business model canvas workshop at startup sauna
TRANSCRIPT
Business Model Canvas WorkshopStartup Sauna | Erik Pöntiskoski | October 12, 2015
The most misunderstood quote in management
Ask this guy…
Nothing is as practical as a good theory
Business Model Canvas
Business Model Canvas
http://businessmodelgeneration.com/http://youtu.be/QoAOzMTLP5s
Customer segments
• Not all customers are the same or equally important
• Varied willingness to pay and profitability
• Require different channels and relationships
• You need several BMC’s and then assess their feasibility
Value propositions
• In B2B, usually about increasing sales; reducing costs or risk
• In B2C, relates to consumer identity projects
• When communicating, customers may value many things, but only a few are important to them and unique to your offering
Channels
• Question of organizing sales
• In own operations, balancing cost and value-added (direct marketing to personal selling)
• Partnerships are challenging for startups
• Why would anyone spend time selling your solution?
Customer relationships
• Everyone wants to be a relationship partner to the customer, but what if you are in a low involvement business
• Relates to pricing through levels of service and availability
• Can include marketing communications and communities
Revenue streams• The actual way to charge customers
• transactions from asset sales, usage/subscription fees, leasing, licensing…
• Estimating market potential is not about global trends but what you can get done
• N:o of deals you close x avg. spending x lifetime
Key resources
• Original BMC book discusses physical, intellectual, human and financial elements
• Critics, such as the Lean Canvas emphasize your unfair advantage in terms i) uniqueness of your team and ii) superiority over the competition
Key activities
• What are the couple of things you focus on every day?
• Product milestones parallel with sales and marketing to validate customer interest
• Tools such as the sales funnel
Key partners
• Partners that help connect with customers, understand how products are used, increase efficiency or get more resources
• Instead of campaigns or gimmicks, think of continued partnerships that impact every day
Cost structure• Surprising large fixed costs + steeply increasing variable costs
• Consider key metrics and ways to improve them
• Cost of customer acquisition and servicing
• Conversion rate in sales funnel
• Avg. revenue per user
• Retention and lifetime
BMC applications
1. Visualize all issues and related actions for a business model
2. Ensure all founders, investors, partners and other stakeholders share that vision
3. Understand how changing one small thing impacts the whole
4. Develop alternate BMC’s, validate their feasibility on the market
Workshop
Round 1
• Mapping a Business Model Canvas
• 14:30 - 15:15 develop first version
• Special focus on what is the customer problem and how you aim to solve it
BMC exhitition 1
• 15:30 - 16:15 Teams split up
• Half of team always at own white board
• The rest tour other teams
• Make sure everyone pitches and tours
Round 2
• 16:15 - 16:45
• Develop second version of the BMC based on peer and coach feedback
BMC exhibition 2
• 17:00-18:00 Whole team is at own whiteboard at all time
• Coaches/startup activists will tour teams
• Don’t just pitch but aim to learn something about the guest
• Focus on their areas of interest and expertise when pitching/showing demo
