The document provides guidance on starting a business or social enterprise. It discusses defining problems and opportunities, generating business ideas, developing a business model and plan, and managing risks and growth. Key elements include defining a vision and goals, understanding customers and competition, developing financial and marketing plans, building a strong team, and addressing challenges through an iterative planning process. The overall message is on using strategic planning tools to structure an initiative that creates social impact.

1. Earthsoft Foundation of Guidance
Edge-Aggressive-Reliable-Trust-Honesty-Soft-Obedient-Fun-Transparent
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2. About us
Earthsoft Foundation of Guidance (EFG) has uploaded following
presentations at http://myefg.in/downloads.aspx
Also https://dl.dropbox.com/u/83265908/Links-events.xls has links
Be mentor using your education, knowledge & experience to
contribute for a social cause & do conduct free training seeking
help of existing platforms. Kindly share with your friends
•Motivation for higher study, Planning for study, Education
guidance, Career guidance, Career available after SSC & HSC
•Personality development – 3 files
•How to prepare resume, Tips to attend interview successfully
•Religion related –To understand basic religion, Do &Don’t tips
•Health related - Be vegetarian, Be healthy
•Corporate - Project management, Assertiveness, Ownership
- Effective communication
•Finance - To avoid speculation in stock market
•Social - Women empowerment, Choosing life partner
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3. Index
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4. Problem definition
• Define a problem
• Who are the stake holders
• Population of actors who are suffering
• Since when problem continuing
• What is the cost of the problem
• What is the current alternative
• Quote from analyst regarding the need
• To define the nature of product/service
opportunities available while attempting to
resolve those problems
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5. Vision
• To specify vision statement leading to solution of
the problem
• Change one can witness post implementing the
solution in future
• Vision involves the foresight needed to acquire
the necessary expertise to organize & mobilise
the resources, to accomplish the desired results
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6. Gems of Wisdom
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7. Sources of opportunities
• Technological change
• Public policy shifts
• Changes in public opinion
• Changes in taste
• Social and demographic change
• Need of a day
• Comfort
• One umbrella solution
• Scarcity
• Desire
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8. Potential sources of ideas
• Brainstorming – Individually or in groups/teams
• Own personal experiences
• What businesses have been done in the past?
• Have you started businesses before?
• What was learnt from success and failures?
• Innovation and invention – A flash of individual
inspiration
• Spotting trends and anticipating their impacts on
people’s lives Opportunity
• Surveys Yes No
Yes
Idea
No
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9. Generating business ideas
• Copying ideas from other countries
• Taking a scientific approach, working in a
laboratory
• Spotting flaws and errors in existing products –
Can something be done better?
• Noticing a gap that is not currently being
produced
• Wanting to do something different & may be big
• Ambitions
• Willingness to invest funds
• Deep understanding of problems around &
desire to solve those using technologies
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10. Creation of Ideas
Education Knowledge
Experience
Connection Information Intelligence
Creative thinking, ideas, Opportunities
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11. To start a business
• Value proposition?
• What are differentiators?
• Reaching to customers?
• Build long term relationship?
• Revenue stream?
• Profitable?
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12. To start a business
• Know yourself & what is important to you
• Set goals & Plan to achieve
• Be a rising star - try to be always on top
• Brand yourself, know strengths & saleable skills
• Balance work, family, life enjoyment, pressure
• Be ready for change
• Be entrepreneur - Think starting your own,
implement what you think is right, grow as much
to build empire, convert idea into business
• Create achievable business plan
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13. Getting started
• Think of something you need/want
• Think of something others need/want
• Figure out what’s broken and how can you fix it
• Find out what’s working for other companies and
apply it in a new way
• Invent a new technology and figure out how to
apply it
• Think of a marketing/growth strategy and then fit
a product into it
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14. Gems of Wisdom
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15. Solution
• To specify solution, preferred graphical
• How is solution solving the problem
• To capture all the actors involved
Is solution
• Life changing?
• Path changing?
• Stylish?
• Simple to adopt?
• Difficult to copy?
• Unique in its kind?
• Affordable? As well as not very costly?
• Reachable?
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16. Anything innovative?
