This document outlines the key elements needed to design a successful business model from scratch, including defining the purpose and goals, ensuring the offer is compelling to customers, factoring in competitors, identifying core activities, ensuring profitability, investing in the brand, focusing on building a customer community, and continually validating assumptions. The six core design elements listed are having a compelling offer, competitive advantage, a sustainable model, a profitable approach, strong brand identity, and a focus on the customer community.

1. Business model design
From scratch
The key elements for success

2. the benefits of good design
Adapted from The Unreasonable Institute
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3. core design elements
2. competitive advantage
above all others
3. sustainable
model
1. compelling offer
why in a clever way
4. profitable approach
always delight
6. community
building focus
from your fans
5. brand identity
that generates value
and loyalty
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4. Define your why
purpose(s)
What are your ultimate goals?
Both for your business, and for you personally.
Which are the most important?
How will they resonate with people?
Dig deep. Be honest. It matters.
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5. Ensure your offer is compelling
Who are your customers?
What’s happening in their lives?
Tell some about your offer and listen to their response.
Is your offer a nice-to-have or need-to-have?
What makes them care about it?
Profile your customers.
How many are likely to buy your product?
Be real. Be conservative.
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6. Factor in competing and
substitute offers
Of course you have competitors and/or substitutes.
What are people doing (or not doing) now?
How easily can people be convinced to change to your way?
How will your competitors respond?
Avoid surprises. Don’t skip this thinking.
Be thorough.
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7. Identify your key activities
Your offer is just one aspect of your business.
How will you get it to market?
What assets and resources will you need?
How will you manage relationships?
It’s the combination of activities that gives strength.
Create the ‘eco-system’ your offer needs to survive.
Explore lots of possibilities of how it could work.
Don’t be afraid to think big.
Image from Business Model Generation; Alex Osterwalder
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8. Ensure the model is profitable
How much will the business cost to run?
What’s your likely revenue?
Is it profitable?
What is the ratio of fixed and variable costs?
How will profits change as the business grows?
Does your business work?
Now add your and others salaries. Does it still work?
If not, go back to the drawing board. Immediately.
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9. Invest in your brand
Be more than a forgettable transaction.
Generate memorable customer experiences.
Craft meaningful messages for your customers.
Define your personality and reflect it in your brand.
Reflect your brand in everything you do.
If you’re serious about your business – raise awareness.
Get your message out. Unapologetically.
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10. Focus on your community
Build a community of your greatest fans.
Be available to them.
Talk to them. Listen to them. Appreciate them.
Help them get the most out of your offer.
Foster a genuine relationship with them.
Understand them.
Do it all for them.
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11. Validate everything
Compile detailed lists of your assumptions.
Keep up to date on industry trends.
Talk to potential customers.
Talk to potential suppliers and resellers.
Research your competitors.
Check legislative requirements.
De-risk your venture with every assumption you validate.
Continually adjust and refine your business model…
… for the rest of the business’s life.
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12. be sustainable
above all others
in a clever way
Always delight
that generates value
from your fans.
and loyalty
why
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13. Imagineering helps you to ‘imagineer’ the mechanics
to make your product, idea or vision a success in the
market.
Tristonne Forbes
Designer and builder of businesses
@Tristonne
tristonne@businessimagineering.com.au
www.businessimagineering.com.au
au.linkedin.com/in/tristonneforbes/
Australia +61 (0)401 146 140
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