3 Business Model Canvas 1

BUSINESSMODELCANVAS
6 THINGS TO CONSIDER
NO BUSINESS PLANS SURVIVE THE FIRST
CUSTOMER CONTACT
Business plans are for the known future, it does not work in the start-up context
IT’S THE BUSINESS MODEL THAT REALLY

MATTERS
Figure out and validate how the business will earn
TAKE TIME TO THINK THROUGH ALTERNATIVE

POSSIBILITIES
The art of pivoting: the same technology, product or service can have numerous business
models.
6 THINGS TO CONSIDER
YOUR BUSINESS MODEL IDEA IS JUST A SET
OF HYPOTHESES
Adapting the business model until proven really works.
IT’S THE BUSINESS MODEL THAT REALLY MATTERS.

Business model describes the rationale of how an organization creates, delivers, and
captures value.
Don’t forget your customer-driven product

Business models won’t work without the right product.
BUSINESS MODEL
Description of all the
parts of the company
necessary to make money
 The Business model canvas is a strategic management
template for developing new or documenting existing
models. It is a visual chart with elements describing a
firm’s value proposition, infrastructure, customers,
and finances. It assists firms in aligning their activity
by illustrating potential trade-offs.
BUSINESS MODEL
CANVAS
6 4
8 2 1
7 3
9 5
• For whom are we creating value?
• Who are our most important customers?
Notes: If you’re spending a lot of time on this first item, that’s
OK (and it’s probably good).
Customer Segment Types
For whom are we creating value
 Mass Market
 Niche Market
 Segmented Market
 Diversified Market
 Multi-side Platforms
• What value do we deliver to the customers?
• Which one of our customer’s problems are we helping to solve?
• Which customer needs are we satisfying?
• What makes us unique compared to the competition?
Elements of the Value Proposition
What are you offering to them?
 Newness
 Performance
 Customization
 Brand/Status
 Design
 Price
Spotify: “Music for Everyone”
Product: Online streaming music.
Target market: Families and single people alike.
Primary benefit: Music on the go.
What makes it unique? Moms, dads, kids, singles…
there’s music to suit everyone’s tastes, all in one app.
Vimeo: “Make Life Worth Watching”

Product: Online video streaming.
Target market: People who want to upload and/or watch video.
Primary benefit: A simple platform for watching, uploading,
and sharing video.
What makes this value proposition unique? Focuses on
the intrinsic value and artistic nature of a well crafted video.
Pinterest: “The World’s Catalog of Ideas”
Product: Access to ideas and inspiration.
Target market: Creatives, DIYers, women planning
their wedding or looking for a masterpiece to cook tonight.
Primary benefit: Ability to find something beautiful to create.
What makes this value proposition unique? Emphasizes
the vast depth and size of the platform.
Periscope: “Explore the world through someone else’s eyes”

Product: Live streaming video content.
Target market: Millennials who want real-time visual content.
Primary benefit: The ability to experience moments
without borders.
What makes it unique? “Explore” is a powerful word that
shows how users have control over the experience.
• Through which Channels do our Customer Segments want to reached?
• How are we reaching them now?
• How are our Channels integrated?
• Which ones works best?
• Which ones are most cost-efficient?
• How are we integrating them with Customers routines?
4 things to consider in Channels
• Product
• Market
• Middlemen
• Company
Types of Channels
Through which channels the customer segment can be reached?
 Sales Force
 Web sales
 Own stores
 Partner stores
 Wholesaler
 Retailer
• What type of relationship does each of our Customer Segments
expect us to establish and maintain with them?
• Which ones have we established?
• How costly are they?
• How are they integrated with the rest of our business model?
Types of Customer Relationships
What type of relationship should be established and maintained with CS?
 Personal assistance
 Self-service
 Automated services
 Communities
 Co-creation
 Dedicated personal assistance

REVENUE STREAMS
• What are customers really willing to pay for?

• How? Are you generating transactional or recurring revenues?
Types of Revenue Streams
For what value the CS are really willing to pay?
 Asset sale
 Brokerage fee
 Subscription fees
 Renting/leasing/lending
 Licensing
 Advertising
• What Key Resources do our Value Propositions require? our Distribution channels? Customer
Relationship? Revenue Streams?
Types of Key Resources
What key resources do the value proposition require?
 Physical
 Intellectual
 Human
 Financial
 Natural
• What Key Activities do our Value Propositions require?
• Distribution channels? Customer Relationships? Revenue streams?
Types Activities
What key activities do the value proposition require?
 Production
 Problem solving
 Platform/networking
 Partnership
 Service
• Who are our key Partners? Who are our key Suppliers?
• Which Key Resources are we acquiring from partners?
• Which Key Activities do partners perform?
Types of Key Partners
Who are our key partners?
 Strategic alliance
 Joint ventures
 Cooperation
 Buyer-supplier
 Franchising
• What are the most important cost inherent in our business? Which Key
Resources are most expensive?
• Which Key Activities are most expensive?
Definitions
Costs that remain the same over a period of time
Fixed Costs
Ex. Monthly Salary, Annual / Monthly Rent, Cost of
Machines
Are costs which are heavily dependent on the volume of
Variable output a company produces
Costs
Ex. Raw Materials, Utility Costs
Costs decrease as production increases. The higher the
Economies volume, the lower the overall cost per unit.
of Scale
Ex. Bulk buying, Mass production, Mass Market
Costs are decreased by investing in businesses related to
the core product
Economies
of Scope
Ex. Angkas / Grab Car offering delivery service, Google
diversifying from search business
Types of Cost Structures
What are the most important costs inherent in the business model?
 Cost-driven
 Value-driven
 Fixed costs
 Variable costs
 Economies of scale
#iSTARTUPxDICTELYU
#MentorsBootcamp

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BUSINESSMODELCANVAS

IT’S THE BUSINESS MODEL THAT REALLY

TAKE TIME TO THINK THROUGH ALTERNATIVE

IT’S THE BUSINESS MODEL THAT REALLY MATTERS.

Don’t forget your customer-driven product

Vimeo: “Make Life Worth Watching”

Periscope: “Explore the world through someone else’s eyes”

 Dedicated personal assistance

• What are customers really willing to pay for?

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