Business Model

The Business Model Canvas is an excellent tool for defining and challenging your business model. This (slightly modified interpretation) takes you through a structured process of looking into:

1. Customers: Who are our key customer segments that we create value for?

  1a. Relationships: What type of relationship do they expect to have with us?

  1b. Channels: Which channels do they want to use to interact with us?

2. Value Propositions: What value do we deliver to our customers?

  2a. Key Activities: What are the activities that deliver real value to the customer?

  2b. Key Resources: What key resources are required to perform those activities?

  2c. Key Partners: If we do not need to have all of the resources, who do we need to partner with?

3. Revenue is earned from: How do we charge for the products/services and from whom?

  3a. Key Costs: After we have incurred all of the costs, will the business model be profitable?

4. Annual Calendar: What happens month to month?

  4a. Annual Budget: What is expected to happen financially?

4b. Targets: How do we know the business model has been successful in year 1, 2, and 3?