#**BUSINESS MODEL TREE**
Use this tree to structure your new business idea. Note that each separate card and branch relates to every other card and branch. Going in a specific order is not as important as revising throughout the tree as you find new information, gain new insights, or adopt new strategies.
Concisely state the problem you solve with your solution. Make the problem as specific as possible.
WHO has the problem?
WHAT is the problem?
WHY would someone pay for a solution to the problem?
Summarize your partner relationships and resource requirements for the production of a valuable solution.
Who do you need to work with to provide your solution to the problem? Who will help you get your business started?
What capital, equipment, and other resources do you need to to deliver your solution? What must you have, and what can you do without, to get your business started?
Summarize what your business actually does to produce value for customers based on its inputs.
What do you do with your inputs to turn them into a solution?
What intellectual property, trade secrets, or distinctive processes enable your delivery of value? How will you protect them?
Succinctly summarize your solution in a way that clearly expresses its value to a customer. Describe how you generate revenue by providing this value.
Describe the basic cost structure for your business.
What are the main costs involved in starting your business?
What are the regular costs of doing business you expect after startup?
Describe the basic funding structure for your business.
What are your sources for funding your startup? How much can you get?
What sources of revenue, and how much revenue, do you project after initial startup?
Describe your strategy for connecting your product or services with customers.
How will your customers receive your product or service?
How will your customers find out about your product or service?
Describe your customers and what they get for the money they spend.
What does the customer actually pay for? How much does it cost?
Who are your customers?
Provide a crisp statement of your vision for the business.
What does success look like? How is your world or your community different if you succeed?
How do you measure your progress toward your vision? How will you use this measurement to improve your business?
Why is this business worth pursuing? Why are you the right person or team to pursue it?
SOURCES AND RECOMMENDATIONS
- Business Model Canvas (www.businessmodelgeneration.com)
- Lean Canvas (www.leanstack.com)
- Venture Deck (www.exaption.com)
Business Model Tree by James Jeffries is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.