What Does Your Business Model Look Like?

A business model is how a company creates value for itself while delivering products or services to it's customers. It's not an org chart, it's about 9 key pieces:

  • The Value Proposition: What pain are you solving? What gain are you creating? Who are you solving it for?
  • Customer Segments: Who are they? Why do they need you? What are their demographics? What's their persona?
  • Distribution channels: How does your product get to your customers?
  • Customer Relationships: How do I get customers (acquire)? How do I keep them (activate them)? And how do I grow them (retain and up-sell)?
  • Revenue Streams: How do I actually make money from my customers? What value do is the customer paying for? What's the strategy for capturing that value? What's the revenue model?
  • Key Resources: What assets/key resources are important to your business model?
  • Key Partners & Suppliers: What exactly are you acquiring from your partners and when are they going to preform those actions?
  • Key Activities: What are the most important activities you must complete to make the business model succeed?
  • Costs: What are the costs and expenses to operate the business model?