GOES LEAN IN ENTREPRENEURSHIP Entrepreneurship is driving the global economy. DECA is pleased to introduce a series of improvements to its entrepreneurship competitive events that will make the student experience more authentic and more connected to both postsecondary education and industry.
NEW FOR THE 2015–2016 SCHOOL YEAR BUSINESS MANAGEMENT AND ENTREPRENEURSHIP EVENTS
ENI
ENTREPRENEURSHIP INNOVATION PLAN
ENPI
ENTREPRENEURSHIP PARTICIPATING
Creating an Independent Business
ENPF
ENTREPRENEURSHIP PARTICIPATING
Franchising Business
ENTREPRENEURSHIP EVENTS
EIP
INNOVATION PLAN will have new guidelines that follow a portion of the lean business model.
ESP
START-UP BUSINESS PLAN will have new guidelines that follow the lean business model.
EFB
FRANCHISE BUSINESS PLAN will have new guidelines that follow the Small Business Administration’s business plan model.
ENW
EIB
ENGB
EBG
ENTREPRENEURSHIP WRITTEN
ENTREPRENEURSHIP
Growing your Business
IBP
INTERNATIONAL BUSINESS PLAN
INDEPENDENT BUSINESS PLAN will have new guidelines that follow the lean business model and require significant financial projections.
BUSINESS GROWTH PLAN will have modifications to the guidelines.
IBP
INTERNATIONAL BUSINESS PLAN will follow the lean business model with a section to discuss the country where the business is to be conducted.
These changes are a result of recommendations from DECA’s Competitive Events Taskforce comprised of chapter advisors, association advisors, representatives from the Kauffman Foundation and International Franchise Association Educational Institute and postsecondary instructors. The DECA Inc. Board of Directors approved the recommendations.
LEAN BUSINESS MODEL CANVAS
More and more entrepreneurs are framing their business models using a “canvas paper. Once the key components have been identified, the details of the busines canvas has nine (9) sections or components. Below are brief explanations of the
LEAN MODEL CANVAS PROBLEM
List the top three problems your product/service is addressing.
SOLUTION
What are the top three features of your product/service?
COMPAN
UNIQUE VALUE
What is the single, clear, compelli product/service is differ
KEY METRICS
What are the key activities that must be measured?
COST STRUCTURE
What are the customer acquisition costs, distribution costs, human resources costs, additional costs?
PRODUCT
s� as a way to present the key components of a business model on one piece of ss plan and model can be filled in using more detail. The lean business model components.
NY NAME
DATE: ITERATION:
E PROPOSITION
ing message that states why your rent and worth buying?
COMPETITIVE ADVANTAGE
What about your product/service means that it cannot be easily copied or bought?
CUSTOMER SEGMENTS
Who are the target customers?
CHANNELS
What are the pathways to customers?
REVENUE STREAMS
What is the revenue model, the life time values, the revenue, the gross margin?
MARKET
DECA’S ENTREPRENEURSHIP EVENTS AND THE LEAN BUSINESS MODEL
EXECUTIVE SUMMARY One-to three-page summary of the business model
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1 page
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1 page
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1-3 pages
International Business Plan (IBP)
Independent Business Plan (EIB)
Start-up Business Plan (ESB)
Innovation Plan (EIP)
One key benefit of the Lean Business Model Canvas and DECA’s new entrepreneurship guidelines is that each event utilizes components of the canvas, allowing the teacher to use only one model for these events and allowing students to continue to expand on their plans through multiple competitive events. The chart below clearly shows which components of the lean business model canvas are used in each of DECA’s Entrepreneurship Events.
RESOURCES
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1-3 pages
ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION A. Economic, political and legal analysis of the trading country B. Trade area and cultural analysis
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PROBLEM List the top three problems your product/service is addressing.
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X
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CUSTOMER SEGMENTS Who are the target customers?
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UNIQUE VALUE PROPOSITION What is the single, clear, compelling message that states why your product/service is different and worth buying?
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X
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X
SOLUTION What are the top three features of your product/service?
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X
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CHANNELS What are the pathways to customers?
There are many, many videos, books, podcasts, online courses, seminars, etc. related to the lean business model canvas. Below is a list of suggested resources to begin learning more about this topic.
REVENUE STREAMS A. What is the revenue model? B. What are the life time values? C. What is the revenue? D. What is the gross margin?
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COST STRUCTURE A. What are the customer acquisition costs? B. What are the distribution costs? C. What are the human resources costs? D. Additional costs?
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BOOKS
Running Lean: Iterate from Plan A to a Plan That Works (Lean Series) By Ash Maurya Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers By Alexander Osterwalder and Yves Pigneur Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer) By Alexander Osterwalder and Yves Pigneur The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses By Eric Ries
ONLINE COURSES
Lean Canvas Course http://bit.ly/leanmodelcourse How to Build a Startup http://bit.ly/howtobuildastartup
DETAILED FINANCIALS A. Projected income statements by month for the first year’s operation (sales, expenses, profit/loss) B. Projected cash flow for the first year C. Projected cash flow by month for the first year’s operation D. Projected balance sheet, end of first year E. Projected three-year plan F. A brief narrative description of the planned growth of the proposed business, including financial resources and needs G. Proposed plan to meet capital needs
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KEY METRICS What are the key activities that must be measured?
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X
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COMPETITIVE ADVANTAGE What about your product/service means that it cannot be easily copied or bought?
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X
X
VIDEOS
Capture Your Business Model in 20 Minutes - Lean Canvas http://bit.ly/leanmodelcanvas The Lean Canvas Business Model Creating The Killer Business Plan http://bit.ly/leancanvasmodel Lean Startup Summary http://bit.ly/leanstartupsummary
WEBSITES
CONCLUSION Specific request for financing, summary of key points supporting the financial request
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Leanstack http://leanstack.com
BIBLIOGRAPHY
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APPENDIX An appendix is optional. Include in the appendix any exhibits appropriate to the written entry but not important enough to include in the body; these might include sample questionnaires used, letters sent and received, general background data, minutes of meetings, etc.
Business Model Canvas vs. Lean Canvas http://bit.ly/comparecanvas
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NOTES
DECA’s Franchise Business Plan (EFB) does not follow the lean start-up methodology and terminology. It utilizes the Small Business Administration (SBA) business model and terminology. DECA’s Business Growth Plan (EBG) does not follow the lean start-up methodology and terminology. It utilizes a unique outline focused on assessing how an existing business can grow and expand.
Lean Canvas Process and Examples http://bit.ly/leanprocess Social Lean Canvas http://socialleancanvas.com Lean Launch Lab https://www.leanlaunchlab.com