Having studied and reflected on country or countries
Economic Indicators; actual,
provisional and estimated changes year
on year. And having detailed and researched the essential and crucial Competitive Intelligence. Armed with your Startup or
Transformation Idea and understanding the constant need for both updated market
indicators and intelligence in designing your Business Model. Now you
must, familiarize yourself with the Common Factors in all business models
across all economic Sectors and Industries. The first or most recent confidential Strategic Plan, driven by
analytical thinking; data sorted into information and analyzed to produce
actionable intelligence, is used to process; structure, implement and assess,
with equal importance, decisions on and about; The Market, The Product,
The Funds and The Resources.
The first resource is The Idea, expressed in terms of returns on investment,
socioeconomic and environmental benefits and detailed in the strategic plan. The
initial shareholder, partner or sole owner is the first to invest resources and
among the last of all stakeholders to get paid; via cash dividends or share
value growth. This initial investment, which must be considered as (100% of
issued shares) equity, is the value of the (physical and mental) work and time
to convert the idea into its present form within the strategic plan; inclusive
of research and development, patent, copyright and trademark cost. Noting that,
extracts of this strategic plan are used in the investment prospectus (to sell
a percentage of issued shares at a premium value) to raise additional equity
funds and in the business plan used to attract debt financing.
Examine the traditional
or standard models to select Sectors and Industries, which best suits
your idea. Select,
Combine or Develop your Business Model to indicate how it will accomplish the mission.
Extractive Industries: Mining and Drilling
Agriculture: Plant cultivation, Animal
rearing
Biochemical Cultures: Pharmaceuticals, Compounds
and Ingredients
Construction (Building): Infrastructure, Commercial
and Domestic
Construction (Equipment): Electricity and
Telecommunications, Electronics, Machinery & Tools
Manufacturing (Heavy): Forging, Fusing and
Fabricating
Manufacturing (Light): Combining, Finishing and
Packaging
Distribution: Storage and Transportation
Trade: Wholesale and Retail
Finance: Banking, Insurance, Real
Estate
Tourism: Accommodation, Rentals and
Tours
Service (Physical): Restaurants and Maintenance
Service (Mental): Legal, Medical, Education,
Architecture, Engineering and Financial
The defining of the targeted Market and design of the Product(s)
must be constantly updated in the strategic plan. Raising the necessary value
or cash Funds, via further equity
and debt financing, to implement the strategic plan is the next step. The
organizational cost involves legally registering the new entity and opening a
bank account to firstly receive cash equity or debt funding and then to execute
normal operations. The procurement of the necessary fixed assets and
contracting of human Resources as
outlined in the organizational chart, needs to be scheduled and structured.
The Market
Identifying an Opportunity
Defining the Targeted Market
Stating the Competitive Advantage
Designing the Product Mix
Describing Distribution Channels
Listening to Feedback from Distribution
Gaining Consumer Loyalty
Developing Future Products
Using Promotional Strategies
Communicating the Benefits
The
Product
Selecting the Core Product
Choosing the Product Design
Deciding on Good Packaging
Settling on Good Distribution
Booking a Service
Delivering a Service
Promoting the Transaction
Supporting the Product
Setting Product Return Policies
Inspecting or Regulating
The Funds
Sourcing Equity Funds
Getting Debt Financing
Combining Funding Strategies
Understanding Gifts and Grant
Funding
Measuring Returns on Investment
Projecting Revenue
Prorating Administrative Cost
Calculating Net Financial Expenses
Justifying Financial Feasibility
Reporting to all Stakeholders
The Resources
Defining Assets
Designing Industrial Layout
Analyzing Cost Benefit Usage
Utilizing Depreciation Methods
Scheduling Maintenance
Reviewing Policy Decisions
Implementing Executive Strategies
Contracting Employees
Structuring the Organizational
Chart
Hiring at Entry Level or Internal
Promotion
Next, identify all relevant issues and make notes
to deal with these issues. Decisions made under each subheading, with
professional direction and assistance as detailed in the theory section of the
corresponding module(s) in the Business Direct program, will
define and map your business model’s success. These decisions, the result of
analytical or critical thinking, will form part of your dynamic and constantly
updated strategic plan. While extracts from this strategic plan are used, in
detail or summary, to produce; the Prospectus to attract investors and equity
funds, the Business Plan to present to lenders and to justify the projected
level of debt financing, the Quarterly Reports to regulators and the Annual
Reports to all stakeholders.
Rationale
T.A.J & Associates Company Limited
uses this occasion to comment on topics that have been covered, both academically
and by the mainstream media, to add its opinion and point out investment
opportunity, not to invoke any social action.
