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Class Information. Business 095 – 4 credits Tuesday - 5pm-8:40pm KCI building, Room 4006 Ben Dubin Work number: 650-621-8808 and mention that you are a Foothill student in my Business 95 class. 1. Class Blog.

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class information
Class Information
  • Business 095 – 4 credits
  • Tuesday - 5pm-8:40pm
  • KCI building, Room 4006

Ben Dubin

Work number: 650-621-8808 and mention that you are a Foothill student in my Business 95 class


class blog
Class Blog
  • All files from class will be there along with some interesting required readings




  • Draper University
  • Sample student presentations
  • Business Plan basics
  • Mystery Founder



Draper University

1.Who are you?

2.Why were you put on the earth?

3.What is your greatest achievement?

4.Tell us a story.

5.Draw us a picture.

6.Sing us a song.

7.Make us a movie.

8.Design a math problem, computer program or a puzzle.

9.What would you have a robot or a computer do for you?

10.Who is your hero and why?

11.Name one thing you must accomplish in your life.

12.Who is your favorite teacher?

13.What would you bring to your classmates or the school?

14.Tell us about your business idea(s).



OLD! = Business Plan Basics

  • Executive Summary
  • Market Analysis
  • Company Description
  • Organization & Management
  • Marketing & Sales Strategy
  • Service or Product Line
  • Funding Request
  • Financials
  • Appendix



OLD! = Business Plan Basics

Each one of these sections was just that – a section. A chapter. From one to 10 pages each.

When you finished you had a neat bound 10-100 page business plan document. The bible for how your were going to start, run and exit your business.



OLD! = Business Plan Basics

All you needed was $$Money$$ and you were sure to be a huge success.

But that wasn’t the case. Things change.

In fact…………




The only constant is change.



OLD! = Business Plan Basics

  • Executive Summary – still kind of ok
  • Market Analysis
  • Company Description
  • Organization & Management
  • Marketing & Sales Strategy
  • Service or Product Line
  • Funding Request
  • Financials
  • Appendix



Market Analysis

  • The market analysis section should illustrate your knowledge about the particular industry your business is in.
  • It should also present general highlights and conclusions of any marketing research data you have collected; however, the specific details of your marketing research studies should be in the appendix section of your business plan.This section should include: an industry description and outlook, target market information, market test results, lead times, and an evaluation of your competition.



Company Description

  • Without going into detail, this section should include a high level look at how all of the different elements of your business fit together. The company description section should include information about the nature of your business as well as list the primary factors that you believe will make your business a success.When defining the nature of your business (or why you're in business), be sure to list the marketplace needs that you are trying to satisfy; include the ways in which you plan to satisfy these needs using your products or services. Finally, list the specific individuals and/or organizations that you have identified as having these needs.



Organization & Management

  • This section should include: your company's organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.



Marketing & Sales

  • SWOT
  • Market penetration strategy
  • Strategy for growing your business. would offer them at different levels of the distribution chain.
  • Channels of distribution strategy. Choices for distribution channels could include: original equipment manufacturers (OEMs), an internal sales force, distributors, or retailers.
  • Communication strategy. How are you going to reach your customers? Usually some combination of the following works the best: promotions, advertising, public relations, personal selling, and printed materials such as brochures, catalogs, flyers, etc.Once you have defined your marketing strategy, you can then define your sales strategy. How do you plan to actually sell your product?



Product or Service

What are you selling? In this section, describe your service or product, emphasizing the benefits to potential and current customers. For example, don't tell your readers which 89 foods you carry in your "Gourmet to Go" shop. Tell them why busy, two-career couples will prefer shopping in a service-oriented store that records clients' food preferences and caters even the smallest parties on short notice.Focus on the areas where you have a distinct advantage. Identify the problem in your target market for which your service or product provides a solution.



Funding Request

In this section, you will request the amount of funding you will need to start or expand your business. If necessary, you can include different funding scenarios, such as a best and worst case scenarios, but remember that later, in the financial section, you must be able to back up these requests and scenarios with corresponding financial statements.




The financials should be developed after you've analyzed the market and set clear objectives. That's when you can allocate resources efficiently. The following is a list of the critical financial statements to include in your business plan packet.Historical Financial Data

Prospective Financial Data




Photos, diagrams, etc – anything that can help describe your business

Things you come across when doing research – if you are opening a restaurant, you could include a sample menu here or even a menu of restaurant that you will be competing against.

Credit history (personal & business)

Resumes of key managers

Product pictures

Letters of reference

Details of market studies

Relevant magazine articles or book references

Licenses, permits, or patents

Legal documents

Copies of leases

Building permits


List of business consultants, including attorney and accountant



Business Plan Basics

  • Executive Summary
  • Market Analysis
  • Company Description
  • Organization & Management
  • Marketing & Sales Strategy
  • Service or Product Line
  • Funding Request
  • Financials
  • Appendix



Business Plan Basics

“Everybody has a plan until they get punched in the mouth.”

