The Business Model Canvas (BMC) is a strategic management tool to quickly and easily define and communicate a business idea or concept.
It is a one page document which works through the fundamental elements of a business or product, structuring an idea in a coherent way.
Key Partners are a list of other external companies/suppliers/parties you may need to achieve your key activities and deliver value to the customer.
This moves into the realm of ‘if my business cannot achieve the value proposition alone, who else do I need to rely on to do it?’.
An example of this is ‘if I sell groceries to customers, I may need a local baker to supply fresh bread to my store’.
They are a key partner to achieve the value my business promises to the customer.
The Key Activities of your business/product are the actions that your business undertakes to achieve the value proposition for your customers.
Questions to ask:
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What activities does the business undertake in achieving the value proposition for the customer?
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What is the resource used?
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Time?
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Expertise?
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Distribution of product?
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Technical development?
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Strategy?
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Offer resources (human/physical)?
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What actions does it take you and/or your staff to achieve value exchange?
Key Resources
Next you should think about what practical resources are needed to achieve the key activities (actions) of the business?
Key means the resources your business requires to do business.
These resources are what is needed practically to undertake the action/activities of your business:
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Office space
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Computers
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Hosting
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People (staff)
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Internet connection
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Car
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Bike
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Oven
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Electricity
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Car Parts
Your business cost structure is defined as the monetary cost of operating as a business.
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How much does it cost to achieve my businesses key activities?
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What are the cost of my key resources and key partnerships?
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How much does it cost to achieve the value proposition for my customers/users?
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Are there additional costs to running a business?
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Legal?
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Insurance?
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What is the cost of my business?
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It is important also to place a monetary value on your time as a cost.
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How much would it cost you to hire you?
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What is the opportunity cost of running your business?
Your business cost structure is defined as the monetary cost of operating as a business.
-
How much does it cost to achieve my businesses key activities?
-
What are the cost of my key resources and key partnerships?
-
How much does it cost to achieve the value proposition for my customers/users?
-
Are there additional costs to running a business?
-
Legal?
-
Insurance?
-
What is the cost of my business?
-
It is important also to place a monetary value on your time as a cost.
-
How much would it cost you to hire you?
-
What is the opportunity cost of running your business?