Building a business model

1.  To introduce you to the business model canvas 2.  Understand its key components 3.  Why it’s useful for start-ups 4.  and get you to learn by doing

Today’s session

I know what you’re thinking… who is this

guy?

(and why should I listen to him)

Enterprise Educator

Marketer

business plans vs startups

The purpose of planning is to move you from thinking to

doing…

1. Thinking 2. Searching 3. Doing

As quickly as possible!

A startup is NOT a small version of a big company

waiting to grow up!

Steve blank

A startup is very often a business idea in search of a

business model

Established companies Execute plans against an established

business model

Startups Need to search for a scalable &

profitable business model

BUT that doesn’t mean that planning doesn’t have an

important role

You just need to find a healthy balance

Vs

Alexander osterwalder

A business model how an organisation creates, delivers

and captures value

any business model can be broken into 9 key components

Key idea

2. 1.

3.

4.

5.

6.

7.

8.

9.

LEFT CANVAS efficiency

RIGHT CANVAS value

LEFT BRAIN Logic

RIGHT BRAIN Emotion

1. Thinking 2. Searching 3. Doing

1. Thinking 2. Searching 3. Doing

1. Thinking 2. Searching 3. Doing

9 key sections

For example:

•  Mass market •  Niche market •  Segmented •  Diversified •  Multi-sided

1. Customer Segments

Can be:

•  Quantitative (e.g. price, speed of service etc.)

•  Qualitative (e.g. design, customer service etc.)

2. Value propositions

�In a world where everyone is after your business you must supply your customers with a compelling reason to buy you instead of your competitor.�

Jack Trout

For example:

•  Direct -  Own store -  Website •  Indirect -  Partner stores -  Wholesalers

3. channels

For example:

•  Personal •  Dedicated •  Self-service •  Communities •  Co-creation

4. Customer relationships

For example:

•  Asset sale •  Usage fee •  Subscription •  Leasing •  Licensing •  Advertising

5. Revenue streams

For example:

•  Physical •  Intellectual •  Human •  Financial

6. Key resources

For example:

•  Production •  Problem solving •  Platform/Network

7. Key activities

For example:

•  Strategic alliance •  Coopetition •  Joint venture •  Buyer-supplier

relationships

8. Key partners

For example:

•  Cost driven •  Value driven

•  Fixed costs •  Variable costs •  Economies of scale •  Economies of scope

9. Cost structure

Visual Thinking

Key benefits

1. Fast and easy to complete

2. Encourages iteration and prototyping

3. Utilises visual thinking

4. Easy to share

5. Enables everyone to see ‘the big picture’

6. Provides structure but light touch

YOUR TURN!

exercise

10-minutes – working individually or in teams

Option A – create a business model canvas for your own business idea or start-up

Option B – reverse engineer a business model canvas for one of the companies on the next slide

2. 1.

3.

4.

5.

6.

7.

8.

9.

Find out more

Buy the book Download the app Visit the website www.businessmodelgeneration.com

And Finally…

NEEDS YOU!

Join us!!!