idea answer the following questions? ¤Why is the product better than comparable alternatives? ¤What do you actually sell? A product or capacity? ¤How unique is the business idea? Can it be protected? Who owns the design?

What is a business plan? Business plan [3] A business plan ideally addresses: ¤Setting up the company ¤Building up the organisation and management ¤Building up production ¤Publicity ¤Market entry ¤Reaction to threats: competition, technological developments ¤Expanding production ¤Entering new markets ¤Developing new products

What is a business plan? Business plan [4] Characteristics of a promising business plan: ¤Meets a customer need - a problem is solved ¤Innovative ¤Unique ¤Clear focus ¤Offers long-term profitability

What is a business plan? How will it make money? ¤Most products make money directly, from sales to customers ¤In some cases, however, the ‘revenue mechanism’ can be more complicated –For example, the product is given away for free to the consumer, and paid for by advertisers ¤How money will be made, and how much

What is a business plan? How will it make money? Revenue mechanisms [1] Classic profit calculation for a business works as follows: ¤A business buys materials or services from suppliers, the payments for which represent costs for the business. ¤The business then sells products or services to its customers, and this produces revenue. ¤Leasing and renting are other common revenue mechanisms.

What is a business plan? How will it make money? Revenue mechanisms [2] ¤License fees charged to franchise holders. ¤ViaVia, a classified ads newspaper, is financed by the price paid by the people buying the paper; the advertisements appear for free. ¤If your business idea is also based on an innovative form of revenue mechanism, you will need to explain it at the business idea stage.

Your business plan Requirements for your business plan ¤Maximum of two pages of text, including: –Elevator pitch –Your name/group name –Name of product or service –Illustration –Description of product or service (are you offering mainly a product or a capacity)? –Customer benefit –Description of customer(s) –Innovative characteristics –Some ideas for traffic generation (especially for Emmaus) –Who will pay the bill & estimation of price

Your business plan Feedback on the following aspects: ¤Elevator pitch: is the basic idea of the business plan clear in about 1 minute ¤What is the customer benefit? ¤What problem does the idea solve for whom? ¤Feasibilty of the business idea & directions for improvement ¤Business model: revenue mechanism (how will it make money)?

Your business plan ¤ ¤Deadline to mail/deliver draft business plan Nieuwe Emmasingel 7c 5611 AM Eindhoven (across the street opposite Design Academy) ( smaller than 2 Mb, else print)