The Business Model Canvas Leveraging the canvas in your classroom as a tool for rethinking and refining small business models

Transcription

1 The Business Model Canvas Leveraging the canvas in your classroom as a tool for rethinking and refining small business models

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3 what is the business model canvas?

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6 why do people use the business model canvas?

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10 The Modified BMC We also want to share a modified business canvas (based upon the Happy Canvas ).

11 We like this version a lot too. Pick whichever canvas works best for you and your students (might vary by group).

12 The Modified BMC

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15 Value Proposition What value are you delivering to your customer? What problem are you helping to solve? Which customer needs are you satisfying? What bundle of products and services are you offering to each segment?

16 Provides shoes to children in need Alpargata style of shoes previously not sold in North America New closed-toe alternative to sneakers High quality and fashionable

17 CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?

18 Customer Segments For whom are you creating value? Who are your most important customers? What are the customer archetypes?

19 Provides shoes to children in need Alpargata style of shoes previously not sold in North America New closed-toe alternative to sneakers High quality and fashionable National retailer shoe buyers Socially conscious, fashionable year olds Socially conscious, parents of 4-12 year olds

20 CHANNELS how does each customer segment want to be reached? through which interaction points?

21 Channels How do you get to the customer? Where is the customer? Where do they live? Where do they shop? What do they read? Which channels work best? Which are the most costefficient? Find the path to the customer and your life gets a lot easier! Be specific about how you will reach them.

22 Channels If you were interested in a product like this, how would you find out about it? How do you find out about other new products like this? Do you ask others for their opinions before buying? If so, whom? Do you or your staff go to trade shows? What industry-specific magazines or journals do you read? What business publications? What general-interest publications, newspapers, bloggers or websites would best connect with the consumer?

23 Provides shoes to children in need Alpargata style of shoes previously not sold in North America New closed-toe alternative to sneakers High quality and fashionable Retail stores Word of mouth, social media, events and affiliates National retailer shoe buyers Socially conscious, fashionable year olds Socially conscious, parents of 4-12 year olds

24 CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?

25 Customer Relationships How do you get, keep and grow customers? Which customer relationships have you established? How costly are they? How are the customer relationships integrated with the rest of the business model?

26 Provides shoes to children in need Alpargata style of shoes previously not sold in North America New closed-toe alternative to sneakers High quality and fashionable Impersonal; automated Online communities Retail stores Word of mouth, social media, events and affiliates National retailer shoe buyers Socially conscious, fashionable year olds Socially conscious, parents of 4-12 year olds

27 REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?

28 Revenue Streams For what value are your customers really willing to pay? For what do they currently pay? What is the revenue model? What are your pricing tactics?

29 KEY REVENUE MODEL QUESTIONS What are my customers paying for? What capacity do my customers have to pay? How will you package your product? Not physical packaging, added features. How will you price the offerings? How many will you sell? What s the market size and estimate of market share? How many can your distribution sell?

30 Provides shoes to children in need Alpargata style of shoes previously not sold in North America New closed-toe alternative to sneakers High quality and fashionable Impersonal; automated Online communities Retail stores Word of mouth, social media, events and affiliates National retailer shoe buyers Socially conscious, fashionable year olds Socially conscious, parents of 4-12 year olds Sale of shoes and apparel

31 KEY RESOURCES which resources underpin your business model? which assets are essential?

32 Key Resources What key resources does your value proposition require? Distribution channels? Revenue streams?

33 Provides shoes to children in need Impersonal; automated National retailer shoe buyers Alpargata style of shoes previously not sold in North America Online communities Socially conscious, fashionable year olds Brand Designers Supply chain Retail network New closed-toe alternative to sneakers High quality and fashionable Retail stores Word of mouth, social media, events and affiliates Socially conscious, parents of 4-12 year olds Sale of shoes and apparel

34 KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 34

35 Key Activities What key activities does your value proposition require? Distribution channels? Revenue streams? Customer relationships?

36 Design Material R&D Provides shoes to children in need Impersonal; automated National retailer shoe buyers Branding Marketing Alpargata style of shoes previously not sold in North America Online communities Socially conscious, fashionable year olds Brand Designers Supply chain Retail network New closed-toe alternative to sneakers High quality and fashionable Retail stores Word of mouth, social media, events and affiliates Socially conscious, parents of 4-12 year olds Sale of shoes and apparel

37 KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?

38 Key Partners Who are your key partners? Who are your key suppliers? Which key resources are you acquiring from which partner? Which key activities do partners perform?

