UNIVERSITY OF RWANDA

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF STATISTICS
YEAR THREE
ACADEMIC YEAR 2022-2023

MODULE: ADVANCED ENTREPRENEURSHIP AND INNOVATION

FACILITATOR:
Mr. MUVARA GAHIMA Vincent
 WHOLE PROGRAM

1. Foundation: WFNEN 101 – Orientation Program in

Entrepreneurship

2. Practice: WFNEN 102 – Intermediate Program in

Entrepreneurship
1. ORIENTATION TO ENTREPRENEURSHIP
Lesson 1: Let’s get started
Lesson 2: Explore E-cells on campus
Lesson 3: Listening to some Success stories
Lesson 4: Characteristics of Successful Entrepreneurs
Lesson 5: Effective Communication
Lesson 6: Design thinking/Process for customer delight
Lesson 7: Sales skills to become an effective Entrepreneur
Lesson 8: Managing risks and learning from failures
Lesson 9: Are you ready to be an Entrepreneur?
2. INTERMEDIATE ENTREPRENEURSHIP
AND INNOVATION
This course has nine lessons:
Lesson 1: Self-Discovery
Lesson 2: Opportunity Discovery
Lesson 3: Customer and Solution
Lesson 4: Business Model
Lesson 5: Validation
Lesson 6: Money
Lesson 7: Team
Lesson 8: Marketing and Sales
Lesson 9: Support
3. ADVANCED ENTREPRENEURSHIP AND
INNOVATION
Introduction to Advanced Entrepreneurship and Innovation (Video)
Lesson 1: Recap and Review the fundamentals
Lesson 2: Refining the Business Model and Product/Service
Lesson 3: Business Planning
Lesson 4: Exploring Ways to Increase Revenue
Lesson 5: Funding the Growth
Lesson 6: Building the A-Team
Lesson 7: Creating a Branding and Channel Strategy
Lesson 8: Leveraging Technologies and Available Platforms
Lesson 9: Measuring Your Progress
Lesson 10: Legal Matters
Lesson 11: Seeking Support
Lesson 12: Final Project
 Overview
• Throughout this program, you have been working on your practice venture.
You started with taking a relook at your idea and your Business Model,
pivoted if you needed to, and then formulated your Business Plan, Sales
Plan, and People Plan. Along the way, you learned how to increase revenues
for your venture by through secondary revenue sources by exploring various
models such as license, franchise, and affiliate.
• You also learned about the various funding options such as angels and VCs
that are available to you at different stages of your venture. During the
course, you also looked at how to build your A-team and how important it is.
You also defined your venture’s values, what it stands for, and came up with
your positioning statement and branding.
• In addition, you learned about the various technology platforms that can help
drive your business and the various metrics that can help you measure the
success of your business venture.
 Cont’d..
• You ended this learning journey with an insight into the legal compliance
requirements and learned about the angel called mentor in an entrepreneur’s
journey.
• Your journey will culminate in the final Capstone Project Presentation. As part of
the Capstone Project, you will present your practice venture — business model,
business plan, growth achieved, and key learnings to your classmates, faculty, and
other entrepreneurs.
• The Capstone Project Presentation will be spread across one whole day. Through
the Capstone Project Presentation, you will get an opportunity to practice your
presentation skills and learn the nuances of presenting to an audience within a
designated timeframe. You will also get instant feedback on your presentation.
• Remember, all the activities, assignments, and the Capstone Project are in the
context of the venture you are working on as you progress through the course –
your First Venture!
 1.0 Introduction to Advanced
Entrepreneurship
By the end of this course, you will be thinking and behaving like an
entrepreneur.
Refine your Business Model
Prepare your Pitch deck
Setup a sustainable venture

Don’t expect much theory instead continue:

1- Work in teams
2- Learn how to build a sustainable venture
3- Work on a practice venture as you progress in the course
This is the same venture you started in the FOUNDATIONAL course
 Cont’d….
You start this course by:
- Revisit: your Idea ( Business and Solution) Blocks in the business model
- Validate: New opportunities
- Refine: Create new Business Models
- Pivot: (Change course). If there is no market for your solution anymore. When and
how to pivot your way to success. Keep your goal insight by developing a venture
for a sustainable model.
To do this you need to Plan
Finance, Sales, hiring and technology
Learn how to increase your revenue and how to get funding for your venture.
In addition, you create and present your BUSINESS PITCH
Finally, you learn how to MANAGE your potential servers such as Legal
compliances and Registration.
 Quiz Game: Entrepreneurship Jeopardy
Question: How do Entrepreneurs spot Opportunities?
Ans: They identify opportunities by looking into the market, analyzing
the gap between needs and availability of the product or service in the
market. Furthermore, understand the value of the product and service
mainly focusing on providing solutions to certain problems.
Question: What will you do if you identify more than one customer
segment?
Ans: You need to create another Business Model
Question: What is the Lemonade principle of Effectuation ask you
to do?
Ans: This effectuation principle asks you to leverage contingencies and
turn unpleasant surprises or problems into new opportunities
 Cont’d…
Question: Differentiate Between a Product, a Brand and Branding.
Ans: A Product is what you sell, a Brand is the perceived image of that
product, and Branding is your strategy to build that image.
Question: What is Brainstorming?
Ans: It is a technique to come up with solutions by allowing participants to
exchange and build upon each other’s ideas in a short span of time.
Question: What is Product-Market Fit?
Ans: This term is used to define a situation in which your product solves the
customer’s problems and satisfies the market requirement.
Question: Differentiate between a Solution Demo and an MVP.
Ans: Your Solution Demo helps you identify your early adopters while your
MVP focuses on getting the early adopters on board as your paying customers
 Cont’d….

Question: What an MVP (Minimum Viable Product)?

Ans: It is a product with just enough features to satisfy early customers, to provide
feedback for future product development, and test whether your customers are ready to
pay for your product.
Question: What is the Lean Approach?
Ans: It is a scientific approach to creating and managing startups and getting a desired
product to customers’ hands faster through a process of continuous testing and validation.
Question: What are channels:
Ans: You use them to market your product and reach the product to customers.
Question: What is Breakeven?
Ans: The number of units that need to be sold in a period in order to recover the fixed
expenses for that period.
Question: When should you use the One-to-One Selling technique?
Ans: If you have a high-end luxury product or a new concept to sell, you should use this
selling technique
 Cont’d….
Question: Within what timeframe should you preferably sketch your Lean
Canvas?
Ans: 20 minutes is all you should take to do this.
Question: What is an Unfair Advantage?
Ans: This is something that cannot be easily copied or bought by your
competitors.
Question: What is Unique Value Proposition?
Ans: This states how you are different from the others and why you are worth
getting attention.
Question: What are the steps for conducting problem interviews?
Ans: Set the Stage >> Collect Demographics >> Tell a Story >> Rate the
Problem >> Explore Customer’s Worldview >> Wrap-up >> Document Results.
 LESSON 1
Recap and Review the Fundamentals
Overview
This is the first lesson of the Advanced Course in Entrepreneurship. This lesson is 3
hours long and is divided into 3 CORE hours.
In this lesson, you do a quick recap of some fundamentals of entrepreneurship through a
fun-filled game Entrepreneurship Jeopardy and revisit your idea and your business
model. In the process, you will analyze whether your idea, business model, or prototype still
holds good before proceeding to the next lesson.
At the end of this lesson, you will:
- Recap key concepts such as Opportunity Discovery, Lean Canvas and its components,
Prototyping, MVP, etc.
- Reflect on the practice venture that you worked on in the Foundational Course in
Entrepreneurship, including the idea, your team, the business model, and the prototype
- Appreciate the role of mentoring and its relevance to entrepreneurs
 1.1 Recap of Key Entrepreneurship Concepts Venture Business
concepts

Simple question: HOW DO MOST SUCCESSFUL ENTREPRENEURS START?

