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Business Models and Business Plans
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The purpose of a business plan is to describe and communicate a Financial Analysis
for-profit or non-profit project and how it can be implemented, either This is traditionally an important business plan component that
inside or outside an organization. The motivation behind the busi- attracts much attention. You can make pro forma calculations based
ness plan may be to “sell” a project, either to potential investors or on your Canvas Building Blocks and estimate how many customers
internal organizational stakeholders. A business plan may also serve can be acquired. Include elements such as breakeven analysis, sales
as an implementation guide. scenarios, and operating costs. The Canvas can also help with capital
In fact, the work you may have done designing and thinking spending calculations and other implementation cost estimates.
through your own business model is the perfect basis for writing a Total cost, revenue, and cash flow projections determine your fund-
strong business plan. We suggest giving business plans a five-section ing requirements.
structure: The Team, The Business Model, Financial Analysis, Exter-
nal Environment, Implementation Roadmap, and Risk Analysis. External Environment
This section of the business plan describes how your business model is
The Team positioned with respect to the external environment. The four external
One business plan element that venture capitalists particularly forces covered earlier (see p. 201) provide the basis for this descrip-
emphasize is the management team. Is the team experienced, knowl- tion. Summarize your business model’s competitive advantages.
edgeable, and connected enough to accomplish what they propose?
Do the members have successful track records? Highlight why your Implementation Roadmap
team is the right one to successfully build and execute the business This section shows the reader what it will take to implement your
model you propose. business model and how you will do it. Include a summary of all
projects and the overarching milestones. Outline the implementation
The Business Model agenda with a project roadmap that includes Gantt charts. Projects
This section showcases the attractiveness of the business model. can be derived directly from your Canvas.
Use the Canvas to provide readers with an immediate visual portrait
of your model. Ideally, illustrate the elements with drawings. Then, Risk Analysis
describe the Value Proposition, show evidence of customer need, In closing, describe limiting factors and obstacles, as well as critical
and explain how you will reach the market. Use stories. Highlight the success factors. These can be derived from a SWOT analysis of your
attractiveness of your target segments to pique the reader’s interest. business model (see p. 216).
Finally, describe the Key Resources and Activities needed to build
and execute the business model.
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