WORKSHOP N°2:

How Can I Adapt my Business

Model
 WORKSHOP
OVERVIEW

1. INTRODUCTIONS &
EXPECTATIONS
2.OVERVIEW OF W1
3.OBJECTIVES OF W2
4. CONCLUSION
Let’s assess: What will kill the business first? How can the business survive?

How What For whom

7 5 4 2 1
• Can you • What • What needs • How can • Are the
benefit from activities can you you keep usual
government need to be satisfy with clients clients still
aid? adjusted your existing engaged buying?
• (e.g. opening resources and loyal?
Who can • What do /
hours) (better than
support you may they
to survive? your
competitors) demand
• What ? NOW?
partners can
6 • Is your
3 • Whose
be of help? needs can
(networks, business • Where can
• What resources safe (for be satisfied
suppliers, customers
do you have? clients and NOW?
new buy NOW?
(physical, staff)?
partners?) • How can
human,
relational, you deliver
intellectual) to them?

• Do you have money to pay the costs? (for 8

(for how many weeks / months?) •
9
How much are the clients willing to pay?
• What costs can you cut? • What leaves you more money NOW?
• Do you have debts to pay? • Do you have debts to collect?
• How much money do you need for • How much do you need to sell to survive?
yourselve at minimum (your salary)? (Break-even point)

How much
3
DECISION MATRIX

4
 DITSO ADVENTURE TOURS

Neo Brown owns a safari

Company located in Kazungula.

Neo’s target market is mostly

regional and international, with a
sizable number being Batswana
(15%). The Business opérates in
the market área, which makes it
easily accesible to walk-inns.
What would you recommend to avoid her business from
collapsing?

Business Solutions to Poverty Technoserve | 5

 BMC For Ditso Adventure Tours

How What For whom

7 5 4 2 1
• Bank • Postponeme • Provides • Local prices • Regional
• Government nt of trips for Tourism are lower and Int.
Wage internationals activities • Trip Market,mai
Subsidy • Refunded within a negotiations nly
clients market area (postponem Germany
• One in Kazungula ent)
employee at • Batswana
the office (15%)
• Sells
6 3 Game
• drives,
Online
• 2 Safari boat
platforms
vehicles cruises,
• Camping
equipmemt
• 3 employees
• Office space

• Monthly rental (P1,200) 8

• Salaries: 3 employees
• Int Prices Game Drive (P220), Boat Cruise 9
(P220),
• Tour guide, camp hand, Chef • Local Prices: P160 (Game Drive and Boat
• Bank Loan
cruise)
• Vic Falls (P380),
• Sales: P8,000

How much
6
Ditso Adventure Tours Decision tree
Swimming
New Products packages

Corporates,
Explore new Parastatals
Expand Local markets
Market Boost posts on
facebook
Online
Marketing
Other social media
platforms (twitter,
Loss of Market Instagram)
(85%)

Cover active
Improve hours
Working Review staff
Capital Salaries

Complete NDB
Apply for NDB application
Loan
 MY BUSINESS NUMBERS

+
SALES

-
VARIABLE COSTS

=
CONTRIBUTION MARGIN

-
FIXED COSTS

=
PROFIT OR LOSS
 COSTS

Variable Costs Fixed Costs

Costs that directly vary in line with Costs that remain constant over a
production volume, i.e., in case of specific period of time, regardless of
no production, variable costs are the production volume
zero, and in case of high production
volume, variable increase
accordingly

Examples: Raw materials, Examples: Rent, insurance

packaging, delivery

Variable
Costs + Fixed
Costs = Total
Costs

9
 CONTRIBUTION MARGIN

Contribution Margin (%) = Contribution Margin (P)

Unit Sales Price
 BREAK EVEN POINT

Fixed Costs [P]

Break Even
=
Point [P] _______________
 
 

Contribution
Margin [%]
STRATEGIC MARKETING PROCESS

Segment Target Position

MARKETING STRATEGY
Product

Promotion
Marketing Price
Mix

Place