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:
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?