• How are companies organized?  Companies are organized by making use of Business Models.
  • What is a Business Model?

            It is how a business creates value for itself while delivering products or services for customers.

Building blocks of a Business Model.

  • A Business Model Canvas
  • Key partnership
  • Key activities
  • Value proposition
  • Key resources
  • Customer relationship
  • Channels
  • Customers segments
  • Revenue streams
  • Cost structure

Value Proposition

  • What product or service are you building?

  • For who are you building?

  • The benefits of your products or service?

NB: Customers are trying to solve a problem or fulfill a need.

 

Customers

  • What are they?

  • What do they need?

  • Why would they buy?

NB: Develop a customer persona.

       Your Customers do not exist to buy, you exist for them.

 

Channels

How do your customers product or service get to them?

  • Physical
  • Online/mobile  

 

Customer Relationship

This could involve the following

How do I GET customers?

How do I KEEP customers?

How do I GROW customers?

NB: You can have hypothesis on Day1, but you can only figure it out when you are on the field

 

Revenue Streams

This talks about;

  • How you make money
  • The value your customers receive
  • Your strategy for capturing value

 

Key Resources. 

This talks about;

  • Finances (Initial capital, Loan, Line of credit)
  • Physical (Machines, Shops, Vehicles)
  • Intellectual (Patent, intellectual property)
  • Human resources (Scientists, software engineers).

  Key Partnerships

  • Strategic alliances
  • Joint ventures
  • Suppliers
  • Buyers
  • Key Activities
  • This talks about;
  • What you need to do to make business work
  • Becoming an expert in a specific area
  • Costs
  • This talks about
  • Fixed costs
  • Variable costs
  • Economics of scale