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mazing

usiness
ainw

Amazing
Business
Train

COACH’S MANUAL

Vesa Tuomela & Sari Hanka


1
Amazing Business Train – PUBLISHER
Coach’s manual Häme University of Applied
Sari Hanka & Vesa Tuomela Sciences
PO BOX 230
printed FI-13101 Hämeenlinna, FINLAND
ISBN 978-951-784-736-0 tel. (03) 6461
ISSN 1795-4231 julkaisut@hamk.fi
HAMKin julkaisuja 8/2015 www.hamk.fi/julkaisut

e-publication Design: Design Agency Siltanen


ISBN 978-951-784-737-7 (PDF) & Sandberg Oy
ISSN 1795-424X Layout: Eveliina Toivonen, HAMK
HAMKin e-julkaisuja 13/2015
Printed in: Tammerprint Oy,
© Häme University of Applied Tampere
Sciences and the authors
Hämeenlinna, June 2015
Amazing
Business
Train

CONTENTS 1 INTRODUCTION
2 FROM IDEA TO BUSINESS IN A NUTSHELL
3 RESEARCH DEVELOPMENT PROCESS
4 BUSINESS MODEL CANVAS
5 VALUE PROVIDED
6 BUSINESS MODEL YOU
7 SWOT ANALYSIS
8 PITCHING
9 SOLUTION SELLING
10 MOTIVATION
11 EVERYDAY EXPERIENCE IN GIVING AND RECEIVING FEEDBACK
12 EVALUATION OF LEARNING
13 READ MORE

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1. INTRODUCTION Amazing Business Train or ABT is a velopment is on the customer. Selling
method developed by Häme Univer- is exercised through the practice of
sity of Applied Sciences for learning sales pitching. The revenue model and
the skills necessary to grow into an en- the structure of expenses are handled.
trepreneur, to teach entrepreneurship Through the hands-on work the ap-
and for working in the entrepreneurial proaches and qualities necessary for
way. It is a moving and intensive way an entrepreneur are strengthened.
of developing business ideas, create Such qualities are self-assurance,
ideas into business models and at the self-belief, being able to take risks, tol-
same time earn credit units. The ma- erate the uncertainty and stick one’s
jor part of learning and development neck out.
happens during a 40-hour and 1200
km long train trip from Hämeenlinna to All the necessary tools to guide the fu-
Oulu through Kuopio and back. ture entrepreneurs are gathered in the
coach’s handbook. There is also room
During the trip the students develop, for one’s own thoughts and methods.
experiment and test their business Every journey is unique. The coach to-
ideas and find new business partners. gether with the students make the train
The students build their own network trip into an Amazing Business Train. This
which helps them to develop the busi- manual is based on Jaakko Kuukka’s
ness idea. They obtain new informa- bachelor’s thesis. We thank Jaakko for
tion on business opportunities and get great work.
help with the designing, modeling and
commercialization of the business. Join us as a coach of the Amazing
The different aspects of business are Business Train!
managed by doing and experiment-
ing. The focus in the business idea de-
4
Sari Hanka and Vesa Tuomela
NOTES

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2. FROM IDEA TO DO YOU HAVE AN IDEA? IF NOT, MAKE UP ONE. HOW? LIKE THIS:
BUSINESS 1. Seek and observe unsolved problems
IN A NUTSHELL 2. Explain and define problems
3. Brainstorm ideas and solutions
4. Organize and synthesize your ideas
5. Evaluate and select ideas
6. Plan how to implement selected ideas

START WORKING:
Remember to develop
yourself! Who knows 1. Plan your work
the most will always 2. Work as planned
be after the one who 3. Agree what will be done
learns faster. 4. Do as agreed

6
OBSERVE WHAT YOU’RE DOING:

What is your vision for the enterprise? just an idea, or have you tested it in Will you work full-time? How much
What do you achieve by being an real environment? What kind of similar funding do you need?
entrepreneur and what can you products there are in the market?
reach? What is your vision? What potential risks may your enter-
Have you formulated a plan? Do prise face? The investors are inter-
What is your purpose? What do you you have a clear plan? What do you ested in potential risks. How will you
do and what do you offer? What is do now? What will you do after five evaluate risks? How likely will your
your mission? years? Is your plan detailed? enterprise succeed?

