Business Modelling Overview
🕴🏼

Business Modelling Overview

Business Modelling refers to the process of identifying and validating the structure that can support your solution to the identified problem. It involves taking a step back and looking at the business as a whole and identifying the way it will work and the gaps that haven't been filled yet.

The point of business modelling is two-fold (1) it is to help you identify what high risk assumptions you still have that need to be tested and proven in order for the business to be viable and (2) it is a popular way of explaining what it is you are planning to do to mentors and potential investors.

There are a few different ways of mapping out this structure including the Lean Canvas and the Business Model Canvas, both have pro's and con's so it is worthwhile having a look at both to make sure you aren't missing any good questions.

For this course we will breakdown the Business Model Canvas as it is the most useful for your stage of development.

If it is your first time coming across the Business Model Canvas it is a good idea to watch this

There are 9 building blocks:

Key Partnerships

What do you need to do but can't, and who are you going to rely on to do that thing?

Key Activities

What things does the business need to do in order to deliver its solution?

Value Proposition

What’s compelling about the solution? Why do customers buy or use it?

Customer Relationships

How do you interact with the customer through their ‘journey’?

Key Resources

What strategic assets must the business have in order to compete?

Channels

How does the business communicate with customers? Why that way? Is it working?

Cost Structures

What are the business’ major cost drivers? How are they linked to revenue?

Revenue Stream

How does the business earn revenue?

Customer Segments

Who are the customers? What do they think? See? Feel? Do?

Some Deeper Dives

The 6 types of Customer Relationships
  1. Personal assistance – based on human interaction
  2. Dedicated personal assistance – dedicating a customer representative to an individual client
  3. Self-service – maintaining no direct relationship with the customer
  4. Automated services – mix between self-service and automated processes
  5. Communities – user communities to become more involved with customers. Allows customers to behave as a community and exchange knowledge and solve each other’s problems
  6. Co-creation – beyond customer-vendor to co-create value with customers.
The 19 types of Channels

Read this for an explanation of each

  1. Viral Marketing
  2. Public Relations
  3. Unconventional PR
  4. Search Engine Marketing
  5. Social & Display Ads
  6. Offline Ads
  7. Search Engine Optimization
  8. Content Marketing
  9. Email Marketing
  10. Engineering as Marketing
  11. Targeting Blogs
  12. Business Development
  13. Sales
  14. Affiliate Programs
  15. Existing Platforms
  16. Trade Shows
  17. Offline Events
  18. Speaking Engagements
  19. Community Building
What to do within your Channels
  1. Awareness
  2. How do we raise awareness about our company’s product and services?

  3. Evaluation How do we help customers evaluate our organisations Value Proposition?
  4. Purchase How do we allow customers to purchase specific products and services?
  5. Delivery How do we deliver a Value Proposition to customers?
  6. After sales
  7. How do we provide post-purchase customer support?

Many ways of making revenue