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