1. Business Model Evaluation
By Peter Baskerville
17/06/2019

2. '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

3. Who should evaluate? You – It has to be your epiphany
Customers via the customer development process
Experienced entrepreneurs – via business model interview & discussion

4. 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”

5. 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

6. Niche start
Matches value proposition
Situation (glass of water)

7. Matches segment
Subjective margins
Unique sell proposition
MVP

8. Easy entry
Testing phase
Accessible
Digital

9. Scalable
Repeat & refer
Evangelists

10. Little and often
Automated
Cash not credit
Multiple

11. Unique – unfair – difficult to copy
Controllable
High valued by segment

12. Critical – no barrier – can do.
Skills are in-house
Extensive experience

13. Already establish
Add value – competitive advantage
Compliment

14. Affordable setup
Reducing scalability
Minimum fixed costs

15. Good chance of Success

16. To Do List
Group activity 9 - Business model feedback