Boek SBP Vlajo Engels by Vlaamse Jonge Ondernemingen vzw

Talent creatief ontwikkelen

Small Business Project Develop an Entrepreneurial Attitude

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Small Business Project 1

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Small Business Project

Vlajo wants to teach young people to discover their own entrepreneurial talents. Choosing goals, knowing what you want and going for it, with courage and passion. Thinking about different scenarios and organizing people and resources in a student company. Learn from experience, be well prepared for a successful functioning in business. The effect is to learn how to create added value with a direct social and economic interest. Everyone from their later workplace or company: entrepreneurship becomes an attitude. An inexhaustible source. Peter Coenen, CEO Vlajo

2019 Alle rechten zijn voorbehouden aan de geregistreerde leden van de vzw Vlaamse Jonge Ondernemingen (Vlajo). Niets uit deze opgave mag worden vermenigvuldigd, opgeslagen in een geautomatiseerd gegevensbestand of openbaar gemaakt worden in enige vorm of op enige wijze, hetzij elektronisch, mechanisch, door fotokopieën, opnamen of op enige andere manier, zonder voorafgaande schriftelijke toestemming van Vlajo. Small Business Project is een gedeponeerd handelsmerk van de vzw Vlaamse Jonge Ondernemingen.

Verantwoordelijke uitgever: Vlajo vzw Innovatie- en Incubatiecentrum Peter Coenen Kapeldreef 60 B-3001 Heverlee

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Small Business Project

Table of contents About Vlajo VZW

1 A Small Business Project with Vlajo

7 1.1 Your own Vlajo SBP 7 1.1.1 What? 7 1.1.2 Why? 7 1.2 Register 8 1.3 Your coordinator 9 1.4 What determines wheter your start-up will be successful? 9 1.4.1 Teamlevel 10 1.4.2 Personality 10 1.5 Teamwork 11 1.5.1 Team Climate 12 1.5.2 Feedback Techniques for Constructive Controversy 12 1.5.3 Evaluate and reflect 13 1.5.4 Meetings 14 1.6 Advise and help from a dreamcoach 16

2 Ask yourself 20 Questions Before Starting 3 How to Make Your Business Plan Stand Out

17 18

4 Parts of the Business Plan 19

4.1 Executive Summary 19 4.2 Company Description 20 4.3 Market Analysis 20 4.4 Organization and Management 21 4.5 Service or Product Line 22 4.6 Marketing and Sales 23 4.7 Funding Request 24 4.8 Financial Projections 24 4.9 Appendix 30

5 The Lean Start-Up 31

5.1 Introduction 31 5.2 Case Study Zero Copy 31

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You have to learn the rules of the game. And then you have to play better than everyone else. Albert Einstein

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About Vlajo vzw Vlajo is an organization that, thanks to government and business support, has a clear mission to accomplish in Flemish schools, colleges and universities. Vlajo wants to develop creative talent. From a very young age you recognize talents and everyone owns at least one. Talent must be given the opportunity to be discovered and even more: to grow. And that is what Vlajo wants to encourage. Allow students, as young as possible, to look for their own talents is not only an important basis for making better and more accurate choices in terms of work or study, it also means an important boost for their self-confidence and youth self-esteem. After all, talents go much further than just the scores on the average school subjects. Vlajo is a bridge builder between education and business. By familiarizing students with entrepreneurship and learning them to use their entrepreneurial skills the Vlajo-programs try to get studetns ready for a better entry into the labor market. Because entrepreneurial skills are required, whether you start a business yourself or you start working as an employee. In addition, Vlajo encourages contact between schools and companies, which makes for an important knowledge exchange whereby both parties learn from each other and, as a result, find more connection.

How does Vlajo do that? Through practical and experiential programs, from kindergarten to university, Vlajo stimulates the entrepreneurial spirit among young people and gives them the opportunity to identify en develop competencies. A pedagogical plan, based on the foundation of the 4 pillars of entrepreneurship (Dreaming, Doing, Daring, Continuing), forms the foundation of this highly developed learning line. In addition, Vlajo wants to anchor entrepreneurial education in a sustainable way through the formation of entrepreneurial teachers through Train-the-Teacher programs and supportive service to teachers.

Competencies in function of the workfield Thanks to participation in the Vlajo-programs, young people have a better view of their own knowledge and abilities, they will feel more confident and will become more successful. Their competencies are, after all, geared towards moving in a faster world filled with small and big challenges.

Stimulate the entrepreneurial spirit Vlajo is present in 1 out of 2 schools today and is therefore the absolute market leader in the support for entrepreneurial education. Schools want to give opportunities to entrepreneurship and all accompanying competencies. And that is a smart choice, because today we have to prepare our young generation for the challenging world of tomorrow.

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European Network Vlajo is the Flemish representation of JA Europe, the dynamic European network that gives students and teachers the opportunity to participate in international trade fairs, competitions, exchange of experiences and many other activities. JA Europe reaches 4 million students annually in 39 countries.

The Vlajo-team The Vlajo employees work throughout Flanders. Vlajo is currently counting on a team of 28 dynamic employees who follow the Vlajo programs closely and guide them. And they do that with a lot of enthusiasm! They also organize (regional and national) activities and events for students and learning coaches. Our employees are the first point of contact for the schools. Every day they strive for more entrepreneurship at the school desks and in that way they stimulate the potential of every student.

The Vlajo headquarters The Vlajo secretariat is located at the headquarters, together with the director and some employees.

Vlaamse Jonge Ondernemingen vzw | Vlajo Innovatie en Incubatiecentrum Kapeldreef 60 3001 Heverlee Tel. 016 29 84 01

Our office is open every business day from 8 am to 4 pm.

Small Business Project with Vlajo

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Small Business Project

1 A Small Business Project with Vlajo 1.1 Your own Vlajo SBP 1.1.1 What? A Small Business Project (SBP) is a practical DIY learning project that makes realistic approach for students, how to run their own business. As a young entrepreneur you will follow all the rules that apply today in real business.

Realistic Learning Process An SBP is a realistic project, in which the young people run their own business. Although within a protected framework that was created by Vlajo: Vlajo takes the role of the government within this process. The learning process is key in an SBP. A good financial result on top of that is great but certainly not a priority. The turnover of an SBP is limited to € 7500 per year. Discovering and stimulating your own talents is already a big profit for a student. It will make sure, that you will make more conscious and accurate choices in the future. Because remember: Do what you love, love what you do and you’ll never have to work one day in your life!

Dare to fail Entrepreneurship entails a risk. So failure is an important part of it. A crucial part of doing business is not avoiding mistakes, but learning from mistakes that you made. By daring and trying you will gain experience.

Sometimes you have to dare to take risks to make your dreams come true. Herman Van de Velde

1.1.2 Why? You can gain a lot of practical experience by running an SBP. When you continue your studies or when you start working, this practical experience will come undoubtedly useful. You will discover while running your SBP if starting your own company can be something for you!

