Module 4

2024 -26

Entrepreneurship– Module 1
 Module – 3 24-26
Developing Entrepreneurial Venture

● Fundamental concepts of business model, its components, and the importance,

● Business Model Canvas for refining business models for entrepreneurial success,
● Introduction of business plan and pitch,
● Understanding different types of pitches and their purposes,
● Adapting the pitch for different stakeholders,
● Developing a pitch structure
 Introduction, problem statement & solution,
 Competitive landscape, Market opportunity,
 Competitive advantage, GTM, and financials
for an entrepreneurial venture to communicate the value proposition, market potential, and feasibility of a business
idea.

Entrepreneurship –
Entrepreneurship –
 Key Component of Business
Model
1. Market Opportunity
2. Competitive Environment
3. Competitive Advantage
4. Value Proposition
5. Market Strategy
6. Revenue Model
7. Organization Development
8. 8. Management Team
Entrepreneurship –
8 Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
Entrepreneurship –
 BMC for
opening an
online MBA
institute

Entrepreneurship –
 Business Model Canvas (BMC) for an
aggregator Dhobi (laundry) app targeted at
students:

Entrepreneurship –
 BUSINESS PLAN

A Business Plan is a blueprint

of the step-by-step procedure
that would be followed to
convert a business idea into a
successful business venture.
ld
Shou
n c l u de of a
It is a written description
I
business's future. It is a
document that describes -

● What do you plan to do

● How you plan to do it.

1 Entrepreneurship
 The Benefits of Planning

1. Validate Your Business Idea 7. Communicate Internally

2. Set and Track Goals 8. Communicate Externally
3. Take Action 9. Secure Funding
4. Manage Resources 10. Grow and Change
5. Make Decisions 11. Exit
6. Manage Risk

1 Entrepreneurship
 Elements Of Business Plan

 Executive Summary  Marketing and Sales

 Company History
Strategy
 Company Description  Operational Plan
 Company SWOT Analysis  Regulatory
 Organization and
Environment
Management  Financial Projections
 Market Analysis  Risk Management
 Services or Products  Exit Strategy
Offered  Funding Request
 Appendix
cont…
Entrepreneurship
 THE ‘PITCH’

A pitch is a presentation where a business idea is explained

to potential investors or stakeholders.

Purpose of a Pitch - Resource Acquisition

Businesses pitch to gather the necessary resources to launch
or expand their operations.

Targets of a Pitch: Reasons for Pitching:

Investors Raising Capital
Incubators and Accelerators Market Expansion
Customers Strategic Partnerships
Partners:

Entrepreneurship
 Presentation of the business plan: ‘PITCH’
Entrepreneurial pitching

1. Elevator Pitch

2. Investor Pitch

3. Customer pitch

4. Partnership pitch

5. The three minute pitch

6. The ten second pitch
7. Cold pitch (true elevator pitch)
8. Warm pitch
Entrepreneurship
 Art of pitching
1. Focus on the consumer pain

2. Demonstrate the reachable market

3. Explain the business model.

4. Tout the management team.

5. Explain your metrics.

6. Motivate the audience

7. Why you and why now?

cont…
Entrepreneurship
 Dos and dont's regarding business plans

Dos: Don'ts:
1. Be listener oriented.- 1. Practice makes perfect
2. An easy to understand Business 2. Think global
3. Don't pitch the idea/product/service 3. Focusing Too Much on the Product
4. Don't use buzz or tech speak 4. Overload of Text
5. Emotion 5. Lack of Authenticity
6. Bookends
7. Market Research
cont…
Entrepreneurship
Investors expectation from pitch

1.Keep it Short

2.BIG Vision

3.Tell a Story

4.The Problem

5.The Solution

6.Unique GTM
cont…
Entrepreneurship
Components of Pitch deck

1. Structure and Flow

2. Tonality

3. Investor Perspective
Pitch slides
●Slide 1 - Problem story ●Slide 7 – GTM /Growth Strategy
●Slide 2 - Problem slide ●Slide 8 – Revenue model
●Slide 3 - Solution slide ●Slide 9– Financial
●Slide 4 – Product/service ●Slide 10 – Traction Slide /key success
●Slide 5 – STP Slide ●Slide 11 - Team
● Slide 6 – Market Size and ●Slide 12– Ask money slide
Competitor landscape

Pitch Deck
Problem Story
As a pet owner, I constantly encounter the hassle of locating

restaurants that welcome pets. Many of my friends who are

also pet owners share this frustration, making it challenging

to enjoy dining experiences without uncertainty about pet-

friendly places

Pitch Deck
Problem

It is the answer to the questions –

1. Who is suffering from the problem?
2. What is the problems?
3. How big and relevant is the problem? REMEMBER
The problem ALWAYS
(KISS = Keep it simple stupid) comes Before the
solution!
Problem

Netflix problem statement :

● Main problem - "Going to the video store is a pain.

People don't like traveling just to rent a movie
REMEMBER
● Dependent problem - They hate paying late fees The problem ALWAYS
even more." comes Before the
solution!
● Independent Problem - Limited Selection and
Availability
Solution

● Address the problems stated

● Convert problems into opportunities.

Solution

“Netflix allows anyone to enjoy

thousands of titles (DVD) streamed

directly to their home or delivered to

their mailbox.”
Problem

Problem - Many pet owners and

pet lovers have difficulty finding
pet-friendly restaurants. REMEMBER
The problem ALWAYS
comes Before the
solution!

