Business Model Canvas

Create and capture value.

And to visualize that, we have figure 7.3, the business model canvas.

This is such a great tool.

It has nine boxes.

And then w- it's the use of tools.

So coaching tools, mentoring tools, all sorts of things like the business model canvas.

We've got the OSCAR.

I mean, there's so many out there, but as, as long as you have a couple of favorites up your sleeve that you can refer to, then that is key.

as the guy that created the business model Canvas.

That was the start.

Dude, crazy.

Sounds fancy, yeah.

But the idea was, could we come up with a rigorous model so we could build computer systems on top? So it was complicated stuff, went really in details and modeling.

And then later on, after I left academia and went into practice, we took kind of the top layer, and that became the Business Model Canvas.

But what was below was rigorous academic research.

Was

And finally, step four, company building, transitioning the organization from a searching startup to an executing company with departments and VPs.

And to replace that useless, hallucinated 50-page business plan during this chaotic search phase, the sources introduce a phenomenal tool created by Alexander Osterwalder and Yves Pigner, the Business Model Canvas.

The canvas is a brilliant visual tool.

It takes the sprawling complexity of an entire business and distills it into nine interconnected blocks on a single piece of paper.

We talked about turning off the schlep filter to find the deep, narrow wells of desperate customer need, like the early days of Stripe and Altair Basic.

We mapped out the pain with Suffering Sally and learned the strict psychological rules of customer interviews to bypass the polite lies and avoid false positives.

We threw away the hallucination of the 50-page business plan and embraced the dynamic reality of the business model canvas.

We realized that startups are temporary organizations searching for a model, not executing one.

These elements will help you figure out your distribution, which is where and how your customer will interact with your solution, your potential partners and collaborators, For example, you might end up going through institutions or people they already trust that you could potentially work through and the resources you need.

And a great way for putting this all together to kind of have the seeds of a preliminary business model is a tool called the business canvas.

which was made by strategizer.com. And you can also use the social business canvas, which is very similar

version.

So your decaf oat milk extra, but not piping hot, four pumps of caramel, no sugar, small latte, and a large cup.

It helps you examine the different pieces of the puzzle and what they look like when you put it all together, and then you can step back and see the complete picture.

So it asks you to articulate your central value proposition, the key activities and resources needed, potential partners for bringing all these resources together, It specifies your customers, the different customer segments maybe, like the end users, different end users or potentially the decision makers or economic buyers and other stakeholders and how you'll reach them.

So I love using the business canvas.

And I've mentioned some of these, and my students and I wrote them out on the chalkboard in class.

And then last but not least, my students kind of sketched out how would we put together a business canvas for a daily table.

What's the central value proposition? What are the key activities and resources that he needed? The partners that might help him? And then what are his customer segments and the channels that he'll reach them? And how is he going to build those relationships? And the business canvas also asks you to start sketching out your costs and revenues.

And we're going to go into those in more detail in future modules.

But this is an opportunity to really start kind of taking notes on what those might look like.

So excited to have you on the podcast.

I use the Business Model Canvas in my startup.

back in 2013.

And so why don't you start just by telling the audience, for those of them who don't know who you are, what you do, and why you created Abyss Model Canvas, tell us a story.

You know, I started a company called Strategizer and we basically really help companies around the planet, you know, focus on creating value for customers in very different ways.

And along the way, we create tools.

And the Business Model Canvas was the first one, which actually came out of a doctoral dissertation with Yves Pignard, who a longtime friend, co-author, was my PhD supervisor.

And what we worked on was the topic of business models.

And The Mom Test, that book is great about, um, sort of helping you to identify what are the assumptions you're making that are actually f- not founded on anything other than your own personal perspective and not your client's pro- or potential prospects.

So the, the journey with The Lean Startup, um, a tool particularly called the Business Model Canvas-

Yeah

... was really, really fantastic.

And, and I, I used that a lot in the early days.

I don't now use the Business Model Canvas as much, but I still use the principles from it when making new decisions.

The idea of, you know, we don't go out to market knowing everything.

We go out to, out to market testing our assumptions in that journey.