TEF 2019 Application Guide With Case Studies And Advice (Part 4)

TEF 2019 Application Guide: How To Apply For The Tony Elumelu Foundation (TEF) Program, TEF 2019, Part 4.

TEF 2019 Application Guide Cont’d

Tef 2019 Application
TEF 2017 entrepreneur From Madagascar 

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SECTION 7: MARKET POTENTIAL

Addressable Market: How big is the Addressable market for your product or service? (50 words)

This part of the application is very important and it scores a big point. You have to briefly describe the market segment, size, and demographics which you are serving or hope to serve.

Example:

The addressable market for my product is ________________________________ in ________________. This market makes up ______ of the country’s population. Another market my product/service will target is _____________________________________________________________________________.

(Your addressable market can be as big or as small as a particular niche/ group of people)

 

TEF 2019 APPLICATION GUIDE ADVICE: 

The market should be reasonably large! This scores a big point. You want to prove to the TEF judges that you have a workable idea and business. There are some details and examples of how to answer this question and more at the TEf 2019 E-BOOK GUIDE.

tef-2019
The TEF target

Revenue Model – How do you intend to generate revenue? What are the sources of Revenue for your Business? What are your Value offerings? What is The price of these value Offerings? And who will Be paying for the value? (50 words).

This is another very important part of the TEF 2019 Application. Revenue generation is a very important aspect of any business. A business that doesn’t generate revenue would fold up.

There are different possible sources of revenue for the business. It Could be the sale of products, charges on services, affiliate Earnings, advert revenue, income from leasing, interest on Lending, profit from sales, etc.

TEF 2019 APPLICATION GUIDE EXAMPLE

“Our business would make money from selling high quality refined Garri to a mass market.  We have created value by making Garri with high quality, vitamin-A fortified, properly and beautifully package and it comes in different sizes. The added value would come with an advantage of higher patronage.”  

It could be different for your business. some businesses have Different revenue streams. For example, a poultry farm can make money. By selling eggs and poultry wastes for manure. The value proposition is also important. Talk about the value your Product/service provides to your customers and the price of these Added value.

tef 2019 application
TEF 2017 Entrepreneur from Togo.

Market strategies: Explain how much you intend to (or already do) market Your products or services to your target market (50 words)?

Marketing is a very important aspect of any business. It is the lifeblood of any business! Market strategy refers to the plans and steps taken to achieve your marketing goals and objectives. Since every business is unique, marketing strategies are unique also, what strategies would you adopt in creating awareness for your product/service? The TEF 2019 application guide would offer some ideas below.

Note that the list is exhaustive and some concepts repeat themselves in different forms. Choose the channels and strategies that apply the most to your business.

TEF 2019 APPLICATION GUIDE EXAMPLE

  • Selling to customers through your physical or online store.
  • Strategic partnership with retailers.
  • Selling through wholesale distributor networks.
  • Using multilevel marketing (MLM)
  • B2B marketing (A broad category)
  • B2C marketing (a broad category)
  • Trade show and exhibition events
  • Using showrooms (suits fashion brands)
  • Selling through affiliates (a great option for digital products)

Others strategies involve the following attitudes;

  1. Investing in the right marketing team
  2. Having a reasonable and effective marketing budget
  3. Using effective branding to boost sales
  4. Effective pricing
  5. Listening to customer needs and demands

The list above gives ideas on how to make a market strategy statement. This guide would go further ahead to give an example on for a fictitious Garri Production Company.

“We would sell our Garri through wholesalers, distributors, large retailers and directs marketing. We would use TV, social media, radio, billboard display and newspaper adverts. We plan to attend trade shows and exhibitions, do promos and giveaways. We would use effective pricing and branding to improve customer retention and loyalty.”

tef 2019 application
TEF 2017 Entrepreneurs being addressed by Parminder Vir, OBE.

Competitors: Who are your Competitors/benchmark organizations? List your top 3.

List 3 of your competitors here.

Business Threats

What are the short and long term threats your business may face?

Businesses have two types of environments: internal and external. Internal environments are controlled by the company and may include elements such as organizational structure and workforce. External environments, however, exist outside of the company and are not within its range of control. As such, businesses may be vulnerable to the many threats that external environments can pose.

