BMBP Notes

Unit-1(BMC, LMC, Business Models)

What is a business model canvas? Explain its components.
The Business Model Canvas is a strategic tool used to visualize and assess the
key components of a business model. It provides a structured framework for
understanding how a company creates, delivers, and captures value. The canvas
consists of nine building blocks that form a comprehensive overview of a
business:
1. Value Proposition: The Value Proposition describes the unique value that
a business offers to its customers. It answers the question, "Why should
customers choose your product or service over competitors?" A strong
value proposition articulates the benefits, features, and solutions provided
to address customer pain points, meet their needs, or fulfill their desires. It
should highlight the competitive advantages and differentiation of the
business.
2. Customer Segments: The different groups of customers or market
segments that the business aims to target. These segments can be based on
demographics, needs, behaviors, or other characteristics.
3. Customer Relationships: Customer Relationships involve the types of
interactions and relationships a business establishes and maintains with its
customers. This can vary from personal, one-on-one relationships to
automated, self-service interactions. Building strong customer
relationships is essential for customer satisfaction, loyalty, and repeat
business. It can involve providing excellent customer support,
personalized services, feedback mechanisms, or loyalty programs.
4. Channels: Channels represent the distribution channels or methods
through which a business reaches its customers and delivers its value
proposition. This includes physical or online stores, direct sales,
intermediaries, e-commerce platforms, partnerships, or any other means
of reaching the target market.
5. Key Activities: The critical activities and processes that the business
needs to perform to deliver its value proposition. This includes activities
such as production, marketing, distribution, customer support, and
research and development.

6. Key Resources: The essential resources required to operate the business

and deliver its value proposition. These resources can be physical,
intellectual, financial, or human, and may include equipment, technology,
partnerships, or skilled employees.
7. Key Partnerships: The strategic alliances, collaborations, or partnerships
that the business forms to leverage external resources and capabilities.
This can include suppliers, manufacturers, distributors, technology
providers, or other businesses that contribute to the value chain.
8. Cost Structure: The cost elements associated with operating the business
model. It includes all the expenses incurred in delivering the value
proposition, maintaining key activities, resources, and partnerships, and
generating revenue.
9. Revenue Streams: The various sources of revenue for the business. It
outlines how the company generates income from its value proposition,
such as sales of products or services, subscriptions, licensing fees, or
advertising revenue.

 Components 1 - 4 —> DESIRABILITY (whether the idea/product/service is

needed or not in the market)
Components 5 - 7 —> FEASIBILITY (is the idea/product/service deliverable
to the customers or not)
Components 8 - 9 —> VIABILITY (what is the ROI, is the idea worth it or
not)

Types of Channels
1. Direct Sales: This channel involves selling products or services directly
to customers without intermediaries. It can be done through company-
owned physical stores or online platforms where customers can purchase
directly from the business.
2. Retail Distribution: Retail distribution channels involve selling products
through third-party retailers such as department stores, specialty shops,
supermarkets, or convenience stores. This allows businesses to reach a
wider customer base by leveraging the existing retail infrastructure and
customer traffic of these retailers.
3. E-commerce: E-commerce channels involve selling products or services
online through dedicated company websites, online marketplaces, or
social media platforms. E-commerce offers businesses the ability to reach
a global audience, provide a convenient shopping experience, and utilize
various online marketing and advertising techniques.
4. Wholesale and Distribution: Wholesale and distribution channels
involve selling products in bulk to other businesses or distributors who
then resell them to retailers or end customers. This channel is commonly
used for products with complex supply chains or when targeting a specific
industry or geographic market.
5. Franchising: Franchising channels involve granting the rights to
independent entrepreneurs (franchisees) to operate a business using the
franchisor's brand, products, and business model. This channel allows
businesses to expand rapidly by leveraging the resources and efforts of
franchisees.

Types of cost
1. Fixed Costs: Fixed costs are expenses that remain constant regardless of
the level of production or sales. These costs do not vary in the short term

 and include items such as rent, salaries of permanent staff, insurance

premiums, and certain administrative expenses.
2. Variable Costs: Variable costs are expenses that fluctuate in direct
proportion to the level of production or sales. They increase as production
or sales volume increases and decrease when production or sales decrease.
Examples of variable costs include raw materials, direct labor, packaging
costs, and sales commissions.
3. Operating Costs: Operating costs encompass the day-to-day expenses
involved in running a business. These costs include both fixed and
variable costs required for regular operations, such as rent, utilities,
salaries, marketing expenses, and supplies.
4. Cost of Goods Sold (COGS): COGS represents the direct costs
associated with producing or acquiring the goods or services sold by a
business. It includes the cost of raw materials, direct labor, and
manufacturing overhead directly attributed to the production of goods or
services.
5. Marketing and Sales Costs: Marketing and sales costs include expenses
incurred to promote and sell products or services. This can include
advertising expenses, sales commissions, marketing campaigns, trade
show participation costs, and other promotional activities.
6. Research and Development (R&D) Costs: R&D costs are incurred in
developing new products, improving existing products, or conducting
research activities. These costs include salaries of R&D staff, materials
used in prototyping, testing, and equipment or software used in research
activities.
7. Distribution and Logistics Costs: Distribution and logistics costs
involve expenses associated with storing, transporting, and delivering
products to customers. This includes warehousing costs, transportation
expenses, packaging materials, and logistics management costs.

Types of revenue streams

1. Product Sales: This revenue stream involves generating income by
selling physical products to customers. It can include one-time sales or
recurring sales of products.