Mike Tyson



Business Model Canvas

  • What do I mean by Guess???
  • You need to figure it out.
  • And when you figure it out, it WILL change
  • It is an iterative process



Business Model Canvas

  • “Great products are becoming a commodity. It's the combination between great products and a great business model that is going to keep you ahead of the competition in the coming decade."



Business Model Canvas

  • Alexander Osterwalder and Steve Blank invent the future!



Business Model Canvas

  • The whole model is broken down into 4 main categories (or blocks)
  • Infrastructure
  • Offering
  • Customers
  • Finances
  • You need to figure it out.
  • And when you figure it out, it WILL change
  • It is an iterative process



Business Model Canvas

  • Infrastructure: Key Activities
  • The most important activities in executing a company's value proposition. An example for Bic would be creating an efficient supply chain to drive down costs.



Business Model Canvas

  • Infrastructure: Key Resources
  • The resources that are necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual.



Business Model Canvas

  • Infrastructure: Partner Network
  • In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity.
  • Someone to help you sell!



Business Model Canvas

  • Offering: Value Proposition
  • The collection of products and services a business offers to meet the needs of its customers.
  • A company's value proposition is what distinguishes itself from its competitors.
  • The value proposition provides value through various elements such as newness, performance, customization, "getting the job done", design, brand/status, price, cost reduction, risk reduction, accessibility, and convenience/usability.



Business Model Canvas

  • Customers: Customer Segments
  • To build an effective business model, a company must identify which customers it tries to serve.
  • Various set of customers can be segmented base on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients.



Business Model Canvas

  • Customers: Customer Segments
  • The different types of customer segments include:
  • Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients.
  • Niche Market: Customer segmentation based on specialized needs and characteristics of its clients.



Business Model Canvas

  • Customers: Customer Segments
  • Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.
  • Diversify: A business serves multiple customer segments with different needs and characteristics.
  • Multi-Sided Platform / Market: For a smooth day to day business operation, some companies will serve mutually dependent customer segment. A credit card company will provide services to credit card holders while simultaneously assisting merchants who accept those credit cards.



Business Model Canvas

  • Customers: Channels
  • Channels: A company can deliver its value proposition to its targeted customers through different channels.
  • Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective. An organization can reach its clients either through its own channels (store front), partner channels (major distributors), or a combination of both.



Business Model Canvas

  • Customers: Customer Relationships
  • To ensure the survival and success of any businesses, companies must identify the type of relationship they want to create with their customer segments.



Business Model Canvas

  • Customers: Customer Relationships
  • Personal Assistance: Assistance in a form of employee-customer interaction. Such assistance is performed either during sales, after sales, and/or both.
  • Dedicated Personal Assistance: The most intimate and hands on personal assistance where a sales representative is assigned to handle all the needs and questions of a special set of clients.



Business Model Canvas

  • Customers: Customer Relationships
  • Self Service: The type of relationship that translates from the indirect interaction between the company and the clients. Here, an organization provides the tools needed for the customers to serve themselves easily and effectively.
  • Automated Services: A system similar to self-service but more personalized as it has the ability to identify individual customers and his/her preferences. An example of this would be making book suggestion based on the characteristics of the previous book purchased.



Business Model Canvas

  • Customers: Customer Relationships
  • Communities: Creating a community allows for a direct interaction among different clients and the company. The community platform produces a scenario where knowledge can be shared and problems are solved between different clients.
  • Co-creation: A personal relationship is created through the customer’s direct input in the final outcome of the company’s products/services.



Business Model Canvas

  • Finances: Cost Structure
  • This describes the most important monetary consequences while operating under different business models.



Business Model Canvas

  • Finances: Cost Structure
  • Classes of Business Structures:
    • Cost-Driven - This business model focuses on minimizing all costs and having no frills. i.e. SouthWest
    • Value-Driven - Less concerned with cost, this business model focuses on creating value for their products and services. i.e. Louis Vuitton, Rolex



Business Model Canvas

  • Finances: Cost Structure
  • Characteristics of Cost Structures:
    • Fixed Costs - Costs are unchanged across different applications. i.e. salary, rent
    • Variable Costs - These costs vary depending on the amount of production of goods or services. i.e. music festivals
    • Economies of Scale - Costs go down as the amount of good are ordered or produced.
    • Economies of Scope - Costs go down due to incorporating other businesses which have a direct relation to the original product.



Business Model Canvas

  • Finances: Revenue Streams
  • The way a company makes income from each customer segment.



Business Model Canvas

  • Finances: Revenue Streams
  • Several ways to generate a revenue stream:
  • Asset Sale - (the most common type) Selling ownership rights to a physical good. i.e. Wal-Mart
  • Usage Fee - Money generated from the use of a particular service i.e. UPS
  • Subscription Fees - Revenue generated by selling a continuous service. i.e. Netflix
  • Lending/Leasing/Renting - Giving exclusive right to an asset for a particular period of time. i.e. Leasing a Car



Business Model Canvas

  • Finances: Revenue Streams
  • Licensing - Revenue generated from charging for the use of a protected intellectual property.
  • Brokerage Fees - Revenue generated from an intermediate service between 2 parties. i.e.Broker selling a house for commission
  • Advertising - Revenue generated from charging fees for product advertising.



