Building a Business Model
Last time in the series related to Startups, I said that a startup is a temporary organization in search of a scalable, repeatable, profitable business model, but what is a Business model ? is there a framework that we can follow, since it’s an iterative process to find one ? that's what I will cover in this article with an original idea including Open AI as practical example
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First, What is a Business Model ?
A business model helps organization understand and formulate their strategy for generating value ! having a simple framework to follow will surely enable companies to focus on the same elements and follow a certain logic facilitating communication and understanding
Alexander Osterwalder a Swiss business theorist and entrepreneur, had an idea to formalize that process and build as we know today the “Business Model Canvas”
The goal of the canvas is to break down a business idea into nine essential components to standardize the process, focus on essentials and facilitate iteration and changes, especially for startups
Components of the Business Model?Canvas
I like to group the components into 4 clusters?:
I?—?Customer-Facing
II?—?Infrastructure
III?—?Financial Viability
IV?—?Center
How each elements in the BMC is connected??
From what you read, you can understand that everything revolves around the Value Proposition; this is how the relationships between each element in the BMC work
Key Partners can perform some of the Key Activities and provide Key Resources used in those key activities to create a Value Proposition
This Value Proposition is delivered through Channels to each Customer Segment. The company acts as a bridge between each Customer Segment and the Value Proposition, which generates revenue to balance the Cost Structure, while maintaining strong relationships with the Customer Segments to improve sales (Revenue Streams)
Let’s have a quick example to understand it, I will first build a Python function to generate the Business Model from user input, transform it into a DataFrame and export it as CSV if needed.
import pandas as pd
from tabulate import tabulate
def get_input(prompt):
return input(prompt)
def create_business_model_canvas():
components = [
"Customer Segments", "Value Propositions", "Channels",
"Customer Relationships", "Revenue Streams", "Key Resources",
"Key Activities", "Key Partnerships", "Cost Structure"
]
canvas = {component: get_input(f"Enter {component}: ") for component in components}
df = pd.DataFrame(list(canvas.items()), columns=["Component", "Details"])
print("\nBusiness Model Canvas:")
print(tabulate(df, headers="keys", tablefmt="fancy_grid", showindex=False))
df.to_csv("business_model_canvas.csv", index=False)
print("\nBusiness Model Canvas has been exported to 'business_model_canvas.csv'.")
if __name__ == "__main__":
create_business_model_canvas()
Now let’s run it and have an example of subscription-based streaming service like Netflix for anime only in English and the original version including also content related to the anime by the studio and fans (selected) with exclusive interaction using Open AI (like summary, image generation, social media post, asking GPT about the characters and so on). Let’s start with Customer Segments
领英推荐
Customer Segments: Individual viewers ranging from 16 to 35 (Including both millennial and Z generation)
Value Propositions: Access to a wide range of anime not available in your country in English and also in the original version with?:
Channels:
Customer Relationships?:
Revenue Streams:
a?—?Monthly Subscription Fees:
b?—?Free with Ads:
Key Resources:
Key Activities:
Key Partnerships:
Cost Structure:
What do you think about the Idea??
Pros and Cons of the Business Model?Canvas
I need for sure to write about how to do a proper business plan, maybe in another episode?! If there’s a specific subject you’d like us to cover, please don’t hesitate to let me know! Your input will help shape the direction of my content and ensure it remains relevant and engaging??
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