The Entrepreneurship Hatchery

Business Model Canvas Workshop

Value Proposition What are your customers’ pains? What are your customers’ needs? What are your key features that match the problem/need? What are your hypotheses?

Customer Segments Who are your most important customers? What is their archetype? How many of them are paying? How many total users? Market size?

Channels Through which channels do customers want to be reached? Channel Phases: awareness, evaluation, purchase, delivery, after sales

Customer Relationships How do we get/keep/grow key customers? How do we grow our customer base? Gaining new vs Upselling old customers Cost of acquiring a customer: 5 x cost of retaining

Revenue How do we make money? What are our pricing strategies? What is the market size? Strategies: asset sale, usage fee, subscription, lending/renting/leasing, licensing, brokerage fees, advertising

Key Partners Who are they? Why are we partners? Who are our key suppliers?

Key Activities How are we getting to our goal? When are we getting to our goal? Production Problem solving Platform/network

Key Resources What are our key physical intellectual human financial resources? Limits to growth

Cost Structure What are our most important costs? Are they fixed? variable? Licensing fees – royalty, laws, different jurisdictions What is the size of our market?

Example: Zipcar 10 Minutes 3-4 person groups + Mentor Work not only with your own group members Address all nine segments of the business model canvas Be prepared to discuss your ideas/rationale

Zipcar provides young, environmentally conscious city-dwellers with a cheap and convenient short-term car rental service. People who… live in the city use technology too young to rent cars are unhappy with current alternatives environmentally inclined All users are paying Growing market size Use automated systems Self-service during rental Feedback, ads through social media Information on website Upsell: website, reviews Mobile applications Website FB, Twitter, G+, YT LinkedIn, Yelp Parking lots in city Subscription based service Makes it cheap for users, higher volume Low monthly, daily, hourly, yearly rates - upsell Car companies provide resources Payment system Visa, Mastercard, Interac Insurance companies lower risk/uncertainty City/parking authority provide resources Set up parking lots Obtain, maintain car fleet Manage insurance issues Update pricing, website information, social media Physical: cars, cards, parking spaces Human: marketing, website development, managing Financial: initial high costs Salaries, vehicles, maintenance, insurance, gas, parking space, cards, payment system, servers, advertising Never turned a profit, sold to Avis

Questions?

Thank you!