Published on March 17, 2014
Entrepreneurship Lesson 6 0
Agenda Topics • Entrepreneurship • Building a business Activities • What is entrepreneurship (20 mins.) • Elements of a business plan (30 mins.) • Creating a business model – ( 40 mins.) • Wrap-up – (10 mins.)
Can you recognize these entrepreneurs?
You’re Right Steve Jobs Mark Zuckerberg Oprah Winfrey Azim Premji Indra Nooyi
Do you know any female entrepreneurs? Caterina Flake, founder of Flickr Ekta Kapoor, Joint Managing Director and Creative Director of Balaji Telefilms - Vandana Luthra, founder and mentor of the VLCC, India’s leading slimming, beauty and fitness brand
Group Discussion • Who is an entrepreneur? • What do you think are the personal characteristics of an entrepreneur? • What do you think it would take for you to become an entrepreneur?
What does it take to build a profitable business? Elements of a business plan: 1. Value Proposition - What value do we deliver to the customer? Low Price/Accessibility/Convenience? 2. Market Size - Who are all the people and organizations for which you are creating value? There must be enough people who would buy your product/service to make a profit 3. Revenue Streams - To be a business, you have to make money…from whom and how? Paid apps? Advertising? In-game purchases? 4. Cost structure- What are the important costs in your business? 5. Distribution Channels - How are you reaching your customers? Which method works best? Which are the most cost-efficient?
Case Study: Angry Birds Angry Birds – a mobile phone application puzzle game
Value Proposition Definition • What value do we deliver to the customer? • Which one of your customer’s problems are you helping to solve? Angry Birds: value for users • Angry Birds frees people from boring situations and provides entertainment
Value Proposition Example Value propositions look like this: • For [insert target customers] who [insert statement of need or opportunity] is [insert your product category] that [insert statement of benefit] • For ICICI customers who need to stay up to date with their accounts, the online check deposit app is a banking app that gives customers the ability to deposit checks quickly.
Market Size Definition • You want to build a business where there are enough people who would buy the product to make you money. • These can be both paying and non-paying customers. Angry Birds: Market size • Entertainment through games • Multiple versions available • Accessible on different platforms
Revenue Streams Definition • Paid Apps • Advertising and • In-game purchases Angry Birds: Revenue Streams • Advertising • Paid application • In-app purchase • Angry Bird merchandise
Cost Structure Definition • What are the most important costs in your business? • If you were to turn this app into a real business, what else would you have to pay for? Angry Birds: Cost Structure • The game took $122,880 to program in total • Pay a cost to platforms • Operations: Rent for office building Raw materials for merchandise Salaries for Employees Computers and Development Software
Distribution Channels Definition • How are you reaching your customers? • Which ones work best? Which are the most cost-efficient? Angry Birds: Distribution channels • December 2009, Angry Birds hit the App Store • Apple App Store, Android Market, Angry Birds Website, Facebook platform, Roku platforms • Stores for Angry Bird merchandise
Business Model Summary • Value Propositions • Market Size • Revenue Streams • Cost structure • Distribution Channels
Activity: Business Model • Think about the following: What is your target market? How big is your market? What will your revenue streams be? Cost Structure? Distribution Channels? Optional :If the students have their workbook, they can record your ideas in pages 19-20 of the workbook
BUSINESS MODEL TEMPLATE What problem in the community your app is solving? How are you defining your community (similar to market): Describe your app in 3 sentences max. Value Propositions: What value does your app idea add to a customer? Why is your app idea something that people will want to use? What stands out about your app idea from others? What is special about your app idea? Market Size: Who are you trying to sell your app to? How many people do you plan to sell your app to? There needs to be enough people who will buy your app to make money. Revenue Streams: What are the different ways that you will make money? Will you charge people to use your app? If so, how much and how often (monthly subscription, yearly, or daily)? Cost Structure: What are the expenses for your team? Where would you work out of if you started your own business and how much would it cost? Do you have employees? Who will you need to hire, if anyone? Distribution Channels: How are you getting your app to customers? How are you increasing your market size? Will you use social media, sell to people in person, sell your app to schools or other business? Where will you advertise? Is there anything that your team will have to find out (or needs more information on) in order to build your app? What would you ask investors for to take your app to market?
Task List • Complete the business model for your app. You’ll need it to finalize your business plan. • Continue to work on the functionality of each individual screen in your prototype, starting with the easiest components.
Wrap-Up • Explore if any participants are interested with meeting with Anuranjita Tewary, founder of Technovation • A group of 25 girls will be meeting with Anu, at the Intuit office in Bangalore on March 25 • Share names of interested participants with Madhavi and Megha by March 22 • Explore and sign-up for The Technovation Pal Program - http://tinyurl.com/pa4plqd
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