My old home base, the music industry, is still struggling to find it’s way in the new digital aera. I was of course thrilled to be asked back to share some of my experiences from 15 years in the IT start up business with upcoming and experienced musicians and composers in the Music2Business start up program in Copenhagen.
Some of the tools and models that are most useful for non-business people to use in their everyday business development is the value proposition approach suggested by Alex Osterwalder et al.:
Start out in the right side of the basic VP canvas with customer jobs, pains and gains.
Then move to the left and assess what products and services that addresses the identified jobs, pains and gains.
This exercise should be done for every major customer/audience group.
When working with more established companies with several employees and subcontractors the Business Model Canvas is the way to build your understanding of business modelling.
Again: Start at the right side of the canvas and work with the relationship between the customer, the product (value proposition), the sales and distribution channels and how this all come together in one or more revenue streams.
Then move to the left of the canvas and assess what key resources, key activities, key partners are needed to deliver the product and what the estimated costs are from this ‘back end’.
Basically the end goal of this exercise is to secure that the number at the bottom of the right side of the canvas, revenue, adds up to be higher than the number on the left side of the canvas, cost. If so, you have a profitable business;-D