Does a market exist and can you Do you need to involve other people What are your long-term intentions
access it? Is there really demand for or physical premises? Where will you and personal objectives? Will the
the product or service? How big is the be working? Do you need to involve business model remain as a lifelong
market and where is it? other people in addition to yourself? business venture? Or is the main
Will it be just you in the beginning? intention to make a very good profit
Will you face competition? How do What kind of people do you have to in a specific timeframe? Why are you
you differ from others? What kind of involve? How will the ownership be doing this?
additional value do you produce? shared?

Can you clearly define your product How will you finance your enterprise?
and/or service? Do you have a clear Do you need funding for the very
picture of what you’re offering? Is it early stage?

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3. RESEARCH WHAT IS THE PROCESS? IN OTHER WORDS,
THE DEVELOPMENT GOES LIKE THIS:
DEVELOPMENT
PROCESS 1. Define the target and preliminary goals
2. Get and assess knowledge
3. Define the development task
4. Create the theoretical framework
Avoid barriers of going 5. Choose the approach
forward: lack of pride, 6. Implement the development project
commitment, laziness 7. Share the results
and courage. 8. Evaluate the development

Source: Ojasalo, K., Moilanen, T. ja Ritalahti, J. (2010).


Kehittämistyön menetelmät. Uudenlaista osaamista liiketoimintaan.
Helsinki: WSOYPro Oy

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DURING THE DEVELOPMENT PROCESS THE
FOLLOWING THINGS MUST BE PAID ATTENTION: 2
systematic approach
analytic approach Acquaint oneself with the
subject theretically and in

1
critical approach
active interaction practice.
writing to different stakeholders
ethicalness
Identifying development
subject and degining
preliminary objectives. 3
Describing the
development task
and degining it.

Evaluation of the
development process
and outcomes.

6 Formulating knowledge
base, planning of approach
and methodology.

Put the development work in


to practice and publishing it
4
in various formats.
9

5
4. BUSINESS WHAT WERE THE BRICKS ONCE AGAIN?
MODEL 1. Customers
CANVAS 2. Value provided
3. Channels
4. Customer relationships
5. Revenue
6. Key resources
Go out and try. Even 7. Key activities
the best plan may not 8. Key partners
stand the reality 9. Costs

Next spread provides


10 the details of this tool
KEY PARTNERS KEY ACTIVITIES VALUE  CUSTOMER  CUSTOMERS
PROVIDED RELATIONSHIP

KEY RESOURCES CHANNELS

COSTS REVENUE

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CUSTOMERS Who are your customers? Who are the vices be priced? What can I price and
most important customers? What are what is the price of it? What can I not
their needs? To whom do you create price and what is the price of it? What
value? is the pricing model like?

VALUE PROVIDED What is the value you provide to the KEY RESOURCES Which resources are the most impor-
customer? Which of the customer’s tant ones relative to the business?
problems do you solve? Which prod- What are the resources that you can-
ucts or services do you provide to the not meet the value provided without?
customer? Which customer needs do What kind of resources do you need
you satisfy? What do you offer to each for the distribution channels and cus-
customer segment? tomer relationships?

CHANNELS
Through which channels do you want KEY ACTIVITIES What has to be done so that value
to reach your customers? Through provided can be met? What actions
which channels do your customers do you need for the distribution chan-
want to be reached? How will you nels and customer relationships? Which
reach your customers? How do your actions are the most essential relative
competitors reach the customers? to revenue?
Which channels are economically the
most efficient? How integrated they KEY PARTNERS Who are your key partners? Which key
are to each other? resources do you get from your part-
ners? Which key actions do you order
CUSTOMER How will the customer find you? How from your partner?
RELATIONSHIPS will the customer contact you? How
will you serve the customer? How will COSTS Which costs are natural to your busi-
you act after the serving situation? ness? Which are the most important
How will you get the customer to come costs that are included in your busi-
back another time? How will you man- ness? Which key resources are the
age customer service and customer most expensive to maintain?
relationship? What kind of customer It’s hard to go on with big leaps. With
relationships do you competitors have? short steps you’ll reach the goal
without a doubt.
REVENUE How much are your customers ready
12 to pay? How will the products or ser-
Source: Osterwalder, A. and Pigneur, Y. (2010). Business Model Generation.
A Handbook for visionaries, game changers and challengers. New Jersey:
John Wiley & Sons. Inc.
CUSTOMER AND VALUE PROPOSITION
First name three customer segment/segments:______________, ________________ and _________________. Secondly, choose one
and profile typical customer of your segment. Then design your value proposition. In each topic make a list of 10 items: jobs,
pains, gains, products/services, gain creators and pain relievers. Grade importance of job, significance of gains and severe-
ness of pain in scale of 1-3 (1=not at all, 2=moderate, 3=very)

Gain Creators
Gains

Products & Customer


Services Job(s)

Pain Relievers Pains

13
OFFER
Describe your product user experience, identify channels in each customer phase: awareness, evaluation, purchase, deliv-
ery, after sales. Then describe customer service/relationship in different phases: personal assistance, self-service, automated
service, communities, co-creation?

