Entrepreneurship MGT602

Theme 10: NABC and Business Model Canvas: Presenting a business idea

Videos 115 - 124

1
NABC Approach is “An important client or market need addressed by a unique approach with compelling benefits
when compared against the competition or alternatives” (Stanford Research Institute)
NABC------The Need
ü What is the important customer and market need?
ü A need should relate to an important and specific client or market opportunity, with market size and end customers clearly stated.
ü The market should be large enough to merit the necessary investment and development time.
ü Different methods should be used to provide the evidence of the need.
ü Different research techniques such as surveys, observations may be employed to find out the evidence of the need.
NABC------The Approach
ü What is the unique approach to addressing this need?
ü Draw it, simulate it or make a mockup to help convey your vision.
ü As the approach develops through iterations, it becomes a full proposal or business plan, which can include market positioning, cost, staffing,
partnering, deliverables, a timetable and intellectual property (IP) protection.
NABC------The Benefit
ü What are the specific benefits resulting from the approach?
ü Each approach to a client's need results in unique client benefits, such as low cost, high performance or quick response.
ü Success requires that the benefits be quantitative and substantially better - not just different.
ü Why must we win?
NABC ------ The Competition
ü To do this, we must clearly understand our competition and our client's alternatives.
ü Our answer should be short and memorable.
Entrepreneurship MGT602 2
Theme 10 Video 115-119 NABC: Presenting business idea
Business Model Canvas
Wikipedia defines the business model canvas as “The Business Model Canvas is a strategic management template used for
developing new business models and documenting existing ones. It offers a visual chart with elements describing a firm's or
product's value proposition, infrastructure, customers, and finances assisting businesses to align their activities by illustrating
potential trade-offs”
Source: https://en.wikipedia.org/wiki/Business_Model_Canvas
Business Model Canvas Important Questions?
1. How do you acquire customers?
2. After you have landed a new customer, how do you plan to relate to that customer and manage the relationship
3. How do you charge your customers? What is your revenue model?
4. How much do you charge your customers? Can you calculate your revenues for the next month, quarter and year?
5. What assets are available to you or under your control?
6. Who are your key partners?
7. What key activities do you need to engage in to deliver your value proposition?
8. What are your fixed costs?
9. What are your variable costs? Can you calculate your total cost for the next month, quarter and year?
10. Does your revenue forecast demonstrate increased profitability towards the end of the forecast period?

Entrepreneurship MGT602 3
Theme 10 Video 120-122 Business Model Canvas
The Business Model Canvas
Customer Relationships
Key Partners Key Activities Value Proposition • How do we get, keep Customers
• Who are our key • What key activities do • What value do we • How do we get, keep
and grow customers?
partners? our value propositions deliver to the and grow customers?
• Which customer
• Who are our key require? customer? • Which customer
relationships will we
suppliers? • Our distribution • Which one of our relationships will we
established?
• Which key channels? customers’ problems established?
• How they will be
resources are we • Customer relationships? are we helping to • How they will be
integrated with the
acquiring from our • Revenue streams? solve? integrated with the
rest of our business
partners? • What bundles of model? rest of our business
• Which key products and services • How costly they will model?
activities do are we offering to be? • How costly they will
partners perform? Key Resources each segment? be?
• What key resources do • Which customer
our value propositions needs are we Channels
require? satisfying? • Through which
• Our distribution channels? • What is the minimum channels do our
• Customer relationships? viable product? customer segments
• Revenue streams will to be reached?

Cost Structure Revenue Streams

Entrepreneurship MGT602 4
Theme 10 Video 120 -122 Arrangements of a Business Plan
Group Discussions and Interviews

Group Discussion 1: Discussion Group : angle investor and venture capitalist (Part 1)

Group Discussion 2: Discussion Group : the investors' perspective on loan applications (Part 2)

Entrepreneurship MGT602 5
Theme 10 Video 123 -124 Arrangements of a Business Plan