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building block building block building block building buildingbuilding block block block building block building building block block buildin g building block building block block
This tool is called theBusiness Model Canvas(download with instructions atwww.businessmodelgeneration.com/downloads)
3 Take time to think through alternative possibilities.
the same technology, product, or servicecan have numerous business models
try sketching out alternativebusiness models by askingyourself...
transactional vs. product vs. service scale vs. scoperecurring revenues blue ocean vs. redniche market vs. ocean direct sales vs.mass market indirect sales personal vs.capital expenditure vs. automated open vs. closedpartnership disruptive vs. difficult questions human intensive vs. incrementalacquisition vs. retention system intensive tailor-made vs. mass physical vs. virtual productionone customer segmentvs. another copyright vs. copyleft fixed vs. variablepaid vs. free costsdistributed vs. in-sourcing vs. out- advertising vs.centralized sourcing sales
only make a first choice after prototypingand thinking through several models...
OK. You’ve got your model,but you’re not done yet...
4 Your business model idea is just a set of hypotheses.
a business model might look great onpaper... building block building buildin block g block building block block building block ... but be buildin block g building building block block building block build blocing k buildin block g honest that it’s buildin block g
... just a set of hypotheses guess guess guess guess guessguess guess guess guess guess guess guess
...so you need to get out of thebuilding and...
... to test and adapt your model agile business model demand adaptation creation problem channel product customer(customer) market type user (problem) competition payer customer development channel team validate business pricing model model
you need to adapt thebusiness model untilyou can prove it workscustomer customer customer companydiscovery validation creation building pivot
scale your marketingcustomer customer customer companydiscovery validation creation building pivot execution
and build your org structurescustomer customer customer companydiscovery validation creation building pivot execution
1 No business plan survives the first customer contact.2 It’s the business model, stupid.3 Take time to think through alternative possibilities4 Your business model idea is just a set of hypotheses.5 Don’t build your company, until you’ve verified your Business Model
you can read more about business models and thecustomer development process here: +BusinessModelGeneration.com StevenBlank.com/books.html
GoodLuck!BusinessModelGeneration.com StevenBlank.com/books.htmlAlexOsterwalder.com SteveBlank.com@business_design @sgblankContribution by Alan Smith @thinksmith