Entrepreneurial Mind: Building Business Models

Distributor

- A business that buys directly from a manufacturing company - Acts as middle point between the manufacturer and the general public

Lean Canvas

- A developed version of the Business Model Generation - It outlines a more problem-focused approach and appropriate to use by small entrepreneurs especially those creating start-up businesses

Crowdsourcing

- A model that solicits intellectual information of users on what value-added concepts be inputted in the product and or service offering

Value Proposition Canvas

- A tool which can help ensure that a product or service is positioned around what the customer values and needs - It is a detailed look at the relationship between two parts of Osterwalder's broader Business Model Canvas; customer segments and value propositions - Can be used when there is a need to refine an existing product or service offering or where a new offering is being developed from scratch

E-commerce

- Allows buyers and sellers to connect and transact using an online platform

Subscription

- Allows the customer to get services by paying a fixed amount per month. Offers different plans with different prices

Franchise

- Allows the franchisors to license its resources, brand name - Intellectual property and rights for a franchise to sell its products and services in exchange for royalty

Key Partners

- Are the relationships that you have with other business, governmental, or non-consumer entities that help your business model work

Key Resources

- Assets that are required to operate and deliver your company's value proposition

Freemium

- Combination of free and paid services normally used by tech companies in the Software as a Service (SaaS) or apps business model

Affiliate Marketing

- Commission-based model where companies make profit by promoting a partner's product and convince its followers and users to buy the same

Data Licensing / Data Selling

- Companies require critical information to carry out operations and earn revenue

Nickel-and-dime

- Consists of lowest price strategy for a product - Additional amount is charged for other services offered

Customer Relationships

- Describes the type of relationship a company establishes with its specific customer segments

Business Model Canvas

- Great tool that aims to provide, create and understand a business model in a straightforward and structured way - It is made up of 9 building blocks - Serves purposes for product managers: focusing their thinking during its creation along with expediting and framing the conversation when communicating with others

Brick-and-mortar

- Has a physical store; sells products directly to customers Ex. Coffee shops, walk-in-banks, gas stations

Family Owned

- In which two or more family members are involved - Majority of ownership lies within a family

High Touch

- Involve talking to and helping customers a lot through the entire pre and post sales process Ex. Hair salons, auto-dealers

Consulting

- Is composed of experienced and qualified professionals that offers services based on their line of expertize - Charge their clients by the numbers of hours they have rendered service

Agency-based

- Outside firm is hired to complete a specific task

Aggregator

- Provides collective information about a particular service and sell them under their brand name

Retailer

- Purchases goods from the wholesaler or directly from the manufacturer - Purchase goods to sell those goods in small quantities to end consumers

Network Marketing

- Requires building a network of business partners or salespeople

Online Marketplace

- Sellers compete with each other to deliver similar product/service - Earns commission on every sale carried on its platform

Direct Sales

- Take place through presentations or demonstrations of the product or service in a one-on-one setting - Sells products through a network of salespeople Ex. Avon, Boardwalk

Customer Value Proposition

- The fundamental need that your company is trying to fulfil for its customers - is a description of the user's experience that he will come to realize upon buying and using of a product

Key Activities

- The most important tasks a company must carry out in order to fulfil its business purpose

Dropshipping

- The owner has no ownership of the product or hold any inventory but has an E-store - Has many different suppliers/wholesalers to sell their product on the website

Customer Segments

- The process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately

Hidden Revenue

- There are no fees paid by the user but the company still earns

Social Enterprise

- This model aims to put up a business more for creating a positive change but with profit. The profit through is intended to be used for humanitarian works to improve human living condtions.

