Entrepreneurship

BMT3002
Digital Assignment – 6

Submitted By

Abhidayini DC
20BBA0052
B2

Submitted To

Prof. Prabhu Christopher B

VITBS

● A business plan is a formal written document that outlines a company's

goals, the methods for achieving those goals, and the timeframe for
achieving the goals. It also describes the nature of the business, background
information about the organization, the financial situation of the
organization. Projections and the strategies they intend to implement in
order to achieve the set goals. Taken as a whole, this document serves as a
roadmap that sets the direction for the company.
● While The Business Model Canvas is a strategic management template used
for developing new business models and documenting existing ones. It
offers a visual chart with elements describing a firm's or product's value
proposition, infrastructure, customers, and finances,[1] assisting businesses
to align their activities by illustrating potential trade-offs.
● The business model describes how the company is positioned within its
industry's value chain, and how it organises its relations with its suppliers,
clients, and partners in order to generate profits. The business plan translates
this positioning in a series of strategic actions and quantifies their financial
impact.
● There are different types of business model they are the business model of
production. It is the most basic business model, the company sells the
products and services it produces. For this business model to be profitable,
the company must generate enough revenue to cover its production,
distribution and storage costs.
● The advertising business model in advertising business model the goal is to
generate revenues by selling advertising space. On the Internet this model
can be segmented based on the type of advertising: CPM (cost per
thousand): the advertiser pays the publisher a fixed amount for 1,000
impressions.
● CPC (cost per click): the advertiser pays the publisher every time someone
clicks on the ad. The amount paid can be fixed or established through an
auction process.
● CPA (cost per action): the advertiser pays every time a specific action is
executed. An action can be a sale or a lead for example. The amount can be
fixed or set as a percentage of the action value.
● This business model is already slightly more complex than the production
one given that the company first need to invest in order to create a large
audience before it can attract advertisers.
● Business model based on commission (or distribution) In this The enterprise
acts as an middleman among the vendor and the client and takes a reduce of
each promote it enables generate.

● This commercial enterprise version is typically much less unstable than the
two preceding ones (and consequently much less profitable) as the extent of
funding required may be minimal.
● The subscription business model
In this The company periodically receives revenue from its subscribers. This
business model has a clear advantage: the company knows in advance how
much revenue it will generate. The other side of the coin is that it often takes
several months to recoup the cost of acquiring subscribers, resulting in lower
early-cycle cash generation.

● The freemium business model

The company offers 2 versions of its product. A free version with a limited
set of features which goals are either to raise awareness about the product or
to create a network effect. And a paid version, comprising more features,
from which it can generate enough margin to cover the cost of the free users.
The keys to success with this business model are to be able to generate huge
network effect (example: Linkedin) and/or to convert a sufficient number of
free users into paid customers (example: Uservoice).

● The accessories business model

The company offers one product for free or at a price close to its production
cost and generates a profit on the sale of accessories. The classic example of
this business model is the sale of razor blades: razors are sold for nothing but
you have to continually buy expensive blades to be able to use it.
● Coming to The business plan is going to be the detailed part that includes all
the information and steps like Mayple’s marketing plan template,
organization, products or services, sales plan, and so on. Some useful
questions that you can use when developing your business plan are:
○ What do we have now?
○ What do we want to have in the future?
○ What do we need in order to be there?
 ● The business model is a structure that a company uses to build its value. It
essentially simplifies organization and helps to achieve achievements or
overcome any type of challenge that may arise. To put it simply, business
models and business plans are really connected. A business model is a way
to make money. Maybe you sell products or services.You end up adding
value and selling it at a certain price. The goal behind it is to make a profit
from the sale of that particular product or service.

Any business model has these elements:

● The business concept is given by the opportunity you attack. It usually has
the ideal customer described, the added benefits that your product or service
brings, the product or service and how you are going to get them to the end
consumer.
● The value chain position refers to the activities that need to be done to get
from you until the end-user.
● The customer value is an estimate of the benefits that your customers receive
when they purchase your service or product.
● The revenue sources together with the cost drivers that are showing all the
activities costs.
● The competitive advantage that shows the state when a customer is
perceiving your products or services as better than the competition.
● Both business plans and business canvas model are important for a company
and Business plans are important documents used for the external audience
as well as the internal audience of the company. For instance, a business
plan is used to attract investment before a company has established a proven
track record or to secure lending. They are also a good way for companies’
executive teams to be on the same page about strategic action items and to
keep themselves on target towards the set goals.
● Although they’re especially useful for new businesses, every company
should have a business plan. Ideally, the plan is reviewed and updated
periodically to see if goals have been met or have changed and evolved.
Sometimes, a new business plan is created for an established business that
has decided to move in a new direction.
● Important elements of a business plan include
1.Executive summary
2.Products and services
3.Market analysis
4.Marketing strategy
5.Financial planning
6.Budget
● finally, A business plan is more like a writing document that’s shown in
detail the mission, vision, goals of a startup or company while a business
canvas is a simple pictorial representation of questions that assist people or
company in clarifying their idea.