B.

Tech
Syllabus
Effectuation Principles
WHERE
DO I
STA RT ?
Should I start from
• Solution
• Product
• Idea
• Customer
Where to look for Problems
• Existing Product
• Alternatives
• Pain Points
• Friction
• Anticipate future problems
• Current trends
• Structural changes
• Predict problems
How to Identify Problem?
• Observe People
• Empathize while observing
• A job not getting done is an opportunity
• Focus on existing alternatives
• Would customers be better off with existing alternatives
Entrepreneurial
Styles
Determinants of Style
• Circumstances
• Opportunities
• Trends
• Personality traits
Are you a Maker?
• Always planned ahead
• In-control
• Goal-oriented
• Looking to work independently
• Example: [Link] Murthy
• Ideas to life = plans + execution
• Big pictures = sum of smallest details
• Prefers process and system over people
Are you a merchant
• Are you a keen observer?
• Someone who spots opportunities that others miss
• Are you Rational and decisive?
• Good at improvising
• Apply ideas and run profitable businesses
Are you an Magician ?
• Are you a person always brimming with ideas
• Do you Question things often?
• Do you go with your instinct?
• Are you comfortable taking risks?
• Example : Steve Jobs
• Staying ahead of the Market
• Surprising and Delighting
• Navigating new territories
Are you a Mobilizer?
• Are you a people person?
• Do you bring people together?
• Enjoy Working in a diverse team
• Feel creating social impact is important
Are you a Master?
• Are you detail oriented ?
• Are you a perfectionist?
• You love learning in depth
• Example: Bill Gates
• Great passion, Highly skilled Knowledgeable person, hign
quality standard
Design Thinking
 WHO IS
YOUR
CUSTOMER
?
Segmentation and Targeting
• Understanding different types of customers and how to target
them.
 Mass Marketing

How to Single Segment

select
Market Several Segments

NICHE Market
Value Proposition
Prioritise
E X A M P L E :

ONLINE
WEDDING
PLANNING
PLATFORM
Value Proposition Canvas
Value Proposition Canvas
• A value proposition is a short statement that communicates
why buyers should choose your products or services.
• The Value Proposition Canvas is a framework which can help
ensure that a product or service is positioned around what
the customer values and needs.
• Amazon's 3 key value propositions as: Low Prices. Fast
Delivery. Large Choice of products (and services)
Unique Value Proposition (UVP)
• A unique value proposition (UVP) is the core benefit or
solution that differentiates your product or service from
the competition and positions it as the best possible
option on the market.
• A Unique Value Proposition is a basic marketing concept, in
which you define what makes your product or service
unique and valuable to your target market. It tells potential
customers why they should do business with you, rather than
with your competitors.
Unique selling point examples

• For example, if you're the only one in your niche market

offering free shipping, that could be a part of your USP. Or
your products might be more customizable than what other
businesses are offering.
• Quality - Superior materials or ingredients, superior
craftsmanship, proprietary manufacturing methods, one of a
kind.
• Price - The lowest price guaranteed, price matching, free
shipping, bulk discounts, special offers.
Blue Ocean Strategy
Blue Ocean Strategy
• It is a wide calm deep unexplored space
• It represents unknown or new market place which has little or no
competition
• Look for new market which is not crowded
• Identify the right mix of benefits for your product and services
that would address the pain and create gain for your customers
• Map the existing market dynamics to find the new space
Strategy Canvas
 REDUCE
R E F E R S TO B E N E F I T S T H AT C A N
BE REDUCED WELL BELOW
I N D U S T R Y S TA N D A R D S
 ELIMINATED
R E F E R S TO T H O S E B E N E F I T S T H AT
I N D U S T R Y T H AT TA K E S F O R G R A N T E D
A N D C A N B E E L I M I N AT E D
 C R E AT E
REFERS TO THOSE BENEFITS
T H AT C A N B E C R E AT E D T H AT
THE INDUSTRY HAS NEVER
OFFERED
 RAISE
REFERS TO THOSE BENEFITS
T H AT C A N B E R A I S E D W E L L
ABOVE THE INDUSTRY
S TA N D A R D S
Solution Demo
• Lean Start-up technique to validate your solution
• Smallest possible solution that can stand-in for the actual
solution for testing.
• Create a Demo or Mockup of your solution
• Test run it with your customers
Tips for Solution Demo
Build-Measure-Learn (BML)

