Chapter 4- Nursing Entrep Flashcards
A startup is a temporary organization in search of a scalable, repeatable, profitable business model.
Blank and Dorf (2012, P. XVII)
described business models as “stories that explain how enterprises work”
Magretta (2002)
“the rationale of how an organization creates, delivers, and captures value”
Osterwalder, et al. (2010)
“A business is about selling what you
make for a profit.”
Chatterjee (2013)
is a configuration (activity systems) of what the business does (activities) and what it invests
in (resources) based on the logic that drives the profits for a specific business”
Business Model
tool is based on the premise that a start-up is something quite different than an ongoing venture. A start-up should not be viewed as a smaller version of a company because starting-up a company requires very different skills than operating one does. A start-up that is still a start-up after some time—maybe after a couple of years for some kinds of start-ups—is actually a failed enterprise since it hasn’t converted into an ongoing venture
(Osterwalder et al., 2010)
Business Model Canvas
“who helps you achieve?”
Motivations for partnerships: optimization and
economy; reduction of risk and uncertainty;
acquisition of particular resources and activities
Key Partners
“what you are doing”
* Categories: production; problem-solving;
platform/network
* Marketing, sales, design of your product,
operation side, distribution, networking
Key Activities
“what you are, who you are, and what you have”
Types of resources (4 blocks):
* physical (tangible physical asset);
* intellectual (brand patents, copyrights, data);
* human (technician, employees, software engineers);
* financial (cash flow, capital, credit lines)
Key Resources
“how you help”
* Characteristics: newness; performance;
customization; “getting the job done”; design;
brand/status; price; cost reduction; risk
reduction; accessibility; convenience/usability
Value Propositions
What type of relationship does each of our
customer segments expect us to establish and
maintain with them?
* Examples: personal assistance; dedicated
personal assistance; self-service; automated
services; communities; co-creation
Customer Relationships
“who are you helping”
* Mass market; niche market; segmented;
diversified; multi-sided platform
Customer Segments
“how will your customer knows your products”
Channels
- Awareness
- Evaluation
- Purchase
- Delivery
- After sales
Channel Phases
How do we raise awareness about our company’s products and services?
Awareness
How do we help customers evaluate our organization’s value proposition?
Evaluation
How do we allow customers to purchase specific products and services?
Purchase
How do we deliver a value proposition to customers?
Fulfillment phase
Delivery
How do we provide post-purchase customer support?
After sales
“what you are getting”
* Types: asset sale; usage fee; subscription fees; lending/renting/leasing; licensing; brokerage fees; advertising
Revenue Streams
list price; product feature dependent; customer segment dependent; volume dependent
Fixed pricing
negotiation (bargaining); yield
management; real-time-market
Dynamic pricing
Sample characteristics: fixed costs (salaries,
rents, utilities); variable costs; economies of
scale; economies of scope
Cost Structure
leanest cost structure, low price value proposition, maximum automation, extensive outsourcing
cost driven
focused on value creation, premium value proposition
value driven
“a human institution designed to create a new product or service under conditions of extreme uncertainty”
Business Model Canvas approach, Ries (2011)
Lean Start-up
involves releasing a minimal viable product to customers with the expectation that this early prototype will change and evolve frequently and quickly in response to customer feedback
Lean Start-up Approach
Five Lean Start-Up Principles by Ries (2011)
- “under conditions of extreme uncertainty”
- more than the product or service
- “how to build a sustainable business”
- feedback loop: create products and services; measure how the market reacts to them; and learn from that reaction to determine whether to pivot or to persevere with an outcome the market accepts
- outcomes and innovation initiatives need to be measured through innovative accounting
is a decision-making tool for start-up and growth companies to help business advisers and entrepreneurs focus, set agendas, make decisions, and take action
Growth Wheel
are basically business models developed
by others (franchisors) that have been proven to work in multiple contexts and that are sold to entrepreneurs (franchisees) who will implement the business model in contexts that the franchisor believes will result in a successful enterprise
Franchises
Some are turnkey franchises, like McDonald’s, where the entire ___ is set up from the design of the stores to the supply system, and the ___ sets up virtually everything for the new franchisee
business structure, franchisor