PRODUCT/SERVICE CHANNELS CUSTOMER RELATIONSHIP / SERVICE

What is the product / service you Describe how you reach the custom- Describe how customer wishes to be
are offering to the customer? What er, where he can buy, consume and serviced: fully automated service –
is the name of your product/service? get rid of the product. personal service?
What is desired user experience of
your product/service? Describe your
product/service details?

14
INFRASTRUCTURE
Make list of all resources (skills, money, facilities, etc.) you need to deliver value proposition for the customer. Make a list of at
least 20 tasks that need to be done in order to deliver the value proposition, put them in order of importance and who is doing
them. Make a list of partners who will work with you to deliver the value proposition.

KEY RESOURCES KEY ACTIVITIES KEY PARTNERS

What key resources do our Value What key activities do our Value Who are our Key Partners?
Propositions require? Propositions require? Who are our key suppliers?
Which Key Resources are we acquir-
ing from partners?
Which Key Activities do partners
perform?

15
FINANCE
Identify costs and revenues.

REVENUES COSTS PROFITABILITY

List what value are our customers will- What are the most important costs Sales revenue minus costs
ing to pay? How would they prefer inherent in our business model? List
to pay? all the costs in your business model.
How much does each revenue Which key resources are the most
stream contribute to overall rev- expensive?
enues? What is the price of your Which key activities are the most
product/service? expensive?
NOTES

17
5. VALUE PROVIDED MISSING FOR IMPROVEMENT OF VALUE PROVIDED? TRY DEFINIG THESE:

NEED: What is APPROACH: What is


customer and our solution which
market need? will satisfy the need?

BENEFITS: What are COMPETITION: Why


quantitative benefits our solution is much
of our approach to better than competi-
the customer? tor’s approaches?

It doesn’t matter in which order you’ll answer; the most important


thing is to answer every question

Source: www.sri.com

18
NOTES

19
6. BUSINESS MODEL YOU
KEY PARTNERS KEY ACTIVITIES VALUE PROVIDED CUSTOMER  CUSTOMERS
RELATIONSHIP

WHO HELPS  WHAT YOU  HOW YOU  HOW YOU  WHO YOU HELP?


YOU? DO? HELP? INTERACT?

KEY RESOURCES CHANNELS

WHO YOU ARE  HOW THEY 
AND WHAT  KNOW YOU AND 
YOU DO? HOW YOU 
DELIVER?

COSTS REVENUE
WHAT YOU GIVE? WHAT YOU GET?

20
The losers want to AND HOW IS THIS DIFFERENT FROM THE NORMAL
rather hear the word BUSINESS MODEL CANVAS?
“new” than the word
“again”. Be ready to 1. Customers (Who will you help?)
make same things all 2. Value provides (How will you help?)
over again and again. 3. Channels (How do they know you and how will you deliver?)
4. Customer relationships (How will you interact with the
Source: Osterwalder, A. and
Pigneur, Y. (2012) Business customers?)
Model You. A one-page 5. Revenue (What will you get?)
method for reinventing your 6. Key resources (Who are you and what do you have?)
career. New Jersey: John
Wiley & Sons. Inc.
7. Key activities (What do you do?)
8. Key partners (Who will help you?)
9. Costs (What will you pay?)

NOTES

21
7. SWOT -ANALYSIS
INTERNAL 1. 2.
Strengths Weaknesses
(operational (operational
strengths) weaknesses)
EXTERNAL

5. 6.
3. Utilise Fix
Opportunities (success factors, (using oppor-
(future oppor- strengthening tunities when
tunities and strenghts, tar- reacting weak-
profits) geting opportu- nesses)
nities)

4. 7. 8.
Threats (future Prepare Prevent, proact
threats and (utilising streng- (risks, threats
losses) hts to prepare and weak-
for threats) nesses realise,
prevent)

HOW?

