Business Model Canvas
Workshop
Starter Company
Brampton Entrepreneur Centre
January 2016

The Business Model Canvas is a
strategic agile tool for entrepreneurs
to define their business model

Business model determines future
success of a company

Examples

Google the tech giant company was in the business
of selling search engines and was NOT successful

They changed the business model and became the
giant company with billions in ca$h

PayPal wanted to help people use their PDAs to Pay
Not a big success!

They discovered a better business model to solve
a much larger problem
An easy way to transfer money online

Ferruccio Lamborghini wanted to sell his clutches to Ferrari
Ferrari clutches were constantly breaking
Ferrari did NOT want to buy

He changed his business model
Lamborghini made super cars with durable clutches

What is Business Model Anyways?

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

Business Model is Whaaat?!

Basically, “What is required to deliver your value proposition”?
http://blog.entrepreneurship.uchicago.edu/post/63694062719/entrepreneurship-essentials-business-model-canvas

How Do You Explain Your
Business Model?
With
Business Plan or Business Model Canvas

Writing Business Plan is…
Not Easy
Time Consuming
Based on Assumptions
and…

“No business plan survives the
first contact with customers”
Steve Blank

So Business Plan is not the best
use of time for startups…

“A start-up is a temporary organization,
designed to search for a sustainable
business model.”
Steve Blank

So still Business Plan is not the
best use of time for startups…

Let’s figure out how to use
The Business Model Canvas

What Is Value Proposition?

• 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

Why your product is different from
everything else on the market

Can you find the value proposition?

Can you find the value proposition?

Keep in mind that
Value Prop is not your tag line

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?

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.”

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

Customer Segments
Mass Market
Niche Market
Segmented
Diversified
Multi-Sided

Channels
Direct:
Sales force, Website, Telephone
Indirect:
Retailers, Brokers, Distributors

Customer Relationship
Personal Assistance
Dedicated
Self-service
Automated services
Communities
Co-creation

Revenue Streams
Transaction vs Recurring
Asset Sale
Usage Fee
Subscription Fee
Lending/Leasing/Renting
Licensing (IP)
Brokerage fee

Key Partners
Strategic Alliances
Co-opetition
Joint-Ventures
Buyer-Supplier

Key Resources:
Physical
Intellectual
Human
Finance

Key Activities:
R&D
Production
Marketing
Sales
Customer Service

Cost Structure
Cost-driven
Value-driven

Nespresso
system
Manufacturer
Sales force
Offices

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

Stay in touch!
edaneshg@gmail.com
@ehsandng