Business Model Canvas for successful business

CANVA Model in business

1. BUSINESS MODEL A company's core strategy for profitably in doing a business Include information like products or services, the business plans to sell, target markets, and any anticipated expenses Two levers: Pricing & Costs As an investor, while evaluating (, ask): Whether the idea makes sense Whether the numbers add up

2. BUSINESS MODEL When evaluating a company for a possible investment, the investor should find out exactly how it makes its money The business model may not tell everything about a company's prospects But the investor who understands the business model can make better sense of the financial data

3. BUSINESS MODEL Describe business model to others, such as partners, investors, consulters, employees, etc., helps to share the knowledge and effort, simply and completely IMPORTANCE Not describing a business model clearly and efficiently, will have a lot of problems that would result in losing effort, time & money

4. BUSINESS MODEL A business model describes how a company works to achieve its goals A business model describes how the company creates value (product) A business model describes how it provides value to the customer A business model describes how the company generates profit

5. Business Plans 1. Traditional Business Plan They are more common Use a standard structure Goes into detail in each section Require more work upfront Can be dozens of pages long 2. Lean Startup Are less common, but still use a standard structure Focus on summarizing only the most important points of the key elements of Business Plan They can take as little as one hour to make Are typically only one page

6. Traditional Business Plans Executive summary Company description Market analysis Organization and management Service or product line Marketing and sales Funding request Financial projections Appendix

7. BUSINESS MODEL CANVAS In 2010, when  Alexander Osterwalder  published his book  “ Business Model Generation “, he provided a visual tool, called the business model canvas, which was sorely needed This tool consists of 9 blocks used to describe the business model This tool provides a standard framework for a business model that can be clearly used in discussions

8. BUSINESS MODEL CANVAS

9. Key Partnerships Who are our key partners and suppliers? Which key resources are from which partner? What key activities are done by partners? Key Activities What key activities do our value proposition, channels, customer relationships, and revenue streams require? Value Preposition What do we provide our customers? What problem are we solving? What are we offering to each customer segment? Customer Relationships What type of relationship does each customer segment want? How costly are the relationships? How do we integrate them with the rest of our business model? Customer Segments Who are our customers? From whom are we creating value? Key Resources What key resources do our value proposition, channels, customer relationships, and revenue streams require? Channels How will we reach our customer segments? How are our channels integrated? Which channels are the most efficient? Cost Structure What are the most important costs in our business model? Which key activities and key resources are the most expensive Revenue Streams What are customers willing to pay? What and how do they currently pay? How much does each revenue stream contribute to overall revenue?

10. Key Partnerships Record companies OEMs People Content & agreements Key Activities Marketing Hardware design Value Preposition Seamless music experience APPLE Customer Relationships Lovemark Switching costs Customer Segments Mass market Key Resources Apple brand iPad hardware iTunes software Content & agreements Channels Retail stores Apple stores Apple.com iTunes store Cost Structure People Manufacturing Marketing/sales Revenue Streams iTunes store Large hardware revenues Some music revenues

11. Links https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan https://todayfounder.com/how-to-describe-your-business-model/ https://www.investopedia.com/terms/b/businessmodel.asp https://opentextbc.ca/organizationalbehavioropenstax/chapter/business-model-canvas/