As we dive into Week 3 of our business accelerator, the focus has shifted towards one of the most critical tools in the entrepreneurial toolkit: the Business Canvas.
Last week we highlighted The Importance of Building Your Data Room and Conducting Market Research, and this week we're emphasized the power of a business canvas and defining your true north.
But why is this so crucial?
Why the Business Canvas Matters
The Business Canvas is more than just a worksheet—it's the blueprint for your business's foundation. It allows you to visualize and structure your business model, making it easier to identify the essential components that will drive your success.
This exercise is not just about filling in boxes; it’s about asking tough questions and getting clear on your business’s viability, feasibility, and profitability.
Choosing One Customer Segment + Solution
In a world full of opportunities, it’s tempting to chase multiple customer segments at once. However, by focusing on one customer segment and one solution, you allow yourself the clarity needed to deeply understand the needs, pains, and gains of your target audience. This clarity is essential in answering the pivotal questions: Can this idea work? Will you “Get Paid?”
Will Your Business Be Viable?
Viability is about ensuring there is a market for your product or service. Are there enough potential customers who would be interested in what you’re offering? Is there a genuine need for your solution?
Will Your Business Be Feasible?
Feasibility is about the practicality of your business model. Do you have the resources, knowledge, and capacity to deliver your product or service? Is your solution realistic?
Will Your Business Be Profitable?
Profitability is key. While passion drives many entrepreneurs, at the end of the day, your business must make money to sustain itself. Is your pricing strategy sound? Will your costs outweigh your revenue?
"A great idea is not a business"
Is Your Idea Unique?
The success of your business hinges not just on solving a problem, but on how uniquely you can do so.
Does your idea stand out in the marketplace? What differentiates you from competitors?
Understanding how your idea meets your customers’ needs (their “jobs”), alleviates their pains, and provides them with gains will be critical in shaping your value proposition.
Trigger Questions
Questions to ask when identifying your customer:
What problem does your customer have?
What emotional needs is your customer trying to satisfy?
How does your customer want to feel? Why does your customer need to feel this way?
What tasks are your customers trying to perform in their work or personal life?
What is the one thing your customer couldn’t live without accomplishing? What are the stepping stones that could help your customer achieve this key job?
The Value Proposition: Your Company’s True North
A well-defined value proposition is your business’s guiding star—your true north. It’s what sets you apart and helps you define who your customers are, what they need, and how you’re uniquely positioned to meet those needs.
Your value proposition should resonate with your target audience, clearly communicating why they should choose your solution over others.
Examples of value proposition statements
Where all athletes belong - Nike
Turn emails into revenue - Mailchimp
The power of video at your fingertips - Vimeo
As your brands grow, customer segments may diversity based on your product offering or service. Lyft is a good example of having two different customer segments and using two different value proposition statements to clarify the value for each customer segment:
Set your own hours. Earn on your own terms (for workers)
Select the ride to suit your mood (for riders)
Moving Forward
As we continue in our journey through the accelerator, our focus this week on the Business Canvas is about more than just planning—it's about strategy. The clarity and focus you develop will be invaluable as you move forward, helping you build a business that is not only viable, feasible, and profitable but also uniquely positioned to succeed.
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