designing your business model

www.huberplanning.com [email protected]

Designing Your Business Model

Speaker: Michael H. Huber, MBA

Huber Planning“Implementing Your Vision Through Integrated

Marketing and Financial Planning”

Also brought to you by:


About the Speaker

• Development of business models, plans, marketing plans, and budgets for numerous businesses in Vermont.

• Experience in software implementation for manufacturing, retail, hospital industries.

• Controller for steel fabrication and food processing companies.

• Wants More Snow!


Video

Managing as Designing - Multiple ModelsJim Glymph of Gehry Partners:

“If you freeze an idea too quickly, you fall in love with it. If you refine it too quickly, you become attached to it and it becomes very hard to keep exploring, to keep looking for better. The crudeness of the early models in particular is very deliberate.”


VALUEPROPOSITION

COSTSTRUCTURE

CUSTOMERRELATIONSHIP

TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEYACTIVITIES

REVENUESTREAMS

INFRASTRUCTURE CUSTOMEROFFER

FINANCE

A business model describes the value an organization offers to various customers and portrays the capabilities and partners required for creating, marketing, and delivering this value and relationship capital with the goal of generating profitable and

sustainable revenue streams.

Model concept devised by Alexander Osterwalder and Ives Peigner, Authors of Business Model Generation www.businessmodelalchemist.com


VALUEPROPOSITION

COSTSTRUCTURE


TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEYACTIVITIES

REVENUESTREAMS

gives an overall view of a company's bundle of products and services

portrays the network of cooperative

agreements with other companies

describes the channels to communicate and

get in touch with customers

describes the arrangement of

resources

explains the relationships a

company establishes with its customers

sums up the monetary consequences to run a

business model

describes the revenue streams through which

money is earned

describes the customers a company wants to offer value to

outlines the activities/ capabilities required to

run a company's business model

INFRASTRUCTURE CUSTOMER

OFFER

FINANCE

Describing A Company’s Business Model


Skype

free VoIP & value added services

software development

website

global(non segmented)

ebay

Deliver Voice & Video Quality

large scalelow margin

internetsoftware

development

free voice-over-IP VoIP telephony & value-added services


VALUEPROPOSITION

Scoops of Premium Ice Cream

OFFER

Describing a Company’s Offer

Example: Ben & Jerry’s Early Years


VALUEPROPOSITION

TARGETCUSTOMER

Burlington Area Res.Tourists

CUSTOMEROFFER

Describing Who a Company Offers Value to




VALUEPROPOSITION

TARGETCUSTOMER

DISTRIBUTIONCHANNEL

Scoops of PremiumIce Cream

Local StoreHigh Visibility


CUSTOMEROFFER

Describing How A Company Reaches Its Customers



VALUEPROPOSITION

TARGETCUSTOMER



Know OwnersFun

Local Burlington Res.Tourists

CUSTOMEROFFER

Describing the Relationships a Company Builds



TARGETCUSTOMER

REVENUESTREAM

Premium Price Burlington Area Res.Tourist

FINANCE

VALUEPROPOSITION


OFFER CUSTOMER

Describing How a Company Makes Money



KEY ACTIVITIES

VALUEPROPOSITION

Making Unique Ice Cream

Community Involvement


OFFERINFRASTRUCTURE

Describing What Capabilities/Activities Are Required



Describing What Resources Are Required

VALUEPROPOSITION

KEY ACTIVITIES

KEYRESOURCES


Ben & JerryLocal Support

Making Unique Ice Cream

CommunityInvolvement

INFRASTRUCTURE OFFER



Describing the Partners That Leverage the Business Model

VALUEPROPOSITION

PARTNERNETWORK

KEYRESOURCES



Local DairiesLocal Restaurants

INFRASTRUCTURE OFFER



VALUEPROPOSITION

COSTSTRUCTURE

EquipmentBuilding/Cart


FINANCEINFRASTRUCTURE OFFER

Describing the Costs of a Business Model

KEYRESOURCES




VALUEPROPOSITION

COSTSTRUCTURE


TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEY ACTIVITIES

REVENUESTREAMS


Make Unique Ice Cream




Know OwnersFun


Premium Priced


Local DairiesRestaurants


OFFER

FINANCE



VALUEPROPOSITION

COSTSTRUCTURE


TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEY ACTIVITIES

REVENUESTREAMS






Know OwnersFun


Premium Priced


Local DairiesNon-Profits


OFFER

FINANCE

Example: Ben & Jerry’s

Limitations for Larger Distribution/Revenue


VALUEPROPOSITION

COSTSTRUCTURE


TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEY ACTIVITIES

REVENUESTREAMS

Scoops & PintsOf Premium Ice Cream

(Now a Variety of products)


Social Action

Shopping AreasBig Box GrocersBrand

Mass

Many Scoop ShopsLarge Manufacturing

Premium Priced

Higher Income Shoppers

Socially Conscious

National DistributorNational Marketing


OFFER

FINANCE

Example: Ben & Jerry’s

Larger Distribution/Revenue


VALUEPROPOSITION

COSTSTRUCTURE


TARGETCUSTOMER

DISTRIBUTIONCHANNEL

KEYRESOURCES

KEYPARTNERS

KEY ACTIVITIES

REVENUESTREAMS

Bottled Delicious FoodFresh IngredientsLocally Sourced

Complete Traceability

Develop RecipesSourcing Ingredients

StrategicallyQuality Control

Local CooperativesHealth Food Stores

Independent Markets

Consumer Products Goods Background

Chef

Mass- CustomizedDirect Feedback

R&DInventory

Production Costs

Premium PricedRetail

Local FarmsCo-Packer

Trade Associations


OFFER

FINANCE

Health & Sustainability Conscious

New England Area


Test Your Model

• Value Proposition– Product/Service, Market Type, Competition

• Customer Segments– Problem, Customer, User, Payer

• Channels

• Key Partners

• Cost and Revenue Streams

…Enough fun! Now write a Business Plan!


Resources• Open Innovation:

http://www.openinnovation.net/• Business Model Generation:

www.businessmodelalchemist.com• Business Model Canvas:

www.businessmodelgeneration.com/downloads• Steve Blank – Entrepreneur, Instructor at

Columbia: www.steveblank.com


Any Questions?

Huber Planning“Implementing Your Vision Through Integrated

Marketing and Financial Planning”

designing your business model

Business

tourists customer offer

companys offer example

customers example

early models

business model speaker

money example

owners fun local burlington

skype free voip value