THINK……

Problems- By Spotting Opportunities- Looking at customer segments and products.

But Entrepreneurs have been known to Anticipate future problems based on current market
trends and spot opportunities.

A good way to spot problems is by observing people around you, and look for the jobs that
these people are struggling to be done. Any Job that is not done well is your
OPPORTUNITY.
And what jobs are customers actually want to be done? ANS: DESIGN THINKING
 Cont’d….
Entrepreneurs empathize with customers and come up with a solution.

Target the Right solution = Right customer segment

Brainstorming: is another way. By using a Lean canvas with nine blocks of the business
model (One-page format).

Most Entrepreneurs start with the Problem and Customer segments. It is broadly recommended
to divide customer segments into smaller ones and be specific at each segment as much as
possible (especially startup-once you market the whole market, you end up with no one)

Pick your most customer segment, your business model should be driven by it. And in the due
course if you find that you have more customer segments, create a separate business model for
each customer segment.
 Cont’d….
Based on the identified problem and Customer segment, entrepreneurs come up
with a solution.
In fact, the Unique Value Proposition and the Revenue streams together make
up the minimum viable product (MVP).
MVP= Smaller solution that you can build to deliver customer value such that
the customer is ready to pay for it.
Unique Value Proposition (UVP): should clearly state, what is different about
the venture and why customers will find the product or service worth buying.
Channels: is another block on the lean canvas that is extremely important.
Entrepreneurs prose how to reach their products to reach their customers.
(Promotion and Distribution) all these costs money
Cost structure: Very important i.e Fixed costs and Variable costs that are
involved in bring the product or service to the market. This helps you calculate
the Break-even point.
 1.2 Do you need a Mentor
What role do you think a mentor plays in the life of an Entrepreneur?
You really need a Mentor- with an objective mind who’s able to direct you,
correct you, able to motivate you.
This person is someone who comes with experience and good intent to loot
for success.
This person has the capability to fine-tune your business plans to connect you
to the right people and at the same time not get swelled by your enthusiasm.
The second reason for having a mentor is: You need a connector to know
various people. Someone to tell you that this business is already in existence.
He can connect you with investors, companies, and service providers to make
your life easier.
 Cont’d…

“Reach out to your mentor”

How can a mentor’s advice help in the growth of a venture?
You have got your business plan, you have got your initial
investors, and your initial product as well. Now the critical starts=
skills.
0-5, 0-10 is a long journey but 10-15 is a whole new journey. It
requires professionalism, processes, and skill settings as a team
which will take from 10-15. some companies fail due to this reason,
that’s why you will need a mentor
 LESSON 2
Refining the Business Model and Product/Service
This is the second lesson of the Advanced Course in Entrepreneurship. 9
hours long and is divided into 6 CORE hours and 3 FLEX hours.
In this lesson, you will get introduced to the concept of pivoting and
understand that in the entrepreneurship world, pivoting is not an act of
desperation but a way to maximize the chances of success. If you decide to
pivot, you will go through all the steps that will help you come up with a
new business model. If you decide to continue with the problem/product
from your Foundational course, you still get an opportunity to redefine your
customer/solution and create a new business model. You will also learn
about the role that Product Management plays in making a business
successful and how it forms the backbone of every business.
Cont’d…
At the end of this lesson, you will:
- Examine the product/service created by the practice venture and
decide if there is a need to pivot
- Identify which business model suits your product/service the best
- Refine your business model by developing a few variants and by
adding a new customer segment
- Build or refine prototypes of the product/service to reflect any changes
in the business model
 2.1 What is Pivoting
Creating a NEW product or service or modifying an existing one so it can
succeed in generating estimated revenue and getting due customer attention.

STEVE BLANK “ Startups are inherently chaotic. This rapid shift in the
business model is what differentiates a start-up from an already established
company”
“ Pivots are the essence of entrepreneurship and the key to startup
success”.
If you can’t pivot or pivot quickly, your chances are, you will fail.
In pivoting there are two important components to consider:
1- Does the customer need the product?
2- Is it the right customer segment?
2.2 Business Models
A business model is how a venture plans to generate revenue and make
a profit. A business model shows how a venture can deliver value to its
customers in the form of products/services and monetize some of the
value. This handout will cover some of the basic business model types –
how they work and make money.

However, there are new business models emerging every day and most
companies change or evolve their business models over the years to stay
competitive, increase revenues, innovate new products and solutions,
and cater to the changing tastes of customers.
A list of some basic business model types
Business Model How it Works How it Makes
Type Money
1. Buys raw materials and creates finished products.
- Sells to distributors who then sell them to customers.
Manufacturers make money
by selling to distributors or to
Manufacturer - Alternatively, sells to other manufacturers who use the other manufacturers.
products as components to create a different product.
Examples: Samsung, Philips, Cross, and Rotimatic

- Buys products from manufacturers and sells them directly

2. Distributors to customers or other retailers.
Distributors charge a
commission on the products
- Is responsible for packaging, transporting, and delivering they sell.
products either to retailers or directly to the customers.
Examples: All car dealers
- Sells products online without a brick-and-mortar store.
E-tailers - Is responsible for transporting products to the doorstep of
E-tailers charge a commission
on the products they sell.
the customers.

Examples: Flipkart, Amazon, and Linio

A list of some basic business model types
Business Model How it Works How it Makes
Type Money
4. Aggregator - Brings together multiple service providers under one Aggregators earn money
brand and offers them to customers. through commissions.
- Works with the service providers as partners.
- Acts like a brand and provides services of a uniform
quality to the customers.
Examples: Oyo Rooms and Uber

5. Franchise - Can be a manufacturer, distributor, or retailer. Franchises make money by

- Sells products/services created by the parent company or selling their products/services.
the franchisor.
- Pays royalties to the franchisor.
Examples: Gold’s Gym, The Body Shop, and McDonald’s

6. Bricks-and- - Sets up both brick-and-mortar stores as well as online Bricks-and-clicks make

shopping opportunities. money through online and
clicks - Allows the customers to either pick up the products from offline sales.
an outlet or have it delivered to their doorstep.
Examples: Marks & Spencer and Fabindia
A list of some basic business model types
Business Model How it Works How it Makes
Type Money
7. Subscription - Provides products/services at fixed intervals to customers. Subscriptions make money
- Helps change a one-time sale to a recurring sale of a through the recurring payment
product/service. of subscription fees.
Examples: The Gift Box, Birchbox, and Netflix

