For The Field You’ve Never Touched–Yanwen

This week, I’d like to finish up TraceCloud’s business plan struggle I mentioned in the first blog entry.

After successfully created the first workable model for TraceCloud and got the technical documentation done, our team started searching online all the available business plans from different companies. At first, I was strictly looking for business plans in technology field and found that since all the products were profession targeted, they were not helpful for us, a group of business novices, regarding providing sample for a basic business plan.Encountered the obstacle, I changed my original plan of only looking for area related business plan into looking for all areas’ business plan just to get a sense. Among all the business plans on the market I searched, I found that Chipotle’s business plan inspired me the most.

Apart from the Letter To Mr. Ells on the first page serving as the introduction, the rest of the catalogue was actually a very clear guide for first-experienced people like us as getting points that needed to be included in a business plan.


From the image above we could learn that a business plan basically included three main parts: condition summary, market analysis and proposed strategy. For TraceCloud, our team needed to add more technology targeted content to illustrate our product because we were not actually running a business but selling our product.


In TraceCloud’s business plan, our team incorporated more detailed subtitles to guide readers because as a new product which didn’t have any related competitors on the market, TraceCloud had to fully explain itself and show what was special about the system. Also, since we were only developers of TraceCloud, we needed other big companies to invest us so that we were able to start the business which meant we have to convince them that though there were risks on investing TraceCloud, it was worthy and we did, as the developing team, think about those risks and provide some rough strategies and explanations to those risks. So we added part 6 in our business plan called Investment Decision Analysis which included all the risks investors might face and how TraceCloud could get over with those risks.

TraceCloud business plan is the first business plan I’ve ever written; before then, I didn’t even think I would write a business plan ever. Though it’s still not perfect and I was basically getting all the ideas from other business plans, it does give me a life-changing experience which I can carry on to my future projects and career. After all, all learnings start from imitation.


4 thoughts on “For The Field You’ve Never Touched–Yanwen

  1. Sophie Xi

    I really like your last sentence describing how “all learnings start from imitation”. It is very interesting to see how you integrate Chipotle’s business plan into that of a technology company. What I am interested in is the “Investment Decision Analysis” section in your business plan. Could you tell me more about the approaches you take to find potential risk factors?

    1. yanwenxu Post author

      We basically started from four aspects that exist potential risks: financial risk, management risk, competition risk and technical risk and then incorporated TraceCloud’s weaknesses and strengths into each category.

  2. Max D.

    I like how you wrote with confidence that there isn’t a related competitor in the market. I have to admit that TraceCloud is indeed a brilliant idea in that it makes in-depth consumers’ behavior analysis a service. I would like to hear more elaboration on how you would target the potential customers? Under the assumption that the algorithm does return a much more accurate credibility rating, banks may not want to use that because their current methods still do the job. The discrepancy might not be huge enough so that the cost is justified. Banks may as well save that money and loan to other banks and reap the interests. Other large corporations like Alibaba and Tencent, as you’ve mentioned in your previous post, generally have their own data experts to track their customer’s behavior. In that sense, what aspects would TraceCloud bring in that would be appealing to such large corporations?

    1. yanwenxu Post author

      Data shows that the consumer finance market in China has already excessed 9 trillion yuan (around 1.3 trillion dollars), and in 2019, the estimated scale of consumer credit will reach 37 trillion yuan (around 5.5 trillion dollars). However, such an enormous and rapidly growing market doesn’t have a consumer credit system to match with. According to Boston Consulting Report, personal credit coverage in Central Bank is only 61%, far lower than American’s 92%. This fact actually brings large hidden dangers to all financial related enterprises.
      Demand gap is too large for supply to fill up. Currently, most of the permissions for credit system in China are stored under Central Bank, and we are lack of social credit information systems because of the only data source-the government. In addition, because of the barrier that formed after the longtime, it’s very hard for independent firms and platforms to get the data from the government side which contributes to the mix of sources in the market.
      Since the government can’t open up the data for the industry, the market part can be in charge of the data collecting, and this is what TraceCloud does. There are too many companies on the market that are longing for those data.


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