VISION MISSION UNMET NEEDS TARGET MARKET

VA LUE P RO P O SITION
BUSINE SS O VE RVIE W

Audacious Goal Big Why Pain Point Early Adopters

SUCCESS FACTORS

PRODUCTS
Magic Metric 1963 That Provides . . .

Minimum
Product
Viable
We Are . . . 1
Yb1963 That Provides . . .

Exit Plan Giant Leap Unfair Advantage Niche Ownership

GROWTH PHASES RISKS UNIQUE SELLING POINTS POSITIONING PARADOX

4
2
PROJECTIONS FUNDING INPUTS FOUNDER ROLES

DE LIVE RY P RO P O SITION
FINA NCIA L P RO P O SIT ION

Breakeven Runway Secret Ingredient Skills Gap

COST MINIMISATION

ACQUISITION PLAN
Outsource Opportunity

Acquisition
Cost of
To Generate . . . 3 Using Our . . .

Gross Profit Margin Recurring Revenue Achilles Heel Platform Spend

FINANCIAL MODEL REVENUE STREAMS HURDLES SCALE STRATEGY

© Copyright Decisionship Pty Ltd 2016
 1. UNMET NEEDS – These are the problems that 2. TARGET MARKET – The target market is the 3. POSITIONING PARADOX – The task of 4. USP’S – These are the unique selling points of 5. PRODUCT(S) – These are the different
you could try to solve. Look at the unmet needs customer segment you will target. Businesses choosing a position between two extremes, your service compared with your competitors. products or services you will provide.
Value   Proposition
from the customer or industry’s point of view. are more effective when they focus on a niche. which both could result in success, yet being in
the middle rarely can. It is also a way to
CONSIDER: How your product or service can be CONSIDER: Line extension – different colours,
differentiate from competitors.
(Desirability)

CONSIDER: What do customers dislike about CONSIDER: Geographic market. E.g. continent, easier, faster, cheaper, greater, scarcer or sizes, numbers of the same product or service.
competitor’s products? Why is the industry as a country, city, suburb etc. Demographic superior. USP’s that relate to the product, service Vertical integration – products and services up
whole not serving customers? Considering price, segments. E.g. gender, age, race, home CONSIDER: Local vs Global Discounted vs or price (Rational Needs). USP’s that relate to and down the supply chain. Horizontal
service and features of similar products and ownership, parenthood, education, jobs etc. Premium High touch vs Low touch customer pride, fear or greed (Emotional Needs). integration – complementary products and
services, what would customers consider needs Attitude divisions. E.g. preferences, where they services.
improving? congregate, how they communicate, spending
behavior, etc. Niche Ownership – the category you can own Unfair advantage – the key differentiator that
in your customers mind. none of your competitors have. Minimum Viable Product (MVP) – is the lean
Pain Point – the key pain point or unmet need product or service you can launch to your target
your solution will solve. Early Adopters – the key market segment most market in order to generate your first sales and
likely to initially buy your product. customer validation.

6. HURDLES – These are the barriers to 7. INPUTS – What are the core inputs or activities 8. FOUNDER ROLES – The people to 4. ACQUISITION STRATEGY – The sales and 10. SCALE STRATEGIES – These are the
Financial   Proposition Delivery   Proposition

achieving success. What is holding you back. that will need to be performed to produce, sell, partnership to launch your business now and marketing plan for how you achieve new strategies that need to be considered upfront to
service, deliver and support your business. What scale in the future. customers. make the business model truly scalable.
are the main resources you will require.
CONSIDER: What outlays, time delays or lack of
infrastructure will hold you back? What legal or CONSIDER: What is the natural corporate CONSIDER: Type of sales force, affinity partners CONSIDER: Partners and reputation you can
(Feasibility)