8. Freemium - Combines some free features for all the users and some Freemium makes money
paid add-on features. through add-on features
- Common in many software and online gaming companies. customers buy and through
Examples: Slack and Truecaller advertisements.
9. Software as a - It is a software licensing and delivery business model. SaaS makes money through
- The software is centrally hosted on a server and customers the subscription fees paid for
Service (SaaS) access it over the Internet. the license by the customers.
Examples: Trello and Zendesk
A list of some basic business model types
Business How it Works How it Makes
Model Type Money
10. It provides an online platform where many vendors and customers buy Marketplaces earn
and sell products. money through
Marketplace - Both the vendors and the customers form a trusting relationship with commissions.
the platform.
- Vendors don’t need to spend money on marketing their products,
and customers purchase based on their trust in the platform.
Examples: eBay and Shutterstock
11. On- - Fulfils a customer’s demand by immediately providing the On-demands earn money
product/service. through commissions.
demand - Offers a platform by bringing together multiple suppliers or service
providers.
- Uses an app to cater to customers.
Examples: Laundrapp, Jugnoo, and Bite Kite
12. Hyper- Hyper-local is an online platform that brings together multiple local Hyper-locals earn money
stores and suppliers who work offline. through a commission
local  The platform also provides logistics and delivery support to get the from the retailers and
products from the local suppliers to the customer in the shortest suppliers.
possible time period.
Examples: Grofers and BigBasket
A list of some basic business model types
Business How it Works How it Makes Money
Model Type
- Promotes the products/services of other businesses.
13. Affiliate - Affiliate companies receive unique promotional
Affiliates receive a commission
from other businesses for each sale.
codes from other businesses and sell them to
customers.
Examples: Groupon and RedPlum
 2.3 Refining Business Models
1- To grow your revenues
2- To come up with fresh ideas to stay competitive
3- To become more profitable
4- To address changing tastes and preferences of customers
5- To bring in new technologies and trends
6- To comply with changes in taxes or customs duty
7- To address a larger customer base
This affects two blocks of the business model (Changes in
costs and changes in revenues)
 2.4 Analyzing the Business Model of Your Competitors
Every business has competition. So for your business to success, you should obviously and must
understand your competitors. But more than that you should understand their business models.
Before you set up any business first analyze the competition, go out and look around. Are there:
Manufacturers, Distributors, E-tailers etc?
Questions?
- Do they have turn-around delivery time?
- What customer segments do they cater to?
- Do they cater to men, women as well as children?
- What are the prices of their products? Are they too high
- Can you estimate their costs
- How do they advertise?
- Do they have good marketing distribution channels? How many branches do they have?
- Analyze their SWOT It helps to benefit from their weaknesses
 Tips for analyzing the business models of your
competitors
1. Check their company website: Most of the information you seek, such as products,
services, or prices, is already available on the company website. You can also get information
on the financial resources and market share of the companies from their websites.
2. Visit their locations and look around: Check out their sales and promotional materials. One
of your team members can even call them to ask for information.
3. Evaluate their marketing channels: Where are your competitors advertising? On social
media, radio, or television? What is their messaging? Evaluating their advertising campaigns
can help you understand how a company positions itself and whom it markets to.
4. Ascertain their distribution channels: How are your competitors reaching their
customers? Where are they displaying their products/services? Is it online or in brick-and-
mortar locations?
5. Browse the Internet for news, public relations, and any other content on your competitors.
Search blogs, Twitter feeds, and their social media pages. Remember to check customer
reviews and recommendation sites.
 2.5 Adding new customer segments
Think about your Business model. What can you do to increase revenue and
expand your business.
One of the most obvious and important things you can do, is Add New Customer
Segments.
To start first ask who are my existing customers?
Can I add some more customer segments?
Am I selling to customers directly of B2B or businesses?
Can I add more customer segments to B2B or B2C both?
After adding new customer segments you have to spot solutions and channels from
the business canvas. Once you add new customer segment go on and add other
blocks and change your business model.
An example is YouTube which it added an app of the YouTube customer segment
 2.6 Who is a Product Manager?
- Preempts products, upgrades them, releases them and diversifies them
- Leads to the addition or elimination of certain features to or from different
versions
- He reads the signs of a products as question marks
Who is exactly the product manager?
The one who designs, creates, communicates, sells and improves the product.
Since hes’ the one who is involved in all activities right from the development
of an idea, he has to involve all the internal teams of the product life cycle.
Typically the product manager understands most aspects of the product
development. E.g Engineering, Designing, Packaging, User experience and
Data Analysis.
Another function is to observe and understand customer behavior: How they
 Cont’d….
A skilled not only product manager who tracks feedback but also knows how
to read between the lines. They then take all these functions back to the
engineering and design teams to make the mixed version of the product.
A product manager is more like a bridge between the company and its
customers whose job is to make sure that the customer gets the product that
they want.
But what if the product manager fails to foresee correctly what happens then?
All these are solved by product management in terms of presenting changing
needs and trends of the customer, bridging the gap between product design
and customer usage, and collaborating with engineers and designers on one
hand and customers on the other thus helping businesses come up with
blockbuster products.
Product management does not stop here but what delights customers.
 LESSON 3
Business Planning
A business model and a business plan are different, they
are not the same. They are two different concepts but are
related and important
A business Model is a mechanism by which a business
venture generates profit.
It describes how your company is positioned in your
industry and how it organizes its relationship with its
suppliers, customers and partners in order to generate
profits
 Cont’d….
A business Plan is a detailed process on how your business is going to progress.
Executing your business model, you will need a plan.
A business plan is a goal with a series of steps. To achieving that particular goal. Ex.

Goal: Sell 6,000 t-shirt

Make 10,000
Steps: Materials
Cost
Price of t-shirts
The business model is the blueprint on how you want to build a house and the
business plan is how you will actually go about building the house.
A business model is at the center of the business plan and your business plan makes
your business model happen.
 Cont’d….
Start with a simple question when you are to develop a business plan.
How many units of my product or service do I want to sell this year?
The number needs to be realistic and based on market research.
SALES PLAN
In order to achieve this you will be required to have people. Youma be required to hire
them ex.
- Sales people
- Product developer
- Customer service
- Money managers.
Hiring such people will cost you money and therefore you have to plan and make sure
you have money to do so.
You need to have the budget to hire these people and decide on the time line because it
takes time to hire them
 Cont’d….

Human resource management:

