The old adage states that “a picture is worth a thousand words.” A business model diagram puts structure and meaning into our business picture. For our entrepreneurial purposes all business model development begins with a diagram—a structured picture of your strategy.
Our approach to entrepreneurship begins with the notion that a working hypothesis of your business and strategy is the best place to develop and test your idea—and that a visual display of your entire business model is the best way to begin when uncertainty is high and the risks are largely indeterminate. The Business Model Design process is our preferred tool for structuring your passion and vision into a value proposition that people are wanting and willing to pay for.
The Business Model Canvas consists of nine elements which show the structure of your strategy and provides the starting place for launching and testing the merits and viability of your vision.
What distinguishes a entrepreneurial startup from other businesses is the level of uncertainty involved. Its mandatory to get real world data and customer feedback pronto! You must test continuously its viability by talking with your customers. You need to get out of your comfort zone to expand, test and grow your business model. It’s all about understanding the real problems your customers have—guaging interest and feasibility. Testing your solution. Making sure you are not building a solution to a problem that doesn’t exist. All else is ego-bound delusions.
It’s evidenced-based entrepreneurship.
You act. You learn from customer feedback and you build through a series of adaptations. It continually updates your business model canvas. This adaptive approach prunes bad options quickly and provides real data to determine whether you continue and persevere or pivot and recalibrate. The benefits are enormous. You burn less cash and fail sooner in the process of discovering a scalable and sustainable business model.
This is the holy Grail for all startups.