What is important to focus on in laying out a business model?

Take-aways from a talk in the Trust Center on 6/27/16

  1. “Articulate your model” - Alex osterwalder’s business model canvas
  • This is an iterative process with three main steps:
    • Getting from business idea to business model
    • Visualizing your business model
    • Iterating the business model
  • A good business model should be: interesting, scalable, have the right infrastructure
  • Don’t let others’ examples block your creativity, try to think outside of the box
  • All nine building blocks are correlated and work together:
    • Customer segments
    • Value propositions
    • Customer relationships
    • Channels
    • Revenue stream
    • Key resources
    • Key activities
    • Key partnerships
    • Cost structure

2.  Three guidelines

    • Focus on the business, not on the semantics – the canvas is mainly for getting the principles set and there’s no need to spend too much time on perfecting it.
    • Don’t fall in love with your first model
    • Iterate rapidly and learn from the iterations. Most business models change after testing with customers – don’t let this discourage you.
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