Business Model Canvas

• Holistic Planning: Enables a comprehensive and holistic approach to planning a social design idea by systematically addressing key components such as customer segments, value propositions, channels, and partnerships. It ensures that no critical aspect is overlooked in the development process.
• Visual Clarity: Its visual format provides a clear and concise overview of the business model, making it easy to communicate and share insights with stakeholders. This visual representation aids in aligning team members and external partners, fostering a shared understanding of the social design initiative.
• Strategic Decision-Making: It empowers organizations to prioritize resources, understand the investment required, assess the feasibility of revenue streams, and strategically allocate efforts to maximize impact.
• Alignment with Stakeholder Needs: Ensures that the design idea is aligned with the needs and aspirations of the community. It prompts thoughtful consideration of customer segments and value propositions, fostering a user-centric approach that enhances the relevance and effectiveness of the solution.

The Value Proposition is foundational to any business/product.

Clearly articulate the unique value the solution brings to the community.

Generally, value is exchanged from a customer for money when a problem is solved or pain is relieved for them by your business.

Good questions to ask when defining your business/product:

• • What is the problem I am solving?
  • Why would someone want to have this problem solved?
  • What is the underlying motivator for this problem?

Customer Segmenting divides a customer base into groups of similar individuals, such as age, gender, interests, and spending habits. Define specific segments within the community that have distinct needs and preferences.

Another thing to gauge and understand is your market size and how many people are in the Customer Segment. This will help you understand your market from a micro and macro perspective.

Creating customer personas for each customer segment is a great place to start understanding your customers.

Customer Relationships are defined as how a business interacts with its customers.

Establish the type of relationships needed to engage with the community effectively.

Consider how to build trust, collaboration, and ongoing communication. So, do you meet with them in person? Or over the phone? Through online materials or a mix of in-person and online?

Channels are the avenues through which your customer comes into contact with your business and becomes part of your sales cycle.

Determine the most effective channels for delivering the solution to the community.

Ensure accessibility and inclusivity in the distribution and communication channels.

Good questions to ask when identifying the channels to reach your customers are:

• How are we going to tell our customer segment about our value proposition?
• Where are our customers?
• Are they on social media?
• Are they driving their car and listening to the radio?
• Are they at an event or conference?
• Do they watch TV at 7 pm on a Friday night?

Examples of channels:

• Social media
• Public speaking
• Electronic mail (email marketing)
• Networking
• SEO (Search Engine Optimization)
• Viral marketing
• Targeting blogs
• Affiliates

The Key Activities of your business/product are the actions your business undertakes to achieve the value proposition for your customers.

Questions to ask:

• What activities does the business undertake in achieving the value proposition for the customer?
• What is the resource used?
• Time?
• Expertise?
• Distribution of product?
• Technical development?
• Strategy?
• Offer resources (human/physical)?
• What actions does it take you and/or your staff to achieve value exchange?

Examples:

• Consulting
• Designing
• Web development
• Create learning materials
• Driving
• Counseling

Next, you should consider what practical resources are needed to achieve the business’s key activities (actions).

Key means the resources your business requires to do business. Example: What partnerships can enhance the reach of your mental health initiative? What resources are crucial for organizing awareness campaigns or support groups?

These resources are what is needed practically to undertake the actions/activities of your business:

• Marketing materials
• Computers
• Hosting
• People (staff)
• Internet connection

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 is ‘if I repurpose recycled materials into outdoor decorations, I may need a local store to display my inventory to sell to customers’.

They are a key partner in achieving the value my business promises customers.

Your business cost structure is defined as the monetary cost of operating as a business.

• How much does it cost to achieve my business’s key activities?
• What is the cost of my key resources and key partnerships?
• How much does achieving the value proposition for my customers/users cost?
• 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?

Revenue Streams are defined as how your business converts your Value Proposition or solution to the customer’s problem into financial gain.

Explore sustainable funding models that support the social design initiative.

Balance financial sustainability with the social impact goals.

But how do you gain revenue?

There are many different revenue models here:

• Pay per product (pay per view)
• Fee for service
• Fixed rate
• Subscription
• Dividends