Business Model

The Business Model Canvas – Tea Stall

Key Partners Key Resources Value Proposition Differentiation Customer Segments

Key Metrics Channels

Cost Structure Revenue Structure

 The Business Model Canvas – Tea Stall
Key Partners Key Resources Value Proposition Differentiation Customer Segments
Municipal Authority – tea making skills Leading to Advantage
footpath tea making materials &
building/beautfication complimentary snacks
supplies
Authorities who allow vendor kiosk or carriage
them space use Space rights at an
appropriate place to
Other vendors who offer operate
complimentary snacks or Delivery boy
items people consume
such as vadapav Key Metrics Channels

Bread/tea-
complimentary snacks
suppliers

Cost Structure Revenue Structure

 The Business Model Canvas – Tea Stall
Key Partners Key Resources Value Proposition Differentiation Customer Segments
Municipal Authority – tea making skills Refreshing drink Leading to Advantage
footpath tea making materials & Opportunity to engage in Credits/ Bulk account
building/beautfication complimentary snacks small talk/conversations settlements
supplies during tea time customization of tea
according to taste
Authorities who allow vendor kiosk or carriage Updates/exchange of
Personal touch towards
them space use Space rights at an local information
tea making
appropriate place to Instant delivery of tea/
Other vendors who offer operate Little wait time
complimentary snacks or Delivery boy Liveliness/vigilance on
items people consume road
such as vadapav Key Metrics Channels
Direct sales
Bread/tea- Delivery
complimentary snacks
suppliers

Cost Structure Revenue Structure

 The Business Model Canvas – Tea Stall
Key Partners Key Resources Value Proposition Differentiation Customer Segments
Municipal Authority – tea making skills Refreshing drink Leading to Advantage
footpath tea making materials & Opportunity to engage in Credits/ Bulk account
building/beautfication complimentary snacks small talk/conversations settlements
supplies during tea time customization of tea
according to taste
Authorities who allow vendor kiosk or carriage Updates/exchange of
Personal touch towards
them space use Space rights at an local information
tea making
appropriate place to Instant delivery of tea/
Other vendors who offer operate Little wait time
complimentary snacks or Delivery boy Liveliness/vigilance on
items people consume road
such as vadapav Key Metrics Channels
Direct sales
Bread/tea- Delivery
complimentary snacks
suppliers

Cost Structure Revenue Structure

Space costs Tea sales
Kisosk/Carriage cost Complimentary snacks sales
raw materials
Delivery boy/Assistant costs
Lighting/seating
 Business Model

A BUSINESS MODEL DESCRIBES THE RATIONALE OF HOW AN

ORGANIZATION CREATES, DELIVERS, AND CAPTURES VALUE
 Business Model

A business model is a living document that maps out the details

of your business. It Includes what business will sell, how it will
be structured, what the market looks like, how you plan to sell
your product or service, What funding you need, what your
financial projections are, which permits, lease and other
documentation will be required.
 Business Model
• My thoughts …
– Hypothesis testing
– Iterating
– Beating itup
– Lots of stakeholder
• Goal
– Discover a model that you believe isrepeatable and scalable so you can
build an operating plan around it and execute!
 The Business model canvas

The Business model canvas is one of the best way to represent

the business model in modern times and consists of the core
elements which constitutes the way a startup makes money.

The Business Model Canvas is a business tool used to visualize all

the building blocks of starting a business, including customers, root
to market, value proposition and finance.
 Business Model Canvas

Value Customer Customer

Key Partners Key Activities Proposition Relationships Segments

Key Resources Channels

Cost structure Revenue Streams

9 BUILDING BLOCKS
Cost
Key Partners Struc ture

Value
Propositions

Revenue
Streams

Channels Customer
Relationships

Key
Custo mer Key
Activ ities
Segments Resources
Efficiency Value

4main areas ofbusiness:

- CUSTOMERS
- OFFER
- INFRASTRUCTURE
- FINANCIAL IABILITY
New Venture Transactional Understanding

Customer
Segment

Value Revenue
Proposition Generation
3

7 4
8
1

6
3

5
Key Partners
• Who are your key partners?
• What value is delivered by each?
• How critical are partners to
delivering the value proposition?
• What key resources or activities
are delivered by each?
• What risks or uncertainties are
reduced?
Key Resources
• What key assets are required to deliver
on the value proposition? (Human,
Financial, Physical, Intellectual)
• Are these resources available to you
at a reasonable cost?
• What can be rented, leased or
borrowed rather than purchased?
Key Metrics
• What are the key measures of
business model success?
• How will value delivery to the
customer be measured?
• How are performance
standards developed?
• How do these metrics inform your
revenue and costs?
Value Proposition
• What is it?
• Who is it for?
• Why do they need it?
• How important is the problem that
you are solving for the customer?
• How does it work?
• What is unique or different?
Differentiation Leading to
Advantage
• What is truly unique about your
product?
• Which attributes resonate with your
target customer?
• Is there a durable advantage? Why?
• Can the value be substantiated
quantitatively or qualitatively?
Channels
• How will you reach the customer?
Each segment?
• How are they reached today?
Direct? Indirect? Owned?
Partnered?
• What services/relationship is
offered with each?
• Which channels work best?
• Are the channels integrated?
• Which channels are most cost
efficient?
Customer Segments
• For whom are you creating value?
• What is the Total Available
Market?
• What is the Segmented
Obtainable Market?
• Identify each potential market
segment?
• Compare the needs of each
segment?
• Where do they purchase?
• How do they purchase?
• Why do they purchase?
• What and how do they pay?
• What relationship is required for each?
• What other products or services do
they want you to provide?
• How profitable is each
segment?
• What is your formula for success in
terms of how customers view the
Value Proposition – Differentiation –
Channel - Pricing

Cost Structure Revenue Structure

• What are the cost drivers? (activities, resources, standards) • What are the drivers of revenue?
• What is the resource intensity of producing your product or service? • What are customers willing to pay? What are the pricing mechanisms?
• What is the unit cost structure? • How do they pay? Are there alternative methods of payment?
• Are there economies of scale or scope? • What is the average time to a sale? Frequency of purchase? Volume of purchase?
• What costs are fixed. Which costs are variable? • What is the contribution margin?
• Is the value proposition cost driven or value driven? • What are the breakeven points? (unit volume, sales volume)
• Where is there leverage in the cost model? • Where is there leverage in the revenue model?
• What is the cost to acquire a customer (CAC)? • What is the Customer Lifetime Value (CLTV)?
• What are the working capital requirements?
revenue models
Using selling lemonade as the basic concept, show how the offering would look substantially different using the seven other revenue
models. Can you come up with a really new revenue model for a lemonade stand? Are there any revenue models missing?

Unit Sales Advertising Fees Franchise Fees Utility Fees

Sell a product or service Sell opportunities Sell and support a Sell goods and services on
to customers. to distribute replicable business for a per-use or as-
LISA’S LEMONADESTAND messages. others to invest in, grow, consumed basis.
and mange locally.

A lemonade stand sells individual

units of lemonade sized by cup
to consumers on a per unit basis

Subscription Fees Transaction Fees Professional Fees License Fees

Charge a fixed price for Charge a fee for referring, Provide professional services Sell the rights to use
access to your services enabling, or executing a on a time-and- materials intellectual property.
for a period of time or transaction between contract.
series of uses. parties.
Thank You