• Build-measure-learn (BML)
is a process of building a
product, measuring
consumer metrics and
learning from them to better
respond to customer needs
and improve the product for
the ultimate sustainability
of the company.
Build-Measure-Learn cycle

[Link] a Minimum Viable Product (MVP)

[Link] feedback on the MVP by exposing it to potential
customers.
[Link] the product based on the feedback (not only verbal
feedback but how they behave – for example, buying your
product)
Build-Measure-Learn Feedback Loop
• The build-measure-learn feedback loop is a description of the
process for building empathy with your customers,
measuring their reactions, and learning what adjustments
to make that improve customer interactions.
 MVP Interview
• Before selling your minimum viable product (MVP) to strangers through
your distribution channel (e.g., marketing website), sell it face to face to
friendly early adopters. Learn from them. Then refine your design,
positioning, and pricing for launch.
• During the MVP interview, you are specifically looking to answer the
following questions:
• Product risk: What is compelling about the product?
(Unique Value Proposition or UVP)
• Customer risk: Do you have enough customers? (Channels)
• Market risk: Is the price, right? (Revenue Streams)
Solution Demo vs Minimal Viable Product (MVP)

• They are quite similar but different.

• Solution Demo and MVP capture the core essence of your
actual solution
Solution Demo vs MVP
Solution Demo vs MVP
Solution Demo vs MVP
Solution Demo vs Prototype
Prototype - Example
Revenue
• Revenue is the total amount of income generated by the
sale of goods or services related to the company's primary
operations.
• Revenue, also known as gross sales,
Income

• Income, or net income, is a company's total earnings or profit.

Revenue vs Income

• Revenue” refers to the total amount of money a company

generates before removing any expenses.

• “Income”, on the other hand, is equal to revenues minus the

costs of doing business, such as depreciation, interest, taxes,
and other expenses.
Types of Costs
Product Cost

• Product cost refers to the costs incurred to create a

product.

• These costs include direct labor, direct materials,

consumable production supplies, and factory overhead.

• Product cost can also be considered the cost of the labor

required to deliver a service to a customer.
Operation Cost
• Operating costs are the ongoing expenses incurred from the
normal day-to-day of running a business.
• These include operating expenses like:
• rent, inventory costs
• equipment
• insurance
• payroll
• marketing and
• other overhead costs.
• Gross margin is the total percentage of gross income that is
generated from the company's revenue.
• Gross Profit Margin = (Revenue – Cost of Goods Sold) /
Revenue x 100
• Net margin is the total percentage of net income that is
generated from the company's revenue.
Pricing
• Fixing right price is the key to profit making
• Price too high -> customer wont but
• Price too low -> you cannot recover your cost
• Right Price = Customers + Profits
• Profit = Revenue – (Fixed + Variable) Cost
How do you Price ?
• Understand the customer segment
• Different customer segment = Different Maximum Amounts
• Select your Pricing Strategy
Pricing
Revenue
• Income from Sales = Revenue
• Each source of Revenue = Revenue Stream
• Change your revenue model is not working
Investors Expectation
• The investors’ expectations from an entrepreneur include
• Strong efforts,
• Return on Capital
• Commitment,
• Concern about their investment and the necessary passion
to defend projects from unforeseen circumstances and
unexpected situations,
• Having the capacity to reach demands and
• Face problems when they arise.
Business Pitch
• A business pitch is important because it's the first impression
you make on potential investors. It's your chance to sell them
on your business idea and get them excited about investing in
your company. Your business pitch should be clear, concise,
and persuasive.
How to Prepare to Pitch Investors
• 1. Understand What Different Investors Need
• 2. Prepare For The Appropriate Amount of Time
• 3. Do Your Homework On Each Investor
• 4. Don’t Start With Your Ideal Investor
What To Cover During Your Investor Pitch
[Link] With Your Elevator Pitch. ...
[Link] A Compelling Story. ...
[Link]'t Leave Out The Details. ...
[Link] Clear On How Much Investment You Need, And How You'll Use It. ...
[Link] Big On The Market Potential. ...
[Link] Describe The Competitive Landscape. ...
[Link] Potential Risks To Your Business.
8. Outline Your Marketing Strategy
9. Describe Your Revenue Model
[Link] A Demo If Possible
[Link] Up Your Team
[Link] Your Exit Strategy
[Link]’t Evade Tough Questions
[Link] Follow Up With A Thank You Note
 A positioning statement is a description of
your product and target audience and
explains how it fills a market need.

