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The Business Model Canvas - Brampton Entrepreneur Centre

  1. Business Model Canvas Workshop Starter Company Brampton Entrepreneur Centre January 2016
  2. The Business Model Canvas is a strategic agile tool for entrepreneurs to define their business model
  3. Business model determines future success of a company
  4. Examples
  5. Google the tech giant company was in the business of selling search engines and was NOT successful
  6. They changed the business model and became the giant company with billions in ca$h
  7. PayPal wanted to help people use their PDAs to Pay Not a big success!
  8. They discovered a better business model to solve a much larger problem An easy way to transfer money online
  9. Ferruccio Lamborghini wanted to sell his clutches to Ferrari Ferrari clutches were constantly breaking Ferrari did NOT want to buy
  10. He changed his business model Lamborghini made super cars with durable clutches
  11. What is Business Model Anyways?
  12. Business model describes the value an organization offers its customers and illustrates the capabilities and resources required to create, market and deliver value to generate profitable, sustainable revenue streams
  13. Business Model is Whaaat?!
  14. Basically, “What is required to deliver your value proposition”?
  15. How Do You Explain Your Business Model? With Business Plan or Business Model Canvas
  16. Writing Business Plan is… Not Easy Time Consuming Based on Assumptions and…
  17. “No business plan survives the first contact with customers” Steve Blank
  18. So Business Plan is not the best use of time for startups…
  19. “A start-up is a temporary organization, designed to search for a sustainable business model.” Steve Blank
  20. So still Business Plan is not the best use of time for startups…
  21. Let’s figure out how to use The Business Model Canvas
  22. What Is Value Proposition?
  23. • A value proposition is a statement of the benefits delivered by your brand/offering that provide value to the target customer • It describes the unique value of your product or brand and offers a compelling reason for customers to buy
  24. Why your product is different from everything else on the market
  25. Can you find the value proposition?
  26. Can you find the value proposition?
  27. Keep in mind that Value Prop is not your tag line
  28. Examples: Good: “Winners is a department store that offers fashion conscious consumers the latest brand names for up to 60 per cent off.” Bad: “Winners is an off-price department store owned by TJX that employs international sourcing and buying power.” What is it? For whom? Values?
  29. Examples: “Google is the world’s largest search engine that allows internet users to find relevant information quickly and easily.” What is it? For whom? Values? Are Internet Users really Google’s customers? “Google is the world’s largest search engine that automatically provides advertisers with potential customers tailored to the ad content, increasing click- through rates and conversion rates.”
  30. Write your value proposition: For _________________ (insert target customer) Who _________________ (insert their need/problem) We have developed _____________ (insert what it is) That helps __________ _______ (list values) Activity
  31. Customer Segments Mass Market Niche Market Segmented Diversified Multi-Sided
  32. Channels Direct: Sales force, Website, Telephone Indirect: Retailers, Brokers, Distributors
  33. Customer Relationship Personal Assistance Dedicated Self-service Automated services Communities Co-creation
  34. Revenue Streams Transaction vs Recurring Asset Sale Usage Fee Subscription Fee Lending/Leasing/Renting Licensing (IP) Brokerage fee
  35. Key Partners Strategic Alliances Co-opetition Joint-Ventures Buyer-Supplier
  36. Key Resources: Physical Intellectual Human Finance
  37. Key Activities: R&D Production Marketing Sales Customer Service
  38. Cost Structure Cost-driven Value-driven
  39. Nespresso system Manufacturer Sales force Offices
  40. Coffee Distribution channel Production facilities Machine manufacturer B2C distribution Marketing Brand Patents production B2C distribution Marketing Nespresso club retail households Business Mail order Website Call centre Stores 1xMachine Sales Pods Production
  41. Stay in touch! @ehsandng