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1.2 Register Register Individually Every student and teacher registers once on www.vlajo.org. Student: register as a student + higher education Teacher: register as a learning coach (=leercoach) + higher education (= hoger onderwijs)

Make Teams An SBP consists of 1 to 5 people. Choose a (provisional) managing director (= Gedelegeerd Bestuurder) in each team.

Team registration One person, the (provisional) managing director registers the SBP with a (provisional) name.

Why? This way you all have immediate access to the online knowledge center (= kenniscentrum) , the project file and the to-do list of your SBP.

How? The (provisional) managing director logs in and selects “register your team” (= registreer je team) in the menu.

The (provisional) managing director carries out the following 5 steps: Stap 1: Select the “SBP” program + find the headquarters of your school + find your campus Stap 2: Choose your learning coach (es), your teachers Stap 3: Add team members (by entering their full e-mailadres) Start by filling in your own data and choose the function “managing director”. You can tick “we will divide the functions later”. Afterwards, all co-entrepreneurs from your team fill in their details to your computer via the button “add a team member”. If all team members are filled in, choose ‘next’.

Stap 4: Details of your project Note the (provisional) team name Time = this school year or this and next school year Dream coach can be left empty for the time being

Stap 5: Save

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And now? Everyone can log in at www.vlajo.org. You now have access to: The project file: all information about your company; The to-do list: the administration for your company; The online knowledge center: a lot of extra information for junior entrepreneurs. Your Vlajo project number is on the dashboard when you are logged into the Vlajo website.

1.3 Your Coordinator Vlajo works with regional coordinators in Flanders. The Vlajo coordinator of your region is your first point of contact if you have questions for Vlajo. Look up the data of your Vlajo coordinator in the Vlajo website (after login). PS Do you want to see a photo of your Vlajo coordinator? On the Vlajo website (not logged in) you can find at contact -> employees (=medewerkers) all Vlajo team members!

1.4 What determines wheter your start-up will be successful? To understand the underlying mechanism of the success of a start-up or antother company, we can not just look at the individual founder. We need to look at what is happening at the various levels to understand what exactly drives a start-up’s performance. Below you will find an overview of the different levels.

entrepreneur(s)

team

performances

The entrepreneur(s) is the person or persons who started the whole idea of the company. Their personality traits can predict performance, but it is mainly what happens at the level of the team behind the company that influences that performance.

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1.4.1 Teamlevel How well the team works together and communicates with each other, largely determines the outcome of the company. We know from research that two important mechanisms at team level influence the company’s performance. The first mechanism is “ambidexterity” (implementation and innovation) and a second mechanism is “constructive controversy”.

Implementation and innovation (Ambidexterity) The idea behind it is that a company must find the right balance between implementation and innovation. They must therefore continue to implement their current innovations, while continuing to look for new innovations. By marketing their current product or service, the company ensures a stable income. At the same time, the company creates new long-term income by developing new products, procedures or services. However, combining implementation and innovation within a team can be a challenge, because both processes require different and sometimes contradictory behavior from the team.

Constructive Controversy This happens when the people within the team dare to disagree with each other, but at the same time remain constructive together. So the team does not avoid conflicts, they go into conflict. But the conflict is not personal, they focus not on the person, but on the task or challenge that the team faces. During such a constructive debate, team members can respectfully differ from each other, but they listen to each other’s points of view and propose alternatives themselves to find solutions that they can support. Teams that debate constructively share more of their knowledge and expertise with each other and with them also process all available information better. An important condition for being able to debate in a constructive way is that team members feel safe. Safe to share their thoughts and ideas in their team. At 1.5.2 you get tips to work on this.

1.4.2 Personality How well you manage to use the personality traits below in your project, will greatly influence the performance of your company. Various studies show that these characteristics predict behavior at the team level and thus also the business performance.

Personality traits that predict “implementation and innovation” At the beginning of the 90s, Costa & McCrae (1992) developed the five factor model of personality. This model is still used today by researchers over the whole world. These five factors are often called the big five or OCEAN. Openness Conscientiousness Extraversion Agreeableness Neurotism Doorzetten

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Openness refers to the extent to which a person is open to new experiences. Is the person trying to experiment with something new or are they rather conservative? Conscientiousness refers to the degree to which a person is well organized, is disciplined and persistent. Do they show discipline and plan or are they rather chaotic? Extraversion refers to the extent to which someone likes being close to and communicate with other people. Do they enjoy social interaction or are they earlier introverted? Agreeableness refers to the extent to which a person adapts to other people. Do they tend to take other people into account in their thinking or are they rather dominant? Neurotism refers to the degree to which a person is emotionally stable. Are they a quiet someone or are they easily triggered emotionally? In addition to these personality factors, proactivity (the extent to which you look ahead and look to the future) appears also have an important influence on the success of a team. Research shows that a team with a combination of someone who is conscientious with someone who is proactive, more likely to innovate and implement. The condition is that they can communicate well with each other.

Personality traits that predict “Constructive Controversy” A survey by Zhao et al. (2010) showed that conscientiousness and openness to experiences predicted the performance of the company, while neurotism had a negative effect on performance. Their research also showed that the personality “only” roughly 10 percent of the performance predicted. In other words, we must see personality in a wider context in combination with other factors that can affect the performance of the company to influence.

Other factors Finally, two overview studies point to the impact of self-efficacy of entrepreneur(s) on the performance (Rauch & Frese, 2007; Miao et al., 2017). Self-efficacy is faith from a person that he or she has the ability to monitor his or her behavioral performance to achieve what he or she intends or wants (Bandura, 1997). In other words, the extent to which the entrepreneur believes that he or she is capable of running a business and that they can manage and influence the results of their business.

Conclusion All in all, research tells us that entrepreneur(s) who score high on openness, conscientiousness, agreeableness, proactivity and self-efficacy together with low score on neurotism show the right combination to have a better chance of a successful business.

1.5 Teamwork Teamwork is central to the operation of a company. There is a lot of scientific conducted research into the conditions for teams to function optimally for qualitative communication and innovative output. Below we will go into more detail about three key elements for good to work in a team: the team climate, constructive controversy and reflection. Doorzetten

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1.5.1 Team Climate Below is an overview and explanation of the five factors that we know to be quality of team communication and also determine the performance of a team. We display them in degree determining the performance of a team, the most important comes first. 1 Vision: to what extent do the people in the team strive for a clear common goal? Is the misson clear and the same? 2 Safety: to what extent do people in the team share their knowledge and expertise with each other, do they listen to the others and dare to say what they think? 3 Support: to what extent do the team members feel supported by supervisors and other team members? 4 Task orientation: to what extent do the people in the team use high quality standards and do they follow up on each other’s tasks? 5 Frequency: how often do people in the team communicate with each other?

1.5.2 Feedback Techniques for Constructive Controversy At section 1.4.1 we already discussed the importance of constructive conflicts within a team. The crucial part of achieving this is that the team members know well how feedback works and how it is given. We provide below a few feedback techniques that can help make a constructive discussion.

