business-model-tools

Business Model Tools for Small Businesses and Startups

In this article, we’ll see a few one-page tools to give entrepreneurs clarity of mind on their overall business to take action to build a sustainable venture that unlocks value for many players in the long-term.

Business model canvas

The nine-building blocks of the business model canvas comprise vital partners, key activities, value propositions, customer relationships, customer segments, critical resources, channels, cost structure, and revenue streams.

The business model canvas comprises nine building blocks:

Business-model-canvas

The Business Model Canvas by strategyzer.com

Lean startup canvas

The lean startup canvas is an adaptation of the business model canvas by Alexander Osterwalder, which adds a layer to the traditional business model canvas that focuses on problems, solutions, key metrics and unfair advantage based on a unique value proposition.

You can learn more about the lean startup canvas:

What is the lean startup methodology?

lean-startup-canvas-vs-business-model-canvas

The Lean Startup Canvas is an adaptation of the Business Model Canvas by strategyzer.com

Value proposition canvas

A value proposition is about how you create value for customers. Value Proposition Canvas is a methodology which integrated with the business model canvas can help you design a value proposition for your business model.

For a deep dive into the value proposition canvas:

Blitzscaling business model innovation canvas

In some scenarios, building up a business feels a lot like throwing yourself off the cliff and assembling an airplane on the way down,” as Reid Hoffman, former PayPal, and co-founder of LinkedIn pointed out. 

This is true especially when you’re trying to build a business in an innovative sector, where the speed of adoption becomes critical for its long-term success. In that scenario, the Blitzscaling canvas is better suited:

blitzscaling-business-model-innovation-canvas
The Blitzscaling business model canvas is a model based on the concept of Blitzscaling, which is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency and focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.

Blitzscaling starts from the assumption that a company’s business model  is built on four growth factors and two growth limiters:

blitzscaling-business-model

To gain a better understanding of this tool, you can see below the six levers to blitzscale:

The business model navigator methodology

Assessing, designing and innovating a business model isn’t a simple feat. Thus, it is critical to have several tools that can help you look at your business from different perspectives.

The Business Model Navigator Methodology uses a simple framework to dissect a business model which looks at who, what, how and why of a business. Those four dimensions allow you to map any company’s business model by having a complete picture of its engine.

business-model-navigator

The BMI Lab created this framework. And FourWeekMBA in partnership with BMI Lab also put together a list of the business model patterns identified by its research.

The FourWeekMBA business model framework

fourweekmba-business-model-framework
An effective business model has to focus on two dimensions: the people dimension and the financial dimension. The people dimension will allow you to build a product or service that is 10X better than existing ones and a solid brand. The financial dimension will help you develop proper distribution channels by identifying the people that are willing to pay for your product or service and make it financially sustainable in the long run.

How to dissect Tech Business Models

business-model-template
A tech business model is made of four main components: value model (value propositions, mission, vision), technological model (R&D management), distribution model (sales and marketing organizational structure), and financial model (revenue modeling, cost structure, profitability and cash generation/management). Those elements coming together can serve as the basis to build a solid tech business model.

Business Model Template - By FourWeekMBA

 

How to dissect Blockchain Business Models

vbde-framework
A Blockchain Business Model according to the FourWeekMBA framework is made of four main components: Value Model (Core Philosophy, Core Values and Value Propositions for the key stakeholders), Blockchain Model (Protocol Rules, Network Shape and Applications Layer/Ecosystem), Distribution Model (the key channels amplifying the protocol and its communities), and the Economic Model (the dynamics/incentives through which protocol players make money). Those elements coming together can serve as the basis to build and analyze a solid Blockchain Business Model.

VBDE Blockchain Business Model Template

Key takeaway

Building a startup, a small business or a solo business isn’t simple. Yet to make this endeavor more successful you would be better off by simplifying the processes and methodologies used.

Instead of relying on pages and pages of business planning with a few one-page tools you can be way more effective.

Once you have cleared the few critical elements to build a successful business the remaining part will be about ongoing experimentation. You’ll set up feedback loops from customers, to comprise into the product and service and test if the market likes them.

This process can be simplified with simple tools that in a page can allow the entrepreneur to have a clear idea about the business and start taking actions to build a sustainable business model!

Other resources for your business:

Handpicked business models:

FourWeekMBA Business Toolbox

Business Engineering

business-engineering-manifesto

Tech Business Model Template

business-model-template
A tech business model is made of four main components: value model (value propositions, missionvision), technological model (R&D management), distribution model (sales and marketing organizational structure), and financial model (revenue modeling, cost structure, profitability and cash generation/management). Those elements coming together can serve as the basis to build a solid tech business model.

Web3 Business Model Template

vbde-framework
A Blockchain Business Model according to the FourWeekMBA framework is made of four main components: Value Model (Core Philosophy, Core Values and Value Propositions for the key stakeholders), Blockchain Model (Protocol Rules, Network Shape and Applications Layer/Ecosystem), Distribution Model (the key channels amplifying the protocol and its communities), and the Economic Model (the dynamics/incentives through which protocol players make money). Those elements coming together can serve as the basis to build and analyze a solid Blockchain Business Model.

Asymmetric Business Models

asymmetric-business-models
In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.

Business Competition

business-competition
In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.

Technological Modeling

technological-modeling
Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.

Transitional Business Models

transitional-business-models
A transitional business model is used by companies to enter a market (usually a niche) to gain initial traction and prove the idea is sound. The transitional business model helps the company secure the needed capital while having a reality check. It helps shape the long-term vision and a scalable business model.

Minimum Viable Audience

minimum-viable-audience
The minimum viable audience (MVA) represents the smallest possible audience that can sustain your business as you get it started from a microniche (the smallest subset of a market). The main aspect of the MVA is to zoom into existing markets to find those people which needs are unmet by existing players.

Business Scaling

business-scaling
Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.

Market Expansion Theory

market-expansion
The market expansion consists in providing a product or service to a broader portion of an existing market or perhaps expanding that market. Or yet, market expansions can be about creating a whole new market. At each step, as a result, a company scales together with the market covered.

Speed-Reversibility

decision-making-matrix

Asymmetric Betting

asymmetric-bets

Growth Matrix

growth-strategies
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).

Revenue Streams Matrix

revenue-streams-model-matrix
In the FourWeekMBA Revenue Streams Matrix, revenue streams are classified according to the kind of interactions the business has with its key customers. The first dimension is the “Frequency” of interaction with the key customer. As the second dimension, there is the “Ownership” of the interaction with the key customer.

Revenue Modeling

revenue-model-patterns
Revenue model patterns are a way for companies to monetize their business models. A revenue model pattern is a crucial building block of a business model because it informs how the company will generate short-term financial resources to invest back into the business. Thus, the way a company makes money will also influence its overall business model.

Pricing Strategies

pricing-strategies
A pricing strategy or model helps companies find the pricing formula in fit with their business models. Thus aligning the customer needs with the product type while trying to enable profitability for the company. A good pricing strategy aligns the customer with the company’s long term financial sustainability to build a solid business model.

Leave a Reply

Scroll to Top
FourWeekMBA
[class^="wpforms-"]
[class^="wpforms-"]