There is a bit of controversy these days regarding whether or not an entrepreneur needs to write a complete business plan. If you are applying for funding as a non-profit, many still require this. Others see the business plan as a waste of time because people often pivot their ideas frequently as they test them out rendering the business plan useless. We live in a business environment that requires you to know how to write a great business plan, but still be flexible as you use processes like LEAN to start your business. A business model canvas is a great middle-ground that enables a beginning entrepreneur to work through some questions that go into a business plan. Some of the business model canvas you may not have considered before. Complete the business model canvas and turn it in here. Then use this to complete your final project. The subject headings are a great way to organize the project, at least partially.
Business Model Canvas – right side of canvas segments – which value being created, for whom, how it is being delivered and capturing value for yourself as organization.
Customer
Who are your customers? Which customers are we serving in our business?A set of products and services that will help the customer get the job done (for each customer segment).
What jobs do the customer(s) want to get done? What problem(s) do you want to solve?
What are frustrations and negatives that you might experience to get the job done (PAINS)?
What are the reasons you want to achieve a goal (GAINS)?
Leads to what you will do to relieve your Pains and Gains – results in product services.
What Value are we offering, creating, capturing and delivering?
The Value proposition is the reason your customer will use the product(s) or service(s).
What are the offer, the product(s), services(s), and features?
A set of products and services that will help the customer get the job done – what are the painkillers? What are the gain creators?
Test our assumptions. You may find out some are wrong, so adjust (PIVOT) proposition.
Validate your assumptions to practice the application of the model.
Channels
How does each customers segment want to be reached, through which channels?
How do they want to communicate and or receive the goods or service?
How do you communicate with your customer(s) to deliver value proposition?
Customer relationship
How do we establish relationship with customer? What is the customer(s) perception of who delivers message?
How do we get, keep and grow customers (Steve Blank)? Need to acquire customers first!
Revenue stream
What are people willing to pay for? And what is the medium for delivery (one-time, subscriptions, book)? Pricing mechanism?
Business Model Canvas – left side canvas segments (how are we going to do it, what do we need to create value?)
Key resources
Which resources are really need to create value?
How are we going to do it?
Key activities
What do we need to be good at? What activities? (Marketing and Sales, R&D, managing servers – what activities are crucial in our Business Model)?
Key partnerships
Who are key partners that can leverage our Business Model (in addition to suppliers)?
Cost structure
What are our core costs?
