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