Digi-sign Business Model Canvas Made Easy

Digi sign business model canvas

hello I'm Matthew Rempel with strategy made simple and today we are going to be talking about the business model canvas and how it can be used to create a social business first things first the business model canvas is a tool that you can use to outline what a business is how it should function and how the pieces fit together it's not meant to be a detailed analysis like a business plan but instead it's kind of the in-between step between a napkin sketch and that formal business plan so here's what a business canvas typically looks like based on the tools by Ostrow wilder and Penn you're in business model generation you can see that there are nine distinct sections in this series we're going to be looking at each section individually and focusing on a case study of a social enterprise or some other social organization to flesh out a canvas and show you how each piece fits together we're going to start with the value proposition with an extra video on how to create social value customers relationships costs revenue channels partners activities and resources again I'm going to go over each of these sections in far more detail but just so you have the canvas in mind so you know what the hole is the value proposition is why would people buy from you what value are you providing to them and what benefits are they receiving from doing business with you using a cafe as an example a value proposition would be say that you are satisfying their hunger or that you're giving them a place to work that is outside of the home or office when we're talking about social value it could be as simple as providing a place of employment for people who are marginalized out of the workforce or it could be something environmental where your practices are reducing the harm on the environment through the use of compostable or recyclables then your customers who is buying from you in the case of a cafe it's probably the local neighborhood population or people who are travelling through and within customers you'll have a difference between your regulars and the one-off buyers and in the relationship section is where you would describe that relationship do you have an in-depth regular style relationship or is it a drive-through where people grab their coffee and then they're gone we will look at the channels how do people find out about you and how do they purchase from you do they see a sign as they're driving past or do you have an email list where you send to all of your regular customers then we're gonna talk about costs and revenue how much does it cost for you to provide a cup of coffee and how much can you sell it for what kind of extra value increases the revenue and what kind of costs are associated with providing that value then we'll be talking about the partners you have in your business in the case of a coffee shop this is the roaster the supplier this is also any other company or organization that you hold a long-term relationship it's the people who help you provide the value the other organizations the other businesses that help amplify or build up your business we're going to talk about the activities that your business takes the activities are the things that you do from day to day they are going to include things like roasting brewing preparing baked goods and selling them at the point of sale this is most often confused with the value proposition so make sure you understand the difference and again we're going to go over it in a later video and finally what resources do you have available this is going to include things like the real estate that you own or the machinery this is going to include the staff expertise resources are the bits and bobs the assets that you have that enable you to do the work that you're looking to do over the course of this series we're also going to look at different kinds of business models and how they can be used from the simple product or service to the more slightly more complicated platform or marketplace kind of business models as we're going through the business model canvas one of the big things we're going to be looking at are the connections between the sections as they self reinforce you build up a stronger business a more resilient business that is more aligned in attack as you're drawing out your business model canvas don't be too specific in what you're writing in each box you want to be more generalized so instead of saying a particular individual as a customer say a particular segment of customers instead of saying Shelley the 35 year old local soccer mom you would say active parents from the ages of 30 to 45 the business model canvas is just made for a sketch of the business it's not outlining HD operations so if you want to get into that detail you can go do a business plan that's fine that's not what this tool is for however as you're writing up a business plan having a sketched out business model canvas can help you know what sections are important and how you want to flesh those out throughout this series I'll be using a slightly modified version of the business model canvas where I include sections on where do you provide social value where is the social value created and what externalities or negative side effects are you going to try to prevent also as a part of this business model canvas exercise I'll be asking how what possible unintended side effects are there and how can you either amplify them if they're positive or mitigate them if they're negative so why bother modeling a business why bother having a business model it is the foundation of a business if you don't know the model if you don't know how you're creating a capturing and or selling value then you don't know how your business works so you might be asking why does modeling matter it matters it matters because modeling shows you where the gaps in your knowledge are if you don't sketch it out if you don't draw it or write it however your brain works you won't know where the open-ended questions are where the uninformed risks might sit it matters because if you don't have a model written out to sketched out and drawn out however you want to do it then you don't know where the gaps in your honor ancar if you don't even know where the missing pieces are how are you supposed to fix that it'll also provide a visual for your team so everybody can be on the same page everybody will know where their spot in the business is it'll provide a visual for your supporters partners and team members to push back they'll be able to see the whole and ask pointed questions to ask is this an assumption how do we know this those kinds of questions will challenge your assumptions and if you don't have a team to do that I would suggest you find somebody to ask those questions of you show them your business model if you're unable to explain your business model with the business model canvas then go back clarify what your business is and how it is supposed to work as of right now this is going to be a multi video series so look out for more to come I'll include a link to the next video once it goes live and if you have any questions please feel free to tweet it at Matthew Rempel send me an email Matthew asked strategy made simple dossier or join me at social economy connect it's a place for us to discuss social business issues and how we can do social impact through business in a better way it's also a place to get support through challenges so if that sounds of interest to you I've left a link down in the description so you can come and join us thank you for watching if you've appreciated this video please share it with somebody else and as you're drawing for the business model canvas keep it simple [Music]