 2. Service Fees: Service fees are revenue streams generated by providing

specific services to customers. These can include consulting fees, service
subscriptions, service contracts, or service-based memberships.
3. Licensing and Royalties: Licensing and royalties involve granting others
the right to use intellectual property, such as patents, trademarks,
copyrights, or software, in exchange for a fee or royalty payment.
4. Subscription Fees: Subscription fees are recurring revenue streams
where customers pay a regular fee to access a product or service. This
model is common in software-as-a-service (SaaS), media streaming
platforms, membership-based services, and subscription boxes.
5. Advertising Revenue: Advertising revenue is generated by displaying
advertisements to users or customers. This can include display ads,
sponsored content, pay-per-click ads, or affiliate marketing programs.
6. Rental or Leasing: Rental or leasing revenue streams involve generating
income by renting or leasing out assets or properties to customers. This
can include real estate properties, equipment, vehicles, or other tangible
assets.
7. Freemium Model: The freemium model offers a basic version of a
product or service for free to attract a large user base. Revenue is then
generated by upselling premium features, advanced functionality, or
additional services to a subset of users.
8. Affiliate Sales: It involves earning a commission by promoting and
referring customers to other companies' products or services. Businesses
receive a commission for each successful referral or sale made through
their affiliate links.
9. Franchise Fees: Franchise fees are revenue streams generated by
granting the rights to independent entrepreneurs to operate a business
using the franchisor's brand, systems, and processes. The franchisor
receives upfront fees and ongoing royalties from franchisees.

 What is Lean Canvas Model?

1 4 3 6 2

7 5

9 8

The Lean Canvas is a variation of the traditional Business Model Canvas that
focuses on the key elements of a business model in a concise and actionable
format. It is designed to help entrepreneurs and startups quickly validate their
business ideas and identify critical areas for improvement.

Types of Business Models

1. E-commerce: E-commerce business models involve conducting business
and selling products or services online. This can include online retail
stores, marketplace platforms, subscription-based services, dropshipping,
and digital product sales.
2. Subscription: Subscription-based business models offer products or
services to customers on a recurring basis in exchange for a subscription
fee. Examples include subscription boxes, streaming services, software-
as-a-service (SaaS), and membership-based platforms.
3. Marketplace: Marketplace business models bring together buyers and
sellers on a platform, facilitating transactions and earning revenue through
fees or commissions. Examples include online marketplaces like Amazon,
eBay, and Airbnb.

4. On-Demand: On-demand business models provide immediate access to

goods or services whenever and wherever customers need them. This
includes ride-hailing services, food delivery platforms, and on-demand
service providers like TaskRabbit.
5. Freemium: Freemium models offer basic features or services for free to
attract a large user base. They then generate revenue by upselling
premium features, advanced functionality, or additional services to a
subset of users. Examples include free mobile apps with in-app purchases
or freemium software.
6. Franchise: Franchise business models involve granting the rights to
independent entrepreneurs (franchisees) to operate a business using the
franchisor's brand, systems, and processes. The franchisor receives
upfront fees and ongoing royalties from franchisees.
7. Razor and Blade: The razor and blade model offers a product at a low or
subsidized price (the "razor") to drive sales of complementary products or
services (the "blades") at a higher margin. This is commonly seen in the
sale of printers and ink cartridges or gaming consoles and video games.
8. Peer-to-Peer (P2P): Peer-to-peer business models facilitate direct
transactions between individuals without intermediaries. Examples
include peer-to-peer lending platforms, crowdfunding, and sharing
economy platforms like Uber or Airbnb.
9. B2B (Business-to-Business): B2B business models focus on providing
products or services directly to other businesses rather than individual
consumers. This includes wholesale, manufacturing, and consulting
businesses that serve other businesses.
10. B2C (Business-to-Consumer): B2C business models target individual
consumers as their primary customers. Retail stores, restaurants, and
online clothing stores are examples of B2C businesses.
11. Direct Sales: Direct sales models involve selling products or services
directly to customers without a retail storefront. This can include door-to-
door sales, network marketing, or online direct sales.
12. Fee-for-Service: Instead of selling products, fee-for-service business
models are centered around labor and providing services. A fee-for-
service business model may charge by an hourly rate or a fixed cost for a
specific agreement. Fee-for-service companies are often specialized,

 offering insight that may not be common knowledge or may require

specific training. Example: Private University Fees

Business model vs Business model canvas

1. Business Model: A business model refers to the overall plan or strategy
that outlines how a company creates, delivers, and captures value. It
encompasses various elements, such as the target customers, products or
services offered, revenue sources, cost structure, and how the company
differentiates itself from competitors. It provides a holistic view of how
the business operates and generates profit.
2. Business Model Canvas: The Business Model Canvas is a visual tool
that helps entrepreneurs and business owners understand and
communicate their business model in a structured and concise way. The
Canvas allows you to sketch out and analyze the 9 elements on a single
page, making it easier to visualize and iterate on your business model.

