The document discusses business models and how to choose one. It defines different types of business models like B2C, B2B, B2B2C and provides examples like Refinery 29 and SAAS. When choosing a model, factors to consider include predictable revenue, scalability, network effects and customer acquisition. The document recommends learning about customer needs through interviews and experiments to help identify the right model and business strategy.

1. Business Models
Angela Lee
Founder, 37 Angels
Professor, Columbia Business School

2. What is a business model?
Who you
sell to
How you
make
money

3. B2C
B2B
B2B2C

4. What is Refinery 29’s business model?

6. SAAS (Software as a Service)
Peer to peer
Printer / toner
“And then we sell the data”
Franchise

7. Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition

8. Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition

9. Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition

10. Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition

11. How do I
choose?
Customer
Experiments

13. TheLeanStartup.com

14. Deployment
Development

17. Letter of Intent
This year, we will conduct an
unpaid pilot with startup ABC.
When features x, y, and z are built,
we will pay $x per employee, or $y
a month to use their tool / platform.

19. Customer interviews
 Tell me your best…
 Tell me your worst…
 Why haven’t you fixed this?
 What do you use now?
 Who else should I talk to?

20. Customer interviews
 Fewer closed questions
 Ask “would you?” questions
 Ask “what do you think of…?”

21. 1) Customer segments
2) Value propositions
3) Revenue streams
4) Channels
5) Customer relationships
6) Key partners
7) Key activities
8) Key resources
9) Cost structure
1
2
3
4
5

22. 37angels.com/resources

24. Questions?