Business Model Development

Although both aforementioned methodologies have many similarities, Lean Business Model Canvas has some good unique elements that you should to think about before you start your business. Some of Lean Canvas elements have already been explained because they are a part of the Business Model Generation, namely Value proposition, Distribution channels, Customer segment, Cost structures, and Revenue streams. There is a difference in these four elements: Problem, Solution, Key Metrics, and Unfair Advantage, that will be explained further in the text.

1.      Problem

The purpose of every business is to solve a customer’s problem(s) or meet their need(s). When you try to explain the purpose of your business, try to be as specific as possible, i.e. explain what the problem is, who has that problem, what the possible solutions are now, what your business offers, and how the company/product/services will change or improve this current situation.

Good explanation how to present ‘the problem’ you have solution for is offered in (Sandelin): (Retrieved, July 4, 2016 from http://ga.co/29rpEHP) or McMahon (Retrieved, July 4, 2016 from http://bit.ly/29xR1B0).

STUDENT ASSIGNEMNT:

Think about PROBLEM your business will resolve and write it down as a preparation for your final assignment.

You have already considered some of the problems you (will) face when developing your business idea. Keep thinking about potential problems and discuss your ideas with your professors, colleagues, friends, potential users, other entrepreneurs and family and try to use the feedback you get to improve your problem explanation you be will offering to others.

ASSIGNMENT 11!!! Explain the problem you plan your business will solve using no more than 500 words and submit it as your 11^th assignment.

2.      Solution

Since you identify existing problem, it is time to present solution your company will offer to the world/customers with the aim to resolve the problem and improve offer of product or services you identified in phase of problem definition. Try to make it as explicit as it is possible.

Example www.rentl.io is application/solution for those who rent apartments or other services. And the initial problem was: many different places where guests booked, difficult to track reservations in real time etc. So they develop solution: application where all reservations will be booked in real time, in further development they offered full property management, customer relationship management for this business. Solution they offered: Rentlio is the most intuitive property management, channel management and guest engagement system on the market built exclusively for family owned vacation rentals. Rentlio will help you eliminate stress and administration while giving you precious time to focus on guests and sales. Complex yet intuitive and user friendly, Rentlio is an ‘all in one’ solution with user experience as top priority. (Retrieved July 1, 2016 from https://rentl.io/en#aplikacija)

STUDENT ASSIGNEMNT:

Think about Solution you will offer to the world and write it down as a preparation for your final assignment.

Solution was also a part of your business idea you have already considered. Now keep thinking about it and discuss it with your professors, colleagues, friends, potential users, other entrepreneurs and family and try to use the feedback you get to improve your problem – i.e. explanation of the solution you will offer to others.

ASSIGNMENT 12!!! Explain the solution your business will offer using no more than 250 words and submit it as your 12^th assignment.

3.      Key Metrics

There are a ton of things possible for measuring in your company, but on the beginning of the business key metrics are the activities of company users that move them forward in usage of product or services company offers to them. When we discussed about Key Metrics we need to mention Key Performance Indicators (Retrieved, July, 3, 2016 from: http://bit.ly/29tAwDO).

The way how Key Metrics will be defined depends, as everything we have discussed before of your ‘core’ business. Some examples: number of registered users, profit… for more deep information about KPI Metrics please read Jackson (2015): (Retrieved, July 3, 2016 from http://bit.ly/2a0u7C9),

STUDENT ASSIGNEMNT:

Think about Key Metrics that characterized your business and write it down as a preparation for your final assignment.

Discuss them with your professors, colleagues, friends, other entrepreneurs and family and try to use the feedback to choose the best Key Metrics which represent your business and which you will communicate to others (investors, partners, suppliers etc.)

ASSIGNMENT 13!!! Explain the Key Metrics of your business using no more than 250 words and submit it as your 13^th assignment.

4.      Unfair Advantage

‘Competitive advantage is a company’s ability to perform in one or more ways that competitors cannot or will not match.’ Kotler, (Retrieved, June 25, 2016 from http://bit.ly/29q9IJJ).

Unfair advantage is something your company possesses or is able to offer the World what is not easy to be copies, replicated or produce from other companies, at least not in short run. Your unfair advantage possibly will not last forever, but it is good start point. Great explanation of unfair advantage is provided by Oana Juncu (Retrieved, June 30, 2016 from http://bit.ly/29zFHXz).

STUDENT ASSIGNEMNT:

Think about Unfair Advantage of your business idea/project, uniqueness you think that your business is possessing and write it down as a preparation for your final assignment.

Discuss it with your professors, colleagues, friends, potential users, other entrepreneurs and family about the strategy and try to use feedback you choose the best Key Metrics which represents your business and which you will communicate to others (investors, partners, suppliers etc.)

ASSIGNMENT 14!!! Explain the Unfair Advantage of your business idea/project using no more than 250 words and submit it as your 14^th assignment.

Business model planning is a newest way of developing business ideas/projects, which is mostly present on the startup scene. It refers to the ways of thinking about your business idea in a way that you can clarify what you will do without providing a very detailed projection and prediction (financial) and writing down on no more than one sheet of paper, usually it is possible to prepare it in a limited period of time.