 Unit-2 (Legal structures,Patents, Copyrights,

Insurance, Contracts, etc.)
Legal structures of Business
1. Sole Proprietorship: A sole proprietorship is the simplest and most
common form of business structure. It is owned and operated by a single
individual who has complete control and responsibility for the business.
In this structure, the owner and the business are considered the same legal
entity, and the owner is personally liable for the business's debts and
obligations.
2. Partnership: A partnership is a legal structure where two or more
individuals or entities agree to share the profits, losses, and
responsibilities of a business. There are different types of partnerships,
including general partnerships (where partners have unlimited liability)
and limited partnerships (where there are both general partners and
limited partners with limited liability).
3. Limited Liability Company (LLC): An LLC is a flexible business
structure that provides limited liability protection to its owners (known as
members). It combines elements of a partnership and a corporation. LLC
owners are not personally liable for the company's debts or liabilities, and
the company's profits and losses can be passed through to the members'
personal tax returns.
4. Corporation: A corporation is a separate legal entity from its owners
(shareholders). It is formed by filing articles of incorporation with the
relevant state authority. Corporations provide limited liability protection
to shareholders, meaning their personal assets are generally not at risk.
Corporations have more formal requirements, such as holding shareholder
meetings, maintaining corporate records, and following specific
operational and reporting procedures.
9. Cooperative: A cooperative, or co-op, is a business owned and operated
by a group of individuals or businesses (known as members) who have
joined together to meet common economic, social, or cultural needs.
Cooperatives can take various forms, such as worker cooperatives,
consumer cooperatives, or agricultural cooperatives. Members usually
have equal voting rights and share in the profits or benefits of the
cooperative.

Overview of Intellectual Property Rights (IPR)

Intellectual Property Rights (IPR) in India refers to the legal rights granted to
individuals or entities to protect their intellectual creations, which can include
inventions, designs, literary works, artistic works, trademarks, and trade secrets.

In India, the primary legislation governing IPR is the Indian Copyright Act,
1957, the Patents Act, 1970, the Trademarks Act, 1999, and the Designs
Act, 2000. These laws provide legal frameworks and procedures for the
protection, registration, and enforcement of intellectual property rights.

Following are the key aspects of IPR in India:

1. Copyright: Copyright is an exclusive right given by law for a certain
term of years to an author, composer etc. (or assignee) to print, publish
and sell copies of his/her original work. Copyright protects original
literary, dramatic, musical, and artistic works, including books, music,
films, software, and other creative expressions.
2. Patents: Patents protect inventions that are new, involve an inventive
step, and are capable of industrial application. The Patent Office grants
patents for a specific period, providing exclusive rights to the patentee to
make, use, sell, or import the invention. Patent applications undergo
examination and must meet specific criteria for patentability.
3. Trademarks: Trademarks protect brands, logos, symbols, or any
distinctive marks that identify goods or services. Registration of a
trademark provides exclusive rights and prevents others from using a
similar mark for similar goods or services. Trademark protection can be
obtained for a period of ten years, renewable indefinitely.
4. Industrial Designs: Industrial designs protect the visual appearance of an
article, including shape, configuration, pattern, or ornamentation.
Registration of an industrial design provides exclusive rights to the owner
for a period of ten years, extendable up to fifteen years.
5. Geographical Indications (GI): Geographical Indications protect
products that originate from a specific geographical location and possess
qualities, reputation, or characteristics attributable to that location.
Examples include Darjeeling tea, Banarasi silk, and Kashmiri Pashmina.

 GI registration prevents unauthorized use of the geographical indication

and helps protect the interests of producers and consumers.
6. Trade Secrets: Trade secrets refer to confidential information, such as
formulas, processes, methods, or business strategies, that provide a
competitive advantage. While there is no specific legislation governing
trade secrets, protection is achieved through maintaining secrecy and
enforcing non-disclosure agreements.
7. Enforcement and Dispute Resolution: India has specialized intellectual
property offices and tribunals to handle registration, enforcement, and
dispute resolution related to intellectual property rights. The Intellectual
Property Appellate Board (IPAB) and the courts handle intellectual
property-related disputes

What is a patent?
A patent is a government-issued document that protects new and useful
inventions. It gives the inventor the right to control who can make, use, or sell
their invention. In return, the inventor must publicly disclose their invention,
sharing the details of how it works.
Types of inventions:
Patents can be granted for various types of inventions, such as new machines,
processes, chemical compositions, software algorithms, or improvements to
existing inventions. It can cover both physical products and intangible creations
like methods or formulas.
Exclusive rights:
When a patent is granted, the inventor has the exclusive right to use and profit
from their invention. This means others cannot make, use, or sell the patented
invention without the inventor's permission. The inventor can also choose to
license their patent to others, allowing them to use the invention in exchange for
royalties or fees.

Principles underlying Patent Acts, 1970

1. Novelty: An invention must be new and not anticipated by prior publication
or prior use in India or elsewhere before the filing date of the patent
application. The principle of novelty ensures that patents are granted for
inventions that are genuinely new and not already known or in the public
domain.

 2. Inventive Step: An invention must involve an inventive step that is non-

obvious to a person skilled in the relevant field of technology. The
inventive step requirement ensures that patents are granted for inventions
that involve a level of creativity and go beyond what is already known in
the field.
3. Industrial Applicability: Patents are granted for inventions that are
capable of being made or used in an industry. The principle of industrial
applicability ensures that patents protect inventions that have practical
utility and can be applied in commercial or industrial settings.
4. Sufficiency of Disclosure: A patent application must disclose the invention
in a manner that is sufficiently clear, complete, and enables a person skilled
in the field to replicate or use the invention. This principle promotes the
disclosure of technical information and ensures that the public benefits
from the knowledge shared through patents.

Exceptions - Non Patentable Inventions

• Inventions which are hazardous to public health or public interest or
environment
• New method of agriculture or horticulture
• A process of treatment of human beings, animals or plants
• Mere discovery of a new form of a know substance, which does not result in
enhancement of efficacy of that substance
• Any process for medicinal, surgical, curative, prophylactic, diagnostic,
therapeutic, or other treatment of human beings or animals to render them
free of disease or enhances their or their product’s value
• Any invention which in effect is traditional knowledge
• Inventions relating to atomic energy

Rights conferred to a patentee

• To exploit the patent
• To licence the patent to another
• To assign the patent to another
• To surrender the patent
• To sue for infringement of patent

Patent license
A patent license refers to a legal agreement between the owner of a patent
(licensor) and another party (licensee) that grants the licensee permission to use,
sell, manufacture, or otherwise exploit the patented invention.