Executive Summary

  • This is still used – often as an email message, etc – to someone about your company.
  • It provides a concise overview of the entire plan along with a history of your company.
  • This section tells your reader where your company is and where you want to take it.
  • It's the first thing your readers see; therefore it is the thing that will either grab their interest and make them want to keep reading or make them want to put it down and forget about it.
  • This section is important because it tells the reader why you think your business idea will be successful.



Executive Summary

  • Now Guy Kawasaki’s point of view.



Executive Summary

  • The Grab
  • You should lead with the most compelling statement of why you have a really big idea.
  • This sentence (or two) sets the tone for the rest of the executive summary. Usually, this is a concise statement of the unique solution you have developed to a big problem.
  • It should be direct and specific, not abstract and conceptual. If you can drop some impressive names in the first paragraph you should—world-class advisors, companies you are already working with, a brand name founding investor.
  • Don’t expect an investor to discover that you have two Nobel laureates on your advisory board six paragraphs later. He or she may never get that far.



Executive Summary

  • The Problem
  • You need to make it clear that there is a big, important problem (current or emerging) that you are going to solve.
  • In this context you are establishing your Value Proposition—there is enormous pain out there, and you are going to increase revenues, reduce costs, increase speed, expand reach, eliminate inefficiency, increase effectiveness, whatever.
  • Don’t confuse your statement of the problem with the size of the opportunity (see below).



Executive Summary

  • The Solution
  • What specifically are you offering to whom? Software, hardware, service, combination?
  • Use commonly used terms to state concretely what you have, or what you do, that solves the problem you’ve identified.
  • Avoid acronyms and don’t try to use this opportunity to create and trademark a bunch of terms that won’t mean anything to most people.
  • You might need to clarify where you fit in the value chain or distribution channels—who do you work with in the ecosystem of your sector, and why will they be eager to work with you.
  • If you have customers and revenues, make it clear. If not, tell the investor when you will.



Executive Summary

  • The Opportunity
  • Spend a few more sentences providing the basic market segmentation, size, growth and dynamics—how many people or companies, how many dollars, how fast the growth, and what is driving the segment.
  • You will be better off targeting a meaningful percentage of a well-defined, growing market than claiming a microscopic percentage of a huge, mature market.
  • Don’t claim you are addressing the $24 billion widget market, when you are really addressing the $85 million market for specialized arc-widgets used in the emerging wocket sector.



Executive Summary

  • Your Competitive Advantage
  • No matter what you might think, you have competition.
  • At a minimum, you compete with the current way of doing business.
  • Most likely, there is a near competitor, or a direct competitor that is about to emerge (are you sufficiently paranoid yet??).
  • So, understand what your real, sustainable competitive advantage is, and state it clearly.
  • Do not try to convince investors that your only competitive asset is your “first mover advantage.”
  • Here is where you can articulate your unique benefits and advantages.
  • Believe it or not, in most cases, you should be able to make this point in one or two sentences.



Executive Summary

  • The Model
  • How specifically are you going to generate revenues, and from whom? Why is your model leverageable and scaleable?
  • Why will it be capital efficient?
  • What are the critical metrics on which you will be evaluated—customers, licenses, units, revenues, margin?
  • Whatever it is, what impressive levels will you reach within three to five years?



Executive Summary

  • The Team
  • Why is your team uniquely qualified to win?
  • Don’t tell us you have 48 combined years of expertise in widget development; tell us your CTO was the lead widget developer for Intel, and she was on the original IEEE standards committee for arc-widgets.
  • Don’t just regurgitate a shortened form of each founder’s resume; explain why the background of each team member fits.
  • If you can, state the names of brand name companies your team has worked for.
  • Don’t drop a name if it’s an unknown name, and don’t drop a name if you aren’t happy to give the contact as a reference at a later date.



Executive Summary

  • The Promise ($$)
  • When you are pitching to investors, your fundamental promise is that you are going to make them a boatload of money.
  • The only way you can do that is if you can achieve a level of success that far exceeds the capital required to do that.
  • Your Summary Financial Projections should clearly show that. But if they are not believable, then all of your work is for naught.
  • You should show five years of revenues, expenses, losses/profits, cash and headcount.
  • It might also make sense to show a key driver, such as number of customers or units shipped.



Executive Summary

  • The Ask
  • This is the amount of funding you are asking for now.
  • This should generally be the minimum amount of equity you need to reach the next major milestone.
  • You can always take more if investors are willing to make more available, but it is hard to take less.
  • If you expect to be raising another round of financing later, make that clear, and state the expected amount.