The Business Model Canvas

Business Model Canvas Goals:

"Business Model Thinking" Applicable to Anything from Product Development to Startup Ventures. A Language for Communicating About Opportunities in a Business & Products.

Business Model

A Business Model Describes the Rationale of How an Organization Creates, Delivers, & Captures Value

Customer Segments

All People of Organizations in Which We're Creating Value. Paying Customers. "Your Customers do Not Exist to Buy. You exist for them."

The Business Model

Beneficial Ways to Plan Starting a Business.

Value Propositions

Bundles, Products, Services, that Create Value for Customers. (Solving a Need or Problem) (It's Not about Satisfying a Customer's Need or About Your Idea or Product!) Geographic. Social. Demographic.

Business Model Canvas

Customer Segments. Value Propositions. Channels. Customer Relationships. Revenue Streams. Key Resources. Key Activities. Key Partnership. Cost Structure.

Key Resources

Describe the Infrastructure to Create Deliver & Capture Value. Shows which Assets are Indispensable in your Business Model.

What are the Most Important Assets Required to Make the Business Model Work?(Key Resources)

Finance: Raising $ & Line of Credit. Physical: Manufacturing, Machines, Vehicles. Intellectual: Pateats(Customer Lists) & People. Human: Software Eng

Cost Structure: What are those Costs to Operate the Business Model?

Fixed & Variable Costs. Economies of Scale? What are the Most Important Costs? What are the Most Expensive Resources? % of Budget. What Key Activities are the Most Expensive?

Revenue Streams

How & Thru Which Price Mechanisms Your Business is Capturing Value.

Cost Structure

Infant Structure.

Who are the Key Partners & Suppliers Needed to Make the Business Model Work?

Joint Ventures

Customer Relationships

Outline the Type of Relation You Establish w Customers. Can Be Reached by Web/Mobile. (Get, Grow, & Keep)

Focusing on What you do Best

Outsource/Contract the Rest

Understanding the Startup Process with Business Models

Position a New Idea, Product, or a Company for Launch & Growth.

Key Activities: What are the Most Important Things the Company Must Do to Make the Business Model Work?

Production. Problem Solving: Consulting & Ensineering. Supply Chain Management

Customer Relationships

Purpose of CRM (Customer Relationships Management) 1. Acquire New Customers. 2. Retain Existing Customers. Upsell to Existing Customers.

Value Proposition Development

Question Your Assumptions (Every one of Them). GOOTB Get out of the Building (Literally). Iterate Through Learning (Try & Tryin Again)

How Do You Make Money?

Revenue Streams

Grow

Sell More to Your Customer Base. It is Much Cheaper to Sell More to Existing Customers than Find new Customers!

Key Activities

Show Which Things You Really Need to Be Able to Perform Well.

Key Partners

Show Who Can Help You Leverage Your Business Model. Can't Really Do it By Yourself.

What Key Resources are we Acquiring from Key Partners? What Key Activities do They Perform?

Strategic Alliances between Non-Competitors

Maintain Current Customers

They're the best sources, new Ideas, referrals, & revenue.

Channels

Touch Points Interacted with Customers & Delivering Value Propositions.

The Business Model Canvas

Visual Representation of the Components of a Complete Business Model.

Revenue Model

What Value is The Customer Paying for? How Does the Company Make Money from Each Customer Segment? (Direct Sales: Strategy) Pricing = Tactics