Visualizing Business Model Series: Business Model Canvas 📊

Introduction

Purpose: Application of the Business Model Canvas (BMC) framework to your business.
Structure:
- General discussion about business models.
- Explanation of the Business Model Canvas (BMC).
- Detailed dive into the nine aspects of the Business Model Canvas.
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Definition: A company's production design explaining how valuable products/services are produced.
Peter Drucker's Perspective: A business model answers who the customer is, what value can be created, and how it can be done at reasonable costs.
Purpose: Representing a business on paper to better understand the company's value, useful for potential investors.

Overview: A popular business model visualization tool, invented by Alex Osterwalder and Eve Pine.
Duality Concept: Reflect the left brain (internal processes/efficiencies) and right brain (external/creativity) aspects.

Cost Structure (Bottom Left): Efficiency-driven, includes key costs and operational expenses.
Revenue Streams (Bottom Right): Lists products/services sold and external aspects like customers and markets.
Value Proposition (Center): The core value you provide, also referred to as the differentiator.
Customer Segments (Top Far Right): Defines different groups of people targeted by your business.
Channels (Bottom Right): Methods to reach your market (B2B, B2C, C2C, etc.).
Customer Relationships (Top Right): Strategies to maintain a personal relationship with customers.
Key Activities (Top Left): Essential actions for producing and delivering your value proposition.
Key Partners (Far Left): Key relationships and partnerships necessary for business operations.
Key Resources (Left Bottom Square): Land, machinery, assets necessary for business operations.

Components: Operational expenses (OPEX), capital expenditures (CAPEX).
Analysis: Separate CAPEX needs (one-time expenses) from OPEX needs (recurring costs).

Purpose: Identify all revenue-generating products and services.
Examples: Bedroom, lounge, dining room, and study furniture for a furniture business.

Strategy: Use geography, product types, or other methods to segment the market.
Example: Online market segmentation into children, family, and work-from-home segments.

Purpose: Decide how to reach customer segments.
Common Strategies: B2B (Business-to-Business), B2C (Business-To-Consumer), etc.
Example: Partnering with schools and kindergartens for children's furniture.

Key Elements: Unique selling points, pricing strategy, quality, delivery, flexibility, service.
Example: Customizable furniture by height and weight delivered in under a week.

Definition: Essentials actions required to produce and deliver the product/service.
Example: Furniture making, customer measuring, just-in-time assembly, incentive schemes.

Purpose: Identify major partnerships and suppliers.
Example: Wood suppliers, software companies for virtual measurements, distribution partners.

Cost Structure: Calculate and list CAPEX and OPEX needs.
Break-Even Analysis: Show costs towards break-even (profit covering initial investment and running costs).

Wrap-Up: Summary of BMC components and their importance.
Call to Action: Engage with the content, comment for further discussion, subscribe for future updates.

End of Lecture. Feedback and questions are welcome in the comments!