Planning-organizing-staffing-directing-recruiting and selecting-compensation and
remuneration. All these will need people planning
SALES PLAN/HIRING PEOPLE
The forecast of the future performance of your business:
- Planning your expenses
- How much to plan to sell
- Profits
- How much cash do you plan to spend?
- Your venture will spend money on hiring new team members, buying materials, developing
the product or service, and advertising. You need to calculate all these costs and determine
your profit.
- Though it sounds counterintuitive, you will be surprised to know that many ventures without
viable business plan models, and a great product or service run out of cash to pay suppliers
and services this happens to do poor cash flow planning.
 Cont’d…..
Planning for your costs and revenues is your FINANCIAL PLAN.
To complete your business plan is a former statement of your business goals
for a given period of time.
3 components:
(i) Financial Plan (Financial forecasting, cash needed, profits you need to
make).
(ii) Sales Plan (Units of product or service to sell in a year).
(iii) People plan (People you need to hire to meet your business goals).
 1. A sales plan
A sales forecast and plan to achieve that forecast.
For new businesses, the sales forecast is based:
- Market research
- Competitors
- Company’s capacity
- Ambition
- Units of products or services.
In planning for sales forecast you need strategic forecasting which has two approaches:
Top-down approach (total addressable market and estimate your share
Bottom-up approach( how many customers visit your shop and find out sales numbers of
competitors.
Other strategies: Lead-driven, Lengths of sales cycle, intuitive forecasting, test market
forecasting, historical forecasting,
 2. A People/Hiring plan
It’s the second part of the Business plan. Once you have made a
sales plan, and set a monthly plan in the coming year you need to
execute it.
- Do you have the right people?
- How many people?
- What skills do you need to deliver?
People plan answers these questions
Before you make a people plan, you have to find out what skills do
you already have.
 Consider the following questions
- Does the existing team have the technical ability? If yes
- How many units of product or service can your team build per
month?
- Does the existing team understand how the industry operates and
your product/service value can add to the industry
- Is your existing team handling packaging and deliver your
product or service
- Do you have any one to handle accounts?
 Let’s start planning
1. Decide how many people you need to achieve the goals that
are set in your sales planning.
2. List the skills (designing software, knowledge of fabric,
typography, pattern making, printing)
3. Set a budget- decide on salary.com, know your worth.com,
salary survey.com, indeed service.com-think of the features.
4. Decide the date of joining-if you are looking for experienced
candidates you need to factor on what experience of one month
or even more.
 Cont’d….
Next question:
- Look for potential candidates for your venture among your own contacts
- Use social media platforms (observe candidate activities)
- Leverage your company website
- Your employees network

Find a good balance in your team

- To attract your experience team you need to share your vision for the
company and the measurable progress for the team.
Hiring Your Sales Team
Now that you know the importance of a professional sales
team for your venture, you need to hire the right people for
your sales team. You also need to create an incentive plan to
keep your team members motivated. In this activity, you will:
1. Create a Job Description for hiring sales people for your
venture
2. Create an Incentive Plan for your sales team members
(optional)
 Job Description

Position Title
Desired Date of Joining
Department
Accountable to
Required Qualification
Required Experience
Job Summary
Key Responsibilities
Desired Skills and
Experience
 3. Financial Planning
60% of businesses fail because of innefective or no financial planning
BENJAMIN Franklin “failing to plan is planning to fail”

This is all applicable to businesses especially start-ups.

80% of business fail because of failure to plan their cash flow.
A viable business model and prototype are a great way to start.
In the mean-time you still need to pay your bills, salaries to start a process
A financial plan is a forecast of future performance of a business.
Example: expenses, profits, sales, how you plan to spend your cash to meet
your expenses.
 Cont’d….
Financial plan will help you:
- Plan and optimize expenses e.g start-up, fixed, Cost of goods
- Plan and manage cash flows effectively
- Estimate your income and profits
Investors are eager to look at your financial plans and will want to know if
your venture is in the market growth and market share.
Successful entrepreneurs always have a plan.
Financial plan has two versions:
1- Forecast spend and revenues
2- Record actuals (start-up costs, operational costs, cash flows, break-even
analysis and balance sheet.
 Cont’d….
1. start-up costs- initial expenses to be incurred while setting up a business.
Questions:
- do need to register your company’s expenses? If yes (if yo want to hire a
Lawyer)
- what are the consultation fees for your Lawyer
- How much raw materials do you need to buy?
- How much will the equipment costs be?
(Put them into the template)
2. Sales forecasting- how many units of products or services do you want
to sell each month, for one year. You will list the list of figures from your sales
forecast document to fill up the second template, you need to enter figures from
the cash sale and collections from the operating expenses.
 Cont’d….

3. Cost of Goods- you need to estimate the cost of your raw materials
e.g bread, vegetable. Estimate the cost of packages. (COGs)
4. Operational expenses-
- Do you need a team
- How much will you spend on salaries
- How much will the advertisement cost be
- Hwo much will any repair costs be
They are day –to-day costs for running your business.

CASH FLOWS: Cash received>costs incurred

 BALANCE SHEET
Its not something you fill up today. You begin operations- create a copy of
your financial template and update your actual costs and revenues. And at the
end of 1st 12 months. Fore cast the balance sheet position. Yor balance sheet is
like snap short of the financial position of your business for a specific period
of time.
It tells you and your stakeholders 3 things:
ASSETS LIABILITIES SHAREHOLDERS
Resources or things a company Debts of your company or the The difference between Assets and
owns. amount of money your company Liabilities
CURRENT Assets ows to the creditors
- Cash SHORT Term Liabilities
- Inventory - Electricity bills
FIXED Assets - Vendor payments
- Equipment LONG Term Liabilities
- Furniture - Loan repayments
- Interest
 LESSON 4
Exploring Ways to Increase Revenue
Overview

This is the fourth lesson of the Advanced Course in Entrepreneurship. This lesson is 2
hours long and is divided into 2 CORE hours.
• In this lesson, you will learn how to generate maximum revenue from your customer –
your primary revenue source by working on customer awareness, customer acquisition,
customer retention, and customer referrals. You will also learn about some other ways to
increase revenue such as introducing a new product, new customer segment, or new
channel partner or exploring options such as the licensing model, franchise model, and
affiliate model. The objective of this lesson is to make you continuously look out for
means to increase revenue from your venture rather than rely on funding.
At the end of this lesson, you will:
• Identify new and potential revenue streams, markets, customer segments, and
partnerships with a view to growing revenue for your practice venture
 4.1 Understanding the Primary Revenue Source

How does revenue get created

Products or solutions do not create value- CUSTOMERS DO.
More customers more value
First create:
1. Awareness: Unknown visitor – Passionate customer & Happy customer- how do
you promote your product or service?
Digital channel e.g email campaigns, traditional channels (Radio, TV, Newspapers,
Magazines, W.O.M) invest in them and go out to look for customers. Where are they? How
do you discover them?
2. Acquired: Discover them from( Conferences, Seminars, Bars, Hotels) Those are
acquired customers once they are attracted to buy your products.
All you need is to ask them to try your product-experience, only them they will be tempted
to buy it.
 Cont’d…..
3. Converted: how do you convert potential customer to paying
customers. But for online services business, the customer happens later after
they start the subscription.
Retention: once they are start paying, you need to retain them (do your
customers come back? How do ensure repeat purchase?
4. Referrals: many companies use it while keeping customers for online
services like SAAS- revenue only comes in after retention.
1st Month 2nd Month 3rd Month 4th Month
Each stage of the cycle is an opportunity to create value or earn more revenue
from the awareness. The more people you reach the more you earn comfort.
Exploring the Customer Lifecycle for Growing Your Customers

Customer Lifecycle How will you achieve Which metric will you
Stage this? use to measure?
Creating Awareness among
Customers
Acquiring Customers
Converting Acquired
Customers
Retaining Converted
Customers
Getting Referrals through
Repeat Customers
 4.2 Identify Your Secondary Revenue Streams

What is your business goal?

