1 Page MBA
From Idea to Enterprise: Everything a Beginner Needs to Know
The Core: What is a Business?
A business is fundamentally the activity of making a living or making money by producing, buying, and selling products (goods or services). At its heart, a business is an engine for value exchange.
The core transaction in any business:
VALUE
(Product / Service)
Customer
MONEY
(Revenue)
Key Components (The 3 P's)
Every successful business is built on solving a problem profitably.
Practical Example: A Local Coffee Shop
Need for morning caffeine, a meeting spot, or a quick lunch.
High-quality coffee, pastries, and a comfortable ambiance.
Sales revenue minus cost of beans, rent, labor, and utilities.
The Blueprint: Business Model Canvas
The Business Model Canvas (BMC) is a strategic management tool that visually maps out the nine essential building blocks of a business. It describes a business's value proposition, infrastructure, customers, and finances.
Infrastructure & Finance (The Left Side)
Internal operations and financial structure.
What must you do to deliver value?
Manufacturing, Software Dev, Marketing
What assets do you need?
Physical store, IP, Human Capital
Who can help you?
Suppliers, Distributors, Alliances
What are your biggest expenses?
Rent, Salaries, Raw Materials
Value Creation (The Right Side)
Focus on the customer and the value you deliver.
Who are you serving?
Students, Small Businesses, Families
What unique value do you deliver?
Speed, Low Cost, Premium Quality
How do you reach your customers?
Online Store, Physical Shop, Social Media
How do you interact with them?
Personal Service, Automated, Community
The Financial Engine: The Scorecard
Finance is the language of business. Understanding the flow of money is critical to knowing if you are truly profitable. A business must generate more Revenue than it incurs in Costs to create Profit.
| Term | Definition |
|---|---|
| Revenue Streams | How the business makes money (e.g., Sales, Subscriptions, Licensing). |
| Cost of Goods Sold (COGS) | Direct costs to produce the product/service (e.g., raw materials, direct labor). |
| Gross Profit | Revenue - COGS. The profit before operating expenses. |
| Operating Expenses (OpEx) | Costs to run the business, not directly tied to production (e.g., Rent, Marketing). |
Profit Formula
Revenue-COGS-OpEx=Net Profit
(The money you keep)
The Journey: Business Life Cycle
Every business follows a predictable journey. Understanding your stage helps you focus on the right priorities.
Seed/Startup
Idea validation, finding first customers
Goal:
Achieve Product-Market Fit
Growth
Scaling operations, increasing market share
Goal:
Rapid expansion & brand recognition
Maturity
Efficiency, maintaining market share
Goal:
Optimization & steady cash flow
Expansion
Innovating, diversifying products
Goal:
Re-ignite growth
Decline/Exit
Decision to sell, close, or pivot
Goal:
Maximize return or minimize loss
The Pillars: Key Functional Areas
A business is a system of interconnected functions that must work together seamlessly. These are the pillars of operation.
Marketing & Sales
Creating awareness, generating leads, converting to revenue
Operations
Turning inputs into outputs efficiently
Finance & Accounting
Managing money, tracking performance, compliance
Human Resources
Managing people, talent acquisition, training, culture
Strategy
Setting long-term direction, key decisions, allocating resources
Marketing & Sales: The Growth Drivers
Marketing and Sales are the mechanisms that drive growth by moving potential customers through a journey. Understanding this flow is critical to scaling any business.
The Customer Journey Funnel (AIDA Model)
Awareness
Customer discovers you exist
Interest
Customer wants to learn more
Desire
Customer wants your solution
Action
Customer makes a purchase
Marketing
Creates the lead by driving Awareness and Interest.
Sales
Closes the deal by converting Desire into Action.
Key Concept
Marketing creates the lead (Awareness/Interest), and Sales closes the deal (Desire/Action).
The Mindset & Action Plan
Starting and running a business requires a specific mindset and a disciplined approach.
Validate Your Idea
Talk to potential customers.
Does your solution solve a real problem they are willing to pay for?
Sketch Your BMC
Use the Business Model Canvas to map out your entire plan on a single page.
It's your one-page plan for value creation and capture.
Build a MVP
Create the simplest version of your product to test your core assumptions.
Start small, learn fast.
Get Feedback & Iterate
Listen to your customers and constantly improve.
The most successful businesses are in a constant loop of Test → Learn → Iterate.
Watch Your Numbers
Track revenue, costs, and profit religiously.
What gets measured gets managed.
Key Takeaways
The blueprint is complete, now it's time to build.
Author: Vikram Salunkhe | Website: opsked.com