This short presentation explains how to use the Small Business Canvas as a planning tool instead of a complex business plan. This will be available on YouTube in video form soon.

1. Problem
Solution
Value Proposition
Unique
Advantage
Customer
Segments
The Business Model Canvas …
The “Un-Business Plan”
Key Metrics
Channels
Presented By Art Helmstetter
Cost Structure
Revenue Streams
Developed by Steve Blank

2. Business Model Canvas
Problem
Solution
Value Proposition
Unique
Advantage
Customer
Segments
How is a business model different than a business plan?
1. It is an empirically based system that
2. Forms a hypothesis around a market/business
Key Metrics
Channels
3. Tests the hypothesis on “real” customers
4. Revises the concept and tests it again if needed
5. Simplifies the key business concept
6. Speeds market entry and response changes rapidly
7. Can test numerous hypotheses at once
Revenue Streams
Cost Structure

3. Build The Model Piece By Piece
Problem
Solution
Key Metrics
Cost Structure
Value
Proposition
Unique
Advantage
Customer
Segments
Channels
Revenue Streams

4. Define The Problem Solved
Problem
The SPECIFIC
customer
problem(S)
that you solve
•
•
•
•
•
A financial need
A need to live or exist
A required function more efficiently
An emotional desire
Need to simplify or speed something
Be as specific and detailed as you can to pinpoint the problem or
need met

5. Define Customer Segment(s)
Customer
Segments
Specific and
common
characteristics
of the
customer
• Business (B2B) or Consumer (B2C)
• Geographic location
• For business
–
–
–
–
Size of segment ?
Lifetime Sales Value?
Size of company, industry, culture etc.
Buying behavior quality/price
• For Consumer
– Age, gender, cultural or family orientation
– Size and number of purchases
– Preferences for service, quality, price, etc.
An any others which define the customer

6. Unique Value Proposition
Value
Proposition
Specific and
detailed
explanation of
how your offer
provides
unique value
to customers
•
•
•
•
Statement of the offering,
Its benefits,
Differentiation, and
Value provided to customers (net of benefits
value minus cost)
• Examples:
Newness, Performance, Customization
“Getting the Job Done”
Design, Brand/Status
Price, Cost Reduction
Risk Reduction
Accessibility
Convenience/Usability

7. State Solutions Provided
Solution
Provided
Specific and
detailed
explanation of
how you solve
the problem
or meet a need
•
•
•
•
•
•
Provide a financial benefit
Fill a need to exist or live
Perform a required function
Fill an emotional desire
Simplify or do something faster
Improve quality

8. Competitive Advantage
Competitive
Advantage
Detailed
explanation of
the uniqueness
of your offer,
market
position, or
relationships
• The KEY element that competitors cannot
match.
• Core function that provides differentiation
from competitors.
• Assets, intellectual property, employee skills
or relationships, proprietary systems
• Control of commodities or raw materials via
ownership, licenses or contracts
• Unique customer relationship or interaction

9. Channels to Customers
Channels
How can you
reach and
serve your
customers
most
efficiently?
Channel phases:
1. Awareness - How do we raise awareness about
our company’s products and services?
2. Evaluation - How do we help customers evaluate
our organization’s Value Proposition?
3. Purchase - How do we allow customers to
purchase specific products and services?
4. Delivery - How do we deliver a Value Proposition
to customers?
5. After sales - How do we provide post-purchase
customer support

10. Key Metrics
Key Metrics
How do we
measure the
effectiveness
or productivity
of our key
activities and
resources?
Key Activities
• Sales & Marketing
• Production
• Problem Solving
• Platform/Network
Key Resources
• Physical
• Intellectual (patents, copyrights, data)
• Human
• Financial

11. Cost Structure
Cost Structure
What are the
most
important
costs of key
resources and
key activities?
Is your business more:
• Cost Driven (leanest cost structure, low
price value proposition
• Value Driven ( focused on value creation,
premium value proposition)
Can you control key costs through :
• Economies of scale
• Economies of scope

12. Revenue Streams
Revenues
For what value
are customers
really willing to
pay?
For what do
they currently
pay?
Revenue Sources:
• Asset sale
• Usage fee
• Subscription Fees
• Lending/Renting/Licensing
• Brokerage fees
• Advertising/exposure
Revenue – Costs = Profitability

13. Problem
Solution
Problem
Unique Value
Proposition
Unfair Advantage
Solution
Unique Value
CustomerKey Metrics
Segment
Channels
Unfair Advantage
Cost Structure
Revenue Streams
Cost Structure
Revenue Streams
Customer Segments
(SPECIFIC)

14. Problem
Solution
Key Metrics
Cost Structure
Value
Proposition
Unique
Advantage
Customer
Segments
Channels
Revenue Streams

15. Thank you for your time
Contact Us Now To Find Out More
About The Business Model Process
Or call 937-985-0481