You start with your primary revenue. However, that might not be
enough source.
See the options that you may have.
- How do you deliver more value to existing customers?
- How do you find new customers?
- How do you find new channels?
- How do you generate more revenue?
If your venture is at a certain stage:
 Idea, Validation, Development, Early growth,
Growth, & Maturity
1. Licensing Model- licensor grants license the right to sell goods, apply a brand names or
trademark, or use patented technology in exchange for a fee e. Disney, Balls, Watches,
Dolls/how this company doesn’t manufacture them). They simply give license
JUDICIUOUSLY (in return they get a big fee).
2. Franchise model- Starbucks started a purchase in India and Chinese markets. Ultimate
ownership lies with the franchiser. He collects a certain amount from the franchisee as franchise
fee. If you want to go with franchise model- SELECT THE BEST FRANCHISE and
PROTECT YOUR BRAND
3. Affiliate model- big companies outsource their product market efforts by paying
commission to affiliate companies to promote their products or service, get leads or even make a
sale. Do you know that independent life insurance agents adopt AFFILIATE Models. You bring
a customer- I will give you a commission.
Drawbacks:
- Primary company has less control over affiliates
- Affiliates may not spend enough time to promote your product or service.
 How to Increase revenue Stream
Ways to Increase Revenue How to implement the Pros Cons Final
idea? Rank
Introduce a new product segment
Introduce a new sub-product(s)
Introduce a new customer segment
Introduce a new channel or partner
License the product or sub-products to
another company
Franchise the business to other
locations
Become an affiliate to other businesses
 LESSON 5
Funding the Growth

This is the fifth lesson of the Advanced Course in Entrepreneurship. This

lesson is 2 hours long and is divided into 2 CORE hours.
In this lesson, you will learn about the different funding options that are
available to you at different stages of your practice venture. Keeping these
options in mind, you will create a funding plan for your practice venture that
reflects your current finances, expected revenue and costs, shortfall, funding
options that you want to explore, estimated timeframe for obtaining the
funds, and projected use of the funds. The funding plan will help you prepare
to pitch to investors for funding when the time comes.
At the end of this lesson, you will:
- Make a funding plan after exploring various funding options
 5.1 Funding Options for an Entrepreneur
94% of new businesses fail because of lack of funding during their first year of
operation.
Basically there are two funding options:
1- Debt funding
2- Equity funding
DEBT FUNDING- Involves borrowing money from for a fixed amount of
time which you need to repay with interest.
EQUITY FUNDING- Where you trade a certain percentage of your business
for a specific amount of money.
Investors get a portion of your company in return for the money they invest and
you don’t own any amount of money.
What types of funding you will get depends on how scalable your business is.
 Cont’d…
If your venture is not scalable VC funding or other investor funding is not for you.
Your best option is to go for debt funding-you can also borrow money from your friends and
family for a definite time period for a predetermined interest rate or you can approach a bank.
However, a bank will give you a loan to fund your business only if you have 3 year profit and
loss statement showing profits or you have to have some collateral security to pay the bank
against your loan.
Because of the riders, new business finds it difficult to get debt financing especially from the
bank.
Equity funding often comes from non-professional investors e.g Friends and Family.
It can also come from professional investors= Venture Capitals or Angel investors but before
you approach any external agency for funding big banks/investors make sure that you have
Bootstrap your company, exhaust all your personal resources and you have knocked all doors
of friends and family.
If your friends and family cant fund your business, how can you expect to funds
outside=stage of your venture can determine. E.g Idea, Validation stages=You can use
Bootstrap (best choice)
 Cont’d…
If your product progresses from an idea to Validation to the Build stage you
will suddenly find many funding options open to you.
1- Angel Investors- Wealth investors with surplus funds who provide
capital for business start-up usually in exchange for debt and equity (if this
debt is converted=converted debt usually operate in your company to ensure
profitability and security of their investment e.g. yahoo, Flipkart,
Alibaba.com are funded by Angel investors
2- Seed rounds- many VCs invest in business that are start-ups. You first
raise small amounts of funding from Angels investors then raise for the seed
funding from VC firms
3- Incubators- Build stage
4-Accelerator- Invest a specific amount of start-ups in an exchange of a
predetermined amount of equity e.g Dropbox, Airbnb started with it.
 Cont’d….
5-Customers- if you are selling direct to your customers you can explore
various crowding funding options. When customers buy your product in
advance and wait for them to deliver them in the future.
Entrepreneurs have raised several millions of dollars by using the popular
crowding sites like Kick starter, Indiegoggo
If you sell to business you can try to collect advance amount from customers
and that money can often fund your business development.
Crowding can also be used in raising equity funding i.e exchange shares of
your company with people that like your vision and invest small amount of
money.
Equity crowding e.g seed invest because funding is regulated by the
government this funding option may not be available in all countries.
 Cont’d….

Most importantly= How scalable the venture is?

Crowding, Angel, Customer (Viable options)
Venture Capitalists (VCs) are usually professionally managed, public or
private firms who pool investment funds to find an investment in business
that are not going to provide high rate of return.
5.2 What Should You Cover in Your Pitch Deck?

What should you cover in the Pitch Deck?

Start-up
What you do-approach your bank, Angel VC follow all these steps but
before that you need to do some homework-prepare to answer
questions.

Naturally=PITCH DECK
 Idea, Validation, Development, Early Growth, Growth, Maturity

First investors are your friends and family when you have to approach them
you need to expect a few questions like:
- How much funds do you need?
- How much have you invested your self?
- How do you plan to repay?
- What’s in it for them?
Next are Angel investors- they generally look for a higher return from their
investment that they can get from the start-up market. To get Angel fund for
your venture: convince your Angel investors about Ventures prospects
Makes sure haven’t followed your PITCH DECK
 Cont’d….

First-Early growth
1- Analyze how big is your problem you are trying to solve (what is the
market problem)
2- Product or service-explain how your product or service is better than your
competitor
3- Share your team details like team size and terms of engagement (skills,
competent, salaries)
4- Realize your unfair advantage to help you build your natural defense
against your competitors (are you defensible against competition) it gives you
enough defense
5- Create a business plan with milestones
 Cont’d….

Growth
1- How much have you or your friends and family invested in your venture?
2- What will the VCs miss out on if they didn’t fund your venture/
3- What is your current traction (Revenue earned vs Cost incurred, customer
feedback, sales metrics)
4- What is your financial situation? Are you getting profit? How much do you
need to scale
FINANCIAL PROJECTION
5- Do you have any existing loans or funding? If yes what are the terms of the
loans?
Prepare a CAPITALIZATION TABLE or CAP TABLE
Assess the impact on ownership
Cont’d….
To go for crowding For a bank
Share your story Have purchased orders to show
credibility
Offer great rewards Have a good credit score (loan
amount, purpose, repayment plan )
must have all the answers PITCH
DECK

