Business Model Evaluation

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Business Model Evaluation By Peter Baskerville 17/06/2019

'Start your own business' course 17/06/2019 Week 5 – Session 4 Business Model – Part 1 Business Model – Part 2 1 2 Evaluating a Business Model Proof of Concept 3 4 Peter Baskerville

Who should evaluate? You – It has to be your epiphany Customers via the customer development process Experienced entrepreneurs – via business model interview & discussion

It’s a formula Many variables but only one answer = a good chance of success All three horizons considered (launch, to breakeven, blue ocean) Played to your strengths – path, timing, uniquely qualified to exploit, unfair advantage. “The planets align”

Compelling story A clearly defined problem or need A solution that solves the problem in a compelling way A sustainable market that highly values your solution – pent up demand Riding a change Tested – proof of concept

Niche start Matches value proposition Situation (glass of water)

Matches segment Subjective margins Unique sell proposition MVP

Easy entry Testing phase Accessible Digital

Scalable Repeat & refer Evangelists

Little and often Automated Cash not credit Multiple

Unique – unfair – difficult to copy Controllable High valued by segment

Critical – no barrier – can do. Skills are in-house Extensive experience

Already establish Add value – competitive advantage Compliment

Affordable setup Reducing scalability Minimum fixed costs

Good chance of Success

To Do List Group activity 9 - Business model feedback