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#**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.

PROBLEM

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?

INPUTS

Summarize your partner relationships and resource requirements for the production of a valuable solution.

PARTNER Relationships

Who do you need to work with to provide your solution to the problem? Who will help you get your business started?

RESOURCE Requirements

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?

VALUE PRODUCTION

Summarize what your business actually does to produce value for customers based on its inputs.

PRODUCTION Process

What do you do with your inputs to turn them into a solution?

INNOVATIONS

What intellectual property, trade secrets, or distinctive processes enable your delivery of value? How will you protect them?

SOLUTION VALUE

Succinctly summarize your solution in a way that clearly expresses its value to a customer. Describe how you generate revenue by providing this value.

COSTS

Describe the basic cost structure for your business.

STARTUP Costs

What are the main costs involved in starting your business?

ONGOING Costs

What are the regular costs of doing business you expect after startup?

FUNDS

Describe the basic funding structure for your business.

STARTUP Funding
What are your sources for funding your startup? How much can you get?

ONGOING Revenue
What sources of revenue, and how much revenue, do you project after initial startup?

VALUE DISTRIBUTION

Describe your strategy for connecting your product or services with customers.

DISTRIBUTION Channels

How will your customers receive your product or service?

MARKETING Channels

How will your customers find out about your product or service?

OUTPUT

Describe your customers and what they get for the money they spend.

MARKETED PRODUCT

What does the customer actually pay for? How much does it cost?

CUSTOMER Segments

Who are your customers?

VISION

Provide a crisp statement of your vision for the business.

SUCCESS Statement

What does success look like? How is your world or your community different if you succeed?

MEASUREMENT Statement

How do you measure your progress toward your vision? How will you use this measurement to improve your business?

RATIONALE

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)

LICENSE


Business Model Tree by James Jeffries is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.