Marketing and sales teams use this

statement to guide their messaging and
Positioning make sure all communication is consistent.

Statement The purpose behind positioning is to

create an appealing image that leverages a
brand's unique strengths.

Marketers may also create positioning

statements for companies and individual
products.
 Benefits of Positioning Statement
• It helps ensure a successful product launch.
• It helps you fine tune your market fit.
• It makes you think about the industry you are about to enter.
• It helps you start your planning.
• It makes you prioritize.
• It helps you focus.
• It makes you think creatively about what you want your business to
accomplish.
• It helps you identify your target customer.
• It helps you determine what customer problems your product or service
will solve.
• A positioning statement helps you see your competition clearly.
Digital Presence
• A “digital presence” simply refers to how your business
appears online; it's what people find when they search for
your business or company on the internet.
• Digital presence includes content that you control, like your
website and social media profiles, but also content that you
don't control, such as online reviews.
Digital Presence
• A Digital Presence Builds Relationships.
• Your brand acquires a voice when your company regularly
posts on social media, no matter the platform.
• This voice helps your company become relatable to
customers and provides a human touch.
• Businesses can get to know their customers by using social
media.
Sales Planning
• Sales planning is the process of defining sales targets and
creating a strategy that meets goals and achieves sales
and marketing results. The sales plan works in collaboration
with the marketing plan and the business plan.
Buying Decision
• The buying decision process is the decision-making process
used by consumers regarding the market transactions before,
during, and after the purchase of a good or service.
Sales Pitch
• A sales pitch is a persuasive argument used in selling.
• A sales pitch is a salesperson's attempt to persuade their audience
to buy or believe what they're offering.
• An effective sales pitch gets your customer's attention and builds
interest and excitement about the product.
• When it comes to writing your sales pitch, be sure to
include testimonials and case studies, which also contain statistics
and figures to prove the success of your product or service.
• If you claim you can solve your buyer's main problems, show them
how with facts.
TEAM
• A team is defined as a
group of people who
perform
interdependent tasks
to work toward
accomplishing a
common mission or
specific objective
 / Group

Stages
TEAM
ROLES
189
Structure of Companies

190
191
192
Advantages

• Single Owner • No Separate Company Tax

• Easy to Set-up • Less Capital
• High Privacy • Personal Touch
• No Profit Sharing • Flexibility of Operation
• Quick Decision and Prompt
Action
• Easy Dissolution

193
Disadvantages

• Limited Resources
• Unlimited Liabilities
• Not suitable for Large Scale
Operations
• Difficulty in raising Capital
• Lack of Continuity
• Annual Renewal of License
194
195
Advantages
• Easy to Form
• Availability of Large Resources
• Better Decisions
• Flexibility of Operation
• Sharing Risks
• Benefits of Specialization

196
Disadvantages

• Conflicts of Personality
• Profit Sharing
• Prolonged Decision

197
198
Advantages
• Limited Liabilities
• Not Liable for the action of another partner
• Separate Legal Entity
• Managed by Register of Companies
• No Limits of No. of Partners

199
200
201
Advantages
• Can Raise more funds
• Shareholders have limited liabilities.
• Credibility and Reputation
• Scalable form of Business Organization
• Separates the action of the company from the action of the
owners
• People may come in and go out but the company stays
forever.

202
Disadvantages
• Stringent Compliance matters
• Termination process if complicated
• Strict code of conduct

203