Lesson 3: Business Model Canvas

What You’ll Learn: When it comes to transitioning an idea into a business, the Business Model Canvas is one of the fastest and best ways to think through your business before you spend a dime. It offers a time-saving shortcut to the traditional business plan process and will quickly give you insights into the viability of new your idea. 

Business Model Canvas (continued)

Value Propositions

We’ve mentioned value propositions throughout, but what are they? This is the heart of your business model. It’s your unique solution(s) – a product or service – that solves a problem your customer segment faces or that creates value for them.

It should be unique and different from that of your competitors.

Here are value propositions of some well-known businesses:

  •  “Expect More, Pay Less.”  –  Target
  •  “Save Money. Live Better.”  –  Walmart
  •   “Music for Everyone.”  –  Spotify
  •   “The World’s Catalog of Ideas.”  –  Pinterest

In just a couple of words, the entire purpose of the company, product or service is articulated. Value propositions can be quantitative (price and speed of a service) or qualitative (a superior experience or design).

Wrapping Up

Remember that your Business Model Canvas doesn’t need to be War and Peace. It is short and to the point for a reason. It is meant to be nimble and visual, so you can easily update it as you move forward with your business. It should give you an instant picture of your plan and its many moving parts at any point in the arc of your business. Use it as your roadmap for starting and running your business and as a springboard for doing a larger, more detailed business plan down the road if you are working with financial backers, bankers, venture capitalists or angels.

Share it with your partners and workers. It is an excellent tool for understanding a business, even a complex one. It will also help you map further ideation as you refine your model, determine the need for new products or services or find new customer streams.

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