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.
There are 9 building blocks:
What do you need to do but can't, and who are you going to rely on to do that thing?
What things does the business need to do in order to deliver its solution?
What’s compelling about the solution? Why do customers buy or use it?
How do you interact with the customer through their ‘journey’?
What strategic assets must the business have in order to compete?
How does the business communicate with customers? Why that way? Is it working?
What are the business’ major cost drivers? How are they linked to revenue?
How does the business earn revenue?
Who are the customers? What do they think? See? Feel? Do?
Some Deeper Dives
- Personal assistance – based on human interaction
- Dedicated personal assistance – dedicating a customer representative to an individual client
- Self-service – maintaining no direct relationship with the customer
- Automated services – mix between self-service and automated processes
- 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
- Co-creation – beyond customer-vendor to co-create value with customers.
- Viral Marketing
- Public Relations
- Unconventional PR
- Search Engine Marketing
- Social & Display Ads
- Offline Ads
- Search Engine Optimization
- Content Marketing
- Email Marketing
- Engineering as Marketing
- Targeting Blogs
- Business Development
- Affiliate Programs
- Existing Platforms
- Trade Shows
- Offline Events
- Speaking Engagements
- Community Building
- Evaluation How do we help customers evaluate our organisations Value Proposition?
- Purchase How do we allow customers to purchase specific products and services?
- Delivery How do we deliver a Value Proposition to customers?
- After sales
How do we raise awareness about our company’s product and services?
How do we provide post-purchase customer support?