So you’ve got your vision written down and you’ve identified your target demographic. Well done girl, you’re definitely on the right track to becoming that BO$$ babe you’ve always wanted to be! But’s let talk money (because money talks right?!). How are you actually going to establish a lasting revenue stream within your business? What about developing customer relationships and wait, how much is this all going to cost you? Don’t fret ladies, we've got the answers here of course!
The Business Model Canvas is an effective and efficient framework for creating value in your company and brainstorming how you’ll be delivering it to your customers. It’s about compartmentalising the information you already have about your business and placing it into clear sections to make sense of how everything will come together.
The different sections are building blocks for you to be able to identify each aspect of your business, which are the most important and relevant areas and how each component compliments one another. When it’s on a piece of paper infront of you, things look much clearer, we promise.
Before you start, remember...
Don’t go overboard. Just highlight about 3 things for each section. Keep your points targeted and focused.
Identify the Risks!
Risks are things that happen which are counter intuitive to what your business wants to achieve. When planning, leave room to adjust things quickly if needed.
Talk it Out!
Don’t struggle through this alone, babe! Sometimes it can be helpful to talk to others and bounce ideas off one another.
It's not a static document!
The biggest risk to your business is creating your business model and never looking at it again. It’s important to review it often and implement changes when needed!
Confront any failures and be accountable for what they mean within your business. Then bounce back quickly and adjust your model with what you’ve learned.
OK, let’s get to the good stuff!
This is what the canvas looks like. Copy it, download it, create your own but PUR-LEASE just put a piece of paper infront of you and start writing points down.
1. Value Propositions
This is all about your unique selling point! What pain points will your product or service be solving or what gains are you creating? Think about what makes your company stand out from the competition.
2. Customer Segments
Who are your customers? Demographics are great but you really need to understand their personalities in detail (for more help, click here).
How does your product or service get from your company to the customer? Think about how and where you'll be distributing.
4. Customer Relationships
How will you GET, KEEP and GROW your customer base? Think about how you are going to build these relationships based on what you stand for.
5. Revenue Streams
So, how will you actually make money? When thinking about this, be aware of any risks to those revenue streams. What would happen if one or all of them dropped out?
6. Key Resources
What resources do you already have and what more do you need to make your business model work?
7. Key Partners
What key partners or suppliers do you need? Not only that, but think about what you'd be acquiring from them and what key activities would they be performing.
8. Key Activities
What are the most important things you need to do for your business to make the model work? Rank them.
9. Cost Structure
Think about the most important expenses you need to address. What are the most expensive resources you need and activities you’ll be undertaking? Are these fixed costs or variable costs?
So hop to it girls! Time is money and the sooner you make sense of the above, the sooner you can actually start cashing in some cheques! 💰