When we speak with young businesses there is a common theme amongst them, and it’s rather unfortunate: Not a single new business doesn’t fully understand the 9 Key Aspects of their business. Although this is kind of an unfair analysis it is not an excuse to not know how your business should ideally operate.
For the Digital Origin Team, the theory of a Business Model Canvas is as follows: If you can’t describe a key aspect of your business in 3 words then you haven’t thought about it long enough.
There is the notion of an Elevator Pitch which we disagree with. The idea is that if you find yourself on an elevator with a Senior Executive at a company that can become a customer, or even invest in your business, you have 30 seconds to two minutes to pitch your business – or the duration of the average Elevator ride. The problem with the notion of an Elevator Pitch is as follows: Elevators have VIP operating modes. These VIP Modes allow for direct – floor to floor – transfer of passengers without stopping on any other floors. Meaning: You will never see this ideal Senior Executive on an elevator. If for some reason you do, they’ll likely be annoyed because they’re not getting the VIP treatment and that’s not a good time to pitch someone. We know its a little silly of an explanation but it allows us to shift the thought process associated with describing your Corporate Value.
Instead of having 30 seconds to describe your business, using a Business Model Canvas forces you to do this in 5 seconds. You should be able to describe your Value to a 5-year-old (depending on the hypothetical child’s vocabulary naturally).
Although we offer our clients the options to help develop, and evolve, their Businesses Business Model Canvas we’re big believers in sharing information that can help you educate yourself. The following video is the best primer we’re aware of to help explain what this Canvas looks like and how it can help your business!
Since there is a natural order that a Business Model Canvas gets filled out – and some people fill out different first parts – we wanted to provide you with one of the most important parts of your Business Model: Your Value Proposition.
The following video provides a great explanation of what a Value Proposition should be.
Lastly, no explanation of a high level concept should be complete without the inclusion of a Real World Example! The following video describes a Value Proposition of Air B&B.