During the Start & Found you will use different tools to develop your idea into a actual minimum viable product. One of the most common tools is the Business Model Canvas. We will handout print copies of the Business Model Canvas during the weekend, which are kindly provided by our partner stattys.
In the following lines we will explain how to use the tool. A business model describes how a startup creates, delivers and captures value. The Business Model Canvas helps you to describe and think through the business model of your startup idea. It consist of nine different blocks.
1) Customer Segments are the different target groups you would like to reach and serve. So the questions you have to ask yourself are:
• For whom are we creating value?
• Who are our customers?
• Which customer segments are we serving?
• Who are our most important customers?
2) The Value Propositions are the reasons, why a customer decides to buy your product or service. Questions to think through the value proposition are:
• What value do we deliver to our customer?
• Which one of our customer´s problems are we helping to solve?
• Which customer needs are we satisfying?
• Which products or services do we offer to our customer?
3) Channels are the ways your startup communicates with your customers and how you reach your different customer segments. Questions to clarify your Channels are:
• Through which Channels do our Customer Segements want to be reached?
• Which Channel is the most cost-efficient one?
• How are we integrating with our customer´s routine?
• Which Channel needs the most resources?
4) Customer Relationships describe the relationshops your startup establishes with your customer segements. Questions to decide how your would like to build a relationship with your customer are:
• What type of relationship does each of our Customer Segments expect from us to establish?
• What will it cost to establish it?
• How are they integrated with the rest of our business model?
5) Revenue Streams describe the cash your startup generates from each of your Customer Segements. Questions to know youre revenue streams are:
• For what value are our customers really willing to pay?
• For what do they currently pay?
• How are they currently paying?
• How would they prefer to pay?
• How much does each Revenue Stream contribute to overall revenues?
6) Key Resources are your most important assets to make your startups business model actually work. You could think through the following question:
• What Key Resources do our Value Propostions, Distribution Channels, Customer Relationships and Revenue Streams require?
7) Key Activities are the most important things you have to do in order to make your business model work. You could consider the following question:
• What Key Activities do our Value Propostions, Distribution Channels, Customer Relationships and Revenue Streams require?
8) Key Partnerships describe the suppliers and partners your business model will need. Consider the following questions to guide you through your Key Partnerships:
• Who are our Key Partners?
• Who are our key suppliers?
• Which Key Resources are we getting from our partners?
• Which Key Activities do our partners perform?
9) Last but not least the Cost Structure consists of all your costs to operate your startup. Questions you could ask yourself are:
• What are the most important costs to make our business model work?
• Which Key Resources are the most expensive ones?
• Which Key Activities are the most expensive ones?
The Business Model Canvas will help you to focus on the important things to form a functional business model for your next venture. Especially during the 54 hours during the Start & Found it will come in handy to support you. If you would like to read more about the Business Model Canvas we would recommend the book Business Model Generation by Alexander Osterwalder & Yves Pigneur.