Developing your business as a team

1. Developing your business as a team

2. Who? Jane Nolan MBE Teaching Fellow in Enterprise (ICMuS) Rise Up Visiting Entrepreneur at Newcastle University MD Venture Coaching and Consulting Ltd 3rd Year PGR SELLL (part time)

3. XING • A commercialisation and planning Tool • 90 key decisions • Familiarises you with the terminology of business planning and development • An opportunity to work on your idea and consider how you would turn it into a business • Consider your goals and how to achieve them

4. Your Business What is the Market? How will you Approach it? What is your business model? What is the Unique Selling Proposition? What is the competition and what advantage does your product or service offer? Who are you targeting? What are the Risks and Rewards? What Knowledge or intellectual property is involved? Patents, Trademarks? Is it legal, Ethical, Sustainable? What skills and abilities will be needed in your Team?

5. Business Structures Price, A and Sarmiento, T, 2008

6. Business Structures

7. Business Structures Price, A and Sarmiento, T, 2008

8. Business Structures Price, A and Sarmiento, T, 2008

9. Business Structures Price, A and Sarmiento, T, 2008

10. Business Structures Price, A and Sarmiento, T, 2008

11. Business Structures Price, A and Sarmiento, T, 2008

12. What Finance will you need and where might it come from? • YOU (£0-£10k) • Seed Funds • Friends and Family (£0-£50k) • Grants and Competitions (£0-£50k) • Loans (£10k-£800k) • Equity Finance • Angels (£20k-£500k) • Venture Capitalists (£1m-£20m----?) • Initial Public Offering – established companies • Company shares traded on the stock market

13. Xing • Idea in 10 words or less • SMART Goal • S? • M? • A? • R? • T?

14. Xing themes Strategy – Goals, structure, R&D, training, eventual exit Actions – practical actions – bank account, legal entity, business plan, IP Finance – how will you finance it? Marketing – market research, brand, understanding your market, pricing, segmentation, distribution People- creating an effective team, complementary skills, training needs, collaborating/outsourcing

17. Identifying your Value Proposition and Researching your Idea

18. Working out your Business Model • Osterwalder and Pigneur (2010) suggest that there are nine building blocks to a business model. • They worked with 470 practitioners from 45 countries to develop a framework • A visual business planning tool

19. Business Model Canvas • Your business model is your rationale of how your organization creates, delivers, and captures value • Value can be economic, social, or other forms • Business Model Canvas = helps you consider your business model • http://www.businessmodelgeneration.com/canvas

20. Key Partners Some activities are outsourced and some resources are acquired outside the business Key Activities … by performing a number of key activities Value Propositions It seeks to solve customer problems and satisfy customer needs with value propositions Customer Relationships Customer relationships are established with each segment Customer Segments A business serves one or several customer segments Key Resources Key resources are the assets required to offer and deliver the described elements Channels Value propositions are delivered to customers through communication, distribution and sales channels Cost structure The business model elements result in the cost structure Revenue streams Revenue streams result from value propositions successfully offered to customers Source: Osterwalder and Pigneur (2010)

21. The Business Model Canvas Value Propositions It seeks to solve customer problems and satisfy customer needs with value propositions What value do we deliver to the customer? Which of our customers problems are we helping to solve? What bundles of products and services are we offering to each customer segment? Which customer needs are we satisfying? Customer Relationships are established with each segment What type of relationships does each of our customer segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our model? How costly are they? Customer Segments A business serves one or several customer segments For whom are we creating value? Who are our customers? What are their needs? How can we segment the Market? Niche approach? Mass market? Multisided platforms?

22. The Business Model Canvas Key Partners Some activities are outsourced and some resources are acquired outside the business Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from our partners? Which key activities to partners perform? Key Activities ….by performing a number of key activities What key activities do our value propositions require? Our distribution channels Customer relationships Revenue streams Key Resources the assets required to offer and deliver the described elements What key resources do our value propositions require? Human (the Team), physical, financial, IP? Our distribution channels Customer relationships. Revenue streams.

23. The Business Model Canvas Cost Structure The business model elements result in the cost structure What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are most expensive? Revenue Streams For what value are our customers really willing to pay? For what do they currently pay? How are they paying? How would they prefer to pay? How much does each stream contribute to overall revenues? Channels Through which channels do our customer segments want to be reached? How are we communicating with and reaching our customer segments to deliver and distribute our value proposition? How are our channels integrated? Which work best? Which ones are most cost efficient?

24. What will your business model be? • Manufacturing? • Service delivery? • Creating a technology platform? • Being an R&D company and selling the technologies to others? • Licensing your technology? • Working with mass or niche markets?

25. What is your business model? • Use post it notes to consider aspects of your business model and put them on the canvas • Start with your value proposition • Work out your business model • Then research your proposition • Work out your costs, revenues and finance needs

26. Any questions?