Manufacturer

- Utilizes raw materials to create a product to sell - Assembly of prefabricated components to make a new product

Low Touch

- Wherein a customer does not require a lot of time from company staff

Blockchain

- Works on peer-to-peer interactions and document all on a digital decentralized ledger Ex. Crypto-currencies

Revenue Streams

- Your company's sources of cash flows

Brick-and-click

- has both an online store and a physical store

Channels

- is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer

5 Phases that a Channel May Pass Through

1. Awareness 2. Evaluation 3. Purchase 4. Deliver 5. After Sales

Types of Channels

1. Direct channel 2. Indirect channel

4 Factors in the Development of Customer Value Proposition

1. Functional value 2. Emotional value 3. Economic value 4. Symbolic value

Customer Profile

1. Gains 2. Pains 3. Customer Jobs

9 Main Building Blocks in the Business Model Canvas

1. Key Partners 2. Key Activities 3. Key Resources 4. Value Proposition 5. Customer Relationships 6. Channels 7. Customer Segments 8. Cost Structure 9. Revenue Streams

Traditional Business Models

1. Manufacturer 2. Distributor 3. Retailer 4. Franchise 5. Brick-and-mortar 6. Brick-and-clicks 7. Direct Sales 8. High Touch 9. Family Owned

Categories of Key Activities

1. Marketing 2. Sales 3. Design 4. Development 5. Operation 6. Distribution 7. Customer experience

Modern Business Models

1. Nickel-and-dime 2. Freemium 3. E-commerce 4. Subscription 5. Aggregator 6. Online Marketplace 7. Hidden Revenue 8. Data Licensing / Data Selling 9. Agency-based 10. Affiliate Marketing 11. Dropshipping 12. Network Marketing 13. Crowdsourcing 14. Blockchain 15. Low Touch 16. Razor blade 17. Consulting 18. Social Enterprise

Types of Customer Relationships

1. Personal assistance 2. Dedicated personal assistance 3. Self-service 4. Automated service 5. Communities 6. Co-creation

4 Categories of Resources

1. Physical 2. Intellectual 3. Human 4. Financial

Elements of the Lean Canvas Model

1. Problem - the motivator of the Business 2. Solution - the heart of the product 3. Unique Value Proposition - how a business is different from others 4. Unfair Advantage - irreplaceable value of your company 5. Customer Segments - the target market 6. Channels - Ways to customer 7. Revenue Streams - the money it brings to the company 8. Cost structure - fixed & variable costs 9. Key Metrics - the life-line of the business

4 Different Types of Partnership

1. Strategic Alliances 2. Coopetition 3. Joint Venture 4. Buyer-supplier relationship

Business Model

Defines the foundation of its company's core value proposition, targeting customers, key resources and assumed revenue streams.

Cost Structure

How a company spends money on operations. The key costs and level of cost-focus for your company

Business Model

Involves the product or service offering, the targeted customers, and the economic engine that will enable a business to meet its profitability and growth objectives

Business Model

Is supposed to answer who your customer is, what value you can create/add for the customer and how you can do that at reasonable costs

Razor and Blade

One item is sold at a one-time expense while another associated item is an ongoing expense

Pain Relievers

a description of exactly how the product or service alleviates customer pains

Ash Maurya

created the Lean Canvas

Alexander Osterwalder and Yves Pigneur

created the business model canvas in 2005

Joint Venture

here you may join your company with another to create an entirely different entity, which may be more profitable for the both of you than if you were to operate separately

Gain Creators

how the product or service creates customer gains and how it offers added value to the customer

Coopetition

strategic partnership between competitor. It means that companies who may be directly competing will still work together to generate awareness for their shared industry, in the attempt to gain new users for all those in the industry to compete for

Gains

the benefits which the customer expects and needs, what would delight customers and the things which may increase likelihood of adopting a value proposition

Customer Jobs

the functional, social and emotional tasks customers are trying to perform, problems they are trying to solve and needs they wish to satisfy

Pains

the negative experiences, emotions and risks that the customer experiences in the process of getting the job done

Strategic Alliances

this mean that you and a company that you have no direct competition with, industry wise, will partner together in ways that will benefit the both of you