Functions of a Trademark
• It identifies the product and its origin (Producer)
• It guarantees its quality
• It advertises the product and distinguishes it from competitor’s product
• It creates an image of the product in the minds of people

Certification Trade Mark

The function is not to indicate trade origin but to indicate that the goods bearing
the marks have been certified by the proprietor of the mark to be of a certain
characteristics like geographic origin, ingredients, quality etc.
Eg. Agmark, ISI and BIS marks indicate quality and safety of the product.

Risks in a startup or any business

• Financial risk – Availability of funds, planning financial milestones such as
break even or pay back period
• Strategy risk – Selection of wrong strategy, execution vows
• Market risk – Impact of economic changes, competitive pressures, customer
behaviour
• Technology risk – More pronounced in technology intensive industries and
firms
• Product risk – The expected utility of the product, the intended use
• Personnel risk – Life of personnel, their performance
• Contract – liabilities arising out of the non performance of the contract

Need of insurance in business

Insurance plays a crucial role in mitigating risks and protecting businesses from
potential financial losses. Here are some key reasons why insurance is
important for businesses:
1. Risk Management: Businesses face various risks, such as property
damage, liability claims, theft, natural disasters, or lawsuits. Insurance

 helps manage these risks by providing financial protection against

potential losses.
2. Financial Security: In the event of an unforeseen incident, insurance
coverage helps businesses avoid significant financial burdens. It provides
compensation for damages, repairs, or legal expenses, reducing the impact
on the business's finances.
3. Legal Requirements: Certain types of insurance, such as workers'
compensation or professional liability insurance, may be legally mandated
for businesses.
4. Peace of Mind: Insurance provides business owners and stakeholders
with peace of mind. Knowing that potential risks are mitigated through
insurance coverage allows them to focus on core business activities
without constantly worrying about unforeseen events.
5. Employee Welfare: Insurance policies, such as health insurance or
disability coverage, contribute to the well-being of employees. These
benefits help attract and retain talented employees while providing a sense
of security and support.

The Indian Contract Act

The Indian Contract Act, 1872 is a legislation that governs the formation,
execution, and enforcement of contracts in India. It defines the rights, duties,
and obligations of parties entering into a contract and provides a legal
framework for contractual relationships.

1. Proposal and Acceptance: A valid contract begins with one party making
an offer or proposal to another party, who then accepts the offer. This
agreement between the parties is called an agreement or contract.
1. A proposal may be revoked at any time before the communication
of its acceptance is complete as against the proposer, but not
afterwards.
2. A proposal, when accepted, becomes a promise. The person
making the proposal is called the “promisor”, and the person
accepting the proposal is called the “promisee”
2. Intention to Create Legal Relationship: Both parties must have a clear
intention to enter into a legally binding relationship. This means that they
understand that their promises and obligations under the contract will be
enforceable by law.
3. Parties Competent to Contract: The parties entering into the contract
must be legally capable and competent to do so. This generally means they
must be of legal age, mentally sound, and not disqualified by any law from
entering into a contract.
4. Lawful Object: The purpose or objective of the contract must be lawful. It
cannot involve illegal activities or go against public policy.
5. Lawful Consideration: Consideration refers to something of value
exchanged between the parties, such as money, goods, services, or
promises. For a contract to be valid, there must be a lawful consideration
provided by each party.
6. Free Consent: The consent of the parties must be freely given without any
coercion, fraud, undue influence, or misrepresentation. They should fully
understand and agree to the terms and conditions of the contract.
7. Not Expressly Declared Void: The contract must not be specifically
declared void by law. Certain types of contracts, such as those involving
illegal activities or conflicting with public policy, may be deemed void and
unenforceable.
8. Possibility of Performance: The terms of the contract must be capable of
being performed. It should be physically and legally possible for the parties
to fulfill their obligations as agreed upon in the contract.
9. Fulfillment of Legal Formalities: Some contracts require specific legal
formalities, such as being in writing or being registered. If there are any

 legal formalities prescribed by law, they must be followed for the contract
to be valid.

 Unit-3(Marketing & its types)

What is Entrepreneurial Marketing?
Entrepreneurial marketing refers to the application of innovative and
resourceful marketing strategies and tactics by entrepreneurs and small
businesses to achieve their business goals. It involves leveraging limited
resources, taking calculated risks, and finding innovative ways to attract and
retain customers.

Characteristics of Entrepreneurial firms

1. Innovation-focused.
2. Risk-tolerant.
3. Resourceful and adaptive.
4. Customer-centric.
5. Passionate and driven.
6. Continuous learners.
7. Collaborative and networked.
8. Growth-oriented.
9. Opportunity-driven.

Common Marketing Problems in Entrepreneurial firms

1. Limited marketing budget and resources.
2. Lack of brand awareness and visibility.
3. Difficulty in targeting and reaching the right audience.
4. Competing with larger, established competitors.
5. Difficulty in measuring marketing ROI.
6. Adapting to rapidly changing market trends.
7. Generating consistent leads and sales.
8. Building trust and credibility in a crowded marketplace.

TAM vs SAM vs SOM

1. TAM (Total Addressable Market): TAM refers to the total market
demand for a specific product or service. It represents the maximum
potential revenue that a business could achieve if it captured 100% market
share.

