Business Model Canvas Crowdfunding
In the last week of February, we published an article on business plan writing for crowdfunding campaigns. As most equity projects know already, this step is vital not only to the success of a listing, but to its portal approval well. That said, the traditional business plan no longer monopolizes the industry and a few modern variations now exist. Since these were briefly discussed in our previous post’s comments section, we will take a minute to expand the Business Model Canvas and the Lean Canvas concepts today.
The Business Model Canvas
As opposed to endless pages of text and charts, the business model canvas is much more interactive and creative. Especially around the boardroom, this method facilitates discussion and delves deeply into specific sections of a startup. The fact that it’s available online also means that the model is more portable and easier to alter.
• Customer Segments: The sets of customers – those defined by their particular needs, values, interests, or behaviors – the project tailors to.
• Channels: The way in which the startup intends to reach said customer segments. This may include partner channels.
• Customer Relationships: This does not necessarily mean the level of intimacy between business (campaign) and customer (supporter), but rather the type of relationship they have. For example, does the project offer an automated or self-serving product?
• Value Proposition: How does the startup create value for its customer segments (i.e. ingenuity, usability, and price)? A proposition should address the needs of the audience and distinguish its offerings form all other competitors.
• Key Resources: What resources must the startup have to create the value proposition? These assets also contribute to the project’s sustainability.
• Key Activities: The way a project or startup executes its value proposition.
• Partner Network: Other professional relationships, such as joint ventures or alliances, that reduce project risk and add key resources.
• Revenue Streams: How does the startup generate income through its customer segments?
The lean canvas is entrepreneur-oriented, engaging mostly with start-up uncertainties, risks, and problem-solution dynamics. It borrows many elements from the Business Model Canvas, though adds a few of its own. The split focus between product and market is also more defined. The Lean Canvas engages with the following as well as the above.
• Problem-Solution: Start-ups must anticipate obstacles in order to overcome them. They must also identify current barriers and design strategies around them. Finding problems can highlight weakness in a startup and help to define its objective. This may also apply to the value proposition.
• Key Metrics: Metrics include all measurements used for tracking and assessing a project’s performance. These should investigate various market segments, partner networks, and the overall efficiency of the operation. The use of benchmarks and objectives helps in this respect.
• Unfair Advantage: Essentially, the startup’s competitive advantage.
Benefits of Business Model Representations
For the most part, these models are applicable to crowdfunding campaigns of all sorts and sizes, especially those carrying a team. They help visualize different notions of the project, while illustrating its progress and potential. Since the business model canvas and lean canvas variations are so succinct, they may be easily referenced and altered before and during a campaign. In saying this, they lack the depth of a traditional report, so they may be more appropriate for the entrepreneur and not the investor. Of course, this is not always the case.
For more information or to test-out these models, visit Business Model Generation or LeanStack.
This post was originally published on this site