Samantha Powers

1.Refine the detailed income statement for your venture for two years (at six month intervals) or a more appropriate time scale. Explicitly state the assumptions that underlie your financial model. 

See the assumptions listed in Question 3.

 

 

2.Refine the Business Model for your venture based on your revenue model. You may use the Osterwalder BMC to refine your business model but prepare one or more visuals that explain how your venture will work and accomplish your BHAG.

 

Partner network Shipping/Transportation services       PCA UPD	Key Activities Processing Copra to create value added products Coconut Milk, Flour, Oil, Vinegar, Wine etc.	Offer Increase the income of smallholder filipino coconut farmers by providing them with faster, efficient, and value-added drying systems for their copra.		Customer Relationship Personal Assistance with technology use and finances  User Communities	Customer Segments Filipino Entrepreneurs Low Income Coconut Farmers
	Key Resources Engineers and employees to operate the machinery Machinery required to process coconuts Money to fund R&D			Distribution Channels Local processing plants Farmers
Cost structure Fixed Costs: Communications, Utilities, Transportation, Marketing/Managing Staff Variable Costs: Raw Materials for machinery / value-added product, Shipping, Production costs of product Economies of Scale: Reduce average cost/unit with increased sales due to lower fixed costs. Economies of Scope:  Leverage resources for more operations, Ex. Make more profits by using same machinery for two different value added products, instead of two different machines			Revenue Streams Asset sales from selling the machine to entrepreneurs in the Philippines (2 Options: $23,999.95 upfront or payback option of $2000  every 2 months over 24 months)   Maintenance Contract (entrepreneurs only), $2799.95 for an annual subscription

3. Develop an M&E plan for your venture.

• Clearly list all assumptions.

 

+Assume that our venture will be launched in 2 years from now

+Assume that the cost of production is $17,000 per machine 

+Assume that we will be able to sell our product at a price of ~$24,000

+Assume that we will be able to scale production

+Assume that 1 machine can impact 100 coconut farmers (entrepreneurs will be able to network to this amount of farmers)

+Assume the copra farmers will want to use our technology

+As of right now we are assuming exponential growth of overhead costs

 

• Identify short-term and long-term success metrics.

 

Short-term

• Total number of machines sold
• Efficiency of the machine (ie. Quality of copra, value-added products produced, robustness)
• Net profit after one year (*MOST IMPORTANT)

Long-term

• Percent increase in average income of copra farmers (*MOST IMPORTANT)
• Total number of coconut farmers that use the machine
• Steady growth in number of machines manufactured and sold

 

• Identify specific methods to measure the metrics.

• Track additional income generated for smallholder farmers (method to be determined)
• Track additional income generated for local entrepreneurs (method to be determined)
• Track number of machines sold annually
• Consumer input (from both the entrepreneur and customers of the entrepreneur)
• Measure volume of products produced