Talk about benefits to

your investors
 Create Your Funding Plan
FUNDING PLAN TEMPLATE
1. Which stage is your venture in?
(Idea/Development/Validation/Early
growth/Growth/Maturity)
2. How much funds do you need to take your
venture to the next stage?
3. How much can you cover through self-
funding/bootstrapping?
4. How much do you need the external
investors to invest?
5. Who are the investors that you can
approach?
 LESSON 6
Building the A-Team
OVERVIEW
This is the sixth lesson of the Advanced Course in Entrepreneurship. This lesson
is 3 hours long and is divided into 3 CORE hours.
In this lesson, you will learn how to pitch your venture to hire the people you want,
including your co-founders. These first hires are going to form your core team, i.e.,
your A-team. For your venture to succeed, you need to set your A-team up for
success so that they can deliver beyond expectations. Here, you will learn to define
clear goals and expectations from each role as that understanding is integral to your
team's success.
At the end of this lesson, you will:
Form the A-team for your venture by finding the right co-founders, recruiting the
right team, and setting them up for success
 6.1 Introduction to Building an A-team
65% of start-up teams fail with “people problems”
A great venture needs a great team- in fact an A-Team
A-Team is a core team of people that you need to kick start your venture.
Remember you’re A-team is not constant, it grows just as a venture grows e.g
more start-ups start with 2 team members but grow in a number of time after
time.
Why A-team is important? Entrepreneurs cannot grow and scale without the
right team, in fact this is by re-evaluating the venture with a strong core A-team
core team (funding).
Most common mistakes entrepreneurs make while developing A-team is that
they don’t give the importance that they deserves.
Building you’re A-team is a strategic function and not an administrative activity
while getting your team together look for people with complementally skills.
 Cont’d…..
E.g if you are technically inclined it could be good to get some day a
1- Marketing and design skills into your team
2- Surround future requirement but not around your present stage but where you
want to go. Start planning for the next 2 years about roles and levels of
experience will be required for your organization at that time.
Ex. If you are planning 5 score=50 scores in 2 years time you should look for a
person who has experience of rather than finding some who has no experience
who’s in your venture for the first time.
3- Roles and not titles- try to think a head in the roles that matters to your
business just because you see most business around you have all seen you need
not to follow suit e.g if you are a technology business is that of a CTO= why?
CTO More than an CMO
4-flexibility- make sure that your A-Team understands the dynamics of a start-up
that will accept and welcome change and make sure they evolve and grow with
the change. i.e change in titles, roles and responsibilities.
Cont’d………

In addition to building the A-team, what about the activities to your

venture.
- Team-work how your team work with each other?
- Task progress-from one role to another
- Workflow-etc
Go deeper and design your organization
- Build your organization around the purpose (structure)
- Be clear on the roles and responsibilities (accountable)
- Review your organization design every 3 months ( not all organization
will exist for forever, review it) every 3 month review.
Why should people should join you? (one you want to hire) obviously for
them will join you because once you make an offer, they can’t reject it.
Will you afford paying them high?
 Cont’d…..
So what else can you do to attract the start-ups?
1- tell your story- tell them what brought you to start this venture,
plans, how do you plan to reach those teams, make them interested
in your story. Once they are identify your story and your dream, get
them on board.
2- offer them with equity stock or start-share, incentives
3- show them the promise that your start-up creates a Pitch deck and
Pitch for your venture. Let them see that when they are in the
venture, money shouldn’t be in front of the flow.

WIN-WIN Situation
 6.2 Setting Your Team Up for Success
Imagine that you have you’re A-team- how do you gear up for the
future?
Being a start-up, you can’t continue spending time and effort on
building and rebuilding the team.
Therefore, you must find a way:
1- retain your team
2- keep morale high
3- align to goals
And set them up for success.
 Cont’d…..

How do you get started?

1- spend time on boarding-New hired is not enough, you need to spend quality time to person and
make him or her comfortable.
Set expectation around behavior, convey your organization policies, culture, make them fell valued
so that he/she can look for how he can make a contribution to your venture.
2- reiterate role and responsibilities (even though you might have discussed in detail during the
hiring processes, chock up who’s responsible, accountable, consulted and informed RACI Matrix
for each product and your project.
3- hand hold JUDICIOUSLY
4- Share the big picture of the team (Tell them of what you want to achieve where you want to
reach and how can we reach there.
5- give them your trust-Royalty-straight a balance between a challenging-set up realistic targets
6-divide annual goals into quarterly or half-yearly goals to specific endevours so that the team find
it easier to see the end of the road.
Remember GOAL setting is an important exercise including start-ups. It gives you direction and
provides definite tome frame about that direction.
 Cont’d…..

