Erik Ralston
Co-Founder at Fuse Accelerator
Tri-Cities
LAUNCH UNIVERSITY
Week #3: Business Model
Weekender - April 22nd - 24th
Cheerleader - April 24th @ 5pm
BUSINESS MODEL
An abstract representation of an organization and how it creates, delivers, and captures value
BUSINESS
PLAN?
BUSINESS
MODEL
CANVAS
SUPPLY | DEMAND
CANVAS ORDER
Value Proposition
Customer Segments
Customer Relationships
Channels
Revenue
Key Partners
Key Activities
Key Resources
Cost Structure
VALUE
PROPOSITION
EXERCISE
Value Proposition
What Value Do You Deliver to the customer?
Newness, Performance, Customization, Design, Price, Cost Reduction, Risk Reduction, Accessibility, Convenience/Usability
CUSTOMER
SEGMENTS
EXERCISE
Customer Segments
For whom are we creating value?
Customer Types, Industries, Mass Market, Niche Market, Segmented Diversified, Multi-Sided Platform
CUSTOMER
RELATIONSHIPS
EXERCISE
Customer Relationships
What type of relationship does each of our segments expect us to establish and maintain with them?
Personal Assistance, Self-Service, Automated Services, Communities, Co-Creation
CHANEL?
CHANNELS
EXERCISE
Channels
How do we reach each customer segment?
Awareness - Inform them of product/service
Evaluation - Help customers understand
Purchase - How do they give a dollar?
Delivery - How do we give value?
After Sale - How to we support?
REVENUE STREAMS
EXERCISE
Revenue Streams
How and how much do they pay?
Asset Sale, Usage Fee, Subscription Fee, Lending/Renting/Leasing, Licensing, Brokerage Fee, Advertising
Price - Fixed, Feature-Dependent, Volume Dependent
KEY
PARTNERS
EXERCISE
Key Partners
What do you need from other orgs?
Optimization & Economy
Reduction of Risk and Uncertainty
Acquisition of resources and activities
KEY
ACTIVITIES
EXERCISE
Key Activities
What are we doing to create the value, plus all the other boxes?
Production, Problem Solving, Platform/Network
KEY
RESOURCES
EXERCISE
Key Resources
What are the supplies for creating value plus All the other boxes?
Physical, Intellectual, Human, Financial
COST
STRUCTURE
EXERCISE
Cost Structure
What are the most important costs in our business model?
Big Costs in Other Boxes!
Cost-Driven? (Low-Price)
Value-Driven? (High Value)
Economies of Scale, Economies of Scope
VALUE PROPOSITION
IS NOT REVENUE!
CUSTOMERS
X
RELATIONSHIPS
X
CHANNELS
=
REVENUE
PARTNERSHIPS
+
ACTIVITIES
+
RESOURCES
=
COSTS
VALIDATE?
ARE THESE FACTS OR ASSUMPTIONS?
WHAT IS YOUR BIGGEST RISK BOX?
COST < REVENUE?
Q&A
THANK YOU!
Next Week:
Branding & Launch Weekend!
TC Launch University: Business Model 2016
By Erik Ralston
TC Launch University: Business Model 2016
Tri-Cities Launch University is your chance to take a crash course before you launch! Week #3 is about helping you capture how to make dollars from your dream.
