2 Your business model is unique
As you work through this course you will cover all aspects of the business model canvas. You will have more detail or ideas for some parts and for others, less. You should complete Activity 2 now to help you identify these areas.
Activity 2 Thinking of your own business model canvas
Take a few minutes to think about your own business idea and what aspects of a business model you could clearly describe for it now. Which will you need to work on? Note your thoughts down in the text box below.
It is highly unlikely that you will have fully explored all the areas of your business model canvas unless you have developed beyond a concept or idea. As our entrepreneurs suggested in previous videos, ideas can change. This is something that you will explore in more detail as you continue with the course.
As your business model should be unique to your idea, you are the expert in it. While you may have similar component parts to other businesses, your business model differentiates you in some way. It is for you to find ways that you consider will confer a competitive advantage and therefore a compelling reason for customers to favour or buy from you. This can come from any part of the business model – including your pricing strategy and the elements of your value proposition.
In the following video our entrepreneurs talk about their business model and whether they planned it or if it emerged over time.
Any part of your business model may provide a source of competitive advantage and indeed there are examples to be found in many sectors of companies who have done just that. For example, some companies have been extremely successful in targeting a very specific group of customers – SAGA being one British case in point that started by focusing on the over 50s. The business was founded by Sidney De Haan in 1959 who passed on to his son in 1984. They provide packaged holidays, related insurance products (travel, caravan, motor) and then, more recently, branched into financial services products (travel money, credit cards) and latterly health care.
As the changing demographics demonstrate, this is a growing market. You can see how the value proposition for older customers with particular needs and attributes is a good strategic fit. SAGA owns a direct mail and fulfilment service and publishes a subscription magazine which is widely subscribed to and reckoned to be read by around one million readers. As you are considering your own business model, it is worth thinking about how you will reach your customers. It is also worth spending a few minutes looking at thein a new window or tab, to see how they provide added value to their customers, whom they refer to as members.
Next you will look at some of the dilemmas you may face as an entrepreneur.