Once you goals are achieved you need to monitor those goals. Its
important to put a performance management system ensure-
- Key performance indicators
- Regular reviews-inform of periodic tables, reward recognition
plans.
An effective performance management system keeps your team
engaged and motivated.
Remember: whatever you do, you should feel valued, cared for, and
in good hands.
 LESSON 7
Creating a Branding and Channel Strategy
OVERVIEW
• This is the seventh lesson of the Advanced Course in Entrepreneurship. This
lesson is 3 hours long and is divided into 2 CORE hours and 1 FLEX hour.
• In this lesson, you will learn the importance of creating a good branding strategy as
it is the brand that establishes an image of a company in the customers? minds. You
will use Simon Sinek's Golden Circle and the Value Pyramid to come up with your
branding strategy. You will finally come up with your brand name and logo and
decide on the social media handles that you plan to use. You will also learn all about
the Bullseye Framework and use it to reach out to more and more customers, and
thereby gain traction.
• At the end of this lesson, you will:
• Create a public image and presence for your business by creating a positioning
statement, brand, logo, and social media handles
• Select the right channel by examining various channel types using the Bullseye
Framework
 7.1 All about Branding
JEFF BEZOS said. “ Your brand is what people say about you when you are
not in the room”
Building a successful brand is the ultimate goal of anyone starting a company.
A brand is a name, sign, symbol, logo or design or tagline.
A brand is essentially a representation of a company’s values, purpose,
aesthetic, passion and place where it works.
From a customer’s perspective, it is an impression that your customer has of
you, your company and your product. These impressions are interactions with
you and your product.
Each one of these interactions tells a story of your customers.
In the Rwandan perspective (Made in Rwanda i.e shoes, bags, clothing's etc).\
Without a brand customers will fail to associate with the product and the
concept of customer loyalty would loose its meaning.
 Cont’d…
Questions:
- Why do customers buy the latest mobile release by a specific company?
- Why do customers insist on flying by a specific airline?
- Why do customers stay with a specific hotel line?
- Why do customers buy only from specific e-commerce?
When it’s a start-up, creating or establishing a brand takes time. Therefore,
develop a good brand if you want your venture to succeed. A brand is much
more of a logo or colors.
Your brand strategy can be your guiding start for your venture.
What is a good branding strategy? And how do you develop one?
A brand strategy is a long-term plan of the development of a successful brand
in order to achieve specific goals.
 Cont’d…
How does your branding strategy benefit you?
1- it gives an identity to your venture by giving you a distinct image and
personality. It helps you differentiate you from your competitors. E.G McDonalds
2- A brand gives you a direct to your team. A critical part of branding is to clearly
define what a product or service includes and what it excludes. E.g MTN.
3- brands helps you make key decisions especially when organizations find
themselves at cross roads and need to choose among different options to move
forward.
4- a good brand makes a product or service memorable e.g today, Indian customers
may not be particularly know about the restaurant from the visiting order.
In ways “branding makes or breaks your company”
Always keep branding strategies simple:
- Develop trust for all stakeholders
- Deliver on your promises (all should perceive you in a positive manner).
 7.2 All about Positioning Statements
You may have build your product or you may have created your product for your
self, but to create a brand you must first need to position your product or your
venture in the market.
A brand in fact is the outcome of the strategically positioning of a product or
service in the market.
So defining positioning staff for your business proceeds any branding exercise.
This statement spells out who you are and what you do for your customers or
investors.
A positioning statement highlights what your product or service does, who are your
customers and how your product or service provide a Unique Value Proposition.
Closer look:
To identify the market in which your business will operate, look, at the category of
products or services that you are offering.
 Cont’d…
- Keep your future operations in mind
- Don’t restrict yourself to one product if you plan to diversify
- Expand your product range e. Apple started with computers but operates in
computing devices- Mobile phones, earphones etc.
- Think of your core values- what your company stands for-(honesty, integrity,
transparency in dealings, inclusiveness. List all of them and prioritize them. The
values that you identified will eventually have to be integrated into every element
and function of your business.
Your positioning statement should include your core values-e.g natural products
available at affordable prices. Especially by drug dealers.
Define your full customer base instead of focusing on everyone. E.g if you are
selling children’s clothes, focus only on the category of children only which is your
market, find the language that this market will understand e.g using emoji's.
Finally, take what differentiates you from your competitors.
 LESSON 8
Leveraging Technology and Available Platforms
OVERVIEW
• This is the eighth lesson of the Advanced Course in Entrepreneurship. This lesson is 3 hours
long and is divided into 1 CORE hour and 2 FLEX hours.
• In this lesson, you will learn about the importance of technology in a venture?s success and learn
how to identify and use the technology that the customers are using. You will also learn about the
growing need for digital collaboration to increase operational efficiency and reduce cost and set up
some digital collaboration accounts that best suit your practice venture. You will also learn about
the various software solutions provided by some popular technology platforms and select the one
that is apt for your venture.
• At the end of this lesson, you will:
• Examine your business to identify areas where technology can improve operational efficiency and
reduce costs in the context of your practice venture/given scenario
• Identify various free or low-cost platforms and digital collaboration tools available for startup
ventures at various stages, such as WhatsApp, Zoom, Slack, etc.
• Select key technologies and leverage platforms to meet the technology needs of your practice
venture
 8.1 Leaping Ahead with Technology
Technology is the best driving force behind every successful venture or new business
you see today. It could be for example UBER-Amazon.
Technology enables business anywhere in the world from anywhere they choose.
Most businesses use search engines from different ranks.
More good news: technology needs to be expensive, and more technologies are free or
even at low cost.
Technology is a very bad term. Business today use a variety: Block chain, robotics,
artificial intelligence, Pinterest etc.
You must use and focus on the technology that your customers are using for example,
you are running a t-shirt business and your target customers spend a lot of time on
social media.
As entrepreneurs, you need to keep your eye wide open.
 Existing and upcoming technologies in every aspect of your business.
1- Marketing and sales- advertising in newspapers, radio, TV, and magazines and use
of digital marketing platforms such as Facebook, WhatsApp, Pinterest, e-mail
campaigns, and search engine optimization (solve all these problems in small business)
2- Collaboration- another step in leveraging business through technology in start-up
business is collaboration: platforms like whatsapp, slack, skype zoom (make it easy for
new businesses to collaborate with their customers, suppliers and teams a cross the
globe. Their chat and video conferencing).
3- Recruitment, amanging customer relationship-online payments- many customers
may be buying your product and service online but how do you keep track on all these
activities. How do you follow up all the leads to make sure your customers return for
more.
4- Accounting& data management- hiring is the most continuous processs for start-
ups. This means managing and storing a lot of information such as payroll, business
policies and employee information.
Conclusion: use of technology is free and sometimes very cheap.
 8.2 Digital Marketing for Your Startup
The marketing of products and services using internet
There are a number of digital marketing channels:
- SOE-Search engine optimization- the process of improving the online visibility
of a website or web page in Google’s search results (the more you use it the more
the visitors and more chances of converting customers. Need for meaningful
content- blogs, articles videos and images on your websites
- Google ads- keywords, the best platform
- Marketing on social media ie Facebook, WhatsApp, Pinterest, and Instagram.
Ie your beauty our passion. You can create a Facebook page for your business for
free, invite friends and once your friends like and follow your page-pictures,
updates, videos testimonials make things as exciting as you can. Other social
media platforms include: Pinterest and Instagram and when you are using them
encourage and attract your followers to watch and share the photos.
- All in all intelligence to make use of these platforms leads to success.
 8.3 Digital Collaboration
They store, share documents where others can help you manage projects like
Trello
Burger uses it in over 100 outlets a cross the world.
You can also use online meeting tools like zoom-go to meeting or join me
These collaboration types are- voice calls, chats, video conferencing-where you
can share everything in the meeting.
Most meeting tool features are free and some at a nominal price-most companies
use WhatsApp to communicate with their customers.
Collaboration and digital platforms:
- Reduces travel costs
- Provides easy access to important documents
- Make work easy a cross multiple locations and time zones.
 LESSON 9
Measuring Your Progress
OVERVIEW

• This is the ninth lesson of the Advanced Course in Entrepreneurship. This lesson is 3 hours long and is divided into 3

CORE hours.

• In this lesson, you will learn how customers and profitability are the two most important factors that indicate the health and

growth of a business. For the same, you will learn how to measure customer acquisition metrics, customer retention and

satisfaction metrics, and profitability metrics. Based on your metrics, you might need to relook at the secondary revenue

options to increase revenue for your practice venture, such as the licensing model, franchising model, or affiliate model. You

will also learn how to measure and monitor key financial metrics such as Cost of Goods Sold or COGS, gross margin,

operating expenses, net margin, and breakeven analysis.

At the end of this lesson, you will:

• Identify the key metrics that will help measure business growth and track progress
 9.1 Metrics for Customer Acquisition CAC
+ CLV + ARPU
How will you know your venture is progressing or succeeding and growing?
Customer profitability=Health and growth of your business. (Do we have a product but
its your customers and profitability that create value).
Measure key aspects of your customers:
- Cost of customer acquisition metrics
- Cost of customer retention and satisfaction metrics
- Cost of profitability metrics
There are 3 key metrics for customer acquisition:
1- customer acquisition cost (CAC)
2- Cusomer lifetime value (CLV)
3- Average revenue per use (ARPU)
 Cont’d…
1. Customer acquisition cost (CAC) = sales and marketing cost for a month
Number of customers gained in that month
e.g. if you spend $200 =$10
20 Customers
It’s good to measure your CAC on a monthly basis. Especially on each stage of your venture, business model,
and industry.
To bring down this gap you need to carry out innovation, and advertising and then use digital marketing like
Facebook, Instagram, and others like flyers and banners.
2. Customer Lifetime Value (CLV) - Earning from customers during their stay with you.
There are 2 ways of arriving at CLV:
a- Historic CLV= Sum of all profits from customers’ past purchases. The number is based on past purchases
say 1 year.
b- Predictive CLV= You predict or estimate how much revenue is generated by customers over a time period.
Knowing your CLV helps to estimate your CAC. (The greater revenue of your customers, the more you can
afford in acquiring that customer.)
Again it indicates the health growth of your venture.
CLV= (Total revenue earned from customers X Average customer life span)- Initial Cost of CAC
3900 = 1000 X4 - 100
Cont’d…
3- Average Revenue Per Use (ARPU)= Revenue generated from
existing customers.
You need to calculate ARPU to see if you are earning.
ARPU helps you compare the average revenue of your business with
that of competitors.
If ARPU is greater than competitor’s ARPU- you need to know how to
defend your product or your service. Forexample: Apple phones are far
more expensive than those of SumSung, but Apple defends its phones
by explaining to customers, then it uses new technologies to defend
itself.
ARPU= Total revenue earned in a year (2000) =40
Number of customers in that month (500)
 9.2 Metrics for Customer Retention and
Satisfaction - Part 1
Net Promoter score (NPS) The score can range from 1-10
a. 0,1,2,3,4,5 &6 NPS= Destructors. (these are customers who don’t like
the product or service. They are most likely to bad mouth and discourage
others to buy your product or service.

