DAVE JARMAN HEAD OF ENTERPRISE EDUCATION The Business of Music

What comes to mind when you think of ‘Business’?

The Business Model Canvas

“A business model describes the rationale of how an organisation creates, delivers and captures value.” Alex Osterwalder & Yves Pigneur

The Business Model Canvas The Canvas is a visual tool for exploring business models Entrepreneurship education has become increasingly focused on the business model rather than the business plan We’ll be using it to explore your ideas.

Customer Segments For whom are we creating value? Each group of customers needs a distinct offer – something that addresses their specific needs/desires. Who are our most important or valuable customers? What do we know about their buying behaviour and what are they currently using as an alternative?

Value Propositions What value do we deliver to the customer? Which one of customer’s problems are we helping to solve? Which customer needs are we satisfying?  Newness, Performance, Customisation, Effectiveness, Design, Brand, Price, Cost Reduction, Risk Reduction, Accessibility, Usability/Convenience What bundles of products and services are we offering to which customer segments?

Channels Through which mechanisms do our customers want to reach our products and services?  Sales teams, Website, Shops, Partner stores or sites, Wholesale… How do our channels integrate? Which channels work best? How do our channels adjust to customer behaviour?

Customer Relationships What type of relationship does each Customer Segment expect us to establish and maintain?  Personal assistance, Dedicated personal assistance, Self-service, Automated services, Communities, Co-creation How costly are they? How will they integrate with the rest of our business model?

Revenue Streams For what value are our customers really willing to pay? How do they want to pay for our products and services?  Asset sale, Usage fee, Subscription fee, Lending/Renting/leasing, Licensing, Brokerage fee, Advertising What do they already pay and how? How much is each revenue stream worth overall? What price should we charge?

Key Resources What Key Resources do our Value Propositions require?  Physical assets – facilities, vehicles, machines, systems, distribution networks  Intellectual resources – brands, patents & copyrights, partnerships, databases  Humans – appropriately skilled and motivated people  Financial – cash reserves, lines of credit, financial guarantees Do we need to own these ourselves? Or can we borrow/lease?

Key Activities What Key Activities do our Value Propositions require? What actions are required to deliver our Channels, Relationships, and Revenue Streams?  Designing, making, and delivering at an appropriate quality require a focus on the production processes  Problem solving for customers issues, consultancy services, anything service based require a focus on knowledge management and staff training  Building a business around the provision of a platform are dominated by managing, promoting, and maintaining that platform and how it interfaces with customers

Key Partners Why Partner?  Optimisation and economies of scale  Reduction of risk and uncertainty  Acquisition of particular resources and activities What Key Activities or Key Resources do our Partners supply to us and/or acquire from us? Forms of Partnership: Alliances, Joint Ventures, Buyer-Supplier, ‘Coopitition’ (partnerships between competitors)

Cost Structure What are the most important costs inherent in your Business Model? What do our Key Activities and Key Resources cost us and how much can be offset through Key Partnerships? Cost Structures:  Cost-Driven: focus on minimising costs for the leanest possible operation  Value-Driven: focus on value creation – often premium products and services Fixed Costs & Variable Costs (those that flex based on sales)

The Business Model

The Business Model Canvas

Enterprise Education

Enterprise at Bristol We’re here to help you have ideas and act on them!  Inspiration  Support  Innovation Think Big… Act Small… Fail Fast… …and Learn Quickly!

What do we try and teach? Creativity Self-awareness and self-belief The difference between an idea and a business idea… The skills to help create:  Economic value  Social value  Cultural value The skills to build things that last We do this in the curriculum where we can – but we have an extra-curricular offer open to all.

Societies

Business start-up support Advice & guidance Seed funding (£30k) Desk space Education & Networking events – ‘Monday Means Business’ Mentoring match-making Summer Enternships (£ desk) Surgeries:  Book-keeping  Branding  IP & Legal Matters Facebook search ‘Bristol Basecamp’

Basecamp Master-classes Weekly short talks on start- up:  Generating ideas  Good Ideas vs. Good Business ideas  Understanding the market  Company Formation  Resources for start-ups  IP for start-ups  Finance  Elevator Pitches  Business plans Facebook search ‘Bristol Basecamp’

New Enterprise Competition Open to students, staff, and recent graduates Termly panels offering small grants 4-page Business Plan submission by May 2014 Shortlist through to presentation panel in Autumn 2014 £35,000 prize fund Advice & workshops available Concepts, Plans and Trading start-ups all welcome and judged separately