1. Strengths (operational strengths)


2. Weaknesses (operational weaknesses)
Remember to make 3. Opportunities (future opportunities and profits)
essential things before 4. Threats (future threats and losses)
you’re in a hurry. Also, 5. Utilise (success factors, strengthening strenghts, targeting opportunities)
the well should be 6. Fix (using opportunities when reacting weaknesses)
bored before you’re 7. Prepare (utilising strenghts to prepare for threats)
22 thirsty. 8. Prevent, proact (risks, threats and weaknesses realise, prevent)
NOTES

23
8. PITCHING Pitching is a powerful, compact and positive
images-arising summary of you and your business
model. Pay attention to your listeners and customize
the structure according to you target audience.
Pitching should answer the following questions:

1. Why?
2. Who?
3. How?
4. What?
5. Where?
6. When?
7. Who else?
8. What next?

The most common minefields in pitching:


1. Presumption that your listeners understand you
Winning is the func- 2. The content is unbalanced
tion of exceeding the 3. The speech is unbalanced
goals. You did know 4. Beginning slowly
that the master of pa- 5. Incoherence
tience is the master of 6. Important issues are missing
everything else, didn’t 7. The presentation is too full
you? 8. Timing goes wrong

Source: Barrel, A., Gill, D. and Rigby, M. (2013). Show me the mon-
ey: How to find cash to get your business off the ground. London:
24 Elliot and Thompson Limited.
NOTES

25
9. SOLUTION
SELLING
NEED                BENEFIT              SOLUTION

ASK, LISTEN AND DISCUSS DURING THE WHOLE SELLING PROCESS!

PAY ATTENTION TO THESE:


– Creating common goals
– Understanding customer’s business
– Forecasting customer’s everyday
– Utilizing your own expertise
– Creating mutual additional value
– Integrating mutual processes
If you want to manage
FOCUS ON THESE:
in life, lean on ahead.
Success is followed 1. Mapping needs
by ability to neutralize 2. Argumentation
and control coinci- 3. Objections
dence. 4. Closing trade

26
NOTES

27
10. MOTIVATION MOTIVATION WILL EITHER POINT, MAINTAIN OR PREVENT OPERATIONS.
ESSENTIAL MOTIVATION-ADDING FACTORS ARE:

1. Meaning
– Acting should be suitable for one’s own personality
2. Targeting
– Reaching something as a goal
3. Success
– Growth occurs in discomfort area
4. Sociality
– Smile to the others, so the others smile back at you
5. Challenges
– Just the right amount is a bit too much
6. Level of interest
– Motivation may also be a result of actions
7. Rewards
– Recompense should be fair
8. Freedom
– Needs responsibility to work
9. Respect
Remember that sensi- – Receiving feedback in the right time from the right person
ble things happen by 10. Unexpectedness
other people. – Remarkable things may happen in abnormal environment

28
NOTES

29
11. EVERYDAY EXPERIENCES 1
ABRUPT CHANGE
IN GIVING AND OF SUBJECT
We should discuss a bit the definition
of the profit margin calculation...
RECEIVING FEEDBACK
Yeah right, that’s an important
one...Btw, have you heard that
the people in Oulu once took
influence to Polar Bear Pitching
from Amazing Business Train?

2
UNDERESTIMATION Today we should
OF THE VALUE have a brain-
storming session
of...
Right, but there’s no use of any
brainstorming, as we have loads
of tasks waiting that you have told
us to do!

3
EXPLOSION OF As we both surely can see, this
SPEECH hasn’t quite went as agreed...

Noithasntanditisgo odthatyoubrough-
tu pthesubjectbecause itwasab-
outtimetoca llaspadeaspadeandi
tshouldhavebeendo neagesago...

30
4 7
WHITE LIES Have you surely done BAD EXPERIENCE What would you think if
this as we tried a completely
agreed? new way to...
Yeah...On the face
of it, I think it is NOT GONNA
roughly as agreed... HAPPEN!! Straight
I think... away. Let me tell
you three points,
at least, why that is
5
This growth hacking has gonna work never
LEARNED
not at all been read up in the world. First, I
HELPLESSNESS
about like already tried that
You see, there hasn’t
agreed... ten years ago and
been any chance,
as no one has taught it didn’t...
us nor given a
manual! 8
The implementation
GRUMPY
6 of this task has not
SELF-BLAMING One important detail quite went as together
here has not been agreed...
man-
RIGHT! I’M DONE!! IF
aged... THAT’S RIGHT!! So great
that I have such an enor- MRS COACH ISN’T
mously talented coach, SATISFIED WITH
because I have made ANYTHING SO FEEL
a MISTAKE! Never ever FREE TO DO IT BY
again will I make anoth- YOURSELF! BTW, I’M
er one, I promise, and SO SICK OF THESE
I swear that I mend my TRAIN JOURNEYS...
ways in one go!