b. 7&8 NPS= Passives. (These are customers who know about your product
or service. They are neutral and may switch to your company. They are likely
to recommend your product or service. This is a good score.

c. 9&10 NPS= Promoters. ( They are extremely delighted and they love
your product or service and are most likely to meet customers.
 9.3 Metrics for Customer Retention and
Satisfaction - Part 2
CHURN= Rate at which customers stop doing business with you or stop continue
with your business.
However, some amount of customers are Churned.
If CHURN Rate > 5-9% you must try to find out why your customers are not happy
with your product or service.
E.g: CHURN Rate= (Number of customers at the start of the year)
-(Number of customers at the end of the year)
Number of customers at the start of the year
CHURN Rate is measured in percentages. The best way to reduce CHURN. Reduce
CHURN rate, your customer=Reinvest products.
A lower CHURN rate, lowers the CAC, the more the CLV monitor your CHURN rate
monthly or quarterly.
 9.4 How to Communicate Your Metrics
The following are the Business metrics that can be communicated:
1- Customer Acquisition metrics ( CAC, CLV, ARPU)
2- Customer retention and satisfaction metrics (NPS & CHURN Rate)
3 - Key Financial metrics (Cost of goods sold, Gross margin, operating
expenses, Net margin, Break-even analysis)
But to do you do with this data?
You use this data to make decisions for reporting to your employees, and
stakeholders (investors, mentors, board members, and advisors) through
Dashboard-which explains why we are doing it.
It’s good to make a Dashboard as visual as possible. Use graphs, Diagrams etc.
Employees should view the data on the Dashboard tools
The CEO of the business should communicate the metrics to investors on a
quarterly basis
9.5 What Should You Cover in Your Pitch
Deck?
Idea and Validation states of your venture
First investors are your friends and family when you have to approach them
you need to expect a few questions like:
- How much funds do you need?
- How much have you invested your self?
- How do you plan to repay?
- What’s in it for them?
Next are Angel investors- they generally look for a higher return from their
investment that they can get from the start-up market. To get Angel fund for
your venture: convince your Angel investors about Ventures prospects
Makes sure haven’t followed your PITCH DECK
Development and Early growth of your
venture
1- Analyze how big is the problem you are trying to solve (what is the market
problem)
2- Product or service-explain how your product or service is better than your
competitor
3- Share your team details like team size and terms of engagement (skills,
competent, salaries)
4- Realize your unfair advantage to help you build your natural defense
against your competitors (are you defensible against competition) it gives you
enough defense
5- Create a business plan with milestones
6- Create an exit strategy for your investors
 LESSON 10
Legal Matters
Overview
• This is the tenth lesson of the Advanced Course in Entrepreneurship. This lesson is 2 hours long and is
divided into 1 CORE hour and 1 FLEX hour.
• In this lesson, you will learn the importance of professional help and legal and compliance requirements for
your practice venture. You will also identify the areas in which you need professional and legal help. You will
learn about the various types of IP rights and select the ones well-suited for your practice venture. In addition,
you will learn about the different legal entities, compliance, registrations, and the necessary paperwork for your
practice venture in accordance with the requirements of the country in which your practice venture is based.
At the end of this lesson, you will:
• Identify the different legal entity types available in your country and their suitability for different types of
ventures
• Identify the type of legal entity, compliance and documentation requirements, professional help, and accounting
system for new ventures
• Prepare a compliance plan for your venture
 LESSON 11
Seeking Support
Overview
This is the eleventh lesson of the Advanced Course in Entrepreneurship. This lesson is 2 hours
long and is divided into 1 CORE hour and 1 FLEX hour.
• In this lesson, you will learn the importance of experienced professionals in a venture's success
and how you can overcome your lack of experience by engaging mentors and advisors for your
venture. You will also identify areas where you need help from mentors or advisors and identify
the mentors or advisors that you deem most fit to suit your requirement. You will also be
introduced to the concept of the Board of Directors and the role it plays in an organization.
However, you will need to look for your Board of Directors only after the first round of financing
when your first investor demands a board seat.
At the end of this lesson, you will:
• Articulate the importance of mentors and advisors in a venture's success.
• Identify the role of the Board of Directors in the governance of a business.
• Identify the gaps or areas where you need help and identify the advisors and mentors with the right
expertise and knowledge who can help you grow your practice venture.
• Seek your mentor's help to finalize your pitch deck.
 11.1 How Mentors Help Create Successful
Startups
Entrepreneurs face many challenges and difficulties, especially at the early
ages of their start-ups.

Bust Mentors once they meet them, normally mentor them and learn from
them by sharing ideas and thoughts.

They mentor them on different areas of operating their ventures such as

Raising capital, Productions, marketing and sales, product development,
registering a company, and many others.
 LESSON 12
Final Project
This is the Capstone Project Presentation — the grand finale of the Advanced Course in Entrepreneurship.
You have already completed the following lessons:
1. Recap and Review the Fundamentals
2. Refining the Business Model and Product/Service
3. Business Planning
4. Exploring Ways to Increase Revenue
5. Funding the Growth
6. Building the A-Team
7. Creating a Branding and Channel Strategy
8. Leveraging Technology and Available Platforms
9. Measuring Your Progress
10. Legal Matters
11. Seeking Support
12. Final Project
Cont’d….
• Throughout this program, you have been working on your practice venture. You started with taking a relook at
your idea and your Business Model, pivoted if you needed to, and then formulated your Business Plan, Sales Plan,
and People Plan. Along the way, you learned how to increase revenues for your venture by through secondary
revenue sources by exploring various models such as license, franchise, and affiliate. You also learned about the
various funding options such as angels and VCs that are available to you at different stages of your venture.
During the course, you also looked at how to build your A-team and how important it is. You also defined your
venture’s values, what it stands for, and came up with your positioning statement and branding. In addition, you
learned about the various technology platforms that can help drive your business and the various metrics that can
help you measure the success of your business venture. You ended this learning journey with an insight into the
legal compliance requirements and learned about the angel called mentor in an entrepreneur’s journey.
• Your journey will culminate in the final Capstone Project Presentation. As part of the Capstone Project, you will
present your practice venture — business model, business plan, growth achieved, and key learnings to your
classmates, faculty, and other entrepreneurs. The Capstone Project Presentation will be spread across one whole
day. Through the Capstone Project Presentation, you will get an opportunity to practice your presentation skills
and learn the nuances of presenting to an audience within a designated timeframe. You will also get instant
feedback on your presentation.
• Remember, all the activities, assignments, and the Capstone Project are in the context of the venture you are
working on as you progress through the course – your First Venture!
 CASE STUDIES
• Ish Jindal, TARS - 5 Item[s]

Resources:
Video: Who are we and what customer problems are we trying to solve?
Video: How did our solution evolve from B2C to B2B?
Video: What is our current market segment and how did we arrive at that?
Video: How did we reach our customers?
Video: What tools do we use to work effectively and to grow our business?