Building a business plan

The business model canvas introduction and business innovation for writing business plan was given by Chris Walker, who is a lecturer and business consultant at Bangor University.

The Key to success-Innovation

  When starting a business venture, it is always necessary to envisage the future, and thinking innovatively is always one of the most important elements for a successful business plan. However, there are always risks come with the innovation, and the first step to obtain a sustainable innovative business plan is to fully understand it.

What is innovation?

  The innovation could focus on different areas, and it could be generally divided into

1. Products (Goods being produced)
2. Services (The intangible parts of economy, opposed to goods)
3. Business model (describe the rational of how an organisation make profit)

Within those areas, the innovation could be divided into three types

1. Iterative (small changes to existing product, services and business model)
2. Radical (Big changes to an existing product, services and business model)
3. Disruptive (Huge change to product, services and business model)

Future focus

  Before applying the innovative ideas to the business plan, there are several things need to be thought about. For instant, the business ecosystem that are going to join and the major concerns of the business ecosystem such as competitors, customers, government agencies etc.

  With the comprehensive thinking and investigation, the business model could then be started to build, and the business model canvas is a useful tool.

Business model canvas

  As mentioned above, the business model is the rational of how an organisation creates, delivers and captures value, and Business model canvas is how the plan being described in detail. It consisted of nine building blocks:

• Customer Segments

• The different groups of customers being targeted

• Value Propositions

• Products and services that create value for a customer segment

• Channels

• The way for companies to deliver their value propositions

• Customer Relationships

• Relationship being established between companies and customers

• Revenue Streams

• The companies’ profit from customers

• Key Resources

• Most important assets needed to make the business plan work

• Key Activities

• Most important thinks need to do by the companies to make the business plan work

• Key partnerships

• Network of suppliers and partners that make the Business Model work.

• Cost Structure

• Most important costs

Personal thoughts

  It was interesting to see how a financially sustainable business plan should be build and it also shows me how complicated a business could be. The lecture tells me a great business plan does not mean a great business model, because there are so many concerns and variables on the market.

  However, the business model canvas being introduced should be a valuable tool for building a sustainable business model. It could help me to stress test my business plan, track the progress and avoid breaking the bank.

 Although I have not started to think about starting a biology-based business venture for my further career, it helps me broad my horizon and pointed out a potential direction for my future career development.

Video showing how to use business model canvas to create powerful sustainable business model