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Top Ten Reasons the Business Model Canvas ROCKS!

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Presentation on theme: "Top Ten Reasons the Business Model Canvas ROCKS!"— Presentation transcript:

1 Top Ten Reasons the Business Model Canvas ROCKS!
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2 1. BMC tells the whole business story on one page utilizing 9 basic building blocks.
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3 © VtSBDC

4 2. BMC is clear and concise
2. BMC is clear and concise. It forces the business owner to address all components of running a business. © VtSBDC

5 Who can help? How do you do it? What do you do? How do you interact
with them? Who do you help? What do you need to do it? How do you reach them? What will it cost? How much will you make? © VtSBDC

6 needs of the customer first.
3. BMC puts the needs of the customer first. © VtSBDC

7 6 4 8 2 1 7 3 9 5 How do you interact with them? Who can help? How do
you do it? What do you do? Who do you help? 6 4 8 2 1 7 3 What do you need to do it? How do you reach them? What will it cost? 9 How much will you make? 5 © VtSBDC

8 4. BMC places the business in the context of the real world.
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9 i.e.: Societal Shifts, New Technologies
Key Trends i.e.: Societal Shifts, New Technologies Industry Forces i.e.: Competitors i.e.: Growth or Decline in Particular Segments Market Forces Who can help? Who do you How do you do it? What do you do? What do you need to do it? What will it cost? How do you reach them? How much will you make? interact with them? Macro-Economic Forces i.e.: What is happening in the Global Economy that will affect your product/service © VtSBDC

10 effective way to challenge the basic business idea
5. BMC is a fast, easy, effective way to challenge the basic business idea to see if it has legs. © VtSBDC

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12 6. If a full business plan is needed, development is easy because of the thoughtful work completed on the BMC. © VtSBDC

13 © VtSBDC

14 7. BMC addresses the 5 C’s: Character Capacity Capital Collateral
Conditions © VtSBDC

15 Macro-Economic Forces CAPACITY
CHARACTER If they can complete this effectively they have started to prove themselves CAPITAL As the numbers get drilled down and their level of required investment becomes clear Key Trends COLLATERAL Is there land, buildings, equipment, etc. Who can help? Who do you How do you do it? What do you do? What do you need to do it? What will it cost? How do you reach them? How much will you make? interact with them? Industry Forces Market Forces CONDITIONS Answer the 4 outside quadrants Macro-Economic Forces CAPACITY Revenue Streams – Cost Structure = P/L & Cash Flow © VtSBDC

16 VtSBDC uses it every day.
8. BMC can be used to identify an existing business’ problems and opportunities. VtSBDC uses it every day. © VtSBDC

17 Examples of Existing Business Uses
Opportunities: New product introduction New distribution model New hires Lending needs: LOC New asset based loan Concerns: Decrease in sales Increase in expenses Decrease in profitability © VtSBDC

18 And it works for every business.
9. BMC works in our new business environment because it’s dynamic and visual. Comprehensive. And it works for every business. © VtSBDC

19 10. It’s HIP! Our clients LOVE it. © VtSBDC

20 Resources on the Business Model Canvas:
Best Book: Business Model Generation by Alexander Osterwalder & Yves Pigneur Best Videos: “Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.” © VtSBDC


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