Business Model Canvas (BMC)

Question 1

What is the Business Model Canvas (BMC)?

Answer 1

It gives the structure of a business plan without the overhead

Question 2

What are the 9 elements of the BMC? (Part A - 1-3)

Answer 2

1. Customer Segments - Who are they?
2. Value Propositions - What’s compelling about the proposition? Why do customers buy/use it?
3. Channels - How it is promoted, sold, delivered? Why? Is it working?

Question 3

What are the 9 elements of the BMC? (Part B - 4-6)

Answer 3

4. Customer Relationships - How do you interact with the customer?
5. Revenue Streams - how does the business makes money?
6. Key Activities - What uniquely strategic things does the business to deliver its proposition

Question 4

What are the 9 elements of the BMC? (Part C - 7-9)

Answer 4

7. Key Resources - What uniquely strategic assets much the business have to compete?
8. Key Partnerships - What can the company get others to do so it can focus on its activities
9. Cost Structure - What are the business’s major cost drivers? How are they linked to revenue?

Question 5

What 3 things does the BMC fundamentally deliver?

Answer 5

1) Focus - Stripping away the 40-page traditional business plan and focusing on what’s driving the business.
2) Flexibility - It’s easier to adjust and try new things on a plan that sits on a single page
3) Transparency - Other people will understand easier your 1 page vision.

Question 6

How does Lean canvas differentiate from BMC?

Answer 6

It is more target-specific and good for both small and large businesses

Question 7

What Lean canvas focuses on?

Answer 7

Focuses on problems, solutions, key metrics and competitive advantages.

Question 8

What appears on the product part of the lean canvas model? (Figure 5.4)

Answer 8

1) Problem - Top 3 problems
2) Solution - Top 3 features
3) Key metrics - Key activities you measure
4) Cost structure - Customer acquisition cost, distribution costs, hosting etc’
5) Unique Value proposition - compelling message explain why we are different (Appears on both product and market side)

Question 9

What appears on the Market part of the lean canvas model? (Figure 5.4)

Answer 9

1) Unfair advantage - Can’t be easily copied or bought
2) Customer segments - Target customer
3) Channels - Path to consumers
4) Revenue streams - Revenue model, life time value, gross margin

Question 10

The most common source of new venture ideas is:
A.Prior work experience
B.Trade shows and conventions
C.Social contacts
D.Magazines and other publications

Answer 10

A.Prior work experience

Question 11

3.The first thing you need to start a business is:
A.An idea
B.Financial support
C.A product or service
D.A business plan

Answer 11

A.An idea