Pitch Deck
Solution
Dine Together, Anywhere" – Embrace
a pet-friendly lifestyle

Solution - Create an app that lists pet-

friendly eateries, book the place, and
allows users to review and find them
easily.

Pitch Deck
 Product / Service
● Describe product /service in detail, how it works

● Add screenshots, mockups, videos, features of your product or service.

● major product milestones?

● key differentiated features

Pitch Deck
Product / Service

Pitch Deck
Product / Service

Key Features:
•Social integration
• Community events.
•Rewards and loyalty program.
•Real-time interactive map and navigation.
•User reviews and ratings system.
Special Services:
•Regular updates on special promotions and events.
•Accessibility features for all users.
•Detailed pet amenities at each location.

Pitch Deck
Product / Service

Pitch Deck
Segmentation

Pitch Deck
Segmentation – Netflix early adopter

Pitch Deck
Segmentation – Dine with Pet

Pitch Deck
Market Size – Addressable market

TAM (Total Available Market ) - All pet owners

and potential pet-friendly dining
establishments in India.
•SAM (Serviceable Available Market) - Pet
owners in major cities like Mumbai, Delhi,
and Bangalore.
•SOM (Serviceable Obtainable Market) -
Active app-using pet owners in these
metropolitan areas.

Pitch Deck
What are different data sources?
 Govt Reports – RBI, Central Statistical Office (CSO), ASI, NSSO, DGCIS,
Export Promotion Councils (EPCs), Sensex data etc

 Ministry data site - Ministry of Commerce and Industry, Ministry of Finance,

Ministry of Agriculture and Farmers Welfare, Ministry of Education.

 News articles, search engines, data research companies - economic times, Google
data search, Chat GPT, Statista, Bloomberg, MarketResearch.com.

 Industry bodies and trade offices for industry data – FICCI, CII, ACMA, CRISIL,
CARE & ICRA, TRAI (Telecom Regulatory Authority of India), IAMAI (Internet and
Mobile Association of India), IDC (International Data Corporation) etc

Pitch Deck
Market Size – Addressable market

Pitch Deck
Competition Land Scape

Pitch Deck
USP ( Positioning)

Pitch Deck
Go-to-Market (GTM) Strategy

A go-to-market (GTM) strategy is a step-by-step plan created to

successfully launch a product to market and creating marketing and
sales strategy.

Critical parts of a go-to- market strategy:

● Sales & Distribution

● Marketing Strategy

Pitch Deck
Go-to-Market (GTM) Strategy

Pitch Deck
Go-to-Market (GTM) Strategy

Pitch Deck
Go-to-Market (GTM) Strategy

% sales from each Channel

Pitch Deck
Revenue

Pitch Deck
 Revenue
Revenue from Restaurant onboarding

Revenue from the pet owner

Pitch Deck
 Operating Cost /
Expense

Pet-Friendly
Restaurant Locator
App- Revenue
Stream

Pitch Deck
 Income
Statement

Pet-Friendly
Restaurant
Locator App-
Revenue Stream

Pitch Deck
Profit Calculation
Gross profit Margin

Gross Profit = Revenue (Gross Sale) - COGS

Net profit / Operating profit = Revenue – COGS – operating

expense – other expense (such as debt).
Operating profit Margin = operating profit *100 / revenue

cont…
Entrepreneurship
Finance - Income Statement

Pitch Deck
Assumptions
Pet-Friendly Restaurant Locator App

Pitch Deck
Sustainability matrix Scalability matrix
1. Cash flow 1. Expansion Plans
2. Expense Projections 2. Month on month growth
3. Profit and break even 3. Infrastructure and Operations
4. Burn rate 4. Monthly Active Users (MAUs)
5. Runway 5. Daily Active Users (DAUs)
6. Churn rate 6. Customer Acquisition Cost (CAC)
7. Retention rate 7. Average Revenue Per User (ARPU)
8. Gross, operating profit, 8. Lifetime Value (LTV)
9. Net profit margin
10. Variable and fixed cost

Pitch Deck
Unit Economies

Unit economics is a financial framework/tool that

analyzes the
• direct revenues and
• costs
tied to a single unit of a product or service.

Understanding unit economics is vital for assessing the

• profitability,
• scalability, and
• long-term sustainability of a business model.
Pitch Deck
 Traction

Pitch Deck
Traction
Idea stage - Must-Have Traction Metrics In Your Pitch Deck

EBITDA Margin / EBIT

Pitch Deck
Customer Acquisition Cost (CAC)

Month-Over-Month Growth (MOM)

Pitch Deck
 Traction
EBITDA / EBIT - Margin -

EBITA = operating profitability as a percentage of its total revenue.

EBITA = E + I + T + A
Or
EBIT = Revenue − COGS − Operating Expenses

●E = net income / net profit

●I = interest
●T = taxes
●D = depreciation
●A = amortization

● EBITDA Margin= EBITDA/Total revenue *100

cont…
Traction
Customer Acquisition Cost (CAC)

Simple method - only the campaign expenses are used to calculate customer
acquisition cost.

 CAC = Marketing Cost/No of Customer

Pitch Deck
 Traction
Month-Over-Month Growth (MOM)

Formula To Calculate Month-Over-Month Growth

● M-O-M growth in sales = (Present Month sale – Previous Month sale) x 100 %
Previous Month Sales

Pitch Deck
 Team

Pitch Deck
Ask Money