31
12. EVALUATION 1 = student understands and
remembers concept of entrepre-
OF LEARNING neurship and business modeling

2 = student can apply tools and


theories into practise

3 = student can systematically


analyse business opportunity ,
business idea and his/her own
action and learning

4 = student can critically evaluate


terms of business profitability and
his/her own actions and learning

5 = student starts a business

32
NOTES

33
13. READ MORE Acs, Z. & Audretsch, D. (2010). Hand- Blick, D. (2011). The Ultimate Small
book of Entrepreneurship Research: Business Marketing Book: Learn the
An Interdisciplinary Survey and Intro- Simple and Proven Secrets of Building
duction Your Small Business

Audretsch, D. (2006). Entrepreneur- Burns, P. (2011). Entrepreneurship and


ship, Innovation and Economic Small Business: Start-Up, Growth and
Growth Maturity

Aulet, B. (2013). Disciplined Entrepre- Carlson, C. & Wilmot, W. (2008). Inno-


neurship: 24 Steps to a Successful vation: The Five Disciplines for Creat-
Startup ing What Customers Want

Barrel, A., Gill, D. & Rigby, M. (2013). Cooper, R. (2001). Winning at New
Show Me the Money: How to Find Products: Accelerating The Process
Cash to Get Your Business off the from Idea to Launch
Ground
Cooper, B. & Vlaskovits, P. (2013). The
Biggs, J. & Tang, C. (2011). Teaching Lean Entrepreneur: How Visionaries
for Quality Learning at University Create Products, Innovate with New
Ventures, and Disrupt Markets
Blank, S. & Dorf, B. (2012). Start-Up
Owner’s Manual: The Step-by-step Clarysse, B. & Kiefer, S. (2011). The
Guide for Building a Great Company Smart Entrepreneur: How to Build for a

34
Successful Business Entrepreneurship from Creativity to Diensberg, C. (2008). Teaching En-
Innovation: Thinking Skills for a Chang- trepreneurship: Cases for Education
Drucker, P. (2004). Innovation and ing World and Training
Entrepreneurship: Practice and Prin-
ciples Osterwalder, A. & Pigneur, Y. (2010). Snyder, C. (2003). Paper Prototyping:
Business Model Generation: A Hand- The Fast and Easy Way to Design and
Dyer, J., Gregersen, H. & Christensen, book for Visionaries, Game Changers Refine User Interface
C. (2011). The Innovator’s DNA: and Challengers
Mastering the Five Skills of Disruptive Thiel, P. & Masters, B. (2014). Zero To
Innovators Osterwalder, A. & Pigneur, Y. (2012). One: Notes on Start Ups, Or How to
Business Model You: A One-page Build the Future
Fayolle, A. & Redford, D. (2014). Method for Reinventing Your Career
Handbook on the Entrepreneurial Timmons, J. & Spinelli, S. (2004). New
University Ries, E. (2011). The Lean Startup: How Venture Creation, Entreprewneurship
Constant Innovation Creates Radical- for the 21 Century
Govindarjan, V. & Trimble, C. (2010). ly Successful Businesses
The Other Side of Innovation: Solving Zacharakis, A., Spinelli, S. & Timmons,
the Execution Challenge Rogers, E. (2003). Diffusion of innova- J. (2011). Business Plans That Work: A
tions Guide for Small Business
Harrison, R. & Leitch, C. (2011). En-
trepreneurial Learning: Conceptual Sarasvathy, S. (2008). Effectuation:
Frameworks and Applications Elements of Entrepreneurial Expertise
(New Horizons in Entrepreneurship)
Lumsdaine, E. & Binks, M. (2009). Sijde, P., Ridder, A., Baaluw, G. &

35
Amazing
usiness
rainwwvwwwwwwwwwv
You’re holding amazing business train
coach’s manual. Check it out and
you’ll know how entrepreneurial ac-
tion is channeled into right tracks.

Join us and unbelieveable things can


happen! Who knows, going for it may
be one of the best decisions in your
career!

36

ABT provided me with an opportunity to feel
confident about my business idea; everyone
should also be given the same opportunity. I feel
that ABT gave me more confidence in 48 hours
than I could have gained in 10 years working
alone. I think the real backbone behind this par-
ticularly successful endeavor is the outstanding
support from the teachers. Without such incredi-
ble teachers, the ABT model would not be so effi-
cient. Thank you so much for all of your support! I
hope you all know what a difference you made.

–Student from 3rd train journey

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