Week 4 DiscussionCOLLAPSE
What Key Resources Do You Need?
Review the below definition and then answer the questions below that apply to you:
KEY RESOURCES: Describes the most important assets required to make a business model work.
Questions for Entrepreneur or Nonprofit:
- What Key Resources does your Value Proposition require?
- What Key Resources do your Customer Relationships require?
- What Key Resources for your Revenue Streams and Distribution Channels require?
Questions for Intrapreneur:
- What does your internal leadership require to fund your idea or concept?
- What Key Resources do your Customer Relationships require?
- What Key Resources for your Revenue Streams and Distribution Channels require?
Post your initial response by Wednesday, midnight of your time zone, and reply to at least 2 of your classmates’ initial posts by Sunday, midnight of your time zone.
Tio Gazpacho: Funding the Opportunity
What makes for a good investor? This can vary widely, depending on the nature of the new initiative and its stage of development. Initially Austin relied on his own savings and on investments from family and friends. He did not seek an external investor at first because he wanted independence to experiment and refine his product idea.
After a few years, Austin landed a $1.25M venture capital funding deal with a group of investors led by General Mills’ innovation arm, 301 Inc. This investment arrangement was a win-win because, while providing funding for Tio to expand, it also fulfilled 301 Inc’s purpose, which is to find and fund new innovative food trends that the General Mills company is too large and slow-moving to develop internally. In addition to being Tio’s lead investor, General Mills gained a seat on Tio’s Board, bringing valuable industry expertise and experience in consumer research to Austin’s business.
Funding Your Idea
A key requirement for any new initiative, whether it is a startup business or a new project within a company, is funding. In the Tio video clip this week, Austin talks about how he started out by funding himself with help from family and friends. This approach to launching a startup is known as “bootstrapping.” Once he had some proof of concept with initial small-scale success, Austin needed more capital to grow his business, and so he sought external support in the form of venture capital funding.
While a few entrepreneurs have the wealth to fully finance a new business, most startups need to seek external funding. There are many funding options, including bank loans, venture capital, crowd sourcing, or going public with an IPO. For an intrapreneur, funding comes from your company, but only if you can persuade your manager or the executive team that your idea is a worthwhile investment.
This week, you will:
- Consider the pros and cons of self-financing versus support from investors
- Explore different funding models for a new business or venture
- Discuss what key resources you will need to implement your new venture
1st person to respond to
RE: Week 4 DiscussionCOLLAPSE
Good morning Dr. A. and Class,
The key resources any entrepreneur will need can be divided into four main categories: physical, intellectual, financial, and human resources (Empower Women, 1)
What Key Resources does your Value Proposition require?
The physical resources are tangible assets – “things that you can touch and feel” and also technology (Oakley, 2). For my value proposition, I require and have secured the following: laptop, phone, internet connection, video camera, video course hosting platform (Groove Funnels), conference call platform (Zoom), Dream-Plan-Do high-productivity journals.
The intellectual resources lie in my knowledge, the Diamond Effect concept I came up with, the Dream-Plan-Do coaching model, the online course curriculum, i.e., the content of the videos, and accompanying worksheets. I plan to trademark the Diamond Effect concept and Dream-Plan-Do Coaching model within the next year or two.
A coaching business has very low start-up capital needs (JWI 575, 3). Suppose I don’t count the laptop or video camera that will last for a few years and exclude the potential cost of filing for trademark registration. In that case, the approximate monthly cost of the phone plan, internet, and technology subscriptions to deliver my value proposition is approximately $250. I am also the key human resource in this area.
What Key Resources do your Customer Relationships require?
Here the primary physical resource is a CRM (Client Relationship Management) software that hosts customer information and allows to grow the relationship through e-mail marketing, for example. The customer and potential customer database is an intellectual resource that is one of the most critical assets for my business.
I have developed a couple of other customer relationship assets, such as a free online community (Facebook) for women entrepreneurs (BCcampus, 5). I nurture relationships and offer free value for the members in the form of reading resources, quick video training, or opportunities to network and promote their businesses.
Additionally, my newest addition to this area of resources is Diamond Effect Podcast (Perotin, 5) which includes my intellectual property in terms of podcast episodes content and physical resources of podcast hosting platform.
The financial resources required to fund customer relationships amount to approximately $150 a month, which are fees for the technology platform subscriptions. I am currently bootstrapping my business venture through personal savings and have access to a credit line if the need arose (Kawasaki, 6).
The key human resources required for this area are me, a graphic designer with whom I collaborate on this venture, and a marketing & advertising specialist – this role is currently filled by my husband .
