1. Business
Models
The
Thought
Process
Behind
Building
Your
Business
Model
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2. In
the
first
2
lectures,
we
have
covered
the
basics
of
what
entrepreneurship
is
like
in
Pakistan
and
how
to
idea
proof
your
venture.
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3. While
building
on
the
right
idea
is
essential
to
the
success
of
your
venture,
getting
the
model
right
is
critical.
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4. Did
you
know
that
80%
of
businesses
are
started
without
a
business
plan?
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5. Without
a
business
plan,
you
don’t
have
a
guidebook
that
will
show
you
–
or
anyone
else
–
what
your
business
is
about
to
do
and
why
it’s
important.
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6. A
business
plan
is
essential,
but
how
do
you
write
a
business
plan
that
works?
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7. Business
Model
Canvas
Mapping
Your
Business
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8. At
emagine,
we
like
to
use
a
tool
called
the
Business
Model
Canvas.
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9. Develop
a
simple
1
page
document
that
could
be
used
by
entrepreneurs
to
develop
their
business
models
accurately
and
efficiently.
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11. The
Canvas
is
comprehensive.
It
highlights
all
the
key
areas
that
matter
to
successful
business
model
generation
and
eliminates
everything
else.
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12. We
are
going
to
dig
deep
into
this
canvas
so
that
you
can
effectively
use
it
to
develop
your
business
model
and
then
use
it
to
write
your
business
plan.
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13. The
Business
Model
&
It’s
Importance
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14. The
first
question
you
are
going
to
ask
is
–
What
is
a
business
model?
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15. Now,
there
are
multiple
definitions
of
what
makes
up
a
business
model
depending
on
who
you
talk
to,
their
level
of
education/
experience
and
what
they
do
for
a
living.
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16. But
essentially,
a
business
model:
Describes
the
rationale
of
how
an
organization
creates,
delivers,
and
captures
value.
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18. A
business
model
is
the
reason
that
you
do
what
you
do,
why
you
do
it,
and
how
you
expect
to
make
money
from
it.
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19. When
you
get
this
wrong,
your
entire
business
plan
is
weak
and
can
easily
be
turned
down
by
investors,
but
more
importantly
–
it
won’t
give
you
the
guidance
you
need
to
run
your
business.
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20. So
let’s
break
this
down…
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21. The
9
Building
Blocks
The
Logic
of
How
a
Company
Makes
Money
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22. To
build
an
effective
business
model,
we
believe
that
there
are
9
basic
building
blocks
that
must
be
addressed.
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23. These
9
building
blocks
cover
4
main
areas:
Customers
Offer
Infrastructure
Financial
Viability
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24. These
9
building
blocks
give
us
the
blueprint
for
our
strategy
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25. So
what
are
the
9
building
blocks?
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32. Defines
the
different
groups
of
people
or
organizations
a
venture
aims
to
reach
and
serve.
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33. Customers
are
the
heart
of
the
business
model
and
without
them,
no
business
can
survive.
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34. A
company
may
group
them
into
different
segments:
Common
Needs
Common
Behaviors
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35. You
can
also
have
multiple
Customer
Segments
within
1
business
model
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36. But
you
must
decide
on
who
your
customers
are
when
developing
the
business
model.
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37. Needs
require
and
justify
a
distinct
offer
Reached
through
different
distribution
channels
Require
different
types
of
relationships
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38. Substantially
different
profitabilities
Willing
to
pay
for
different
aspects
of
an
offer
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39. The
Different
Segments
of
Customers
Businesses
focused
on
mass
markets
don’t
distinguish
between
different
Mass
Customer
Segments
–
they
focus
on
one
large
group
with
broadly
similar
Market
needs
and
problems.
Businesses
targeting
niche
markets
cater
to
very
specific,
specialized
Niche
Customer
Segments.
Value
Propositions,
Distribution
Channels
and
Market
Customer
Relationships
are
all
tailored
to
the
specific
requirements
of
the
market
Some
businesses
distinguish
between
market
segments
with
slightly
different
needs
and
problems.
The
segments
have
similar
but
varying
Segmented
needs
and
problems
which
affect
Value
Proposition,
Distribution
Channels,
Customer
Relationships
and
Revenue
Streams.
Businesses
with
diversified
customers
serve
two
or
more
unrelated
Diversified
Customer
Segments
with
very
different
needs
and
problems.
Multi-‐sided
Businesses
that
serve
two
or
more
independent
Customer
Segments.
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40. Block
2
–
The
Value
Proposition
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41. Describes
the
bundle
of
products
and
services
that
create
value
for
a
specific
Customer
Segment
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42. It’s
the
reason
why
customers
turn
to
one
company
over
another
–
because
it
solves
the
problem
or
satisfies
the
need.
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43. The
Value
Proposition
is
an
aggregation,
or
bundle,
of
benefits
that
a
company
offers
customers.
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44. Some
can
be
innovative
representing
a
new
or
disruptive
offer.
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45. Others
can
be
similar
to
existing
market
offers,
with
added
features
and
attributes.
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46. What
value
do
we
deliver
to
the
customer?
Which
one
of
our
customer’s
problems
are
we
helping
to
solve?
Which
customer
needs
are
we
satisfying?
What
bundles
of
products/services
are
we
offering
each
Customer
Segment?
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47. Value
can
be
created
by
simply
helping
a
customer
get
certain
jobs
done.
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48. But
the
value
proposition
is
determined
through
specific
things:
Design
Brand/Status
Price
Cost
Reduction
Accessibility
Ease
of
Use
Convenience
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49. We
will
continue
this
lecture
in
2
weeks
when
we
move
back
to
our
3
hour
format.
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