Students develop their idea throughout the semester in nine parts, as a mini business plan, and then submit their final version. Each part sets out what is required, an example from a single venture, “Baroda,” an air-conditioner maintenance subscription, and a common mistake to avoid. The parts can be filled in, saved and downloaded on the interactive course page.
What is the problem or gap? Who has it, and when? Convince the reader of three things: that the problem exists, that you understand it, and that there is a real need to solve it. Cite what you heard in your interviews (how many, and phrases people said) and any reliable number.
Write in this part:
Example:
“Air conditioners in many homes break down at the peak of summer, so families wait two or three days for a technician in intense heat, and sometimes pay large sums to repair faults that simple maintenance could have prevented. We interviewed eight families; six said at least one unit broke down last summer, and one mother said: ’I called three technicians. One didn’t answer, the second said in two days, and the third came and asked for an amount I couldn’t tell was fair or not.’”
Avoid: describing the problem in general terms such as “people suffer from the heat,” relying on your personal opinion without any interviews, or writing the solution instead of the problem.
Describe your customer precisely: “families in new neighborhoods with four or more AC units” is clearer than “people.” Roughly how many are there? How do they deal with the problem now?
Write in this part:
Example:
“Families living in villas or large apartments in residential neighborhoods, with four or more AC units, where the head of the household usually pays. After them we target small shop owners. We estimated the number of homes in three nearby neighborhoods at about (…) from a field count, and we expect about 10% of them to be interested in the service, based on our interviews.”
Avoid: writing “everyone” or “all the city’s residents,” or citing large numbers with no source.
What is the product or service? What sets it apart from the alternatives (price, speed, quality, ease, proximity)? Make sure the solution works for you as its provider, for the customer, and for the other parties (supplier, courier, partner).
Write in this part:
Example:
“An annual subscription with two scheduled maintenance visits (before summer and in mid-summer), priority for breakdowns within 24 hours, and a photo report after every visit. The advantage: a known, fixed price and a guaranteed appointment instead of searching for a technician when something breaks. And because we schedule visits by neighborhood, the technician visits several nearby homes on the same day, so he earns a good income, the price stays reasonable for the family, and we keep a worthwhile margin.”
Avoid: describing the solution in general terms such as “a smart app that solves every household problem,” adding many features unrelated to the problem you heard, or a solution that delights the customer but is exhausting or loss-making for whoever delivers it.
Is it something people buy daily, or once a year? Roughly how large is demand? Who offers a similar solution, and what indirect alternatives do people use? Don’t write “there is no competitor”; there is always an alternative.
Write in this part:
Example:
“Demand is seasonal and recurs every year. Competitors: independent technicians (sometimes cheaper, but their appointments are not guaranteed and their prices are unclear), large maintenance companies (reliable, but more expensive and focused on businesses), and the most common alternative: waiting until the unit breaks down and then looking for a technician.”
Avoid: writing “there is no competitor,” which means you didn’t search, or that there is no need.
What is the simplest version you tested (a sketch, a page, an order form, a manual trial)? With how many people? What changed in your idea after the test? Changing direction based on evidence counts for you, not against you.
Write in this part:
Example:
“We posted a simple ad in two neighborhood groups with a booking link for a maintenance visit at a trial price. 19 families booked within two weeks, and we carried out the visits with a cooperating technician. 11 of them asked about an annual subscription, and we discovered that families care about the photo report more than we expected, because it reassures them the work was really done, so we made it a core part of the service.”
Avoid: settling for “we’ll test later,” or showing the idea only to your friends and asking whether they like it. And remember that changing the idea after testing counts for you, not against you.
We focus on monthly operations. Write the fixed costs item by item, then the variable cost per unit and the selling price; the result is calculated automatically. Ask yourself about the expected sales: are they reasonable?
Write in this part:
Example:
“The price of a visit in the subscription is SAR 150, and its variable cost SAR 60 (materials 35, fuel 15, messages and payment fees 10), so the contribution margin is SAR 90. Fixed costs are SAR 9,000 a month (a technician’s salary, a vehicle lease and the scheduling system subscription), so we need 100 visits a month to break even, about 4 visits a day, which is feasible if the visits are close together. Equipping (SAR 12,000) is a start-up cost that we did not include in the monthly calculation.”
Avoid: including start-up costs (equipment and fit-out) in the monthly costs, forgetting small costs such as packaging and delivery, or assuming large sales without evidence.
How many people does the venture need? Who does what? Are the workers on monthly salaries or contracted per job? And what happens to the team as you expand?
Write in this part:
Example:
“Three members: the first for operations and scheduling visits, the second for marketing and customer contact, and the third for accounts and purchasing. We need one salaried technician at the start, and we add technicians contracted per visit at the peak of summer.”
Avoid: listing team names without roles, or ignoring who will actually work in the venture.
How do you reach your customer? What is your message in one sentence (use the message maker)? And how do you keep them so they come back and buy again? Choose one or two channels where you know your customer is.
Write in this part:
Example:
“Our message: (A cool summer with no breakdowns, and a guaranteed technician appointment.) We reach customers through neighborhood groups and real estate offices, with a free inspection for the first 20 subscribers, and a free extra month for anyone who brings in a neighbor who subscribes, because neighboring subscribers bring our visits closer together and save the technician’s time.”
Avoid: listing every platform without focus, or simply saying “we’ll market on social media.”
Is expansion costly? Does each new branch or city need start-up costs and staff? And what is the first small step you would take if you decided to actually start? A venture that does not grow usually withers.
Write in this part:
Example:
“After three neighborhoods, we expand to others with new technicians, each covering a defined area. We can add small shops and residential compound subscriptions. First step: run the service for one summer in two neighborhoods and reach 60 subscribers.”
Avoid: large expansion plans unconnected to what you have achieved, such as “we’ll cover every city in the Kingdom in the first year.”