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Create your Social Business Model Canvas


Your objective is to create a business model. You’re going to use Alex Osterwalder’s Business Model Canvas,* a chart with nine blocks representing the fundamental aspects of a business. Complete each of the blocks in this order:

 

What are the people or organisations who will pay to address this issue?
Impact Measures (How will you show that you are creating social impact?) / Customer Value Proposition (What do your customers want to get out of this initiative?)
How are you reaching your beneficiaries and customers? How an enterprise communicates with and reaches its customer segments to deliver a value proposition?
Break down your revenue sources by %
What resources will you need to run your activities? People, finance, access?
What programme and non-programme activities will your organisation be carrying out?
Who are the essential groups you will need to involve to deliver your programme? Do you need special access or permissions?
What are your biggest expenditure areas? How do they change as you scale up?
What is the format of your intervention? Is it a workshop? A service? A product?
Where do you plan to invest your profits?

This will be your first business model canvas. I recommend that you create more than one because, as I said, most initial business models are not very accurate. You won’t know how people react to your product or service until you’ve launched it.

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Mentor Card Mission 6

Focus on - Business Model

A business model describes how an organization creates, delivers and captures value. In other words, it shows the major components of a business or project, how they interact to deliver good things to clients, and how it makes money in the end. A business model is not like a business plan. A business plan may be sixty pages or more, filled with assumptions about every aspect of your future business: marketing, sales, production, human resources, organization. The problem with business plans is that they’re often static and unvalidated, which means they can be completely wrong. This happens because it’s extremely hard to predict what will happen when you actually launch your business. Understanding the business model of a social enterprise can have two key benefits:

1. It can help us to understand, design, articulate and discuss the ‘nuts and bolts’ of our business concept;

2. It can help us to test and develop prototypes so that we can see if what we passionately believe about our impact and our business actually ‘stacks up’ in practice.

About this challenge

For this challenge, you’ll use the Business Model Canvas, created by Alex Osterwalder. If you want to dig deeper and understand this great tool, used by millions of entrepreneurs, I recommend that you read his book Business Model Generation. The differences between a business plan and a business model lie in purpose and substance. A business model helps us to design and articulate how a business could work, and how we can innovate inside the business.