 2. SAM (Serviceable Addressable Market): SAM represents the portion of

the TAM that a business can realistically target and serve. It considers
factors such as geographical limitations, customer segments, or specific
market niches.
3. SOM (Serviceable Obtainable Market): SOM refers to the portion of
the SAM that a business can realistically capture and obtain. It takes into
account the company's resources, competition, marketing efforts, and
other constraints that affect market penetration.

In summary, TAM represents the entire market demand, SAM represents the
portion that can be realistically targeted, and SOM represents the portion that
can actually be captured by a specific business based on its capabilities and
resources.

Market Research techniques

Market research involves gathering information about various aspects of a
market to make informed business decisions. Some common sources of
information for market research are:
1. Primary Research: This involves collecting firsthand data directly from
the target market. It can be done through surveys, interviews, focus
groups, observations, or experiments.
2. Secondary Research: This involves utilizing existing data and
information that has already been collected by others. Secondary research
sources include government publications, industry reports, market studies,
academic research, trade associations, and online databases.

 3. Customer Feedback: Gathering feedback from existing customers

through surveys, feedback forms, or customer reviews can provide
valuable insights into their preferences, needs, and satisfaction levels.
4. Competitor Analysis: Analyzing the strategies, products, pricing, and
marketing activities of competitors can provide insights into market
trends, customer preferences, and potential gaps in the market.
5. Market Trends and Industry Reports: Keeping up with industry news,
trends, and reports from reputable sources can provide valuable
information on market size, growth potential, emerging technologies,
consumer behavior, and other relevant factors.
6. Online Analytics: Web analytics tools, social media listening, and online
consumer behavior data can provide insights into customer preferences,
website traffic, online interactions, and trends.
7. Government Data: Government agencies often provide data and reports
on demographics, economic indicators, consumer spending patterns,
industry regulations, and market trends.
8. Trade Shows and Conferences: Attending industry-specific trade shows,
conferences, and exhibitions can provide opportunities to gather
information, network with industry experts, and learn about the latest
developments in the market.
9. Professional Networks and Industry Associations: Engaging with
professional networks, industry associations, and online communities can
provide access to industry-specific knowledge, best practices, and
valuable contacts.
10. Internal Data: Analyzing internal sales data, customer databases, CRM
systems, and other internal records can provide insights into customer
behavior, buying patterns, and market segments.

Emerging Marketing techniques

1. Niche Marketing: Niche marketing focuses on targeting a specific
segment or niche within a broader market. It involves tailoring marketing
efforts and messages to meet the unique needs and preferences of that
specific target audience.
2. Buzz Marketing: Buzz marketing aims to generate excitement and
anticipation around a product, service, or brand through word-of-mouth,
viral campaigns, or unconventional marketing tactics. It leverages the

 power of social sharing and creates a "buzz" to generate interest and

engagement.
3. Societal Marketing: Societal marketing focuses on addressing social or
environmental issues while promoting products or services. It aims to
create a positive impact on society and aligns marketing strategies with
the well-being of consumers and the community.
4. Ambush Marketing: Ambush marketing involves capitalizing on or
leveraging a major event or campaign without being an official sponsor. It
aims to associate a brand with the event or capture attention through
creative marketing tactics, often challenging the exclusivity of official
sponsors.
5. Influencer Marketing: Influencer marketing involves partnering with
influential individuals on social media platforms to promote products or
services. Influencers have a dedicated following and can influence their
audience's purchasing decisions.
6. Green Marketing: Green marketing, also known as sustainable
marketing or eco-marketing, focuses on promoting products or services
that are environmentally friendly or have a positive impact on the
environment. It emphasizes sustainable practices, eco-friendly production,
and communicates the brand's commitment to environmental
responsibility.

Marketing strategy
1. E-marketing: E-marketing, also known as digital marketing or online
marketing, refers to the use of electronic channels and technologies to
promote products or services. It encompasses various online strategies
such as email marketing, social media marketing, search engine
optimization (SEO), content marketing, paid online advertising, and more.
E-marketing leverages digital platforms to reach and engage target
audiences, drive website traffic, generate leads, and ultimately convert
them into customers.
2. Push Marketing: Push marketing is a promotional strategy that involves
pushing products or services directly to the target audience. It relies on
active promotional efforts to reach customers and persuade them to make
a purchase. Examples of push marketing include TV and radio
advertisements, direct mail, telemarketing, and sales force interactions.

 The goal of push marketing is to create immediate demand and generate

sales by actively pushing the product or service to the customers.
3. Pull Marketing: Pull marketing is a promotional strategy that aims to
attract and draw customers to the product or service. Instead of actively
pushing the product, pull marketing focuses on creating brand awareness,
building a strong online presence, and providing valuable content or
experiences that naturally attract customers. Pull marketing strategies
include content marketing, search engine optimization (SEO), social
media engagement, influencer marketing, and word-of-mouth referrals.
The goal of pull marketing is to create a desire for the product or service,
so customers seek it out and make a purchase.

 Unit-4(Organization Design and HRM)

What is organisational design?
Organizational design refers to how a company arranges its people, tasks, and
systems to achieve its goals effectively. It involves deciding how the
organization should be structured, who is responsible for what, and how people
should work together to get things done. It's about creating a blueprint that
helps the company operate smoothly and accomplish its objectives.

Why OD is not a buzzing topic in startups?

1. Immediate focus on growth: Startups prioritize rapid growth and
scaling, focusing on product development, customer acquisition, and
funding rather than organizational design.
2. Limited resources: Limited resources lead startups to allocate their time
and money towards immediate needs, leaving less room for extensive
organizational design discussions.
3. Agile and Dynamic nature: The agile and dynamic nature of startups
requires flexibility in the organizational structure to adapt quickly to
market changes and experiment with different approaches.
4. Focus on talent acquisition: Talent acquisition is a key focus for
startups, with emphasis on creating an appealing company culture and
offering growth opportunities to attract top talent.
5. Evolution over time: Startups go through multiple iterations and
evolutions, leading to changes in their organizational design over time,
making discussions more relevant in later stages.