Product
or
Services
Business
Idea? Process
Model
Technology
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17. Key features
Key pointers could be
• Availability
• Predictability
• Cheaper
• Comfortable
• Eazy to use
• Secured
• Technology savvy
• Efficient
• Changes it will bring
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18. Benefits expected
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19. Business model
• A business model is a blueprint that describes
future organization & forecasts of the growth.
• This can be from a quarter to several years
• How an organization intends to create value
• Business model components
• The mission
• Strategic resources—what we need
• Partnership network—who we will work with
• Service interface—how we connect to clients,
donors, etc.
• Need to check opportunity & threat (Supply &
demand)
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20. Influences
Customer
need
Legal Technology
Business
Model
Competition Social
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21. Business model framework
• What it offers to various customers
• What is the capabilities for creating, marketing,
and delivering the value
• What is relationship capital with the goal of
generating profitable & sustainable revenue
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22. Features
• Business Plans is as simple as possible, more
effective & interesting forecast of business
idea, defines strategies, balancing and gaining
edge utilising the strengths over the
weaknesses
• The main motive of a business is profit.
• Business men don’t rush unless they forecast &
address the weaker areas first.
• It should reflect the realistic goals
• Where you want to be? How? How much time?
• How clients would be better served?
• How the quality of the product & services be
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23. Goals & Objectives
• Goal – The purpose towards which organisation
is directed to achieve (generic action), may not
be measurable
• Objectives - Something that one's efforts or
actions are intended to accomplish the target or
purpose (Specific action),measurable & tangible
• Five-year specific & measurable goals
objectives.
• Market share
• Revenue & profitability
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24. Goals & objectives
• Definition of success
• Intermediate goals and success measures
• Evidence that goals can be achieved
• Timeline
• Start of the enterprise
• Incorporation date, if any
• Hiring, space, and equipment acquisition
• Start of service delivery
• Beginning of cash flow from fees, grants, and
donations
• Enterprise growth milestones
• Goal attainment
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25. Mission Statement
• Mission is the process of defining objectives and
developing strategies to reach those objectives
• A clear statement of long-term mission of your
organisation
• To use the words that will help direct growth of
your organisation
• Be concise as possible.
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26. Mission related
• What will the enterprise do, and what will it not
do?
• What does ―value‖ mean for this enterprise, and
how is it measured?
• What is this enterprise’s unique innovation or
adaptation?
• What is competitive advantage
• What is gap between demand & supply
• What constitutes ―success‖ for this enterprise?
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27. Gems of Wisdom
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28. Business Concept
• Define concept & key technology
• Market Segment
• Customer base: B2B, B2C
• Primary revenue source: Product Sales, Service
• Secondary revenue sources
• Scalability
• Captive or service oriented
• Overhead: Low, Medium, High
• Investment till breakeven
• Duration till breakeven, stable, grow & sustain
• Losses if closed before breakeven
• Profitability expected after stability
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29. Business Concept
• Benefits for customers
• Differentiators for customers
• Strategic or nice-to-have
• Value added services
• What is sensitivity for the business – Cost,
Quality, Services, Distribution, Trust?
• Exit strategy: IPO, Buyout, Private & Profitable
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30. Business Detail
• To specify detailed flow chart
• Try to capture processes, actors & entities
• Product or service
• Performance characteristics
• Cost characteristics
• Delivery mechanism
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31. Business Detail
Solution Unfair advantage
Problem Unique value proposition Customer segment
Key activity Channels
Cost structure Revenue stream
Product Market
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32. Business Detail
Key activities Customer relationship
Key Partners Unique value proposition Customer segment
Key resources Channels
Cost structure Revenue stream
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33. Business Detail
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34. Attributes
• List 5 competitive attributes
• Draw a graph for expected performance
• Decide Eliminate, Reduce, Raise or Create
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35. Edge
• Edge over your competition is your strengths.
This also a key feature.
• Special achievement & knowledge in team may
be a key differentiator and can result into growth
• Special viewpoints and ideas
• Core competencies
• Education or experience
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36. Serviceability
• Commitment statement on serviceability
• Parameters to measure
• Defining numbers for pathetic, poor, bad, ok,
good, better, excellent services
• Client is God. Profit and salary of all employees
come from their money.
