1. University of Dayton FLYER PITCH Competition
Business Models for your entry

2. Quick Def: Ecosystem
It is all the steps required to get a product to market.
From manufacturing to warehouse to retail to the customer to installation and training
Example: Apple has spawned an entire ecosystem that supports the iPhone
Retailers, apps, accessories
How all does Apple profit from the iPhone?
They sell iPhones
Apple gets a modest portion of At&T revenues from AT&T contracts
Apple gets 30% from all software apps for the iPhone
Apple iTunes sells content to play on the iPhone

3. A Business Model explains how you make money on a solution
Each piece of the ecosystem has costs/revenues—which are yours?

4. Five main areas of a Business Model
Content Creation/Design
Physical Creation
End Customer Sales & Support
Admin
Content/Service Distribution

5. All five get done—you don’t have to do all five!
It’s called a “make/buy” decision; you can do it yourself or outsource it to someone
“Fully integrated” doing all five steps yourself
“Boutique” doing just one step
Search: Lay out the make buy at each step and change one at a time—it should lead to 20 different business models

6. Decisions to make in a Business Model
Produce, License or outsource?
Bundle or stand-alone?
Sell directly to end customers or to Goodyear?
Sell directly or to retailers (or even wholesalers)
On-line, Bricks and Mortar?
Can we outsource the admin of the company?

7. We have been using the word sell, any other models to think about?
Lease stems to Goodyear?
Give them away—someone else’s promotion?
Sell ads (weak on this idea)
Let customers re-sell them on to friends
Charge someone else for them

8. Look for products in a market failure
Buyers and sellers cannot come together for some reason
You bring them together
Create a marketplace
Buy from sellers, transport to buyers
Consignment
Hired gun for buyers
Sell expertise in grading quality of stuff to be bought
Arrange logistics between buyer and seller
Arrange financing
Ask these questions of your product/service too!

9. Heroin Business Model
Give away the product for now, then charge later

10. Bundled goods King Gillette gave away razors and sold blades
HP sells printers at a loss and marks up toner
Toner cloner

11. What makes for a good business model in the judge’s eyes?
Simple enough business you can make it work
Adds value in the ecosystem so others members of the ecosystem benefit
Not a commodity product
Same crafts at 100 booths at the Pork Festival
Overcomes market failure problems
Serves a niche

12. Advice in your application
Be clear what steps you perform and which you outsource
Show where you intend to charge for revenue
Talk about any additional revenues or variations on sales