Your business model: how to move from diagnosis to action plan

 

 

I often encounter misconceptions in the canvas business model. If you understand it as a mere current situation diagnosis, you'll find little use. Ideally, you should think of it as a diagnosis + strategic model to develop an action plan. Let's go in parts.

What is a business model? What is it for?

The expansion of the design thinking has brought us a multitude of canvases with which to work multiple strategic facets. The canvas of business model best known and used is the Business Model Canvas, and also your personal application, The Business Model You.

In essence, the canvas of the business model it's a great tool to help you understand a business model in a simple and structured way. Using this canvas will help you better understand the customers you serve, what value propositions you offer through which channels and how your company or personal business makes money.

The utility of working this canvas goes beyond understanding your business model, allows us to analyse the models of the Competitors.

The canvas of the business model was created by Alexander Osterwalder, by Strategyzer. Osterwalder himself and Yves Pigneur published in 2010 the book Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (Wiley). In 2011 the translation of the book into Spanish was published under the title Generating business models (Deusto).

This is a Model Read or light based on a principle: it's better the imperfect speed than paralysis from the analysis of the old "Business Plan" of 800 pages and 12 months of work. It's designed for small businesses, departments of large companies, collaborative projects and individuals.

In the case of individuals, In 2012 the same authors of the previous one along with Tim Clark launched Your business model (Deusto), a "must" of managing personal brand. This book is a great facilitator of ideas, including the actual cases of more than 400 professionals from all over the world.

The diagnostic phase of your business model

Knowing where you are today is essential to understanding the changes you need to achieve your goals. So, I also think it's essential to define your personal brand projection goal: what business area you want to be a benchmark in, with what specialty, in what format (Face, Online, Mixed...) and in what geographical area. Without setting a clear goal you won't know if your diagnosis requires an action plan to improve it.

Your business model
Business Model You. Translation by Samuel Villegas @ CC sam1meta

I often see that the diagnosis format developed without knowing before the goal, and therefore it can be read as an exercise in self-knowledge. Big mistake. I think the original spirit of the model is strategic, not just diagnosis.

If I see a lot of notes Post-it of the same color, I understand that the work done is pure diagnosis; a wasted occasion.

The strategic phase of your business model

This phase starts from that we already have a goal defined in personal brand projection key. This will allow us a very precise definition of the value proposition, of our relevant difference.

To better understand the model, ideally it is to work with sticky notes (or virtual) two-color: one to place where I am today (And what I want to keep) and another one for where I want to be tomorrow (and what I need to activate, Create...).

That makes it easy for us to create two action plans with a simple view of color: The maintenance plan stocks and the new stock plan to create, develop and implement. We will have a strategy Defense (what we want to keep) and another of Attack (what we want to incorporate). And let's remember that every action plan must be Measurable, so we can work with goals Smart that allow us to analyze the evolution of the indicators of success.

example canvas business model

Everything revolves around the value proposition

I usually say that if you don't contribute, you don't matter. Working on your relevant difference it's imperative to differentiate yourself by offering value and growth possibilities for your customers, whether internal or external. That's the value proposition, the core of the canvas business model.

It is very important to fix the work order of the canvas. Although some authors recommend defining the first customer segment, I think it's more useful to start with the value proposition. Then, see what the customer profile who may be interested in this value proposition. After, what kind of Relations we'll have to raise with our customers, What Channels we will use to transfer the value proposition to customers.

The second part of the canvas (the left side of it) defines Activities that we will have to carry out to realize the value proposition. Also, Resources Necessary, and key partners we'll need to access our customers more easily.

And part three refers to the economic aspects. Model Expenses and model of Income. The current and the future, the one that marks the goal worked.

The business model is dynamic. From one day to the next everything can change

Classic formats such as business plan offered no flexibility. Maybe it's because the markets were moving slower than today.

The canvas of business model it's flexible, and keep in mind that 24h can change Radical.

Imagine that your value proposition is creation, Production, sale and distribution of custom shoes. Imagine also that 6 months of starting your business you get an offer from a major industry manufacturer to buy your business. That implies a major change, Do you agree?

Imagine also that your revenue model is based on the personal dedication of your time to your customers (a limited model). Suddenly they propose an improvement through machine learning that would allow you to enter scalable online and not dependent on your time.

In all those changes, it's easier to adapt the canvas business model that a plan 800 Pages. The canvases of business models strategically formatted are alive, are dynamic, and it's good to review them every six months or every time a change occurs.

I hope I helped you.. A good tip is to read those two referenced books, look for a couple of friends or consultants who can help you and spend a morning working on your own canvas business model: an essential step in managing your personal brand if you turn it into an action plan, Still, you measure it and you improve it.

 

Cover vector by Iscomit on Shutterstock.com

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