Business Plan

Mohit Dubey27 Apr 2013

What problem am I solving?

1. Is this problem worth solving?

2. Are there many solving this problem?3. What’s my unfair advantage in this?

Doing New things

Replicating things that work

Technology0 to 1

Globalization1 to n

What’s my solution?

1. Am I different or am I better?

Beware of cheaper, faster, better disease!

Competi

tio

n

Start-ups win by being different. The goal of a new venture is to dominate, to own a new category!

First, name your category and then only do anything else like logo, name, messaging, viral- campaign etc!

When successful, the category is known by the startup!

What’s my solution?

2. Am I a first mover?

What was the first successful MP3 player? 

First mover loses to First-minder

Creative Technology's product, the Creative Nomad Jukebox.

What was the giant MP3 winner? 

Apple’s iPod

Who will pay for my solution?

What is my #1 source of revenue?

If you have 5 different source of revenue, then something is wrong. Pick 1.

How do I estimate market size of category that doesn’t exist?

Top Down: TAM - Total Available Market

Focus: Ideal Customer = SAM - Served Available MarketSales: Customer Adoption = SOM = Share of Market

Market estimate for an app that will scan food dishes and monitor calories! 1.How many end users have an over-weight problem?2.How many have an under-weight problem?3.For (1) and (2) how many are in a) U.S b) Europe c) China d)India e) Rest of

the world 4.What portion of them own a smartphone?5.What portion are

• Obese• Over weight by 30 pounds or more• Think of themselves as "over-weight"• Have serious (doctor treated) health problems related to excess weight

6.What portion are• Seriously under-weight• Chronically under-weight• Psychologically under-weight

7.The total of the above equals TAM• Units• Price per Unit• Dollars

Source:nesheimgroup.typepad.com

Market estimate for an app that will scan food dishes and monitor calories! Focus: Ideal Customer = SAM = Served Available Market

1. Which segments of TAM is your product most appealing to (pick 6: Seriously under-weight, Chronically under-weight, Psychologically under-weight )?

a. Which segment is most eager to use your product?

b. What 2 related segments are next as measured by product appeal?

2. In what year will you offer products for each of those 3 market segments?

3. Line up these 3 segments like Bowling Pins4. The total of the above equals SAM  Units x Price per Unit = $

Calculate % of TAM Source:nesheimgroup.typepad.com

Market estimate for an app that will scan food dishes and monitor calories! Sales: Customer Adoption = SOM = Share of Market

For each of the 3 Bowling Pins:a. At what rate (% of each of the 3 market segments

in SAM) will customers purchase your product, each year, for five years.Units Price per UnitDollars

b. Add the 3 sets of numbers to get your Sales.Total UnitsTotal DollarsAverage Selling Price

% of SAM

Source:nesheimgroup.typepad.com

Market estimate for an app that will scan food dishes and monitor calories! Boundaries

1. SAM in early years should be less than 25% of TAM, rarely over 50%.

2. SAM below 10% is too small, or TAM is too large, not focused enough, lacks meaning.

3. SOM over 30% of SAM is rare. Gorillas of new markets settle in around 30%• SOM below 10% is too small.• Your adoption rare may be too conservative.• Or your product is rather boring, not appealing.

Source:nesheimgroup.typepad.com

Thank You!

mohit@carwale.comt:@CarWale, @mohitdubey, f:facebook.com/carwale