• Always attempt for the best of the client services
• Communication
• Advices
• Response Time
• Suggestions
• Delivery schedule & Quality
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37. Customer Profile
• Characteristics of customers
• Value proposition
• Decision maker
• How desperate for solution?
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38. Potential customers
• One time or every time effort to grab new
customer
• Pull or push type?
• Probably most important feature of the
business.
• Understand Who are customers? Whom to
target and how?
• Know the users mind
• Who could they be the potential customers
• Why would they be customers?
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39. Competition
• Significant competitor name
• Focus of their business
• Competitive advantage of your organisation – to
define differentiators
Weaknesses
• Weakness and how we exploit it
Strengths
• Strength and how we address it
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40. Competition & trends
• Target market value
• Additional prospect base
• Existing organisations, their attributes
• Significant competitors
• Total competitors
• Trends – Past, Present, Expected
• To capture & review changes in market share,
leadership, players, market shifts, costs, pricing,
or competition that provide the opportunity for
success of your organisation
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41. Gems of Wisdom
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42. Milestones
• Stage 0 : discuss with close friends & expert,
seek views, make a judgement & decide
• Market survey & feasibility study
• Stage 1: Founding the Business
• Team, Incorporation, legal documents
• Managing funding
• Hiring
• Ground work, basic systems, building initial
product, offer services for selected geography
• Beta test and rework product or pilot
• Initial product offering
• Marketing activity
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43. Milestones
• Stage 2: Developing the Business
• Manage funding
• Crank up marketing activity
• Aggressively obtain customers
• Begin offering second product or expand service
offering in various geographies
• Emphasize customer acquisition
• Entertain any acquisition offers that arise
• Stage 3: Stabilizing the Business
• Bring in efficiency in operation & management
• Manage funding, cash flow, profitability
• File for IPO, step towards exist policy
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44. Marketing Plan
• Target Market, Segment or Demographics
• Distribution and sales channels
• Franchisee or own sales and marketing offices
• Pricing and positioning – This is most critical
decision & iterative mechanism
• Branding and strategic position
• Media & advertisement : Web / Magazine/
Inserts/ NEWS paper/ Trade Shows/ Billboards/
TV/ Radio
• Marketing, franchisee, sales team development
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45. Resource plan
Technology requirements
Personnel / Resource requirements
Infrasturcture requirements - Building,
Furniture, Internet, Communication devices
Financial, Distribution, Promotional, Legal
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46. Financial Plan
• Pricing Model
• Preferably at least for 5 years
• To forecast direct & indirect cost
• To consider every small possible expense
• Use conservative price point, may be input as a
result of feasibility study
• Detail price evolution over time, iterative
mechanism
• Stabilized gross margins
• Gross revenue, net income and growth by year
• Cash flow and capitalization needs
• Say no to business If margin is less than 25%!
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47. Financial summary
Monthly plan from 1st year to 5 years
• Revenue
• Percentage and absolute profit
• Accumulated profits/loss
• Headcount
• Customers count
• Cash flow, capitalization needs, assets
Other details
• Accumulated profits/loss till stabilisation phase
• Month of breakeven & accumulated profits/loss
• Maximum accumulated loss
• % margins post stabilisation
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48. Team
• Most important one point
• Have right people at right slot
• Gather the gems
• Know the strengths of the people & work with
those
• List Board of directors & CEO
• Vice presidents or Head for various divisions
• Previous accomplishments & track record
• Domain wise number of years of experience
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49. Partnerships
• Interested Parties
• Investor - Lead Investor organisation
• Investor - Venture organisation
• Law Firm & Attorney Name
• Experienced in aggressive venture planning
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50. Risk & Issues
• Risk – likely issue in future, probability < 100%
• Issue – A problem to be solved
• Manage the risk by mitigating & solve the issue
• Financial risk
• Legal risk
• Talent risk
• Environmental risk
• Political and governmental
• Economic
• Demographic
# Description Issue/Risk Mitigation
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51. Barriers
• To list likely barriers
• What is plan to overcome the barriers
• To categorise the barriers like social,
government, financial, legal, talent, mental,
resources, finance, machinery, communication,
etc
• To specify level of control & grip to address
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52. Time management
• Manage time well
• Plan the work and work out the plan
• Consider efficiencies of various systems to be
dealt with & which are out of your control
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53. Keep revisiting
• Keep revisiting BP & revising as you go in
details, make it dynamic
• Keep loopholes as minimum
• Get it reviewed
• Make another BP as a Plan B, so that anytime
you can seek in more resources or change the
variables
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54. Measure success
• Keep measuring progress on monthly basis
• Set the process & system
• List the experiences and possible improvements
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55. Expansion Potential
• Plan to expand business by way of additional
• Customers
• Products
• Services
• Franchisees
• Geographies
• Define measurable target quarterly & increase it
till saturation
• Plan to improve on quality of the product &
services
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56. New Potential segments
• Is there a new market ?
