Business Model Validation
So you’ve got an idea that can stand up to the tough questions. Awesome! That’s already a huge hurdle accomplished! Next step is to look at the the business as a whole. It’s not simply “build it, they will come” (unless you’re Steve Jobs, and thought up the iPad). You’ve got to look at your customer segments, value propositions, revenue model, key partners and resources, etc. Then you have to test all those assumptions you’ve made. Well luckily there is the Business Model Canvas that really helps people like us make sure we’re thinking about all the necessary stuff. Watch this video for an overview of the canvas and how it helps:
See how this Canvas can help you view your business from all sides? Now begin filling out your canvas and you’ll start to see where you need to spend more time on your model. Watch this excellent series of videos for a complete explanation:
Now, an important thing to remember, is the Canvas is never really finished. As you develop your idea and company further, more things will come to the surface and will need to be tested and validated.
Guess what?! There’s a student competition at BYU every February for figuring out this very important step. It’s called the Business Model Competition (BMC) and you could win up to $5,500! Go here to learn more: Business Model Competition
There’s also the International Business Model Competition (IBMC) in April where you could win $30,000! Go here for more info: IBMC