Using Business Modeling to Improve Your Startup

Description
Building a strong business model is the key to improving the chance that a new business will have a successful launch and survive over the long-term. The business modeling process discussed in this course is a dynamic approach that helps the entrepreneur adapt and change their business model as new information is discovered from prospective customers. The video walks the learner through a three-stage process of business modeling.

The first step is idea modeling using the Market, Margin and Me approach to opportunity assessment. This is used when the entrepreneur has an idea that needs feasibility testing. This tool walks the entrepreneur through testing the feasibility of the market, the potential financial feasibility, and finally ensuring the entrepreneur has the right knowledge and skills to guide the new venture.

The second step uses the Lean Business Model Canvas to align the business model with the market. This step ensures that the business idea is solving a problem that actually exists in the market. Most business failures can be traced back to ideas that don’t address a compelling problem in the market.

The third step brings in the original Business Model Canvas. This tool is best used for operating businesses. The Business Model Canvas helps create a venture in which all of its working parts, that is marketing, operations, finance, and so forth, all work together to bring value to the target market. If the entrepreneur needs to write a business plan for financing, this model serves as the foundation for that plan.