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)

Assignments

  1. Complete a Business Canvas for your idea by answering these questions:

Value Proposition

    • What are you building and for whom?
    • What pain are you solving?
    • What gain are you creating?
    • What will your customers pay for?
    • What’s in it for the customer?
    • Does it solve a need or a problem that your customer has?
    • Can you see the target market you wish to serve and why they would want this? 

Customer Segments

    • Who are they?
    • Where are they?
    • What will they do with your product or service?
    • Are you selling in a physical channel or in a virtual or web channel?
    • Who are your customers? And what is the journey you’d like them to experience with you?
    • How does your product or service resolve their needs?
    • Can you make a picture of them as an archetype?
    • What other websites or products do they buy?
    • What are their demographics, psychographics, and interests?

Channels

    • How does your product get to your customers?
    • Physical or virtual?
    • How do you find the channels that will provide the delivery, packaging and transportation to you?
    • Do you have back up channels in case of a disaster or supplier interruption?

Customer Relationships

    • How do I keep them?
    • How do I grow them?
    • What’s the journey they will have?

Revenue Streams

    • What is the value that your customers are paying for?
    • What streams of revenue do you plan to create?
    • How much revenue do you anticipate from each segment of your customer base?
    • What is your strategy for acquiring revenue?
    • Will you have online sales?
    • In-person transactions?
    • Will you be a subscription or licensing based business?

Key Resources

    • How will you finance the business?
    • What kind of machines do you need?
    • Are there any specific kinds of people you will need?
    • How about Patents or intellectual property?  These take time, so you may want to think about this upfront.
    • How about the resource of time?  Will you be dedicated to this creation once you begin, or will you ramp up slowly?
    • Where will you work? Office? Home? Garage? Co-working space? Incubator?

Key Stakeholders

    • Who are the key people working with you and your business?
    • Do you need any partnerships to start the business?
    • Are there friends and family you want to work with, or those you definitely do not?
    • Are there any alliances or groups of customers you want to tap into?
    • Who has a strong interest in this business and who will want to help you sustain it?

Key Activities

    • What fundamentally are you doing to make the business work?
    • What are you expert at?
    • What do you need to learn? What expertise do you need to master to make your company the best at what it does?

Cost structure

    • What are the BIG costs for your business?
    • What will be your fixed and variable costs?
    • What will be your loss leaders
    • How do you take in money? Venmo? Credit card?
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