Eric Ries and Steve Blank are one of the early adopters of instigating a minimum viable product (MVP) as part of the startup process. Blank defines a MVP “not always a smaller/cheaper version of your final product. Defining the goal for a MVP can save you tons of time, money and grief.” Blank is an advocate for executing Learn Startup approach for almost a business. One strategy behind building and utilizing a MVP is not to use too many resources (eg. time and money). Get your MVP built quickly so you can start testing your hypothesis using the new product.
Looking in from a backstage out into the crowd at a concert is a spectacular site. It can feel as good as it looks when applying this mindset to your Business Model Canvas (BMC). It can all be possible if you follow the process, have a solid team, and achieving many goals while learning by doing.
Putting it all together is all we need to do now that we have made it to the last blog post on this series describing the business model generation. Once finished outlining the last two Business Model Canvas (BMC), I will provide you with some basic tips and tricks that have worked while developing your business model on a canvas.
Have you ever caught yourself wondering while watching live performance in a theater, what the backstage area was like?
If you answered yes, then we have something in common!
In the event that you find yourself stranded on a tropical deserted island, it’s critical for your survival to find key resources that will keep you alive. Just like surviving on a deserted island, your Business Model Canvas (BMC) needs key resources to support your value proposition, maintain your channels, maintain healthy relationships with your customer segments, and generate revenue. We will now begin our shift from the right side to the left side of the BMC.
How your business is going to make money and what will be your strategy and approach?
Revenue Streams will form as you successfully deliver your value proposition to your customers. You will begin to notice how the Business Model Canvas (BMC) flows and each segment supports our value proposition. Remember that the right side of the BMC is all about generating positive cash flow.
My previous blog post introduced to you the Business Model Canvas (BMC) and the nine (9) building blocks. This blog post is going to be the first of three (1 of 3) focusing on the right side of the BMC. Strategyzer.com references the right side (customer segments, customer relationships, channels, and revenue streams) of the BMC as the “front stage.” The Front Stage is where all the interaction takes place and is visible to your audience. This is where you will see all interaction with your clients, customers, and end-users.