 The primary operations of any manufacturing or service venture typically

involve the following components:
1. Operations Strategy Formulation: Developing a strategic plan for
operations that aligns with the overall business strategy and objectives.
2. Demand Forecasting: Predicting future demand for products or services
to guide production planning and resource allocation.
3. Technology Management: Managing and utilizing technology effectively
to optimize operations and improve efficiency.
4. Production Management: Planning, organizing, and controlling the
manufacturing or service processes to ensure timely and cost-effective
production.
5. Supply Chain Management: Overseeing the flow of goods or services
from suppliers to customers, including procurement, logistics, and
distribution.
6. Material Management: Managing the acquisition, storage, and usage of
raw materials, components, and other resources needed for production.
7. Inventory Management: Controlling and optimizing inventory levels to
ensure adequate supply while minimizing carrying costs and stockouts.

 8. Quality Management: Implementing processes and systems to ensure

consistent quality in products or services, including quality control and
assurance measures.
9. Maintenance: Planning and executing maintenance activities to ensure
the proper functioning and longevity of equipment and facilities.
10. Safety and Hazard Prevention: Implementing safety protocols and
measures to protect employees, customers, and the environment from
potential hazards.
11. Environmental Management System: Incorporating environmentally
sustainable practices and managing the impact of operations on the
environment.

HRM in startups
1. Talent acquisition: Attracting and recruiting top talent.
2. Onboarding and training: Smoothly integrating new hires and providing
necessary training.
3. Performance management: Setting expectations, providing feedback,
and evaluating performance.
4. Employee engagement: Creating a positive and engaging work
environment.
5. Compensation and benefits: Designing competitive packages to attract
and retain talent.
6. Legal compliance: Ensuring adherence to employment laws and
regulations.
7. Organizational culture: Fostering a strong culture and promoting values.

 8. Employee relations: Managing conflicts and maintaining open

communication.
9. Growth and succession planning: Identifying and developing future
leaders.
10. HR administration: Handling payroll, contracts, and compliance matters.

HR related issues in startups

1. Limited HR Resources: Startups often have limited HR personnel or
resources to handle the wide range of HR functions required.
2. Rapidly Changing Roles and Responsibilities: Employees in startups
may have to take on multiple roles and responsibilities, leading to
challenges in defining job roles and career progression.
3. Recruitment Challenges: Attracting and hiring qualified talent can be
challenging for startups, especially when competing with established
companies or facing budget constraints.
4. Employee Retention: Retaining talented employees can be difficult in
startups due to factors such as limited growth opportunities, high
workloads, or uncertainty about the startup's future.
5. Compensation and Benefits: Startups may face challenges in offering
competitive compensation and benefits packages, which can impact
employee satisfaction and retention.

6. Work-Life Balance: Startups often have a fast-paced and demanding

work environment, making it challenging to maintain a healthy work-life
balance for employees.
7. Limited Training and Development: Due to resource constraints,
startups may struggle to provide comprehensive training and development
programs for employees.
8. Performance Evaluation: Establishing effective performance evaluation
systems can be challenging in startups where job responsibilities and
goals may evolve rapidly.
9. Culture and Communication: Maintaining a positive and inclusive work
culture, fostering effective communication, and managing conflicts can be
particularly important in startup environments.
10. Compliance and Legal Issues: Ensuring compliance with labor laws,
regulations, and HR-related legal requirements can be complex, especially
for startups with limited HR expertise.

 Unit-5(Finance for startups)

Financial Jargons in startup world
1. Burn Rate: The rate at which a startup is spending its available funds. It
represents the amount of money a startup is "burning" each month to
cover its expenses until it becomes profitable.
2. Runway: The amount of time a startup has until it depletes its available
funds based on its burn rate. It indicates how long the startup can sustain
its operations before it needs additional funding.
3. Seed Funding: The initial capital raised by a startup to fund its early-
stage operations and product development. It typically comes from angel
investors, friends and family, or early-stage venture capitalists.
4. Series A, B, C Funding: Series A, B, and C are rounds of funding that
startups go through as they grow. Series A is the first significant round
after initial funding and helps scale the business. Series B comes after
achieving growth and is used to fuel rapid expansion. Series C is raised
when the company has substantial growth and aims to expand further or
prepare for an exit like an IPO or acquisition.
5. Valuation: The estimated worth of a startup or company. It determines the
percentage of ownership investors will receive in exchange for their
investment.
6. Gross Margin: The difference between a startup's revenue and the direct
costs associated with producing its products or delivering its services. It
represents the profitability before accounting for other expenses.
7. Churn Rate: The rate at which customers or subscribers discontinue their
relationship with a startup's product or service over a given period. It is an
important metric to measure customer retention and satisfaction.
8. Cash Flow: The movement of cash into and out of a startup's bank
account over a specific period. Positive cash flow indicates more money is
coming in than going out, while negative cash flow indicates the opposite.
9. Bootstrapping: The practice of starting and growing a business using
personal savings or operating revenue, without external funding.
Bootstrapped startups rely on their own resources to finance their
operations.
10. MVP (Minimum Viable Product): The MVP is a basic version of a
product or service that is developed and launched with minimum features

