Last week, we talked about how you can develop your business idea. Today we are discussing what next. How can I move this business idea from the idea stage to the next stage? The next will be to create a business model and one model that works for most businesses is the Business Model Canvas.
Business model is how you create value as a start-up business and deliver that value to your customers. It is a chain that must be completed. Like I mentioned, one of the templates used to achieve this process is the Business Model Canvas.
Business model canvas is made up of nine (9) basic building blocks. These nine (9) basic building blocks will help you understand your business. Over the years when people talk about their organisation, you hear them say things like, the engineering department, sales department etc. Things have changed. Organisations are no longer looked at as department by department but as an entity. The Business Model Canvas helps you understand how the organisation fits together. It brings to your knowledge how the pieces are interlocked and related. It is just like the human body, when any part is in pain, it affects the functioning of the other parts.
You can achieve the following with a Business Model Canvas:
- Understand your current business and make changes for growth
- Develop an entirely new business
- Help your team buy in and understand your business
There is no limit to its use. This is used by large organisations like Apple. It is a tool that a small two-man start-up starting from the garage can use.
These nine (9) building blocks are as follows:
This is the value you intend to create. You should either be creating a value or solving a problem. You must ask yourself these questions: What value am I creating? What problem am I solving? It is not about your technology. Your technology means nothing if you are not solving a problem. You do not just have it in your head that you are creating a value, you have to step out of the building and get information from your customer segment. Be sure that they see what you are offering as value and that they are willing to pay for it.
The value that I am creating, who am I creating it for? Am I going to attend to the mass market or niche market?
How will I deliver my value to my customer segment? There are different channels of sale – traditional and virtual. Tailor your channel to your market and also use multiple channel at the same time.
How will you get, keep and grow your customer base? How do they behave? Which means of communication is best applied? Will they need a personal assistant or will they be fine applying the Do-It-Yourself (DIY) technique?
How will your customers pay for the value you are delivering? Which means will you apply to get your payments? How do you ensure that there is steady inflow of income that will exceed expenses?
This can be infrastructural, physical, intellectual or human depending on your industry. They are the important resources without which you cannot run your business.
These are the people you need to be successful. They have to be delivering value or absorbing risk for your business. People start out thinking that they need partnerships from day one. The truth is you need different kinds of partnership at different stages of your business. Always ensure they are strategic partnerships.
These are the activities that need to happen efficiently on a regular basis for your business to be successful. The type of activity will also depend on your industry.
The key resources, key partners and key activities make up bulk of the cost. This consists of fixed costs, overhead costs, variable costs, etc. To run a lean start-up, you need to understand the cost elements of your business and know which ones are important and which ones are unnecessary.
We are coming to you live from ReDahlia Workspaces. Facebook live videos and audios are free relevant marketing tools for your business. These and lots more (interviews, photo shoots, video shoots etc) you should do at ReDahlia Workspaces. Additionally, we help you structure your business so, pop into our office at 43B Emina Crescent, off Toyin Street, Ikeja. Book a FREE tour of our facility today.
Join us live on our Facebook page (https://www.facebook.com/redahliaworkspaces/ ) next week Monday for another educative session.