What’s the business model of your venture?
The following post is from Fifi Shi ’18, a Butler Venture Accelerator team member.
Professor Andrew Corbett and Professor Erik Noyes hosted two business model sessions for Butler Venture Accelerator cohort members on October 6, helping them revisit the business model and walking them through how to articulate theirs.
Business model, by definition, is the way a business to create, deliver and capture the value, but how can we create our own ones? The professors introduced a great tool – the business model canvas. There are nine main components: customer segments, Value proposition, Channels, differentiation, Revenue streams, Key resources, key metrics, Key partners and Cost structure.
These nine segments can be divided to four main areas, which are customers, offers, infrastructures and financial viability. We can also access the canvas from the view point of market and product, delivery of the value and efficiency. No matter how to categorize these components, it is how we position ourselves and what value we want to create at the end of the day.
The professors also mentioned that “This is a model, not a bible.” The canvas is a great tool to guide our business but it doesn’t mean we have to follow it step by step. Even with the same segments, different ventures can act differently, depending on how we put everything together.
Are you exploring a new business idea? Take a look at the business model canvas (here’s a great video) and build your own business model!