The Business Model Canvas - Roadmap To Startup Success
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The Business Model Canvas - Roadmap To Startup Success Presentation Transcript

  • 1. The Business Model CanvasYour Roadmap To SuccessCoach Davender GuptaStartup-Académiewww.startupacademie.com@coachdavenderfacebook.com/coachdavender© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429
  • 2. What is a Business Model?© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 2How youcreate,deliver,and harvestvalue
  • 3. What is a Business Model Canvas?© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 3A visual representation of the various elements of yourBusiness Model.Allows you to: see the relationships among the parts of yourmodel; identify hypothesis, assumptions and risks; plan validation testing (market, channels, pricing); find ways to add value or reduce cost; brainstorm market disruption strategies
  • 4. © 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 4
  • 5. The Business Model Canvas© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 5Value PropositionsCustomer RelationshipsCustomer SegmentsDistribution ChannelsRevenue StreamsCost StructureKey ResourcesKey PartnersKey Activities
  • 6. 1. Customer Segments© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 6Customer Segments
  • 7. 1. Customer Segments© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 7• Who are your most importantusers and customers?• You must create a detailedportrait 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?
  • 8. 2. Value Proposition© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 8Value Proposition
  • 9. 2. Value Proposition© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 9For each Customer Segment: What is their PAIN? (B2B)or their ACHE? (B2C) What is the GAIN for them to solvetheir pain or ache? What is their DECISION TRIGGER?
  • 10. The Decision Trigger© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 10How does your solution changethe customer’s life for the better?« What is the RETURN ON USE »Does your offer promise enoughadded value to motivateyour customer topull out their credit card?
  • 11. 3. Distribution Channels© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 11Distribution Channels
  • 12. 3. Distribution Channels© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 12How do you deliver this value atevery stage of the buying process?• Discovery• Evaluation• Purchase• Delivery• After sales servicePhysical or Virtual channel?What is the value you add at each step?
  • 13. 4. Customer Relationships© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 13Customer Relationships
  • 14. 4. Customer Relationships© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 14How do youGET,KEEP,and GROWyour customer base?How do you build a loyal andenthusiastic tribe around your offer?
  • 15. 5. Revenue Streams© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 15Revenue Streams
  • 16. 5. Revenue Streams© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 16How do you generate cash from eachcustomer segment? What VALUE do customers put on the benefits youprovide? What VALUE are customers willing to pay for? What VALUE do customers infer from your pricing?Revenue Streams = Strategies (What)Pricing = Tactics (How Much and When)Consider impact on yourGET-KEEP-GROW strategies
  • 17. 5. Revenue Streams© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 17Price on VALUE – not on cost usage subscription rent license intermediation (affiliate) freemium (use with caution!)Where can you generate revenuethat others leave on the table?
  • 18. 6. Key Resources© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 18Key Resources
  • 19. 6. Key Resources© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 19What infrastructure and resources do you need todeliver what you promise? tools, space, locations personnel (qualifications, in-house or sub) equipment (lease or buy) licenses, intellectual property supplies (components, assemblies) what is scarce or difficult to get financial requirements acquisition timelinesBeware of promisingmore than you can deliver!
  • 20. 7. Key Activities© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 20Key Activities
  • 21. 7. Key Activities© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 21What major activities(deliverables) must be produced– when and by who?• dependencies• responsibilities
  • 22. 8. Key Partners© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 22Key Partners
  • 23. 8. Key Partners© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 23Partners• Suppliers• Developers• Distributors• Investors• Collaborators• AffiliatesCompetitorsAlternativesHow does each partner help orhinder the business model?
  • 24. 9. Cost Structure© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 24Cost Structure
  • 25. 9. Cost Structure© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 25What are the critical elements of thecost structure? Fixed costs Variable costs Resource, activity, partner costs Infrastructure, operational, cost of sales Payroll costs, benefits, bonus structure, taxes What are the costs of each element of thebusiness model? Where are the economies of scale? What are the risks, the unknowns?
  • 26. The Business Model Canvas© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 26Value PropositionsCustomer RelationshipsCustomer SegmentsDistribution ChannelsRevenue StreamsCost StructureKey ResourcesKey PartnersKey Activities
  • 27. Validating the Canvas© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 27« The problem is that startups fall inlove with the solution too early.They dont focus enough on thefoundation of vision and strategy tomake sure it connects to what peoplewant and use. »-- Ash Mauriya
  • 28. Validating The Canvas© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 28Everything on you put on your canvas isa HYPOTHESIS.You must VALIDATE every elementthrough -• Discovery (your own data)• Research (other people’s data)• Testing (simulation, MVP)to uncover the DISRUPT.
  • 29. Validating the Canvas© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 29DiscoverWhat youknowThat youknow (belief)That youdon’t know(hypothesis)What youdon’t knowThat youknow(intuition)That youdon’t know(discovery)
  • 30. The Four Disrupts© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 30Offer (What): New offers (products or services) that did not exist up to now(invention)Process (How): New products or methods that allow the offer to be producedfaster, cheaper, more durable, better quality (production)Market (Who): Opening a new market segment poorly served until now, bymaking minor modifications to one’s product or service(marketing)Value (Why): Meeting a need that is valued by an existing market, but notsatisfactorily met by competing offers, and doing it better thanthe competition (positioning)
  • 31. Discover the DISRUPT© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 31How do you change the rules of thecompetitive game?The gold is inthe DISRUPT.
  • 32. © 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 32
  • 33. © 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 33
  • 34. © 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 34
  • 35. www.businessmodelgeneration.com© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 35
  • 36. Coach Davender Gupta, MSc.Venture CatalystStartup Leadership Coachwww.startupacademie.comwww.coachdavender.com418-948-1553 | 514-448-1894coach@davender.com@coachdavenderfacebook.com/coachdavenderlinkedin.com/in/coachdavender© 2013 Davender Gupta - www.startupacademie.comAll Rights Reserved v20130429 36