Challenge Each Block
We’ve mentioned a few times that the BMC and other supporting models you use for your business should be treated like a living document – to be constantly returned to and updated as you go. Doing this will ensure you keep the proper perspective about your business’s chances of success all the way through.
That makes sense, but how can I do this practically?
Below, we’ve provided a set of proposed questions you could ask for each block to ensure your BMC remains a relevant, up-to-date tool to guide you.
To illustrate how these questions might help, we’ve answered some below. In the first three sections (Customer Segments, Value Proposition, and Channels), you can see how the founders of TFRG might respond to them and how it can help them as they launch and grow their businesses. Put yourself in the founders’ shoes and try answering the remaining questions.
Customer Segment
What new customer targets can you reach?
Well, we’ve assumed, up to now, that we only have one main target customer segment, but most businesses have more. Existing C-Suites in more established businesses would likely value our service, so there’s an obvious opportunity.
Value Proposition
What value proposition do our customers recognize?
What matters to them is the knowledge aspect of our value proposition.
How is it different from the competition?
We don’t know of any specific competition.
Are there any needs or problems related to the one you are addressing today that you could handle?
Our general view is that founders have a broad set of needs adjacent to the one we are solving. So, it’s conceivable that we could move to address those in time.
Can you add or remove elements to your value proposition to position it differently and target a new customer segment?
We could retain the subscription concept, but deliver another physical product; or we could offer to sell the books directly without the need for a subscription.
Channels
What other acquisition channels could you test?
There are many. We haven’t even started. Google, social, and direct mail could all be critical channels.
What other distribution channels could you test?
We’ve already identified some key partners who can help with distribution.
Have customer habits evolved, and are you present in these new customer routines?
We haven’t identified anything for the moment.
Launch Your Business With Flexibility
Look at us! We have a business model with a well-thought-out value proposition – a good understanding of the environment into which it will launch and a commitment to keeping on top of the strategic reality in the market.
Let’s review all of the artifacts we have created.
First, we used an Empathy Map to focus on customer segments. It helped us understand our customers without falling for classic socio-demographic stereotypes.
Then, we built on that information to articulate our business’s value proposition using the Value Proposition Canvas. This involved thinking about customers’ JTBD (jobs-to-be-done), and identifying pain relievers and gain creators for them!
This was our starting point for working through the Business Model Canvas. We built our business model using the canvas over the next few chapters. We identified the interdependencies in the business and avoided making mistakes when we launched. We can now see how to create value for our customers, how we reach them, how to make money, what partners/channels we need, and how to manage customer relationships. We can see whether we have a viable, profitable business.
Finally, our SWOT analysis provided a helpful perspective on the factors that might influence our business as it grows - internal and external factors, and helpful and harmful factors that we need to watch out for or solve.
What now?
Well, you may have been working on your business case throughout this course, completing your own canvas along the way - if so, great! For you, it would make sense to get started! You could launch it, or you may feel that it would be valuable to challenge your BMC now that you have completed the course. Or show it to a trusted colleague to get their feedback.
If you haven’t been building a business case throughout this course, maybe you have a great business idea but wanted to finish the course first. Or perhaps you have some vague business ideas but none that feel well-developed. My suggestion to you is to have a go! In fact, one of the wonderful things about the BMC is that it can help you to develop your idea further since it challenges you to explore what could be possible; it raises questions, the answers to which move your business forward!
Ultimately, the aim is to put your business out there.
You can use your canvases to guide your early steps into running the business. Return to them regularly, check your progress, and update them to remain relevant to the changing environment!
Well done!
Once you get started, you may discover something that you believe is not true. Or you may learn more about one of the blocks. These learnings will only strengthen your model!
You must be flexible enough to recognize these moments when they occur. By adapting to what you are discovering, things will flow more smoothly, allowing you to avoid risks as you progress.
I hope you have enjoyed working through this course as much as I enjoyed creating it. I'm sure you now feel ready to work on your own Business Model Canvas to transform your ideas into reality. My suggestion is just to go ahead and get started! I wish you all the best with your endeavors from here.
Let’s Recap!
Many factors that were true when the business first created a BMC are subject to change at any time, so business leaders must return to the BMC to see if things have changed.
Flexibility in launching/running your business will ensure you manage risk and set your business up for success.
Just get started!
Don't forget to finish the last quiz to practice what we've covered in this last part!
