Presentation Transcript

1. How Does the Business Work?

   The Business Plan and the Business Model Margarita Antonova Volunteer Trainer @ Telerik Academy academy.telerik.com Business System Analyst Telerik Corporation IT Developers Business Product
2. Table of Contents Software Product vs. SaaSvsPaaS The Business Plan Break-even The Business Model Types Get together with your team!

3. Packaging Software

   Defining the combination of product and services we are selling
4. Software Products Definition a single application or a group of applications built to be used by the client Key concept the client owns the product and usually needs to install it in order to take advantage of it
5. Software Products Key features: License & Support fee – grant permission of usage Life-cycle – common stages in the life of a product on the market: inception, market entry, promotion, growth, Product line – set of related systems that address a market segment, build from common assets allowing for reuse (http://www.sei.cmu.edu) Product ecosystem – a group of products or products and services (hardware, software, support, etc.)
6. Software Service SaaS Definition – software as a service – a software delivery model where the client uses the benefits of the software without necessarily owning the software Key concepts: SaaS is in the Cloud Deployment is instant Typically accessed through a browser Hardware is outsources Technical support belongs to the Cloud, the client only need training Reduced IT costs
7. vs.
8. Platform as a Service PaaSDefinition – model for running applications without the hassle of maintaining the hardware and software Key concepts: PaaSis similar to SaaS with is Cloud driven customer service and IT savings It involves a combination of products and services usually as ad on to the main product/service

9. Business Plan

   Short term planning for the success of your business
10. Business Plan Definition 1 – an idea of how we are getting the funds to produce: equipment, overhead, salaries, taxes, licenses, etc. and how we are getting the profits to break even Definition 2 – a list of business goals, the reasons they are achievable and a plan to achieve them Definition 3– [tell the bank] what you plan to do and how you plan to do it
11. Business Plan Key concepts: Strategic – today I can do this, tomorrow I want to do that and here is how Short term – covers the next 3-5 years Can serve different purposes: Financial – not a financial document but expected by the investor Communication – use to display idea and goals to stakeholders Plausibility – evaluate the idea for the business Improvement – organize and understand the business in order to develop it Finality – not final, can be enhanced and further improved based on discussions, needs and goals
12. Business Plan Structure: Executive Summary – state what you want to achieve Business Description – explain the industry and the key features of its markets including future possibilities Marketing Plan – supported with the market analysis: Identify the target market Explain the competitive environment Describe the product and its development
13. Business Plan Structure: Operations Plan – describes: Organization of the company: departments and their roles Human Resources needed – training and outsourcing IT communication needed Risk analysis – identify potential hazards Procedures to handle risk – strategic, legal and financial Discuss business continuity
14. Business Plan Structure: Financial Plan – current and/or future break down of the financial policies in the business Financing the business – current and future sources: investors, own capital, profit, etc. Financial forecast: Cash flows – source and amount of needed cash for obligations Income Statement – ability to obtain cash profit = revenue - cost Balance Sheet – annual summary of the financial situation Assets = Liabilities + Equity
15. Business Plan Structure: Decision-making Criteria – having a business is ultimately a financial decision Break-even analysis when is BEP (break-even point) expected BEP is the point at which cost = revenue Net Present Value and the time value of money What is the current value of the future cashflows If negative or insufficient, is the business worth doing? ROI – return on investment for the creditors
16. Business Plan What is the business model: How the company will create, deliver and establish value Should take into consideration Web 2.0 concepts – user generated contend, networking, collective intelligence, focus on experiences, etc. Not all business models are effective or profitable
17. Business Plan Types of business models: Offline & online presence Advertising No middle-man Direct sales Franchise Freemium
18. Business Plan Example: http://www.entrepreneur.com/landing/216013#pas_sbp Resources: http://www.bplans.com/ http://www.entrepreneur.com/businessplan
19. Business Plan http://academy.telerik.com/student-courses/...
20. Homework Assignment Brief Financial Plan
21. How much money is required to get your business started and generating revenue? Identify needed capital requirements by determining where your business stands today, and what is needed in order to move forward.  Where do you get your money from? If you are in need of outside funding, what will be the sources and uses of funds requested. What needs to happen to break-even? Play around with financial projections and forecasts to determine the volume of sales needed to cover your expenses and to become profitable.

    Hoemwork: Financial Plan

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