How do you make money?

the cash a company

How do you reach your customers? how a generates from each customer segment.
company communicates with and reaches its What are your costs? all costs incurred to
customer segments to deliver its value Types of Revenue Streams: Asset sale, usage operate a business model.
proposition. fee, subscription fees, lending/renting/leasing,
For whom are you creating value? the diverse licensing, brokerage fees, and advertising. Cost Structure Types: Cost-driven and value-
groups of people or organizations that a Channel Phases: Awareness, evaluation, What do you do to make your business model driven.
company aims to reach and serve. purchase, delivery, and after-sales. Pricing Mechanisms: Fixed pricing (e.g., list work? the most important things a company
price, product feature dependent) and dynamic must do to operate successfully. Cost Characteristics: Fixed costs, variable
Types of Customer Segments: Mass market, Channel Types: Direct (e.g., sales force, web pricing (e.g., negotiation, yield management, costs, economies of scale, and economies of
niche market, segmented, diversified, and multi- sales) and indirect (e.g., partner stores, real-time market). Types of Key Activities: Production, problem scope.
sided platforms. wholesaler). solving, and platform/network.
Key Considerations: Identifying what Key Considerations: Understanding and
Key Considerations: Understanding customer Key Considerations: Selecting the right mix of customers are willing to pay for and choosing Key Considerations: Key activities are the managing the cost structure is vital for
needs, behaviors, and motivations is crucial for channels and ensuring their integration is the appropriate pricing mechanisms are crucial actions that transform key resources into value ensuring the financial viability of the business
designing a successful business model. essential for a seamless customer experience. for generating sustainable revenue. propositions for customers. model.

the 9 Building Blocks 1. Customer Segments (CS): 2. Value Propositions (VP): 3. Channels (CH): 4. Customer Relationships (CR): 5. Revenue Streams (R$): 6. Key Resources (KR): 7. Key Activities (KA): 8. Key Partnerships (KP): 9. Cost Structure (C$):
of a Business Model
What value do you deliver to the customer? the What type of relationship do you have with your What assets are essential to your business Who are your key partners? The network of
bundle of products and services that create customers? the types of relationships a model? the most important assets required to suppliers and partners that make the business
value for a specific customer segment. company establishes with specific customer make a business model work. model work.
segments.
Elements of Value Proposition: Newness, Types of Key Resources: Physical, intellectual, Types of Partnerships: Strategic alliances,
performance, customization, “getting the job Types of Customer Relationships: Personal human, and financial. coopetition, joint ventures, and buyer-supplier
done,” design, brand/status, price, cost assistance, dedicated personal assistance, self- relationships.
reduction, risk reduction, accessibility, service, automated services, communities, and Key Considerations: Key resources are the
convenience/usability. co-creation. foundation upon which the value proposition Motivations for Partnerships: Optimization and
built and delivered. economy of scale, reduction of risk and
Key Considerations: The value proposition Key Considerations: The chosen relationship uncertainty, and acquisition of resources and
must solve a customer problem or satisfy a type should align with the customer segment's activities.
need in a way that is superior to the expectations and the overall business model.
competition. Key Considerations: Partnerships can be
crucial for acquiring resources, reducing risk,
and optimizing business models.