Monthly Archives: January 2016

The Ken Pirok Business Model (or Business Plan Outline or the Six C’s)

Company:
Introduction and Executive Summary (including financing requests)
Internal Aspects
Strengths and Weaknesses
Culture
Business Ownership
Board of Directors
Key Employees and Managers
Management Structure/Organizational Chart
Management Succession Plans
Research and Development
Systems and Technology
Location and Local Market Analysis

Competitive Advantage:
Mission and Vision Statements (What do you do differently or better?)
Value Proposition

Customer:
Output
Product/Service Descriptions
Product/Service Life Cycle
Pricing
Target Market
Market Size
Market Share
Marketing
Advertising
Revenues and Sales Goals (built from the bottom up)
Customers/Clients and Payment Terms
Bargaining Power of Customers
Consumer or End-User (may differ from customer)
Concentrations of Sales
Seasonality
Cyclical Nature of Business

Collaborator:
Inputs
Suppliers
Labor Unions
Distributors
Strategic Partners
Financiers and Specific Requests for Financing and Proposed Use of Funds
Bargaining Power of Suppliers, Supplier Concentration
Board of Advisors

Cash Flow:
Financial Statements
Projections
Breakeven Analysis

Competition:
External Aspects
Threats and Opportunities
Industry Analysis
Barriers to Entry
List of Major Competitors (including their competitive advantages, strengths, and weaknesses)
Intensity of Rivalry and Price Competition
Substitutes
Regulation

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The Business Model Canvas

The Business Model Canvas is a framework that is used by many of today’s internet and technology startups. This is perhaps the best-known business model that is purported to replace the business plan. The book, Business Model Generation, by Alex Osterwalder & Yves Pigneur presents the visual canvas and also describes the elements within each of the nine major categories of the canvas. Alex Osterwalder also has a blog called Business Model Alchemist.

I generally like the Business Model Canvas. It is simple, yet it encompasses many of the most important factors involved in planning a successful business. It enhances the entrepreneur’s ability to communicate these factors to others, and it does seem especially valuable to tech startups.

But, it’s not perfect. One of my faults with this model is that it does not directly address competition or substitute products or services. It also fails to directly illustrate the businesses unique competitive advantage; although, the “value proposition” category is certainly a big piece of it.

This template actually inspired me to develop my own business model. I will reveal my model in a subsequent post.

Ken Pirok

http://alexosterwalder.com/

http://www.businessmodelalchemist.com/

http://techcrunch.com/2011/01/08/business-models-and-teenage-sex/

http://www.businessmodelgeneration.com/canvas