regulatory hurdles or industry constraints are CONSIDER: Sales activities, E.g. lead generation, structure of who performs what jobs? for access to prospects, database building, social leverage (affinity, alliances, strategic, supplier).
there? What prevents customers leaving your lead conversion. Operations activities, E.g. how Differentiating the operational roles between media, PR and awareness, lead magnets and Infrastructure you can leverage, distribution you
competitors or are there any other sales hurdles? you will produce your product or service? founders. The natural delineation of other tools to generate permission, advertising can access or components you can purchase
Support activities, E.g. accounting, people responsibilities including a scaffold even if the mediums and campaigns, the customer buying and resell rather than produce. Systems that you
management, office, IT. founder performs all roles at the outset. cycle and matching it to your sales cycle. can automate.
Achilles Heel – the hurdle that has the most
potential to derail your business.
Secret Ingredient – the key input making Skills Gap – the functions you don’t currently Cost / Acquisition – the average cost / sale (you Platform Spend – How much is your estimated
demand or supply easier or better. have team members to perform. can look at it now or what it will be when you have budget to spend on the initial technology
a certain volume or on a certain date eg 12 platform build inhouse investment or outsourced
months time. spend.

11. REVENUE STREAMS – How you will 12. FINANCIAL MODEL – The financial model 13. COST MINIMISATION – One of the best 14. SUMMARY PROJECTIONS – This is the 15. FUNDING – How much funding you will
generate revenue from customers. outlines how you make money in a broad sense methods to ensure long term financial viability is monthly and yearly financial projections that require to ensure viability and at least a 3-month
i.e. not on a month-by-month basis. to maintain a low cost base. form the basis of a budget. buffer for safety.

SOME QUESTIONS TO CONSIDER: What

upfront and ongoing revenue you will generate YOU COULD BREAK THIS DOWN INTO EITHER: SOME STRATEGIES MIGHT INCLUDE: Flexible SOME THINGS TO WATCH: Seasonality and CONSIDER: Identifying funding required from a
(Viability)

from your core products and services? What How you make money per customer e.g. (Price x suppliers (not contracted). Reduced inventory. realistic build up (unlikely to be completely linear cash flow statement created using your 3-year
other products or services could you make Volume) – Cost of Goods Sold How you make Employees on contracts or commissions. growth). Don’t spend and hope, rather release projections. How much funding you will need to
revenue from? How can you make money from money per product line. How you make money budget as sales are realised. Make sure all of secure. Identifying who the natural funders are
cross-selling other companies’ products? on an annual basis once you achieve critical the real costs are included. and the equity you will give away.
Outsource Opportunity – the non-core activity
mass.
you will outsource or offshore.
Recurring Revenue – residual or contracted Break-Even – the date and sales level (dollars of Runway – the length of time you can survive
Gross Profit Margin – the profit margin for your volume) required to cover costs. without any further funding.
base product after taking into consideration all
costs of goods sold.

16. RISKS – The areas for potential failure for 17. GROWTH PHASES – The natural division 18. SUCCESS FACTORS – The factors that 19. VISION – This is the ultimate goal that you 20. MISSION – This is how you plan to do
Business  Overview

your business. between stages on your entrepreneurial journey need to be focused on to ensure success and aim to achieve in business. business and who you plan to help.
from start-up to exit. the prevention of failure.

SOME QUESTIONS TO CONSIDER: What are the CONSIDER: It may be a legacy for what the CONSIDER: How will you help your
legal risks, what are the macro-econom ic risks, CONSIDER The outcomes required for CONSIDER: Success factors that result in the company has become. It may be a legacy for the stakeholders? How will you do business
(Durability)

what are the execution risks, regulatory risks, completing the eight stages of business. The cost-effective and timely acquisition of change you want to impact in others. It may be differently from your competitors? What is your
technology risks, cashflow risk, founder risk, implementation timetable of your products, customers. Success factors that result in the an established brand position in the minds of the pledge or credo to be held accountable to?
industry risks, marketing risk and PR risk. services and infrastructure. Clearly defined cost-effective and timely delivery of your market.
financial stages or dates. product. Success factors that will result in
Big Why – the big reason for why your company
attracting, retaining and motivating stakeholders.
Giant Leap – the big assumption that you are Audacious Goal – the measurable and stretching exists.
betting your business on (it is also the Exit – the amount and date for a likely liquidity outcome that motivates business success.
opportunity you hope to exploit.) Magic Metric – the quantitative variable that has
the biggest impact and influence on success.