Business Plan Toolkit: Business Model GenerationSession 1

Winter 2016

Amy Lahti, Kim Blueher, Clint Reecer

Instructors

© WESST, 2016 except where other copyrights noted

Session objectives

- Define the term “business model” and explain how it applies to ALL businesses

- Explore the Business Model Generation canvas developed by Alexander Osterwalder

- Explain how the Business Model Canvas can be used in your business planning processes

- Delineate the differences between a business MODEL and a business PLAN

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1.1 Business Model GenerationWhat is a business model? B

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© Alexander Osterwalder

1.1 Business Model Generation

A business model defines:1. What your product or service is2. What you need to produce it3. Who can help you produce it4. How much it costs to produce it5. Where you’re going to sell it 6. How you’re going to sell it7. Who you’re going to sell it to8. How they’re going to pay you9. Why it’s different from other products and

services out there

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1.1 Business Model Generation

A business model DOES NOT define:- Your marketing plan and differentiation

strategy for your product or service- The legal/organizational structure and

management team for your company- Strengths, weaknesses, opportunities, threats

(SWOT) or risks for your company- Financial projections for your company

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1.1 Business Model GenerationBusiness Plan

Business Model

Business model

Other very important

info

Business Plan

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1.1 Business Model Generation

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© Alexander Osterwalder

1.1 Business Model Generation

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https://www.youtube.com/watch?v=wwShFsSFb-Y

1.1 Business Model Generation

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Questions?

1.2 Creating a Business Model

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© Alexander Osterwalder

Who can help you

What you need to

produce it

What your product or service is

Why it’s different

from other products/services

Who you’re selling to

How customers are going to pay you

Where you’re selling

How you’re going to sell

(one-shot, subscription, contract, etc.)

How much it costs to produce

1.2 Creating a Business Model

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© Alexander Osterwalder

https://www.youtube.com/watch?v=wlKP-BaC0jA&list=PLBh9h0LWoawphbpUvC1DofjagNqG1Qdf3&feature=c4-overview-vl

https://www.youtube.com/watch?v=iA5MVUNkSkM&list=SPBh9h0LWoawphbpUvC1DofjagNqG1Qdf3

YouTube: Business Model TV by Strategyzer

1.2 Creating a Business Model

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ACTIVITY:- Take a blank business model canvas- For 15 minutes, fill out key elements of the

business model canvas on your own- Find a partner- For 10 minutes, explain your business model

to your partner, then have your partner explain his/her model to you for 10 minutes

1.2 Creating a Business Model

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REMEMBER, a business model defines:1. What your product or service is2. What you need to produce it3. Who can help you produce it4. How much it costs to produce it5. Where you’re going to sell it 6. How you’re going to sell it7. Who you’re going to sell it to8. How they’re going to pay you9. Why it’s different from other products and

services out there

1.2 Creating a Business Model

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Who can help you

What you need to

produce it

What your product or service is

Why it’s different

from other products/services

Who you’re selling to

How customers are going to pay you

Where you’re selling

How you’re going to sell

(one-shot, subscription, contract, etc.)

How much it costs to produce

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1.2 Business Model Generation

Questions?

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1.3 Using a Model Canvas

Now what?

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http://www.youtube.com/watch?v=upIMfHFgWtQ

1.3 Using a Model Canvas

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What happens AFTER you finish your business model?

The blocks on your business model are just hypotheses, until you test them.

How do you test your hypotheses?

1.3 Using a Model Canvas

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GET OUT OF THE BUILDING

and GO TALK TO SOME

CUSTOMERS!

1.3 Using a Model Canvas

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1.3 Using a Model Canvas

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© Steven Gary Blank, 4 Steps to the Epiphany

NEXT WEEK:

Customer validation, THE #1 MOST IMPORTANT STEP in building a business!

1.3 Using a Model Canvas

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