• How do you plan to grab a new target market ?
• Define quarter wise segments to be tapped
• Is there any growth in specific sectors ?
• How can these be tapped ?
• Any specific segment wise strategy needed?
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57. Gems of Wisdom
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58. Manage change
• Aim for sound business model & its execution
• Manage implementation & change
• To keep evaluating, learning and redesigning
• To manage improvement
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59. Gems of Wisdom
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60. Common pitfalls of B Plan
• Failing to communicate realistic goals
• Failing to anticipate problems, lack of evident
commitment or dedication to the venture
• Lack of experience
• Failure to demonstrate market niche
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61. Summary
• What is the venture ?
• Why is it new and important?
• Who will benefit from it, and how?
• How will the idea be executed?
• Who is the social entrepreneur, and what unique
skill, service, or background does he or she (or
they) bring to the venture?
• What kind of support for the enterprise is
needed, and how much of it?
• How much will be the margins?
• What will constitute success?
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62. Next Steps
• To specify immediate, short term and long term
needs & actions
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63. Checklist
• How determined am I?
• Am I an expert in the business domain?
• Would I be able for form a team of experts?
• Am I willing to invest my own money?
• What would happen to me if business doesn't
work? What are the risks to my career & life?
• Am I comfortable taking direction from others?
• Would I be able to work with partners?
• Am I in accounting & keeping track of profits?
• Am I good in relationship management?
• Do I have patience to work within the systems?
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64. Successful business
• Entrepreneurial skills of Entrepreneurs
• Skills of the individual owners
• Importance of market research
• External factors offering opportunity to develop
a product idea
• Importance of spotting a gap
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65. Q&A
• To address any question or doubt
• To encourage frank discussions
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66. Reference business proposal
• Taxi service
• https://dl.dropbox.com/u/83265908/Earthsoft-City%20Cab%20Proposal.ppsx
• https://dl.dropbox.com/u/83265908/Earthsoft%20-
%20Travel%20cab%20proposal.xls
• Training across India
• https://dl.dropbox.com/u/83265908/Earthsoft%20Foundation%20of%20Guida
nce-%20Proposal%20for%20NSDC.ppt
• https://dl.dropbox.com/u/83265908/Proposal%20for%20Soft%20skill%20dev
elopment%20-%20India%20NSDC.xls
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67. Good to refer
• http://www.slideshare.net/tosime/how-to-write-a-business-plan - Excellent
• http://www.boardofinnovation.com - ok
• http://www.slideshare.net/colinraney/planningness-2011 - ok
• www.companieshouse.gov.uk
• http://www.canadabusiness.ca/eng
• http://www.slideshare.net/infe/web-20-business-models-270855 – excellent
• http://www.slideshare.net/joestump/starting-your-startup - Excellent
• http://www.entrepreneur.com
• http://www.referenceforbusiness.com
• http://www.sba.gov
• http://www.carnegielibrary.org
• http://www.slideshare.net/vinaya.hs/business-plan
• http://www.slideshare.net/arnabray/business-planning-startup-strategies
• www.bdc.ca
• http://www.slideshare.net/startmeupryerson/rabbani-bdc-start-ups-2
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68. Gems of Wisdom
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69. Thank You
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