the art of the business model
DESCRIPTION
A keynote by Andrew Taylor, Director, Bolz Center for Arts Administration, Wisconsin School of Business, for the 2011 Arts Enterprise Summit in Kansas City, MO.TRANSCRIPT
The Art of theBusiness Model
Andrew TaylorDirector, Bolz Center for Arts Administration
Wisconsin School of Businesswww.bolzcenter.org
2011 Arts Enterprise Summit
About Me...
About Us...
The Art of theBusiness Model
Andrew TaylorDirector, Bolz Center for Arts Administration
Wisconsin School of Businesswww.bolzcenter.org
2011 Arts Enterprise Summit
A Hammer or a Sponge?
IMAGE: Flickr photos by Kaworu Koneru (hammer), leshoward (sponge), eriwst (frame)
?What the heck is aBusiness Model
?What the heck is aBusiness Model
?What the heck is aBusiness Model
?What the heck is aBusiness Model
1There is only one business model:
reliable revenue thatexceeds expenses.
Clara Mi"er, Nonprofit Finance Fund
2A business model describes the rationale of how an
organization creates, delivers, and captures value.
Alexander Osterwalder & Yves PigneurBusiness Model Generation
3A business model isan intentional arrangement of artisans, audiences, and tools.
So, let’s talk about tools....
So, let’s talk about tools....
Limited Liability
Company
Sole Proprietorship
Credit & DebtTickets
Box Office
YouTubeStudio SpaceHardware
& Software
Ownership
Leasing
FiscalSponsorship
Tax Status
Cash
Hammer
SpongeMembershipDues
TwitterA Van
“People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”
Theodore LevittIMAGE: Flickr user Cayusa
Tools vs. ProblemsIMAGE: Flickr user Whatknot
“If you only have a hammer, every problem looks like a nail.”
Abraham Maslow (paraphrased)IMAGE: Flickr user bitzcelt
So, let’s talk about problems....
Are you kidding me?
“The man who knows how will always have a job.
The man who also knows why will always be his boss.”
Ralph Waldo Emerson
4 Problems (of many)• Capital• Exchange• Channels• Net Revenue
1Capital.PROBLEM:
How do I gather the space, equipment, and wealth I need to do what I want to do?
1Capital.PROBLEM:
How do I gather the space, equipment, and wealth I need to do what I want to do?
Buy
Borrow
Build
Rent
Receive (gift)
Sneakers and Studios
Loveland: Detroit by the Inchwww.makeloveland.com
Loveland: Detroit by the Inchwww.makeloveland.com
Low-Profit Limited Liability Company (L3C)
B Corporation
CooperativesFiscal Sponsorship
Series LLC
Social Impact Bonds
Micro Finance
2Exchange.PROBLEM:
Who pays, for what, for whom, and how?...and for how much?
Like Netflix, but for theaterwww.acttheatre.org
ACT Pass
Sloup in St. Louissloup2122.blogspot.com
3Channels.PROBLEM:
How do I connect what I door what I’ve made to someone else?
or...What are the paths to successful exchange?
Etsy.com
Regretsy.com(where DIY meets WTF)
Direct from the Farmer
Roadside Culturewww.wormfarminstitute.org
4Net Revenue.PROBLEM:
How do I consistently earnmore than I spend?
4Net Revenue.PROBLEM:
How do I consistently earnmore than I spend?
EarnMore
SpendLess
Spend Less.(or...spend better)
The rise of the relentless spendthrift.
Delicious Monsterwww.delicious-monster.com
Squarewww.squareup.com
4 Problems (of many)• Capital• Exchange• Channels• Net Revenue
Start with the problem,not with the tool.
IMAGE: Flickr photos by Kaworu Koneru (hammer) and leshoward (sponge)
“Talent hits a target no one else can hit;Genius hits a target no one else can see.”
Arthur Schopenhauer
“Master your instrument,master the music,
and then forget all thatand just play.”
Charlie Parker