Put the team goal first Every time you present new knowledge, a new idea or a proposal to a group, you do actually take a social risk. There is always the chance that the group does not accept what you propose and that you are socially punished for it. When that happens, people learn very quick to no longer share all their knowledge or ideas with the group to avoid social punishment. People are very sensitive to that. So when you give feedback on a new one idea or proposal you have to take into account how that feedback comes across to that person. Before you criticize you can therefore aim at the common team goal again set priority. That way you better prevent your criticism from being taken personally. When the other person feels that you are criticizing him or her, they will feel socially punished and no longer motivated to come up with new ideas to propose. Always frame your feedback. Frame your feedback in the larger picture of itcommon goal of the team.

Give feedback from yourself and substantiate your feedback If you have criticism, explain where it comes from. People can handle criticism better when they do understand where it comes from. Criticism based on just a feeling or an indiscriminate judgement causes frustration. You have to make sure that you have really considered the new idea. When people feel that their idea is being rejected, without really being considered, they get frustrated and accept the feedback difficultly. Put the focus of the feedback from yourself (“I think ...” instead of “you are ...”).

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Be constructively critical: propose alternatives! Being critical is very important, but the way in which you do that makes a big difference. It’s easy to criticize (just think of internet forums or comments). The difficulty is often in being constructive as well as critical. If you criticize something, you can, but also explain what would you change. Suggest alternatives yourself. This is really the core of a creative process. Example 1. Put team goal first: “Our goal as a team is to make customers happy.” 2. Involve feedback on yourself and the basis: “I don’t think this is the best way to do that because I think that not everyone in our target group would like something like that ” 3. Suggest an alternative: “But maybe it is possible if we add a game element to it. “ In short, you do not have to agree with all ideas in your team. You don’t have to say “yes” to every idea. You can also respond to an idea with a “No, but only if ...” You only have to ensure that this happens in a safe environment, that you frame your feedback in the larger whole of the team and that you have really considered the idea and therefore your feedback can substantiate from your perspective and that you try to propose alternatives.

1.5.3 Evaluate and reflect Evaluating and reflecting should never be a goal in itself. On the contrary, they are ultimate learning moments that you build on. It helps to get better, to to pick up new opportunities. Reflecting and evaluating are two different things.

If you evaluate: Check whether you have achieved the intended objectives / goals. Is it right or is it wrong?

Evaluation is recommended at these moments: Mid-term evaluation of the company Look at the target list, the goals you wanted to achieve. What goals have you achieved? (And how do you reward the team?) Which were too easy? (Can you achieve additional challenges before the end of year?) Which have not been realized? And how is that possible? (Which adjustment must be made?)

Final evaluation company Start with the target list at the end of the year and go over it. Then also evaluate the collaboration and personal growth. When you reflect: It is important not to judge right or wrong. Create a safe space in which you can systematically ask questions. Is there space and time to grow.

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1.5.4 Meetings Efficient meetings Meeting makes sense, but it is rarely dealt with properly. In this part we give substantiated tips to increase the chance of efficient meetings. 1 Individual preparation For decades, research has shown that people come up with more and better ideas when they first work alone and then work in group. When you start working in a group right away, you influence each other too much and participants are less responsible for their input or work. Research has shown that the combination of working individually first and then in a group, produces the best results. Not only for brainstorming, but also for meetings in general. By first working individually, more and more unique knowledge is shared and participants are held more responsible (they will need to present some ideas or proposals), which leads to better information processing. So when you are in a group that is going to hold a meeting, make it a habit to first let the participants prepare individually and also share their preparation during the meeting. This will drastically increase efficiency. 2 Accountability Individual preparation is very efficient, but only if the participants will be held accountable for it. In other words, they must also explain their preparation to the group. When they don’t have to do that, they quickly learn that they get away with not being prepared. That is at the expense of the whole team. So make sure that you ask every team meeting at everyone to share their preparation with the rest. 3 Alternate team / individual When a new agenda item appears on the table during the meeting, it makes sense to first ask everyone to briefly (just 5 minutes is enough) check and think about the point. Then you ask what everyone has written down, even if they are themselves not convinced of what they written down. This is much more efficient than throwing the subject in the group and wait for a proposal from someone in the group. 4 Breaks People only have a limited concentration span. It is important to take an occasional break take in long meetings. This is necessary to properly process the shared information. Taking a break also improves creativity, especially when the break is active. Activating states of mind also stimulate creativity. You can activate your mind in a positive or negative way. Frustration is, for example, is a negative mood, but it is activating and in that way good for creativity (e.g. a lot of comedy is based on frustration). Being enthusiastic is a positive, activating mood. But after a meal, for example, you are satisfied, that’s one deactivating mood and bad for creativity. So don’t immediately expect creativity after a good meal, first take an activating break. 5 Incubation During activating pauses, your unconscious also gets the chance to process all of the information and to incubate it, which leads to more creativity after the break. The break should not be too activating or intense, because it requires too much effort from it conscious thinking to give the unconscious the chance to process information. Playing a friendly match of table tennis, going for a walk or a - not too intensive - workout is ideal to stimulate creativity. Sleep is good too. A sleep cycle of 1.5 hours that contains a REM phase is good for incubation, but the recovery time to wake up is long. During recovery you are still tired, which is not very good for creativity. But a power nap from 10 to 30 minutes can actually reduce fatigue quickly, which is good for creativity. Not that you have to sleep during a meeting, but for complex decisions it may be useful to literally sleep on it first. Doorzetten

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6 “After drink” Now that you are together with the whole team, you may be able to take the opportunity to also provide an informal moment. The fifth factor of team climate (see 1.5.1) is frequency of communication. The informal moment and also increase the chance of a better one psychological safety. It is at those times that you make it easier for others to tell their story or to get the chance to tell something more about yourself and that is where the trust band can do benefit. Note: do not force such moments. Keep it spontaneous and leave the choice with the people. But by making a fine proposal yourself, you can increase the chance that everyone will stay a little longer and talk.

Meetings and reporting In a company it is necessary to consult regularly. You plan structured meetings with your team. It goes without saying that many decisions are preferably supported by the entire group. Meeting = a necessary evil? Not at all! Below you will find the importance of meetings and tips to make everything run as efficiently as possible. Why do you have a meeting? Brainstorming: together you have more ideas, Conference: agree on crucial points Giving information, Prepare an event, Resolve problems, Evaluate, Involvement: everyone is involved in the story. Involved parties Initiator / organizer of the meeting. This is often the CEO of the SBP Reporter / secretary Members of the SBP. Please note: not every member of the SBP must always be present. This depends on the type or nature of the meeting. What is the purpose of the meeting? It could be useful to meet by department, e.g. the executive committee, the commercial department, etc. Tips for the organiser of the meeting Careful for ‘meetingitis’! Is the meeting really necessary? Or do we meet because meeting once a week / month is the habit? You can cancel a meeting with a reason! Prepare well! Consider, for example, the preparation of the agenda items including timing, the inviting of the other members, reserve the location, ... Stick to the timing as well as possible. Less is more. Keep the meeting under control. Do not deviate. Create a good atmosphere in advance! Send out the invitation and the agenda items in advance. Create a good atmosphere during the meeting. Neutral, appropriate, pleasant location. Look for a drink, snacks, etc. if necessary Use tools (projector, board, flipchart, large sheets, post it, laptop, etc.) As leader of the meeting you are enthusiastic and relaxed. Chances are that the meeting participants attend to copy this behaviour. As a leader you make the final decission.

