Bussiness Week 5 (Bussines model canvas)

Bussiness model canvas:

1.Key partners - who are the suppliers, website hosts, 

2.Key activities- The most important things you need to be able to perform to make the bussines work 

3.Key resources -  ”The most important resources required to make the business work”: 

• Financial, Human, Machinery, Warehousing, Distribution 

• Intellectual Property, Patents, Brands 

• Traffic or large Customer Base 

• Trust 

• Is this business feasible from your analysis?

4.Customer relationships - What is the bond with the customer. Do you have weekly teams meetings showing work  / automatic bots / Customer lifecycle / 

5.Value Proposition - “The perceived benefit of products and services to your target segment” 

• Directly relates to your segment – how are your creating value? 

• Helps your customer address a fundamental problem or need (get a ‘job’ done) kill pains and create gains • Isn’t the technology or product per se. 

• You may have several VP’s depending on how many segments you’re covering

6. Customer channels - How to connect with customers:

• Customer touch point or interface 

• Means via which you communicate with your customers 

• Means via which you deliver your value proposition 

• Direct channel – own store, website, app, sales team 

• In-direct channel – drop shipping, Amazon FBA, 3rd party stores / website

7. Customer segments - the groups of people or organisations you are providing service for / demographics, phycographcs, fuctional, social and emotional jobs / segment vis what jobs people are doing

8. Cost structure - What are the costs 

• All costs incurred from operating the business 

• Outcome of your choice making re: resources, activities and partnerships 

• Costs should always be smaller than revenues 

• Fixed vs Variable / fixed is rent on a building or subscription / variable is stamps 

• Is this a viable business?

9. Revenue streams - how to make money 

-Need 5 or 6 ways to make revenue from these ideas 

• Revenues should always be greater than costs! 

• Types of Revenue Stream: Freemium, Lease, Subscription, Transactional, Usage Fees 

• Think about the right pricing mechanism – this can be a source of market advantage – innovate with them!

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Thursday:

Value Propositions:

A value proporsition is a service or feature that is intended to make a company product more attractive to customers.

Traditional Format Statement:

• “For {customer segment} who are dissatisfied with {the current alternative} our product is a {new product} that provides {problem solving capability} unlike {product alternative}”

• Helps you know how your product is different from competition 
• Helps you stay focussed 

What is value:

• Fuctional: Does a thing, 'Phone, car and laptop'. Saves time, money, reduces friction and organises 
• Emotional: Happy, Nostalgic, Aesthitic, therapeutic 
• Life changing: Self-actualisation, affiliation, providing hope, belonging, 'Maybe the Yorkshire videography one'
• Social value: Social media, ok no this one is the Yorkshire videography, relationships TikTok

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