Lesson 3: Business Models and Plans

A business model describes how a company creates, delivers, and captures value. Key components include value proposition (what makes the product/service unique), customer segments, channels (how you reach customers), revenue streams (how you earn money), and cost structure. In technopreneurship, common models are subscription (monthly fee), commission (take a cut of transactions), or freemium (basic free service, paid premium features). For example, a tech company might charge ₱100/month for app access or earn from ads. Understanding these components is crucial: professors will often ask you to identify parts of a business model. Use local examples: a food delivery app in Manila might use a commission-based model (charging restaurants a percentage).

A business plan is a document outlining how the business will operate and succeed. Typical sections taught in BSIT/BSCS include: Executive Summary (high-level idea), Market Analysis (who are customers, competitors), Product/Service Description, Marketing Plan (how to promote), Operations Plan (daily operations, team structure), and Financial Plan (revenues, expenses, break-even). For technopreneurs, an IT Business Plan often highlights technical development timelines and digital marketing strategies. While content sections often touch on entrepreneurship basics, note that an IT startup plan should also cover software development stages or IT resources. In free sections we keep it high-level; advanced sections like "detailed financial statements" will be in advanced courses, but know the purpose of each part.