MHR final- module 5

what are business models

-framework by which you extract from your customers some portion of value your product creates for them -rationale of how an organization creates, delivers, and captures value

in the decision making unit, a champion is

The person who wants the customer to purchase the product

focuses on key components of business model

business model canvas

hourly rates, advertising, upsell with high margins are all different examples of

business models

all of the following are considered additional or secondary roles in the decision making unit except

champion

The author of Disciplined Entrepreneurship describes "A Decision-Making Unit" as being made up of:

champion, economic buyer, and influencers

what is key to understanding LTV of a customer

customer acquisition

calculating total addressable market for follow on markets is essential relatively early in the venturing process because you need to be prepared to pivot if your beachhead market does not develop as expected

false

the persona for your product is also the primary economic buyer

false

to develop an effective map for the process of acquiring a paying customer, it is important to

figure out whether the various decision making units have the budgeting authority to make purchases

which business model is the most common for service forms because it rewards short term activity rather than scaling up

hourly rates

why are business models for startups important

innovation is huge, hard to change existing models

downsides of BMC

just a starting point, need to test and validate all hypothesis

in "a broken place" the follow up article about entrepreneur Shai Agassi, it turns out that the strategy didnt work, a broken place looks more carefully at the business model of the venture, which was based on the idea that

people wanted to buy a transportation service, not a specific car as a product

additional or secondary roles of decision making unit

purchasing department, influencers, veto power

which part of the business model canvas describes the cash a company generates from each customer segment

revenue streams

in "a broken place" the article about better place and entrepreneur Shai Aggasi, the business model began to fall apart when

the actual care produced by the company was lower end than planned, with less travel range, and a higher price

in her talk on why business models matter, Ann Miura-ko of Floodgate Ventures says that she likes to see a business model for a new venture because it shows

the key assumptions and hypothesis about why the venture could succeed

in the decision making unit, an influencer is

the person with depth of experience whose opinion can affect the rest of the decision making unit

The best way to figure out the decision-making unit is to talk to your potential customers.

true

calculating the total addressable market size for follow on markets helps you stay away of the long term potential of your business

true

one of the most important reasons to map out the process to acquire a paying customer is to understand the length of the sales cycle

true

which business model sells product at a very low margin but incorporates high margin add on products

upsell with high margin products

which business model charges customer for the products or services actually used or consumed

usage based

which part of the business model canvas describes the bundle of products and services that create value for a septic customer segment

value proposition

In DE, a "customer" is not always a customer, which of the following is an example of a more complex customer situation

when you have a two sided market where multiple target customers types are needed