Threats are obstacles that can bring down or affect your business negatively.

TEF 2018 APPLICATION GUIDE EXAMPLE

i. Unfavorable government regulations, policies, tariffs.

ii. Harsh economic environment

iii. Change in consumer taste

iv. Rapid changes in technology or technological disruption.

v. The possibility of the rise of cheaper and better alternatives or harsh competition.

 

Differentiating Factor: what differentiates you from other existing business in your field? (50 Words)

This sub-section scores a very high point. Every purposeful business has a competitor. A differentiating factor reveals to the judges how your business plans to stand out from the competition. Anybody giving you money wants to make sure that you are not swallowed by the competition. Look inwards and around. What is different about your business? How do you stand out? The TEF 2019 Application Guide gives a few ideas on the Differentiating Factor.

  • Being the first business to start a products or service offering makes you outstanding. It is a differentiating factor.
  • Does your business solve a unique problem, write about it.
  • A business model that is difficult to replicate or copy is a big differentiating factor. If yours is one of such, write about it.
  • Have a niche or even micro-niche and stick to it. A narrowed target market by geography, gender, age grade, price segment, etc. is a big differentiating factor.
  • Are you known expert in your field, then you have a big differentiating factor. For example, a world-class make-up artist who starts a beauty parlor would be instantly successful. Same goes for Chef who starts a food business.

If you have no differentiating factor, create or invent one.

 Current Milestones: What is your current milestone for business? (50 words)

Every business has goals, targets, and objectives. Whenever you achieve a goal you create a milestone. The TEF 2019 Application Guide lists some common business milestones below;

  • Conceiving the business idea
  • Getting the business registered
  • Expanding the business place or relocating to a bigger, better premises
  • Getting (or redesigning) a website and social media channels
  • Attaining profitability
  • Having a first employee
  • First sale, client or job

See more examples in our Ebook.

 Next Milestone: What is your next milestone for this business and how long will take you to reach it? (50 words).

Check the list above. These could also be our next milestone.

After this section, save and move to the next section.

SECTION 8. FINANCIAL INFORMATION

This important part of the TEF 2019 Application has to do with financials. Please, the currency should be your local currency and not US Dollars.

Important Info:

i. If you are yet to commit any cash to your business and are yet to make any money, please indicate ‘0’ in the Invested Cash and Lifetime Revenue fields. Existing businesses, please input the total amount invested and the total amount generated till date in your business.

ii. For Monthly Expenses, businesses that are yet to begin operations (Idea Stage or Testing Stage) are required to make estimations of how much the business expenses will be monthly. Existing businesses are required to present the real figures.

Definitions

Break-Even Volume (BEV) is the amount of your product that you will need to sell to cover total costs of production.
BEV = Fixed Cost / (Selling Price per Unit – Variable Cost per Unit)

Break Even Revenue (BER) is the amount of money you will need to generate to cover the total costs of production
BER = Fixed Cost / (Revenue – Total Variable Cost)

Fixed Cost: an expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity. E.g. Rent
Variable Cost: expenses that can change depending on your use of products or services, change in sales, production, or some other activity. E.g. Raw Materials.

tef 2019 application
TEF Entrepreneur From Equatorial Guinea

Invested cash: What is the total amount of cash invested to date in this startup (in local currency)?

Fill in as it relates to your business

Monthly expenses: What are your current monthly cash expenses (in local currency)?

Fill in as it relates to your business

Life time revenue: How much revenue has your startup generated since inception (in local currency)?

Fill in as it relates to your business

Break-even volume: What number of units (products) will you have produce and then sell to generate enough money to cover for all fixed costs to the business? (business expenses that are constant irrespective of business activities)

Fill in as it relates to your business. Check the  TEF 2019 E-book Guide for a detailed example.

Break-even revenue: What amount (in local currency) must your business generate to cover to all its fixed operational cost?

Fill in as it relates to your business.

Source(s) of capital till date

Write all the means of income your business has had since it started. What has provided income for your business? Fill it in.

Save and continue to the next section when you are done.

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