The BMCC recommends the use of the business model canvas developed by Alexander Osterwalder & Yves Pigneur. The video below describes how to use the canvas and here is a link to a digital version of the canvas that you can use. You can also download a printable copy of the canvas here. Also check out the StartupToolKit.com for additional business model canvas resources.
Validating a business model is the most crucial part of starting a company. By testing a simple hypotheses countless of hours and resources can be saved. Invest a few minutes to understand this new approach to entrepreneurship-it will change your life.
Developing a business model is a different process than writing a business plan and is at the very heart of a new approach to entrepreneurship. On the Lean Startup & Business Modeling Videos page you will find videos from thought leaders on this new perspective.
1. Identify and track your assumptions with the business model canvas
2. Test your assumptions in the field with customers and pivot if your model is wrong
3. Demonstrate that you have gained market traction using feedback from actual customers
Below is a condensed work plan for what a team actually does to validate a business model and have a chance of winning the IBMC.Find a Problem
Find a big customer problem worth solving and write down all your key hypotheses about the business model to solve this problem. We recommend that you use Alex Osterwalder’s Business Model Canvas as a scorecard to track your assumptions and the changes that you make.Nail the PainGet outside the building and interview customers face-to-face to understand the “job” customers are trying to do, their current pain, and how they solve that pain. Pivot when you discover you are wrong.Nail the SolutionDevelop a minimum viable product prototype and get outside the building face-to-face with customers to test your vision of the solution. Pivot when you discover you are wrong. Repeat these tests until you nail the solution.Nail the Go-to-Market StrategyGet outside the building to understand the end-to-end customer buying process, the market communication infrastructure, the distribution infrastructure. Identify the leverage points. Pivot.
Nail the Business Model
Use the facts discovered to validate the revenue model for the business.
Throughout the process learn to change course whenever you discover you are wrong.
Whichever particular method you use, the key steps are to 1) identify your assumptions, 2) get outside the building to test those assumptions, 3) validate the facts with customers and pivot as needed, and 4) identify lessons learned. For the competition, you will tell us about the process you went through, revealing the dead ends and surprises that you discovered along the way.
Remember, the goal is validated learning about the business model assumptions and failing early is a success compared to failing late. If you fail but have a compelling story, submit anyway—you may get the award!
The deadline to apply for CBMC has been extended until Feb. 15th, 2016!
Please use the application form on our website to apply and check out our webinar for details and helpful hints on how to prepare a great video application.
(Please note that some of the information in these videos pertain only to the International Business Model Competition
Slides for 4th IBMC Submission Training Workshop
The following are two options for creating your video:
Screencast-O-Matic is a simple, easy to use software that allows you to quickly record your screen and audio. This free tool allows you to upload the resulting video straight to YouTube.
Camtasia Studio is a more advanced screen recording and video editing software that can produce more professional videos. A free trial is offered.
Balance(4th Place), Pontifical Catholic University of Chile
Fairweather Chef(3rd Place), Harvard Business School
Soletics (Semi-Finalist) Grand Valley State University
Although there is not one format for successful submission videos, we suggest that videos contain the following components to communicate effectively:
Who are you and what does the business do (pain and solution)?
What were your initial hypotheses? Did you identify a customer problem? What were the key hypotheses about the business model? Remember some of your most important hypotheses are about customer pain and your solution to that pain.
How did you test these hypotheses? What specific tests did you conduct? What did you discover? What facts were uncovered? What facts remain to be uncovered? One of the major purposes of the competition is to see if you have truly NAILED THE PAIN—but what data do you have?
How were your initial assumptions proved right or wrong? What pivots did you make?
Validated Business Model Slides
Diagram your business model and present the facts? How does the business make and deliver value? Consider the following critical points to communicate:
Be sure to communicate the lessons learned, including pivots and failure.
Appendices should be included only when they support the body of the model. These additional slides need to be available for giving context and for answering questions judges might have. Because judges might not read all the material in the appendices, the body of the model must contain all information pertinent to the model.
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