Version française/French version: LINK
We propose a business plan structure that complements Alexander Osterwalder’s business model canvas and integrates the essential dimensions of a development plan. This streamlined model comprises seven chapters, covering everything from the genesis of your business to its governance, including market analysis, competition, and financial forecasts.
Généré par DALL-E / Generated by DALL-E
A business plan presents a development project that links the value proposition, value architecture, value equation, and shared values… noting that value architecture is synonymous with the business model.
The value proposition is the cornerstone of the business plan. The business model describes how to implement this value proposition. The value equation then translates your strategy into economic and financial parameters, primarily through financial forecasts. Finally, what we call shared values focuses on the teams who will bring your business project to life.
The Value Tetralogy
Many entrepreneurs use the Business Model Canvas created by my Swiss colleague Alexander Osterwalder. His canvas describes how an organization implements its business model. There are several versions, but the most common model contains 9 boxes: 1) Value Proposition; 2) Customer Segments; 3) Distribution Channels; 4) Customer Relationships; 5) Key Resources; 6) Key Activities; 7) Key Partners; 8) Revenue Streams, and 9) Cost Structure.
This canvas is convenient for describing a business model visually, but it has the flaws of its strengths. In entrepreneurship, where nearly everything is about movement and speed of execution, this model does not provide a clear perspective on your future plans. Moreover, it omits competition, which is an essential aspect for justifying your positioning. Lastly, the team is absent from the analysis, except when embedded in the key resources category.
Alexander Osterwalder’s Business Model Canvas
The synthetic nature of this model risks remaining superficial, particularly by not considering complex interactions with significant stakeholders, such as regulatory bodies. In short, unless you subscribe to the Procrustean myth, not everything necessarily fits into these 9 boxes.
In management, as in politics, you will rarely find a model that achieves unanimous support. Nevertheless, just as a business plan cannot be reduced to financial forecasts, this canvas is too static to convey a development ambition. Put simply, there is not much substance in a business model canvas.
Thus, I take the risk of offering a canvas—not for a business model but for a comprehensive business plan. This canvas is not solely suited for startups; it applies to most organizations at various stages of development. Nonetheless, each business project is unique, and you can add other dimensions as needed.
Business Genesis, Vision, and Mission
- Summarize the company’s origins and major achievements.
- What is your vision and mission?
- Mention your client references and other certifications and/or awards.
Leadership, Organization, and Governance
- Introduce the company’s leadership.
- What is the organization?
- What about governance?
Identified Need and Target Market
- Who are your customers, and what are their needs?
- What business opportunity do you wish to develop?
- What is the nature and size of your market segment?
Value Proposition and Business Model
- What is your offer, and what value does it create for your customers?
- What is your company’s expertise?
- How are production and distribution carried out?
Competition and Competitive Advantages
- Who are your direct competitors?
- What are your competitive advantages?
- What intellectual property do you have?
Objectives and Development Timeline
- What are the main technical and commercial stages of your development?
- What are your commercial objectives, and what will be your impact?
- What will be your primary commercial and marketing actions?
Financial Forecasts
- What are your financial projections: revenue, expenses, investments, and profitability?
- What are your key assumptions, and what are the main risks impacting this plan?
- What are your funding needs, and what resources are expected to cover them?
An entrepreneur’s challenge is to summarize their business plan in a 5-minute pitch. By following the above plan, you will have more latitude than the single-page summary required by Prof. Osterwalder’s business model canvas, as we now have 21 items (7×3) instead of the 9 boxes of the business model canvas. Some items may still be missing… but a balance must be struck between conciseness and comprehensiveness.
The Main Components of a Business Plan
This business plan canvas has the advantage of passing the checklist test of my colleague Frédéric Iselin, whose table below mentions 13 formal criteria that must not only be mentioned but also must be relevant. This checklist includes two other essential criteria: presentation clarity and your persuasive ability. Indeed, those who review your business plan will assess the entrepreneurial team much more than they would a philosophy essay.
Now it’s up to you to adapt this canvas to your business to build and periodically update a robust business plan with your teams and advisors!
Checklist for presenting a business plan