 and functionality. Its purpose is to gather feedback from early adopters

and validate the product idea before investing further resources.
11. Traction: It indicates that the startup is gaining traction in the market and
attracting attention from customers or investors.
12. Sweat Equity: Sweat equity refers to the value that individuals contribute
to a startup in the form of their time, effort, skills, or expertise instead of
financial investment. It represents the ownership stake or shares earned by
founders or team members through their contribution to the startup's
growth.
13. Angel Financing: Angel financing refers to funding provided by
individual investors, known as angel investors, who invest their personal
funds into early-stage startups in exchange for equity or convertible debt.
Angel investors often provide mentorship and expertise in addition to
capital.
14. Crowdfunding: Crowdfunding is a method of raising funds from a large
number of people, typically through an online platform. Startups can
present their business idea or product to the public, and individuals can
contribute small amounts of money in exchange for rewards or equity. It
allows startups to access capital from a wide range of people, often with
diverse backgrounds and interests.
15. Venture Capital: Venture capital (VC) involves investments made by
specialized firms, known as venture capital firms, into startups and early-
stage companies with high growth potential. VC firms provide funding in
exchange for equity ownership in the company. They often take an active
role in guiding the startup's growth and provide expertise, resources, and
industry connections.
16. Small Business Loans: Small business loans are financial products
provided by banks, financial institutions, or government programs to
small businesses. These loans offer startups and small businesses access to
capital that can be used for various purposes, such as starting or
expanding operations, purchasing equipment, or managing cash flow.

 Unit-6(Business Plan)
What is a Business Plan?
A business plan is a written document that outlines the goals, strategies, and
financial projections of a business. It serves as a roadmap for the company's
future and provides a comprehensive overview of how the business will
operate, grow, and achieve its objectives.
A typical business plan includes several key components:
1. Executive Summary: An overview of the business, including its mission,
vision, key highlights, and objectives.
2. Business Description: Detailed information about the company, its
structure, history, products or services, target market, and competitive
advantage.
3. Market Research and Analysis: Research and analysis of the industry,
market trends, target customers, competitors, and market opportunities.
4. Competitive analysis – Competitors can make or break any business.
Therefore, before entering the market, the businesses must evaluate how
the competitors operate, their profits and costs, their offerings, etc.

 5. Marketing and Sales Plan: Plans for promoting and selling the products
or services, including marketing channels, pricing strategy, distribution,
and sales forecasts.
6. Operations and Management: Information about the day-to-day
operations, production processes, supply chain management, and quality
control measures.
7. Organization description: This gives information on the total
employees, departments, management qualifications, job description, and
total skill set of the organization’s human resources. The decided salary
and wages, HR policies, etc., are also part of an organization’s
description.
8. SWOT analysis: SWOT analysis helps the business identify its
strengths, weaknesses, opportunities, and threats, which will help them
choose the critical approach. The business should take advantage of its
strengths and opportunities while simultaneously working on the
weaknesses and finding the best strategy to deal with the threats. This will
balance the company and its internal and external environment.
9. Financial Projections: Financial forecasts, including revenue projections,
expenses, cash flow analysis, and profitability estimates. This section may
also include funding requirements and potential sources of funding.
10. Appendices – This can include other important or relevant documents to
prepare the plan. For example, financial documents, proof of people’s
acceptance of products, resumes of the management, study on
competition, etc.

Why is a Business Plan needed?

A business plan is a crucial document for startups and existing businesses, as it
helps in securing funding, attracting investors, guiding business operations, and
measuring progress towards goals.
The outline of a business plan should be prepared from three perspectives –
first, the market; second, the investors; and finally, the company.
• Provides clarity and direction for the business.
• Attracts funding from investors and lenders.
• Guides decision-making and resource allocation.
• Identifies strengths, weaknesses, and opportunities.
• Communicates the company's vision and strategies to stakeholders.

 • Monitors and evaluates performance and progress.

• Sets priorities for tasks and activities.
• Mitigates potential risks and challenges.
• Supports business growth and expansion.
• Fosters internal alignment and a sense of purpose.

Bankers’ Analysis for startups

Bankers' analysis for startups focuses on understanding the startup's business
model, management team, financial projections, industry dynamics, and risk
factors to make informed decisions about lending money or extending credit
facilities to support the startup's growth and operations.

While the analysis may differ from that of established businesses, bankers
typically focus on key aspects when evaluating startups:
1. Business Plan: Evaluating the startup's business plan to understand its
market potential, competitive advantage, revenue projections, and growth
strategy.
2. Management Team: Assessing the qualifications, experience, and track
record of the startup's management team to determine their ability to
execute the business plan successfully.
3. Financial Projections: Analyzing the startup's financial projections,
including revenue forecasts, expenses, cash flow projections, and
profitability estimates, to assess the viability of the business model and its
ability to generate sufficient cash flow.
4. Industry Analysis: Conducting an analysis of the industry in which the
startup operates, including market trends, competition, and growth
potential, to evaluate the startup's positioning and potential risks.
5. Funding and Capital Structure: Reviewing the startup's funding
sources, capital structure, and equity ownership to assess the financial
stability and risk exposure of the company.
6. Collateral or Guarantees: Considering any collateral or personal
guarantees that can secure the loan or mitigate risk for the bank in case of
default.

7. Industry or Sector Expertise: Banks may also evaluate the expertise and
knowledge of the startup's founders or key personnel in the specific
industry or sector to assess the likelihood of success.

Unit-7(Growth & Exit Strategies, Social

Entrepreneurship)

1. Viral Loops: A marketing technique where existing customers or users of

a product or service are incentivized to refer others, creating a self-
reinforcing cycle of customer acquisition.
2. Milestone Referrals: Offering incentives or rewards to customers for
referring new customers once they reach a certain milestone, such as
making a purchase or achieving a specific level of engagement.
3. Word of Mouth: Utilizing positive recommendations and referrals from
satisfied customers to generate buzz and attract new customers.
4. Zig-Zag: A marketing strategy that focuses on targeting different
customer segments or markets sequentially, allowing the business to
expand its reach and customer base.