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Tips for the secretary Report fast, work in dots, avoid phrases. Ensure that the following 3 Ws are covered: WHO does WHAT to WHEN? A report can also be an action list:

What?

Who?

When?

Do not wait too long to finalize the report. Do this when it is still fresh in your memory. Forward the report to all attendees + the apologies. Unless you agreed that the report is first sent to the organizer. Tips for the attendees When you are invited to a meeting, you behave respectfully: You go through the agenda items. You confirm your presence and suggest any additional agenda items. You arrive on time (or apologize in advance!). Your body language radiates interest. You do not deviate too far from the planned agenda items. You listen respectfully = let the others say something. You actively think along.

1.6 Advise and help from a dreamcoach A dreamcoach is an enthusiastic and inspiring volunteer from the business world commits to guide the project to a successful result. His or her experience will take your company to a higher level and help you realize your idea. Tip: As an SBP, look for one or more of your own dreamcoach(es) that will really help you.

A Dreamcoach can: open new doors for you, motivate and encourage, offer practical help in very different areas, offer expertise so that you get the most out of your project. Some teams have multiple dream coaches throughout the year. This is of course permitted. From Vlajo we fully encourage this extra help!

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2 Ask Yourself 20 Questions Before Starting So you’ve got what it takes to be an entrepreneur? Now, ask yourself these 20 questions to make sure you’re thinking about the right key business decisions: Why am I starting a business? What kind of business do I want? Who is my ideal customer? What products or services will my business provide? Am I prepared to spend the time and money needed to get my business started? What differentiates my business idea and the products or services I will provide from others in the market? 7. Where will my business be located? 8. How many employees will I need? 9. What types of suppliers do I need? 10. How much money do I need to get started? 11. Will I need to get a loan? 12. How soon will it take before my products or services are available? 13. How long do I have until I start making a profit? 14. Who is my competition? 15. How will I price my product compared to my competition? 16. How will I set up the legal structure of my business? 17. What taxes do I need to pay? 18. What kind of insurance do I need? 19. How will I manage my business? 20. How will I advertise my business? 1. 2. 3. 4. 5. 6.

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3 How to Make Your Business Plan Stand Out One of the first steps to business planning is determining your target market and why they would want to buy from you. For example, is the market you serve the best one for your product or service? Are the benefits of dealing with your business clear and are they aligned with customer needs? If you’re unsure about the answers to any of these questions, take a step back and revisit the foundation of your business plan. The following tips can help you clarify what your business has to offer, identify the right target market for it and build a niche for yourself.

Be Clear About What You Have to Offer Ask yourself: Beyond basic products or services, what are you really selling? Consider this example: Your town probably has several restaurants all selling one fundamental product—food. But each is targeted at a different need or clientele. One might be a drive-thru fast food restaurant, perhaps another sells pizza in a rustic Italian kitchen, and maybe there’s a fine dining seafood restaurant that specializes in wood-grilled fare. All these restaurants sell meals, but they sell them to targeted clientele looking for the unique qualities each has to offer. What they are really selling is a combination of product, value, ambience and brand experience. When starting a business, be sure to understand what makes your business unique. What needs does your product or service fulfill? What benefits and differentiators will help your business stand out from the crowd?

Don’t Become a Jack of All Trades-Learn to Strategize It’s important to clearly define what you’re selling. You do not want to become a jack-of-all trades and master of none because this can have a negative impact on business growth. As a smaller business, it’s often a better strategy to divide your products or services into manageable market niches. Small operations can then offer specialized goods and services that are attractive to a specific group of prospective buyers.

Identify Your Niche Creating a niche for your business is essential to success. Often, business owners can identify a niche based on their own market knowledge, but it can also be helpful to conduct a market survey with potential customers to uncover untapped needs. During your research process, identify the following: Which areas your competitors are already well-established Which areas are being ignored by your competitors Potential opportunities for your business

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4 Parts of the Business Plan 4.1 Executive Summary The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking financing, the executive summary is also your first opportunity to grab a potential investor’s interest. The executive summary should highlight the strengths of your overall plan and therefore be the last section you write. However, it usually appears first in your business plan document.

What to Include in Your Executive Summary? Below are several key points that your executive summary should include based on the stage of your business. If You Are an Established Business If you are an established business, be sure to include the following information: The Mission Statement – This explains what your business is all about. It should be between several sentences and a paragraph. Company Information – Include a short statement that covers when your business was formed, the names of the founders and their roles, your number of employees, and your business location(s). Growth Highlights – Include examples of company growth, such as financial or market highlights (for example, “XYZ Firm increased profit margins and market share year-over-year since its foundation). Graphs and charts can be helpful in this section. Your Products/Services -- Briefly describe the products or services you provide. Financial Information – If you are seeking financing, include any information about your current bank and investors. Summarize future plans – Explain where you would like to take your business. With the exception of the mission statement, all of the information in the executive summary should be covered in a concise fashion and kept to one page. The executive summary is the first part of your business plan many people will see, so each word should count. If You Are a Startup or New Business If you are just starting a business, you won’t have as much information as an established company. Instead, focus on your experience and background as well as the decisions that led you to start this particular enterprise. Demonstrate that you have done thorough market analysis. Include information about a need or gap in your target market, and how your particular solutions can fill it. Convince the reader that you can succeed in your target market, then address your future plans. Remember, your Executive Summary will be the last thing you write. So the first section of the business plan that you will tackle is the Company Description section.

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4.2 Company Description This section of your business plan provides a high-level review of the different elements of your business. This is akin to an extended elevator pitch and can help readers and potential investors quickly understand the goal of your business and its unique proposition.

What to Include in Your Company Description? Describe the nature of your business and list the marketplace needs that you are trying to satisfy. Explain how your products and services meet these needs. List the specific consumers, organizations or businesses that your company serves or will serve. Explain the competitive advantages that you believe will make your business a success such as your location, expert personnel, efficient operations, or ability to bring value to your customers.

4.3 Market Analysis The market analysis section of your business plan should illustrate your industry and market knowledge as well as any of your research findings and conclusions. This section is usually presented after the company description.

