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