39 Design Material suppliers Production factories Retail stores Material R&D Branding Marketing Provides shoes to children in need Alpargata style of shoes previously not sold in North America Impersonal; automated Online communities National retailer shoe buyers Socially conscious, fashionable year olds MarComm Designers Supply chain Retail network New closed-toe alternative to sneakers High quality and fashionable Retail stores Word of mouth, social media, events and affiliates Socially conscious, parents of 4-12 year olds Sale of shoes and apparel

40 COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?

41 Cost Structure What are the most important costs inherent to your business model? Which key resources are the most expensive? Which key activities are the most expensive?

42 Design Material suppliers Production factories Retail stores Material R&D Branding Marketing Provides shoes to children in need Alpargata style of shoes previously not sold in North America Impersonal; automated Online communities National retailer shoe buyers Socially conscious, fashionable year olds MarComm Designers Supply chain Retail network New closed-toe alternative to sneakers High quality and fashionable Retail stores Word of mouth, social media, events and affiliates Socially conscious, parents of 4-12 year olds Sale and distribution costs Production costs Giveaway costs Sale of shoes and apparel

43 Now, it s your turn to try your own. Using the information you gathered from your interviews yesterday, create a business model canvas for your small business partner.

44 The Modified BMC

45 Our Top Picks

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48 Thank You

49 putting it all together

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51 Customer Archetypes

52 Customer Archetypes Helps visualize who will buy or use the product & crystalize product strategy, customer acquisition, etc. Identify many hypotheses about the buyer s demographic and psychographic profile Is the buyer affluent, fashion-conscious, healthy and active? Married with pets and toddlers or teens? In a house, an apartment, or a trailer park?

53 Why Archetypes Matter Archetype Highlights Two working professionals Buy fresh gourmet produce Drive luxury cars Frequent business travelers Cooks only on weekends Customer Acquisition Guidance Don t advertise/promote during the workday, inefficient Reach bloggers, co-promote with gourmet food sites Consider co-promotion offers from high-end auto sites Send press releases to travel websites, bloggers Don t run AdWords during the week to save dollars, send blasts, Tweets, texts Thurs/Fri

54 How much time do your customers spend online in a typical 24-hour day? UNDERSTANDING A DAY IN THE LIFE Your success depends on becoming a regular part of the customer s day: Is it at their desk, on a laptop, or on a handheld while driving? Will they sleep less? Will they spend less time on Facebook or ebay? Will they spend less time goofing off at work to spend time at the new site? What s the source of the newfound time they ll spend on your new site or using your new app?

55 HOW TO USE A DAY IN THE LIFE Day in the Life Highlights Customer Acquisition Guidance Under 15 min/day on social networks Facebook, social media a low marketing priority 3 texts daily, mostly with spouse Forget twitter for this audience Read cooking magazines, sites Big PR push in this arena: recipes, press releases Watch celebrity chefs 2-3x/week House a day reading news sites Try to get founders as guests on show; co-promote Reach food/lifestyle editors at news publications 20 min/day online not for work Tests before spending on blasts, online ads 45 min/day listening to NPR Consider weekend sponsorship, press releases, call

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61 What do customers want to be, do, or have? Speak to emotions Usually conscious (but aspirational) thoughts Can seem like daydreams but are powerful motivators

62 Rational things that need to get done Speak to rational motivations Latent needs Not always conscious Example: No one knew they needed an ipod until they saw the ipod

63 Strong driver of purchasing behavior Hidden source of wants and needs Every purchase comes with a secret pain of switching People may be afraid even if your product is better than the competition

64 Not necessarily obvious competitors Could be existing behaviors Customers have made it this far in their lives without your product, you have to be better than their existing solution

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66 How does your product work? Factual descriptions of how a product works Includes functioning attributes of the product Provide the reasons to believe

67 What does your product do? The ways features make your customer s life easier by increasing pleasure or decreasing pain Core of value proposition Imagine all the ways your product will make customer s lives better

68 What does it feel like to use your product? Sum total of combined features and benefits Emotional reasons why people buy your product Helps identify market positioning and brand essence