What to Include in Your Market Analysis? Industry Description and Outlook – Describe your industry, including its current size and historic growth rate as well as other trends and characteristics (e.g., life cycle stage, projected growth rate). Next, list the major customer groups within your industry. Information About Your Target Market – Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market: Distinguishing characteristics – What are the critical needs of your potential customers? Are those needs being met? What are the demographics of the group and where are they located? Are there any seasonal or cyclical purchasing trends that may impact your business? Size of the primary target market – In addition to the size of your market, what data can you include about the annual purchases your market makes in your industry? What is the forecasted market growth for this group? For more information, see our market research guide for tips and free government resources that can help you build a market profile. How much market share can you gain? – What is the market share percentage and number of customers you expect to obtain in a defined geographic area? Explain the logic behind your calculation. Pricing and gross margin targets – Define your pricing structure, gross margin levels, and any discount that you plan to use. When you include information about any of the market tests or research studies you have completed, be sure to focus only on the results of these tests. Any other details should be included in the appendix.

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Competitive Analysis – Your competitive analysis should identify your competition by product line or service and market segment. Assess the following characteristics of the competitive landscape: Market share Strengths and weaknesses How important is your target market to your competitors? Are there any barriers that may hinder you as you enter the market? What is your window of opportunity to enter the market? Are there any indirect or secondary competitors who may impact your success? What barriers to market are there (e.g., changing technology, high investment cost, lack of quality personnel)? Regulatory Restrictions – Include any customer or governmental regulatory requirements affecting your business, and how you’ll comply. Also, cite any operational or cost impact the compliance process will have on your business.

4.4 Organization & Management Organization and Management follows the Market Analysis. 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. Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who’s in charge, so tell them. Give a detailed description of each division or department and its function. This section should include who’s on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead.

Organizational Structure A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you’re leaving nothing to chance, you’ve thought out exactly who is doing what, and there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important.

Ownership Information This section should also include the legal structure of your business along with the subsequent ownership information it relates to. Have you incorporated your business? If so, is it a C or S corporation? Or perhaps you have formed a partnership with someone. If so, is it a general or limited partnership? Or maybe you are a sole proprietor. The following important ownership information should be incorporated into your business plan: Names of owners Percentage ownership Extent of involvement with the company Forms of ownership (i.e., common stock, preferred stock, general partner, limited partner) Outstanding equity equivalents (i.e., options, warrants, convertible debt) Common stock (i.e., authorized or issued) Management Profiles

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Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information: Name Position (include brief position description along with primary duties) Primary responsibilities and authority Education Unique experience and skills Prior employment Special skills Past track record Industry recognition Community involvement Number of years with company Compensation basis and levels (make sure these are reasonable -- not too high or too low) Be sure you quantify achievements (e.g. “Managed a sales force of ten people,” “Managed a department of fifteen people,” “Increased revenue by 15 percent in the first six months,” “Expanded the retail outlets at the rate of two each year,” “Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating”) Also highlight how the people surrounding you complement your own skills. If you’re just starting out, show how each person’s unique experience will contribute to the success of your venture.

Board of Directors’ Qualifications The major benefit of an unpaid advisory board is that it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners/managers can go a long way toward enhancing your company’s credibility and perception of management expertise. If you have a board of directors, be sure to gather the following information when developing the outline for your business plan: Names Positions on the board Extent of involvement with company Background Historical and future contribution to the company’s success

4.5 Service or Product Line Once you’ve completed the Organizational and Management section of your plan, the next part of your business plan is where you describe your service or product, emphasizing the benefits to potential and current customers. Focus on why your particular product will fill a need for your target customers.

What to Include in Your Service or Product Line Section A Description of Your Product / Service Include information about the specific benefits of your product or service – from your customers’ perspective. You should also talk about your product or service’s ability to meet consumer needs, any advantages your product has over that of the competition, and the current development stage your product is in (e.g., idea, prototype). Doorzetten

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Details About Your Product’s Life Cycle Be sure to include information about where your product or service is in its life cycle, as well as any factors that may influence its cycle in the future.

Intellectual Property If you have any existing, pending, or any anticipated copyright or patent filings, list them here. Also disclose whether any key aspects of a product may be classified as trade secrets. Last, include any information pertaining to existing legal agreements, such as nondisclosure or non-compete agreements.

Research and Development (R&D) Activities Outline any R&D activities that you are involved in or are planning. What results of future R&D activities do you expect? Be sure to analyze the R&D efforts of not only your own business, but also of others in your industry.

4.6 Marketing & Sales Once you’ve completed the Service or Product Line section of your plan, the next part of your business plan should focus on your marketing and sales management strategy for your business. Marketing is the process of creating customers, and customers are the lifeblood of your business. In this section, the first thing you want to do is define your marketing strategy. There is no single way to approach a marketing strategy; your strategy should be part of an ongoing business-evaluation process and unique to your company. However, there are common steps you can follow which will help you think through the direction and tactics you would like to use to drive sales and sustain customer loyalty.

An overall marketing strategy should include four different strategies: A market penetration strategy. A growth strategy. This strategy for building your business might include: an internal strategy such as how to increase your human resources, an acquisition strategy such as buying another business, a franchise strategy for branching out, a horizontal strategy where you would provide the same type of products to different users, or a vertical strategy where you would continue providing the same products but 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 a combination of the following tactics works the best: promotions, advertising, public relations, personal selling, and printed materials such as brochures, catalogs, flyers, etc. After you have developed a comprehensive marketing strategy, you can then define your sales strategy. This covers how you plan to actually sell your product.

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Your overall sales strategy should include two primary elements: A sales force strategy. If you are going to have a sales force, do you plan to use internal or independent representatives? How many salespeople will you recruit for your sales force? What type of recruitment strategies will you use? How will you train your sales force? What about compensation for your sales force? Your sales activities. When you are defining your sales strategy, it is important that you break it down into activities. For instance, you need to identify your prospects. Once you have made a list of your prospects, you need to prioritize the contacts, selecting the leads with the highest potential to buy first. Next, identify the number of sales calls you will make over a certain period of time. From there, you need to determine the average number of sales calls you will need to make per sale, the average dollar size per sale, and the average dollar size per vendor.

4.7 Funding Request If you are seeking funding for your business venture, use this section to outline your requirements. Your funding request should include the following information: Your current funding requirement Any future funding requirements over the next five years How you intend to use the funds you receive: Is the funding request for capital expenditures? Working capital? Debt retirement? Acquisitions? Whatever it is, be sure to list it in this section. Any strategic financial situational plans for the future, such as: a buyout, being acquired, debt repayment plan, or selling your business. These areas are extremely important to a future creditor, since they will directly impact your ability to repay your loan(s). When you are outlining your funding requirements, include the amount you want now and the amount you want in the future. Also include the time period that each request will cover, the type of funding you would like to have (e.g., equity, debt), and the terms that you would like to have applied.

4.8 Financial Projections You should develop the Financial Projections section 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.

Prospective Financial Data All businesses, whether startup or growing, will be required to supply prospective financial data. Most of the time, creditors will want to see what you expect your company to be able to do within the next five years. Each year’s documents should include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, you should supply monthly or quarterly projections. After that, you can stretch it to quarterly and/or yearly projections for years two through five. Make sure that your projections match your funding requests; creditors will be on the lookout for inconsistencies. It’s much better if you catch mistakes before they do. If you have made assumptions in your projections, be sure to summarize what you have assumed. This way, the reader will not be left guessing.

