The Business Model 

Business Tools to Assist You 

Part 1 - Absorb

A business model is essentially the way in which a for-profit will deliver its value and make money. A mission model is the way a nonprofit delivers value. 

The Business Model Canvas is a business tool that provides a way to think about all the important building blocks of an enterprise and how that enterprise delivers value. This was first introduced by Alexander Osterwalder in 2005 and has since influenced many other versions.

1. Look over the slides about business model canvas.

2. Watch these videos from Strategizer about the business model canvas, a tool to help you think about the business model (how you make $) and overall operation of a business. 


Business Model Canvas, a tool

This is the one created by Osterwalder, BUT this is not the one we will use for our project. Be sure to scroll down to get the modified one for our purposes. 

Week 6 Biz Model Canvas

Further Reading: Read What Is A Business Model by Andrea Ovans

What Is a Business Model By Andrea Ovans.pdf

Part 2 - Absorb

The mission model canvas is for any entity that plans to operate to provide services or goods but not with the sole purpose of making profit. This kind of entity will still need to bring in money to cover the expenses of doing the operations to provide a service (or product) - usually donations. Often times, this kind of entity is a nonprofit organization. 

The mission model canvas is very similar to the business model canvas, but some of the squares are different. It will be helpful to watch the videos on the business model canvas as well to fully understand the mission model canvas. 

This is the one created by Osterwalder, BUT this is not the one we will use for our project. Be sure to scroll down to get the modified one for our purposes. 

There is a video which explains the concept for each box on this website page: Click HERE

Part 3 - Absorb 

Value Proposition 

READ about value proportions  by HubSpot 

Essentially the value proposition is how you express what it is you are offering to the customer, why, and how it benefits them. 

Think about the following: 

You will craft a statement to help you not only identify your business's value, but it will eventually help you with marketing. 

Example: Quoted Her

Problem: the current greeting card market lacks a variety of inspirational messages from women in history, the arts, and culture; additionally, the market lacks a card that can also serve as a gift.

Solution: A 5 x 5 magnet with beautiful images and strong inspiration quotes from historical women 

Benefit: quality greeting card with gift rolled into one, convenience 

Value Proposition: When you need unique inspiration, we offer a women-focused magnet greeting card that doubles as a gift, offering convenience and surprise.  

Tagline: Share her voice. 

Example: Wing Cafe 

Problem: people in Andover lack an option for a clean, hip, fast casual setting that offers breakfast, lunch and dinner with entertainment options 

Solution: a Western-themed, fast casual food restaurant with occasional entertainment 

Benefit: quick food option 

Value Proposition: Andover residents need more fast-casual food options, we offer a fun environment with a unique Western-theme for quick and delicious food. 

Tagline: Go get em' Food 

More Examples: 

21 Value Proposition Examples that Every Marketer Can Learn From in 2021, by Ramona Sukhraj, 

Key Takeaway

Part 4 - Do

Think about your venture using the canvas tool 

The business and mission model canvas can be a way to think more strategically about your venture. 

Part 5 - Do

Think about your Target Market or Customer Segment
There are 3 main characteristics you can use to define your key customers, but only use what makes most sense to you and is specific to your business. 

***You don't have to use all these characteristics! Only use the ones that make sense for your key customers and business. Ask yourself, are there specific qualities from above that are common in the groups of customers you serve?*** 

Interested in learning more?
Head here for Info about Key Customers 

Key Takeaway

Part 6 - Do

Decide for yourself!

Use This Canvas 

Go here for a modified canvas model that will fit our purposes.
There are two sheets, one is the business model, one is the mission model. 

Further Reading:
"If the Shoe Fits" 

This reading will help you understand better if your solution should be a for-profit, social enterprise, or nonprofit venture. 

*this is not required reading, but if you are interested in going a little deeper into the differences of the spectrum of entrepreneurial endeavors, this is a great read 

If the Shoe Fits_ Nonprofit or For-Profit_ The Choice Matters.pdf