Business Model is probably one of the most needed tools to develop the business, and it is one of the least known among Omani SMEs and founders. It also has misconceptions around what each column represents. It is a living document with crucial questions to answer.
The right side of the canvas is all customer oriented. The left side is focused on how you do it; the operational side of the business.
With each section of the 9 sections of the business model canvas, come certain questions that would guide any founder in their journey.
Below is a simple explanation of some of these terms and some questions that would support you if you’re in the process of designing your business model.
- Customer Segments:
The first question to ask here is:
- Who are your most important customers?
Following which you can design customer archetypes, i.e. customer personas. This you can define by answering the below questions once you understand who your most important customers are:
- Who are they? (Position, title, gender, role)
- How do they buy? (Name of budget and average amount)
- What matters and motivates them
- Who influences them?
- Draw a day in the life of your customer.
Following this, the most important thing to define is Job To Be Done (JTBD):
- What job do they want you to get done for them?
- Value Proposition
Value proposition includes two main questions that an SME needs to answer:
- What customer problems are you helping to solve?
- What customer needs are you satisfying.
Explaining different channels that could be used to reach customers, and answering:
- Through which channels do your customers want to be reached?
- Customer Relationships
What kind of relationships can you have with customers? This section will help you answer: How will you get, keep and grow customers?
- Revenue Streams
Understanding how the company will make money, defining the revenue model, and pricing tactics for the company. This will be represented by percentages of the total revenue for each revenue stream. For example (Direct sales 50%, Licensing 25%, Partnerships 25%)
- Key Partners
Mapping out the key supporters of the business. Who are your key partners and key suppliers? What are you getting from them, and giving to them?
- Key Activities
What are the key activities that make your business? Manufacturing, software development, etc?
- Key Resources
Understanding the different kinds of resources a business needs. Financial, physical, intellectual property, human resources etc? What key resources do you require?
- Cost Structure
What are the most important costs in your business model? What are the fixed and variable costs you have? Also represented by percentages per cost category.
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