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Estimating Startup Costs If you are planning to start a business, it is critical to determine your budgetary needs. Since every business is different, and has its own specific cash needs at different stages of development, there is no universal method for estimating your startup costs. Some businesses can be started on a smaller budget, while others may require considerable investment in inventory or equipment. Additional considerations may include the cost to acquire or renovate a building or the purchase of long-term equipment. To determine how much seed money you need to start, you must estimate the costs of doing business for the first months. Some of these expenses will be one-time costs such as the fee for incorporating your business or the price of a sign for your building. Some will be ongoing costs, such as the cost of utilities, inventory, insurance, etc. While identifying these costs, decide whether they are essential or optional. A realistic startup budget should only include those things that are necessary to start a business. These essential expenses can be divided into two separate categories: fixed and variable. Fixed expenses include rent, utilities, administrative costs and insurance costs. Variable expenses include inventory, shipping and packaging costs, sales commissions, and other costs associated with the direct sale of a product or service. The most effective way to calculate your startup costs is to use a worksheet that lists both one-time and ongoing costs.

Using Personal Finances Learn How Your Personal Finances Can Affect Your Business Finances Starting a business can be a tremendous strain on your personal finances. It takes time before your new venture turns a profit and provides financial support for you and your family. Before starting a business, it is important to get your finances in order. To get started, write a monthly household budget that accounts for your income and your household expenses. Be as conservative as possible because maintaining your household expenses is vital to the success of your business. Any strain on your personal budget can cause a financial risk to your business. It is also important to check your personal credit history. Because you have not established a business credit history, lenders and suppliers will use your personal credit history to determine your terms of credit.

Preparing Financial Statements Understanding financial statements is essential to the success of a small business. They can be used as a roadmap to steer you in the right direction and help you avoid costly breakdowns. Financial statements have a value that goes far beyond preparing tax returns or applying for loans. Below you will find information on the primary financial statements: the balance sheet and the income statement.

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Balance Sheet The balance sheet is a snapshot of your business financials. It includes assets, and liabilities and net worth. The “bottom line” of a balance sheet must always include (assets = liabilities + net worth). The individual elements of a balance sheet change from day to day and reflect the activities of a business. Analyzing how the balance sheet changes over time will reveal important financial information about a business. It can help you can monitor your ability to collect revenues, manage your inventory, and assess your ability to satisfy creditors and stockholders. Liabilities and net worth on the balance sheet represent sources of funds. Liabilities and net worth are composed of creditors and investors who have provided cash or its equivalent to your business. As a source of funds, they enable your business to continue or expand operations. Assets represent the use of funds. A business uses cash or other funds provided by the creditor/ investor to acquire assets. Assets include things of value that are owned or due to a business. Liabilities represent obligations to creditors while net worth represents the owner’s investment in the business. Both creditors and owners are “investors” in the business with the only difference being the timeframe in which they expect repayment.

Assets Anything of value that is owned or due to the business is included under the Asset section of a Balance Sheet. Current Assets Current assets mature in less than one year. They are the sum of: Cash Accounts Receivable (A/R) Inventory Notes Receivable (N/R) Other current assets Cash: Cash pays bills and obligations. Inventory, receivables, land, building, machinery and equipment do not pay obligations even though they can be sold for cash and then used to pay bills. If cash is inadequate or improperly managed, a business may become insolvent or forced into bankruptcy. Cash includes all checking, money market and short-term savings accounts. Accounts Receivable (A/R): Accounts receivable are dollars due from customers. More specifically, inventory is sold and shipped, an invoice is sent to the customer, and cash is collected at later time. The receivable exists for the time period between the selling of the inventory and the receipt of cash. Receivables are proportional to sales. As sales rise, the investment you must make in receivables also increases. Inventory: Inventory consists of the goods and materials a business purchases to resell at a profit. In the process, sales and receivables are generated. The business purchases raw material inventory that is processed (called work-in-process inventory) to be sold as finished goods inventory. For a business that sells a product, inventory is often the first use of cash. Purchasing inventory to be sold at a profit is the first step in making a profit. Selling inventory does not bring cash back into the business—it creates a receivable. Only after a time lag (equal to the receivable’s collection period) will cash return to the business. So it’s important that inventory is well managed so the business does not keep too much cash tied up in inventory, as this will reduce profits. Doorzetten

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At the same time, a business must keep sufficient inventory on hand to prevent stockouts (having nothing to sell). Insufficient inventory will erode profits and may result in the loss of customers. Notes Receivable (N/R): N/R is a claim due to the business as a result of the business making a loan, such as a promissory note. Making loans is the business of Small business with limited financial resources should not make loans. Notes receivable is usually a claim due from one of three sources: customers, employees or officers of the business. Customer notes receivable is when the customer who borrowed from the business when the customer failed to pay the invoice according to the agreed-upon payment terms. The customer’s obligation may have been converted to a promissory note. Employee notes receivable may be for legitimate reasons, such as a down payment on a home, but the business is neither a charity nor a bank. If the business wants to help an employee, it can co-sign on a loan advanced by a bank. An officer or owner borrowing from the business is the worst form of note receivable. If an officer takes money from the business, it should be declared as a dividend or withdrawal and reflected as a reduction in net worth. Treating it in any other way leads to possible manipulation of the business’s stated net worth. Banks and other lending institutions often condemn this practice. Other Current Assets: Other current assets consist of prepaid expenses, other miscellaneous and current assets.

Fixed Assets Fixed assets represent the use of cash to purchase physical assets whose life exceeds one year, such as: Land Building Machinery and equipment Furniture and fixtures Leasehold improvements

Intangibles Intangibles are assets with an undetermined life that may never mature into cash. For most analysis purposes, intangibles are ignored as assets and are deducted from net worth because their value is difficult to determine. Intangibles consist of assets such as: Research and development Patents Market research Goodwill Organizational expense Intangibles are similar to prepaid expenses- the purchase of a benefit that will be expensed at a later date. Intangibles are recouped, like fixed assets, through incremental annual charges (amortization) against income. Standard accounting procedures require most intangibles to be expensed as purchased and never capitalized (include in the balance sheet). An exception to this is purchased patents that may be amortized over the life of the patent.

Other Assets Other assets consist of miscellaneous accounts, such as deposits and long-term notes receivable from third parties. They are turned into cash when the asset is sold or when the note is repaid. Doorzetten

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Total Assets Total Assets represent the sum of all the assets owned by or due to a business.

Liabilities and Net Worth Liabilities and net worth are sources of cash listed in descending order from the most nervous creditors and soonest to mature obligations (current liabilities), to the least nervous and never due obligations (net worth). There are two sources of funds: lender-investor and owner-investor. Lender-investor funds consist of trade suppliers, employees, tax authorities and financial institutions. Owner-investor funds consist of stockholders and principals who loan cash to the business. Both lender-investor and owner-investors have invested cash or its equivalent into the business. The only difference between the investors is the maturity date of their obligations and the degree of their nervousness.

