Basically a Business Model is a tool you use to decide how your organization will work, which customer you want, what about the costs? and so on.
In my opinion, the first step to make a business Model is to create your napkin sketch, which is a simple paper of how your organization will be like in order to keep in your mind your basic stones.
Then, move to your Business Model Canvas there is a pdf and lets start analyzing what each group of the nine groups is all about in few sentences. Our most important group is
1-The Value Proposition ( all groups are important, but this one i see as the most important one ).
In the VP, you need to decide what you will get out of making your product or service!!, is it really worth it to put your money into this industry?
Also, what is your value? why is it special than the other products in the market? Why the customer will leave all of the other products and try yours?
2- Customer Segments : Start analyzing who needs your product, depending on their age, how much they make per year, etc.. Start to think which market are you invading, is it a mixed market like amazon or a specialist market like luxury market? or what?
3- Channels : How will you reach the client? and among all the possible ways, which one is the best so far?
4- Customer Relationships : this group is supposed to help you decide how far you want things to go on with your client, do you want the client only to try and buy your value, or do you want to build a long living trusted relationship with the client and also how to develop the relationship.
5-Revenue Streams : this one is essentially all about how you will get your money! is your value depends on subscription fees or renting or licensing? The profit you will make will come from subtract the income from the costs for example if your income from the project 100 and the costs are 30 then the profit equals = 100-30 is 70!.
6- Key Resources : which are your big stones! how will you make it work, what are your assets, your human resources, your financial resources etc..
7-Key Activity: what are the activities that will make your project go on to the market, from production to advertising and so on.
8- Key Partners : I think you've might discovered it already, who are your partners and suppliers? why they will choose you, do you take unnecessary risks? is your economy scale optimized ?
9-Cost structure : this one requires you to add all your costs, the fixed one, the variable ones, direct and indirect and so on.
Business Model Canvas is a good way to start taking your idea into the real world. here is an example of it.
Comments
Displaying 0 of 0 comments ( View all | Add Comment )