The Criteria for Designing a Business Model in a Business Plan

• Main Authors: Shan-shan Chuang, 莊姍姍
• Other Authors: Chung-Cheng Lee
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/10588875835237098618

碩士 === 朝陽科技大學 === 企業管理系碩士班 === 99 === Highly emphasized in entrepreneurial practice educations in Taiwan’s universities, there are lots of looks available but diversifiable definitions about the “business model”; however, the business model can be the core in entrepreneurship practice and research. As an entrepreneur of a startup company, all the stakeholders should evaluate the investment value from the adequate information, including how to meet target customers need, establish what kind of key resources that the new company needs and organize the supply chain, identify where and who are the competitors, suppliers, business partners and the other key persons to your new business, adopt what kind of strategies to increase the competitive advantage, to summarize all the above information should present in a “Business Model” with the rigorous framework, detailed statements and innovative ideals. Furthermore, in this research, it is proposed that the minimum required rate of return by the financial market investors based on the risk characteristics with of a brand new startup company, that is the cost of capital (often refer to the WACC of the listed firms within the same industry and at the same level of risk as shadow price of the cost of capital), must be reflected during the assessment process of the financial benefits and the investment risk. It is required that the assessment process of the WACC and cash flows forecasting about the investment and operating activities of the startup companies must be fully disclosed in the business plans in order to express the recognition of the investment risk and the ability of adaptability by the entrepreneurs. For solving the above series of issues to prepare a solid and innovative “Business Model”, the educators in the universities should emphasize to integrate the different professional knowledge to guide the students to compile a complete business model.