Introduction
A business plan is a description of your business idea and the various components of the business model canvas. It helps an entrepreneur to organize all information about the business in one document that can be presented to potential investors.
The problem, solution, strategy of delivering value, and potential of the business should be clearly presented in the business plan.
Business Model Canvas
To be able to write a business plan it is important to first develop a business model canvas for your business idea.
The business model canvas is a strategic tool used to quickly summarize the key elements of a business model in a one-page format. It helps entrepreneurs visualize and test various parts of their business ideas or model. It is not a step-by-step guideline but rather allows one to play and alter the different elements of the canvas.
Key elements of a business model canvas:
Customer segments: describes the different groups of people the business interacts with. Might me product/service buyers, suppliers, government agencies, funders, universities etc
Customer relationships: Describes relationships with each customer segment. How they are created and maintained.
Key activities: Describes what the business does e.g. farming vegetables
Key partners: Describes people we work with
Value proposition: What do we offer of customers? Describe the offer for each customer segment
Cost structures: describes costs incurred in the process of delivering value to customers e.g. staffing, transportation, advertising etc.
Revenue streams: Describes where the business will get/generate money from. E.g. sale of product or service, fees, fines etc.
Channels: communication, distribution and sales channels that help in delivering the offer/value proposition. How your product or service will reach your target customers.
Key resources: things the business requires to deliver the value to customers e.g. labour, buildings, funds etc
The best way to describe each element is to ask “what if...”.
What would happen to our revenue streams if COVID-19 struck again?
