Four ways to use the business model canvas

The business model canvas is a commonly used construct to determine whether your business is feasible, desirable, viable, and adaptable. It should be constantly updated and based on customer derived evidence, not opinion.

Here are four ways to use the business model canvas:

Creating and testing your business model

Here are some tools suggested by Carl Sagan and implications and tips on how to avoid bias or misinterpretation during customer discovery interviews.

1. Wherever possible there must be independent confirmation of the “facts.”.When one person in a customer segment tells you something, interview others in the same segment to confirm it. It is just good detective work.
2. Encourage substantive debate on the evidence by knowledgeable proponents of all points of view. There are multiple people in the value chain, supply chain or workflow that will be impacted by a problem and your proposed solution. Take a systems approach and get perspective from disparate people in the systems.
3. Arguments from authority carry little weight — “authorities” have made mistakes in the past. They will do so again in the future. Perhaps a better way to say it is that in science there are no authorities; at most, there are experts. Interviewing people with fancy titles does not guarantee that you will get the "right" answer.Use techniques that minimize power imbalances when getting ideas or feedback.
4. Spin more than one hypothesis. If there’s something to be explained, think of all the different ways in which it could be explained. Then think of tests by which you might systematically disprove each of the alternatives. What survives, the hypothesis that resists disproof in this Darwinian selection among “multiple working hypotheses,” has a much better chance of being the right answer than if you had simply run with the first idea that caught your fancy. You should have multiple business hypotheses in multiple business model canvases and decide which one is the most valid.
5. Try not to get overly attached to a hypothesis just because it’s yours. It’s only a way station in the pursuit of knowledge. Ask yourself why you like the idea. Compare it fairly with the alternatives. See if you can find reasons for rejecting it. If you don’t, others will. What you think about the value of your solution is irrelevant. The only thing that matters is user defined value and that is reflected , in a commercial business, by whether or not they open their wallet.
6. Quantify. If whatever it is you’re explaining has some measure, some numerical quantity attached to it, you’ll be much better able to discriminate among competing hypotheses. What is vague and qualitative is open to many explanation. Of course there are truths to be sought in the many qualitative issues we are obliged to confront but finding them is more challenging. Customer pain, like patient pain, has a qualitative and quantitative component. Asking where it hurts in one thing. Defining how badly it hurts and how much a customer would be willing to pay to get rid of it is another.
7. If there’s a chain of arguments, every link in the chain must work (including the premise) — not just most of them. In multisided markets, like sick care, your solution needs to have value proposition that does the jobs, relieves the pains, and meets the expected gains of multiple stakeholders.
8. Occam’s Razor. This convenient rule-of-thumb urges us when faced with two hypotheses that explain the data equally well to choose the simpler. Follow the rule of parsimony. Don't boil the ocean. Keep your solution as simple, understandable and focused as possible.
9. Always ask whether the hypothesis can be, at least in principle, falsified. Propositions that are untestable, unfalsifiable are not worth much. Consider the grand idea that our Universe and everything in it is just an elementary particle — an electron, say — in a much bigger Cosmos. But if we can never acquire information from outside our Universe, is not the idea incapable of disproof? You must be able to check assertions out. Inveterate skeptics must be given the chance to follow your reasoning, to duplicate your experiments and see if they get the same result. Test a little, learn a lot. Use prototypes and simulate to verify and validate.
10. Here is a list of rookie business model canvas mistakes

Building your personal brand and your value proposition to potential stakeholders

Validating your educational business model if you are an edupreneur or intrapreneur

The construct is also useful if you are an edupreneur, trying to create and launch new educational products and services, including new courses, certificates, programs or degree offerings.

Revolutions start by overturning the status quo. By the end of the 20th century, case studies and business plans had reached an evolutionary dead-end for entrepreneurs. Here’s why and what the developers of the Lean Launch Pad did about it.

Edupreneurship rests on several foundational principles:

1. Having an entrepreneurial mindset
2. Intra- and entrepreneurial knowledge, skills, abilities and competencies
3. Design thinking focused on creating stakeholder and beneficiary defined outcomes
4. A systems engineering approach to solving wicked problems, like how to fix outcomes disparities and their social determinants
5. A different business model
6. More respect for and attention to edupreneurial champions
7. Better teacher education and training
8. An incentive and reward system for not just tweaking a failed system , but rather, making it obsolete given the basic structural changes in the US economy
9. Eliminating unnecessary and burdensome bureaucracy, credentialing that does not add value and administrivia
10. Paying more attention to and measuring student defined outcomes
11. Better public-private integration
12. K-20 integration and alignment

13. Teaching students what they need to win the 4th industrial revolution

14. Embracing cradle to career integration

15. Creating a competent diverse and equitable talent pipeline

We has seen several recent advances in edupreneurship.

Mission driven business model

A mission-driven business is an organization for which the pursuit of growth and revenue naturally produces mission-related benefits.

In addition,modifying the traditional business model canvas for for-profit ventures to suit the needs of mission driven organizations reframes the challenge and helps to focus stakeholders on the primary?mission. Unfortunately, many non-profit hospital corporations have become financialized, designed to take advantage of tax benefits, and have lost their way.

Now you can use AI to generate your business model canvases.

Use these tools to create underlying hypotheses, use techniques to validate them, and fail it, nail it, scale it, and sale it.

Arlen Meyers, MD, MBA is the President and CEO of the Society of Physician Entrepreneurs on Substack