dave jarman head of enterprise education the business of music
TRANSCRIPT
“A business model describes the rationale of how an
organisation creates, delivers and captures value.”
Alex Osterwalder & Yves Pigneur
The Business Model Canvas
The Canvas is a visual tool for exploring business models
Entrepreneurship education has become increasingly focused on the business model rather than the business plan
We’ll be using it to explore your ideas.
Customer Segments
For whom are we creating value?Each group of customers needs a distinct offer – something
that addresses their specific needs/desires.Who are our most important or valuable customers?What do we know about their buying behaviour and what
are they currently using as an alternative?
Value Propositions
What value do we deliver to the customer?Which one of customer’s problems are we helping to solve?Which customer needs are we satisfying?
Newness, Performance, Customisation, Effectiveness, Design, Brand, Price, Cost Reduction, Risk Reduction, Accessibility, Usability/Convenience
What bundles of products and services are we offering to which customer segments?
Channels
Through which mechanisms do our customers want to reach our products and services? Sales teams, Website, Shops, Partner stores or sites, Wholesale…
How do our channels integrate?Which channels work best?How do our channels adjust to customer behaviour?
Customer Relationships
What type of relationship does each Customer Segment expect us to establish and maintain? Personal assistance, Dedicated personal assistance, Self-service, Automated
services, Communities, Co-creationHow costly are they?How will they integrate with the rest of our business model?
Revenue Streams
For what value are our customers really willing to pay?How do they want to pay for our products and services?
Asset sale, Usage fee, Subscription fee, Lending/Renting/leasing, Licensing, Brokerage fee, Advertising
What do they already pay and how?How much is each revenue stream worth overall?What price should we charge?
Key Resources
What Key Resources do our Value Propositions require? Physical assets – facilities, vehicles, machines, systems, distribution networks Intellectual resources – brands, patents & copyrights, partnerships, databases Humans – appropriately skilled and motivated people Financial – cash reserves, lines of credit, financial guarantees
Do we need to own these ourselves? Or can we borrow/lease?
Key Activities
What Key Activities do our Value Propositions require? What actions are required to deliver our Channels, Relationships, and Revenue
Streams? Designing, making, and delivering at an appropriate quality require a focus on the production
processes Problem solving for customers issues, consultancy services, anything service based require a
focus on knowledge management and staff training Building a business around the provision of a platform are dominated by managing, promoting,
and maintaining that platform and how it interfaces with customers
Key Partners
Why Partner? Optimisation and economies of scale Reduction of risk and uncertainty Acquisition of particular resources and activities
What Key Activities or Key Resources do our Partners supply to us and/or acquire from us?
Forms of Partnership: Alliances, Joint Ventures, Buyer-Supplier, ‘Coopitition’ (partnerships between competitors)
Cost Structure
What are the most important costs inherent in your Business Model? What do our Key Activities and Key Resources cost us and how much can be
offset through Key Partnerships? Cost Structures:
Cost-Driven: focus on minimising costs for the leanest possible operation Value-Driven: focus on value creation – often premium products and services
Fixed Costs & Variable Costs (those that flex based on sales)
Enterprise at Bristol
We’re here to help you have ideas and act on them! Inspiration Support Innovation
Think Big…Act Small…Fail Fast……and Learn Quickly!
What do we try and teach?
CreativitySelf-awareness and self-beliefThe difference between an
idea and a business idea…The skills to help create:
Economic value Social value Cultural value
The skills to build things that last
We do this in the curriculum where we can – but we have an extra-curricular offer open to all.
Business start-up support
Advice & guidanceSeed funding (£30k)Desk spaceEducation & Networking
events – ‘Monday Means Business’
Mentoring match-makingSummer Enternships (£1500
+ desk)Surgeries:
Book-keeping Branding IP & Legal Matters
www.businessbasecamp.co.ukTwitter @BristolBasecamp
Facebook search ‘Bristol Basecamp’
Basecamp Master-classes
Weekly short talks on start-up: Generating ideas Good Ideas vs. Good
Business ideas Understanding the market Company Formation Resources for start-ups IP for start-ups Finance Elevator Pitches Business plans
www.businessbasecamp.co.ukTwitter @BristolBasecamp
Facebook search ‘Bristol Basecamp’
New Enterprise Competition
Open to students, staff, and recent graduates
Termly panels offering small grants
4-page Business Plan submission by May 2014
Shortlist through to presentation panel in Autumn 2014
£35,000 prize fundAdvice & workshops availableConcepts, Plans and Trading
start-ups all welcome and judged separately
www.bristol.ac.uk/red/nec