What Key Resources for your Revenue Streams and Distribution Channels require?
The key physical resource to enable the Diamond Effect coaching program as a revenue stream is an invoicing and payment platform such as PayPal or Square. Diamond Effect is a fixed fee program that can be paid one-time or in 5 installments (BCcampus, 4). There are no up-front payment fees for these platforms. They take a percentage of sales from each transaction, usually between 2.5 – 3%.
“Distribution channels bring the value proposition to the customers through communication, distribution, and sales.” (BCcampus, 4).
The main sales channels for the Diamond Effect program are social media (Facebook and Instagram), networking events, current customer database, online Facebook community, and podcast. I am the key sales human resource. I plan to use organic social media marketing initially and once the first sales are generated, start slowly investing in paid Facebook advertising.
As far as program delivery to the customer is concerned, the physical resources required are the video hosting platform (GrooveFunnel), conferencing platform (Zoom), and distribution of Dream-Plan-DO Journals (Amazon). The cost of producing and distributing the journal is about $15 each. It is only incurred when the sale of the program takes place and the customer pays the fees.
The human resources for this area are the same as for Customer Relationships.
Regards,
Maggie
References:
- Empower Women. 2021. Business Model: Key Resources. https://www.empowerwomen.org/en/ilearn/my-courses/business-development/business-model/business-model-key-resources
- Denis Oakley. 2021. What Are The Key Resources Needed To Deliver The Value Proposition? https://www.denis-oakley.com/business-model-canvas-course/key-resources/
- JWI 575. 2021. Week 4. Lecture Notes. Funding the Venture. Retrieved from: https://blackboard.strayer.edu/webapps/blackboard/content/
- BCcampus. 2021. Business Model Canvas. Retrieved from: https://opentextbc.ca/organizationalbehavioropenstax/chapter/business-model-canvas/
- Maggie Perotin. Diamond Effect Podcast. https://www.buzzsprout.com/1816207/episodes
- Guy Kawasaki. 2015. The Art of the Start 2.0. Portfolio. Penguin.
2nd person to respond to
20 hours ago
Jocelyn Johnson RE: Week 4 DiscussionCOLLAPSE
Hello Dr. A. and Classmates,
Questions for Intrapreneur:
In order to fund a big idea or concept, my leadership requires a sound business case which includes committed timing and alignment to our priorities. As mentioned in this week’s reading, intrapreneurs receive funding only if one can persuade the executive team that the idea is a worthwhile investment (Welch, 1). My understanding in my new role as CMO at Girl Scouts of the USA (GSUSA), is that this was not the case previously. A strong and influential presenter could basically get whatever they requested, despite alignment to business priorities or a solid return on investment. The tracking happens on a weekly, monthly quarterly, and annual basis during Executive Team and milestone reviews. Resources required depends on the specifics of the program and can require incremental headcount, outsourced resources, equipment, technology, and the list continues.
Key resources for Customer Relationships for my organization require “customer care” people for the majority of our activities. Additionally, we provide tools, marketing collateral, distributor relationships, and program support. Again, this is mostly people resources, however, the tools and technology that allows us to interact and engage in membership and program activities also come at a cost. Our digital presence is essential to maintaining engagement as we depend on the 111 councils to recruit members. Unlike the leaders at Chewy.com, we do not invest exclusively in direct response ads, ensuring tracking capabilities on every dollar spent — but our leadership is starting to realize the possibility and payback (Cohen, 2). This is mainly due to COVID-19. There were many eye-opening challenges to the status quo and the new and improved way of conducting business is very promising (Johnson, 3).
The revenue streams and distribution channels for GSUSA include 111 independent councils, troop membership, merchandise, licensing, and strategic partnerships. The resources required for these revenue streams are marketing collateral, people resources for the facilitation of processes for each community, tools and technology capabilities to stay engaged, track metrics and maintain website presence. Every three years the GSUSA hosts a convention and this is a major resource drain on the organization. The plan for 2023 is a transformational change to “manage for cash flow” and not profitability and properly manage strategic partnerships and licensing relationships (Kawasaki, 4). This is a very exciting promise for the future and it incredible to be part of the executive team strategically planning it.
1. Welch, J. 2005. Winning
2. Cohen, R. 2020. Harvard Business Review. “The Founder of Chewy.com on Finding the Financing to Achieve Scale.” Online: https://services.hbsp.harvard.edu/lti/links/R2001A-PDF-ENG
3. Johnson, J. 2021. Girl Scouts of the USA Employee Reference based on new initiatives
4. Kawasaki, G.2015. The Art of the Start 2.0