 5. Product Development: The process of creating and enhancing products

or services to meet customer needs and preferences, often involving
research, prototyping, testing, and iteration.
6. Market Development: Expanding into new markets or customer
segments to increase the company's reach and market share, often through
market research, partnerships, or geographic expansion.
7. Market Penetration: Increasing market share within existing markets by
focusing on strategies like pricing adjustments, promotional campaigns, or
enhancing distribution channels.
8. In-person Outreach: Engaging with potential customers or partners
through face-to-face interactions, such as networking events, trade shows,
or sales meetings, to build relationships and generate business
opportunities.

Organic Growth Strategies

Organic growth strategies refer to methods that businesses employ to expand
and increase their market presence using internal resources and capabilities,
rather than relying on mergers, acquisitions, or external investments. Some
common organic growth strategies include:
1. Market Penetration: Increasing market share within existing markets by
capturing a larger customer base or increasing sales to existing customers.
This can be achieved through marketing campaigns, pricing strategies,
improved customer service, or product differentiation.
2. Product Development: Introducing new products or enhancing existing
products to meet evolving customer needs and preferences. This strategy
involves research and development, innovation, and continuous
improvement of the product or service offerings.
3. Market Development: Expanding into new markets or customer
segments with existing products or services. This may involve geographic
expansion, targeting different demographics, or entering new distribution
channels.
4. Customer Retention and Loyalty: Focusing on building strong customer
relationships and loyalty to encourage repeat purchases and word-of-
mouth recommendations. This can be achieved through personalized
customer experiences, loyalty programs, and excellent customer service.
5. Branding and Marketing: Building a strong brand identity and
marketing presence to differentiate the business from competitors and
attract target customers. This includes effective branding, online and
offline marketing campaigns, social media engagement, and content
marketing.

Inorganic Growth strategies

Inorganic growth strategies refer to methods that businesses use to expand and
increase their market presence through external means, such as mergers,
acquisitions, partnerships, or alliances. These strategies involve integrating with
or acquiring other businesses to achieve growth and gain access to new
markets, technologies, products, or capabilities. Some common inorganic
growth strategies include:
1. Mergers: Combining two or more companies to form a new entity, with
the aim of achieving synergies, cost savings, and market dominance.

 Mergers can lead to increased market share, expanded product portfolios,

and enhanced competitive advantage.
2. Acquisitions: Purchasing another company to gain control over its assets,
customer base, intellectual property, or market presence. Acquisitions can
provide immediate access to new markets, technologies, or talented teams,
accelerating growth and diversification.
3. Strategic Partnerships and Alliances: Collaborating with other
businesses or organizations to leverage each other's strengths and
resources. Strategic partnerships can provide access to new markets,
distribution channels, or complementary capabilities, enhancing
competitiveness and market reach.
4. Joint Ventures: Forming a separate entity with another company to
pursue a specific business opportunity or project. Joint ventures allow
businesses to pool resources, share risks, and combine expertise to enter
new markets or pursue mutually beneficial objectives.
5. Licensing and Franchising: Granting the rights to use intellectual
property, trademarks, or business models to other businesses in exchange
for royalties or fees. Licensing and franchising enable businesses to
expand their reach and generate revenue without significant capital
investments.

 Exit strategies
1. Initial Public Offering (IPO): Going public by offering shares of the
company to the public through a stock exchange, allowing the founders and
early investors to sell their shares and potentially generate significant
returns.
2. Acquisition or Merger: Selling the company to a larger corporation or
merging with another company, typically resulting in a financial payout to
the founders and investors.
3. Management Buyout (MBO): Selling the business to the existing
management team, allowing them to take ownership and control of the
company.
4. Strategic Sale: Selling the company to a strategic buyer, such as a
competitor or a company operating in a related industry, who sees value in
the business's products, services, or market position.
5. Private Equity Buyout: Selling a majority or controlling stake in the
company to a private equity firm, which can provide additional capital and
expertise to accelerate growth.
6. ESOP (Employee Stock Ownership Plan): Transitioning ownership to
employees through an ESOP, allowing them to acquire shares and gain
ownership over time.

7. Liquidation: Closing down the business and selling off its assets to pay off
debts and distribute remaining funds to shareholders.

What is Social Entrepreneurship?

Social entrepreneurship refers to the practice of using entrepreneurial principles
and business strategies to create innovative solutions to social, cultural, or
environmental problems. Social entrepreneurs are driven by a mission to make
a positive impact on society and address pressing social issues while also
generating sustainable financial returns.
Examples of social entrepreneurship include organizations that provide clean
energy solutions in rural areas, deliver affordable healthcare to underserved
communities, empower marginalized groups through education and skills
training, or develop sustainable agricultural practices to combat food insecurity.
Social entrepreneurship combines the passion and vision of traditional
entrepreneurship with a commitment to addressing social challenges, resulting
in innovative and sustainable approaches to create positive societal impact.

Why is social entrepreneurship needed?

• Addresses social problems and creates positive change.
• Offers innovative solutions to societal challenges.
• Combines financial sustainability with social impact.
• Fosters collaboration and partnerships.
• Empowers marginalized communities and individuals.
• Tackles root causes of social issues.
• Measures and evaluates social impact.
• Drives systemic and lasting change.
• Promotes social equality and inclusivity.
• Builds resilient and sustainable communities.