Income Statement The income statement, also known as the profit and loss statement, includes all income and expense accounts over a period of time. This financial statement shows how much money the business will make after all expenses are accounted for. An income statement does not reveal hidden problems, like insufficient cash flow. Income statements are read from top to bottom and represent earnings and expenses over a period of time.

Developing a Cash Flow Analaysis For small businesses, cash is king. You need it to start, operate, and expand your operations, but many small business owners often have trouble managing and maintaining cash. Inaccurate cash flow analysis - or lack of available cash - can affect the everyday operations of your business and your eligibility to receive a loan. Cash flow is the movement of money in and out of your business. The process includes: Inflow which comes from operations such as the sale of goods and services, loans, lines of credit, and asset sales. Outflow which occurs during operations such as business expenditures, loan payments, and business purchases. It’s crucial to balance these two figures and maintain a reasonable balance of cash at all times. An effective cash flow system will help you manage funds to cover operational costs and bills and help you foresee potential problems in the future. Profit and loss statements and income statements can be used to determine projections for future cash flow trends of your business. These financial documents are instrumental in making cash flow projections. However, a cash flow statement serves an important and independent purpose - it accounts for non-cash items and expenses to adjust profit figures. Cash flow analysis statements display not only changes over time, but also available net cash.

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Cash flow analysis statements are generally separated into three parts: Operating activities: This section evaluates net income and loses of a business. By assessing sales and business expenditures, all income from non-cash items is adjusted to incorporate in flows and outflows of cash transactions to determine a net figure. Investment activities: This section reports inflows and outflows from purchases and sales of long-term business investments such as property, assets, equipment, and securities. For example - if your bakery business purchases an additional piece of kitchen equipment, this would be considered an investment and accounted for as an outflow of cash. If your business then sold equipment that was no longer needed, this would be considered an inflow of cash.. Financing activities: This section accounts for the cash flow trends of all money that is related to financing your business. For example: if you received a loan for your small business, the loan itself would be considered an inflow of cash. Loan payments would be considered an outflow of cash, and both would be recorded in this part of the cash flow analysis statement.

Breakeven Analysis Breakeven Analysis: How to Know When You Can Expect a Profit Breakeven analysis is used to determine when your business will be able to cover all its expenses and begin to make a profit. It is important to identify your startup costs, which will help you determine your sales revenue needed to pay ongoing business expenses. For instance, if you have € 10.0000 of product sales, this will not cover € 10.000 in monthly overhead expenses. The cost of selling € 10.000 in retail goods could easily be €7.000 at the wholesale price, so the € 10.000 in sales revenue only provides € 3.000 in gross profit. The breakeven point is reached when revenue equals all business costs. To calculate your breakeven point, you will need to identify your fixed and variable costs. Fixed costs are expenses that do not vary with sales volume, such as rent and administrative salaries. These expenses must be paid regardless of sales, and are often referred to as overhead costs. Variable costs fluctuate directly with sales volume, such as purchasing inventory, shipping, and manufacturing a product. To determine your breakeven point, use the equation below: Breakeven point = fixed costs/ (unit selling price – variable costs)

Borrowing Money for Your Business After you have developed a cash flow analysis and determined when your business will make profit, you may decide you need additional funding. Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn’t always easy. Before you approach a lender for a loan, you will need to understand the factors the bank will use to evaluate your application.

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4.9 Appendix The Appendix should be provided to readers on an as-needed basis. In other words, it should not be included with the main body of your business plan. Your plan is your communication tool; as such, it will be seen by a lot of people. Some of the information in the business section you will not want everyone to see, but specific individuals (such as creditors) may want access to this information to make lending decisions. Therefore, it is important to have the appendix within easy reach. The appendix would include: 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 Contracts List of business consultants, including attorney and accountant Any copies of your business plan should be controlled; keep a distribution record. This will allow you to update and maintain your business plan on an as-needed basis. Remember, too, that you should include a private placement disclaimer with your business plan if you plan to use it to raise capital.

“Because a goal without a plan, is just a wish”

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5 The Lean Start-Up 5.1 Introduction Today, more and more future starters do not write a classic businessplan after drawing up a business model. They can do that later, if the business model has been researched and refined to such an extent that we can state that it is validated and the product or service can enforce its place in the market! At that time we may already have built a (limited) version of the product / service, and we are already “in business”. The origin of this lean start-up method lies in the book with the same name (2011) by Eric Ries. Others built on this, including Ash Maurya, who with his book “Running Lean” the book provides a practical guide into starting a business in a “lean” way. Although originally worked out for technological and internet-related start-ups, this method is more and more used by other starting companies, regardless of sector or activity.

But what does the “Running Lean” method stand for? The background for this method is the knowledge that most start-ups fail because their offer does not provide a good solution for the intended target group’s problem. In the moment that becomes clear there are often already made a lot of investments, and it is too late (due to lack of resources) for the situation to straighten. Running Lean offers you a process to work out your initial idea step by step and validate that idea in the market. You will thoroughly test and adjust your assumptions. And you are going to make a prototype very fast (the so-called “minimum viable product”, the smallest possible variant of your product to present to your target group). You test, measure the market response, and then adjust again. This way you build gradually until you have a product / service that is viable in the target market. You are therefore taking small steps forward in the development / realization of your idea and business model. In that way, the development of your product will go faster, and you will waste less money.

Specifically, how can you get started with this? You start from a business model, which you document in a canvas, on one page. This canvas can be a Business Model Canvas, but it can also be a variant, such as the in the “Running Lean” book proposed Lean Canvas . Such a business model is always based on assumptions. It is up to you to look for the riskiest assumptions (i.e. which assumptions I make really determine it) possible success of my plan. You will then test those assumptions in the market. You are going to speak with experts, and with your target group. You do not take surveys, but you talk to people (in the correct way, without “selling”) and watching how they act and / or respond. Do they really have the problems that you try to solve? And how do they solve these problems today? Does your solution offer the answer to those problems? ... You ask, validate your assumptions, and adjust your model. And you quickly build a prototype (your “Minimum Viable Product”), test it in the market, you measure there actions, and adjust again ... This is how you continue to build, until you have something that has proven its reliability, and that really demonstrably attracts a target group. At that moment we speak of a so-called Product-market-fit, you have a product that fits the market! Nothing is stopping you now to grow further, and at the moment a business plan can also prove its worth. The risk is now much smaller that the business plan turns out to be unrealistic afterwards!

5.2 Case Study Zero Copy Doorzetten

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RUNNING LEAN WITH ZEROCOPY from idea to a business model that works Maxime Carpentier +32 475 89 34 86 maxime.carpentier@zerocopy.be

A START-UP IS NOT A COMPANY

START-UP

COMPANY

Searches for a business model that works

Executes a business model that works

• Focus: Validated Learning • Experiments: Pivots • Measuring: Qualitative

• Focus: Growth • Experiments: Optimization • Measuring: Quantitative

1. 2. 3. 4. 5. 6.

