Business Finance Homework Help

Questions for Entrepreneur or Nonprofit:

• What Key Resources does your Value Proposition require?

The value proposition is sustainable, high-quality bamboo and hemp products, which ties into the key resources for the organization’s revenue streams and distribution channels. The value proposition also affects the customer relationships section, as Threads will utilize social media to drive home the message. Threads will first use free social media services, but financial resources may be necessary to do targeted advertising on social media platforms and Google Ads.

• What Key Resources do your Customer Relationships require?

Customer Relationships will require human and software resources. Threads will use outsourced help to handle customer complaints, customer returns, and other issues. The goal will be to handle such issues quickly and efficiently. Amazon and Chewy are massively successful companies that have customer obsession at their core, and this is a core value that Threads will have (Khetani, 3).

From a software perspective, a presence on powerful eCommerce and social media sites will be necessary off the bat. This may tie into the

• What Key Resources for your Revenue Streams and Distribution Channels require?

The entrepreneurial venture called Threads requires little direct physical resources (Strategyzer, 1). Threads will use Amazon and Third-Party Logistics warehousing. Suppliers in Asia will create the product to our specifications. Threads will purchase raw materials from bamboo and hemp farmers. There will be no intellectual property resources initially, but patent creation could add value down the road (Vijaykumar et al., 2). Financial resources may also be a consideration to get inventory and social media moving. Bootstrapping, angel investing, and SBA loans are considerations here (Kawasaki, 4).

Josh

References:

1. Strategyzer. How do I use the Key Resources building block of the Business Model Canvas? https://www.strategyzer.com/business-model-canvas/key-resources

2. Vijaykumar S L & Shweta Kumawat. The Role of Patents in the eCommerce Industry. 2015. Course5i. https://www.course5i.com/blogs/the-role-of-patents-in-the-ecommerce-industry/

3. Paresh Khetani. Jeff Bezos Customer Obsession 1999. 2019. YouTube. https://www.youtube.com/watch?v=vxwjzVW7z5o

4. Guy Kawasaki. The Art of the Start 2.0. 2015.

Key Resources

Recap on the Business idea

I plan to set up a 3D printing business (Aseemit) focused on household products through two channels-

• On-demand 3d printed products: Convert the customer ideas to 3D products
• Ready-made (manufactured) product store: Set up a Shopify store with daily-use 3D printed products. The Shopify store will be categorized as –
  • Bedroom essentials
  • Bathroom essentials
  • Kitchen essentials
  • Travel kits

Customer segments

B2C: Parents, busy professionals, and college students seek custom-made and multi-functional household products that save storage space and fit the requirements.

Frequent travelers seeking multipurpose products (travel kits) to save storage and luggage space.

B2B: Hospitals, healthcare sector, Apartment property owners, seeking easy attachments (3D printed cabinets, equipment holders, etc.).

Key Resources for Value Proposition

Aseemit offers innovative and sustainable 3D printed household products/services tailored perfectly to our customer’s requirements, extending multi-functionality and enhancing the possession utility. In addition to the “flexibility” and “sustainability” factors, Aseemit stresses maintaining high standards of “quality and reliability,” “application knowledge,” and “ease of doing business.”

The key activities required for offering the promised “value” are – problem-solving, designing, manufacturing, and creating a communication and delivery platform (1).

Problem-solving requires application expertise for a specific customer segment. The Design and Manufacturing team is required to facilitate efficient and high-quality production. The “last-mile delivery” requires a user-friendly website and online store, along with content writing to enhance customer engagement.

Aseemit’s operations will require the following key resources –

Physical – 3D printing machines, filament material, 3D software, Website setup

Human/Intellectual – Design/Manufacturing engineer, Advertising/Content writer, Sales engineer, Delivery personnel

Key Resources for Customer Relationship

Aseemit will establish a mix of personal and automated relationships depending upon the customer’s requirement. Once the product application is identified, the B2B segments will be fully automated. The B2C segment will offer higher flexibility as it involves on-demand product printing.

Key resources –

Physical – Vehicle for onsite assistance, Online Blog for interaction and feedback.

Human – Customer relationship/sales manager

Intellectual – Customer Database for acquisition and retention

Key Resources for Revenue Streams

Aseemit will generate revenue streams through an Asset sale, Usage fee, and Subscription fee. Each revenue stream will have a different pricing structure depending on the volume and complexity of the product. B2C distribution channels will include retailers and direct customers (property owners) (2).

Key resources

Human/Intellectual – Channel performance tracking, Channel marketing (content writer), Pricing structure setup (sales), customer database to track consumer behavior.

Funding the Business

Debt-financing (3)

The seed capital ($50,000) will be generated through cash flow debt-financing, a combination of government and bank loans (average interest = 11%). The initial capital will cover the tooling (3 printers worth $3000 each), raw material filaments, design software, and human resources (initial 6 months).

Crowdfunding (3)

The debt-financing will be supported by crowdfunding ($5000) through the Kickstarter site helping to promote the products and create brand awareness. The funds will be used for promotional content and customer acquisition

Purchase order financing (4)

Initially, the business vision and mission will be presented to retailers and commercial property customers to win a couple of purchase orders. The profits will be invested back in the operations.

As the business grows (in 3-5 years), Aseemit will opt for equity financing to expand the business with the help of angel investors.

References

1. MLCIC Blog. https://www.utep.edu/loyacenter/Events/business-model-canvas.html
2. Strategyzer Blog. https://strategyzer.uservoice.com/knowledgebase/articles/1194385-how-do-i-use-the-revenue-streams-building-block-of
3. Bussgang. 2014. HBR. https://blackboard.strayer.edu/bbcswebdav/institution/JWMI/575/HBR%20ITEMS%201218/JWI575_814089-PDF-ENG.pdf
4. Henry Brown. 2018. https://www.succeedinginsmallbusiness.com/smart-ways-to-finance-your-small-business/#.WwsTslMvzBJ