Introduction to the Business Model Canvas

The Business Model Canvas
Your Roadmap To Success
Coach Davender Gupta @coachdavender
Startup-Académie
www.startupacademie.com
www.coachdavender.com
514-448-1894 / 418-948-1553
coach@davender.com

What is a Business Model?
© 2014 Davender Gupta - www.startupacademie.com
All Rights Reserved 2
How you
create,
deliver,
and harvest
value

What is a Business Model Canvas?
A visual representation of the various elements of your
Business Model.
Allows you to:
§  see the relationships among the parts of your
model;
§  identify hypothesis, assumptions and risks;
§  plan validation testing (market, channels, pricing);
§  find ways to add value or reduce cost;
§  brainstorm market disruption strategies

What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
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?
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Value Propositions
Customer Relationships
Customer Segments
Distribution Channels
Revenue StreamsCost Structure
Key Resources
Key Partners
Key Activities

1. Customer Segments
Customer Segments

1. Customer Segments
•  Who are your most important
users and customers?
•  You must create a detailed
portrait of each (“archetype”)
•  Look beyond the obvious
•  who are the stakeholders?
•  who is most motivated?
•  who is most underserved?
•  who has the most to gain?

2. Value Proposition
Value Proposition

2. Value Proposition
For each Customer Segment:
§  What is their PAIN? (B2B)
or their ACHE? (B2C)
§  What is the GAIN for them to solve
their pain or ache?
§  What is their DECISION TRIGGER?

The Decision Trigger
How does your solution change
the customer’s life for the better?
« What is the RETURN ON USE »
Does your offer promise enough
added value to motivate
your customer to
pull out their credit card?

3. Distribution Channels

3. Distribution Channels
How do you deliver this value at
every stage of the buying process?
•  Discovery
•  Evaluation
•  Purchase
•  Delivery
•  After sales service
Physical or Virtual channel?
What is the value you add at each step?

4. Customer Relationships

4. Customer Relationships
How do you
GET,
KEEP,
and GROW
your customer base?
How do you build a loyal and
enthusiastic tribe around your offer?

5. Revenue Streams
Revenue Streams

5. Revenue Streams
How do you generate cash from each
customer segment?
l  What VALUE do customers put on the benefits you
provide?
l  What VALUE are customers willing to pay for?
l  What VALUE do customers infer from your pricing?
Revenue Streams = Strategies (What)
Pricing = Tactics (How Much and When)
Consider impact on your
GET-KEEP-GROW strategies

5. Revenue Streams
Price on VALUE – not on cost
§  usage
§  subscription
§  rent
§  license
§  intermediation (affiliate)
§  freemium (use with caution!)
Where can you generate revenue
that others leave on the table?

6. Key Resources
Key Resources

6. Key Resources
What infrastructure and resources do you need to
deliver what you promise?
l  tools, space, locations
l  personnel (qualifications, in-house or sub)
l  equipment (lease or buy)
l  licenses, intellectual property
l  supplies (components, assemblies)
l  what is scarce or difficult to get
l  financial requirements
l  acquisition timelines
Beware of promising
more than you can deliver!

7. Key Activities
Key Activities

7. Key Activities
What major activities
(deliverables) must be produced
– when and by who?
•  dependencies
•  responsibilities

8. Key Partners
Key Partners

8. Key Partners
Partners
•  Suppliers
•  Developers
•  Distributors
•  Investors
•  Collaborators
•  Affiliates
Competitors
Alternatives
How does each partner help or
hinder the business model?

9. Cost Structure
Cost Structure

9. Cost Structure
What are the critical elements of the
cost structure?
l  Fixed costs
l  Variable costs
l  Resource, activity, partner costs
l  Infrastructure, operational, cost of sales
l  Payroll costs, benefits, bonus structure, taxes
l  What are the costs of each element of the
business model?
l  Where are the economies of scale?
l  What are the risks, the unknowns?

Value Propositions
Customer Segments
Revenue StreamsCost Structure
Key Resources
Key Partners
Key Activities

What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
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?
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Day Month Year
No.
This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License.
To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

www.businessmodelgeneration.com

Coach Davender Gupta, MSc.
Venture Catalyst
Startup Leadership Coach
www.startupacademie.com
www.coachdavender.com
418-948-1553 | 514-448-1894
coach@davender.com
@coachdavender
facebook.com/coachdavender
linkedin.com/in/coachdavender

Introduction to the Business Model Canvas

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