Agenda

Define Plan A Define Riskiest Parts Systematically test your plan Product Market Fit Scale up Summary

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May ‘12

1. DEFINE PLAN A: YOUR IDEA ON 1 PAGE Problem

Solution

Unique Value Proposition

Unfair Advantage

Customer Segments

Existing Alternatives

Key Metrics

High-level concept

Channels

Early Adopters

• Lean Canvas (Maurya)

Cost structure

Revenu stream

May ‘12

1. DEFINE PLAN A: ZEROCOPY Zerocopy Plan A

Free printing for students enabled by targeted advertising on their prints

May ‘12

2. DEFINE THE RISKIEST PARTS: WHAT ARE YOUR KEY ASSUMPTIONS Problem

Solution

Unique Value Proposition

Unfair Advantage

Customer Segments

Existing Alternatives

Key Metrics

High-level concept

Channels

Early Adopters

Cost structure

Revenu stream

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May ‘12

2. DEFINE THE RISKIEST PARTS: ZEROCOPY

Students?

Advertisers?

Copy Shops?

May ’12 – Dec ‘12

3. SYSTEMATICALLY TEST YOUR PLAN: HOW TO GET REAL DATA OUT OF THE MARKET

Get out of the Building (Blank)

Minimum Viable Product (Ries)

Do my clients have a problem worth solving?

The smallest product to gather data on your market

• Problem interviews • Solution interviews

May ’12 – Aug ‘12

3. SYSTEMATICALLY TEST YOUR PLAN: ZEROCOPY Get out of the Building (Blank): Do my clients have a problem worth solving?

Students?

Advertisers?

Copy Shops?

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May ’12 – Aug ‘12

3. SYSTEMATICALLY TEST YOUR PLAN: ZEROCOPY Get out of the Building (Blank): Do my clients have a problem worth solving?

Students?

Advertisers?

Shops? 10

Sep ’12 – Dec ‘12

3. SYSTEMATICALLY TEST YOUR PLAN: ZEROCOPY

Minimum Viable Product (Ries): The smallest product to gather data on your market

Students?

Advertisers?

Shops? 11

Dec ’12 – ‘Jun ‘16

4. ITERATE TOWARDS PRODUCT/MARKET FIT

Problem/Solution Fit • My clients have a problem worth solving • My solution solves the problem of my clients

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Dec ’12 – ‘Jun ‘16

4. ITERATE TOWARDS PRODUCT/MARKET FIT

Problem/Solution Fit

Product/Market Fit

• My clients have a problem worth solving • My solution solves the problem of my clients

• • •

Retention above 40% 3 Growth Channels Robustness

Dec ’12 – ‘Jun ‘16

4. ITERATE TOWARDS PRODUCT/MARKET FIT: ZEROCOPY • • •

Retention above 40% 3 Growth Channels Robustness

Students Product/Market-fit

Advertisers

Shops

Product/Market-fit

Product/Market-fit 14

Dec ’12 – ‘Jun ‘16

4. ITERATE TOWARDS PRODUCT/MARKET FIT

Problem/Solution Fit

START-UP

Searches for a business model that works • Focus: Validated Learning • Experiments: Pivots • Measuring: Qualitative

Product/Market Fit

Scale Up

COMPANY

Executes a business model that works • Focus: Growth • Experiments: Optimization • Measuring: Quantitative

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Jul ’16 – ‘Sep ‘16

5. SCALE UP

GROWTH! • Focus: Growth • Experiments: Optimization • Measuring: Quantitative

Jul ’16 – ‘Sep ‘16

5. SCALE UP: ZEROCOPY Scale Internationnaly Launch The Netherlands

Jul ’16 – ‘Sep ‘16

5. SCALE UP: ZEROCOPY ZEROCOPY 1.0 Software

B2B Sales Hardware

B2C Marketing Logistics

• •

•

Retention above 40% 3 Growth Channels

Robustness???

Scalable

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Jul ’16 – ‘Sep ‘16

5. SCALE UP: ZEROCOPY ZEROCOPY 1.0 Software

B2B Sales Hardware

ZEROCOPY 2.0 B2C Marketing

Logistics

Scalable

Software

B2B Sales Hardware

B2C Marketing Logistics

Very Scalable

Sep ’16 – ‘Jun ‘17

5. SCALE UP: ZEROCOPY

Shops

Copy Shops

Sep ’16 – ‘Jun ‘17

5. SCALE UP: ZEROCOPY Define Plan A + Define Riskiest Parts

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Sep ’16 – ‘Jun ‘17

5. SCALE UP: ZEROCOPY Define Plan A + Define Riskiest Parts

Systematically test your plan Get out of the Building (Blank): • Do my clients have a problem worth solving? Minimum Viable Product (Ries): • The smallest product to gather data on your market

Sep ’16 – ‘Jun ‘17

5. SCALE UP: ZEROCOPY Product Market Fit

Students Product/Market-fit

Advertisers

Copy Shops

Product/Market-fit

Oct ’17 – Feb ‘18

5. SCALE UP: ZEROCOPY

Delivery

? Doorzetten

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Oct ’17 – Feb ‘18

5. SCALE UP: ZEROCOPY Define Plan A + Define Riskiest Parts

Oct ’17 – Feb ‘18

5. SCALE UP: ZEROCOPY Define Plan A + Define Riskiest Parts

Systematically test your plan Get out of the Building (Blank): • Do my clients have a problem worth solving? Minimum Viable Product (Ries): • The smallest product to gather data on your market

Oct ’17 – Feb ‘18

5. SCALE UP: ZEROCOPY Product Market Fit

Students Product/Market-fit

Advertisers Product/Market-fit

Delivery Product/Market-fit

Doorzetten

Small Business Project

6. SUMMARY 1. 2. 3. 4. 5.

Define Plan A Define Riskiest Parts Systematically test your plan Product Market Fit Scale up

Doorzetten

Small Business Project

Notes ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. ............................................................................................................................................................................. .............................................................................................................................................................................

Doorzetten

Small Business Project

Doorzetten

Small Business Project

Vlaamse Jonge Ondernemingen vzw Innovatie-en Incubatiecentrum Kapeldreef 60 | 3001 Heverlee t 016 29 84 01 | info@vlajo.org

www.vlajo.org

structurele partners structurele partners

partners

Clicla EVENTSOLUTIONS FOR EVERYONE

regionale partners

regionale partners met de steun van

met de steun van

Doorzetten

Small Business Project

Boek SBP Vlajo Engels

Articles inside

4.5 Service or Product Line

4.9 Appendix

4.6 Marketing and Sales

4.4 Organization and Management

1.6 Advise and help from a dreamcoach

3 How to Make Your Business Plan Stand Out

2 Ask yourself 20 Questions Before Starting

About Vlajo VZW

1.5.4 Meetings

1.2 Register

1.5.3 Evaluate and reflect

1.5 Teamwork