A business model is a working description that includes the general details about the operations of a business. It is not a business plan, that is a long and static document.
What do you use a business model for? To show how you find and reach customers, to communicate the advantage of your product, to know how much you are going to charge for it, to develop your selling strategy, to establish how you are going to deliver and distribute your product, and how you will support your customers using this product to ensure they are happy with it.
This is a lot of work! There are some very useful tools used the world over to help you get started. You will use them at Mashup where you will focus on the first three aspects of the business modelling mentioned above.
ICED - Idea Customers Evolution and Development - is a framework to help your and your team bring your idea to life by focusing your solution on what your customers want within the context of Mashup.
ICED takes into account the timeframe of Mashup, the relative inexperience of participants with the concept of Lean Canvas, customer discovery and customer validation, and the objective of building a prototype that can be presented alongside a customer profile and revenue model in a final five-minute pitch.
Read how to start using ICED here
The Lean Canvas is one-page business model that is quite quick to create. It begins with the problem, a proposed solution, the channels to achieving the solution, costs involved and the anticipated revenue streams. The Lean Canvas provides a step-by-step problem-solution oriented approach, which is where to start before developing any idea.
Ash Maurya created the Lean Canvas because business plans take too long to write, are seldom updated, and almost never read by others and do not document your hypotheses, whereas this is key to a scalable, repeatable and sustainable business model.
The Lean Canvas is portable (one page) and easy to share with others, concise as it helps you distill the essence of your product and effective to document and communicate your progress.
The Lean Canvas is the tool of choice for all Startup Weekend events in New Zealand.