Meeting 5 – Business Model Canvas:
It was discussed in the previous meeting that knowing oneself is an important matter to anticipate for it guides students to know their passion, things that they love and do not love, and help them to become a technopreneur that they wanted to be. But other than these self-mastery and assessing oneself, it is also necessary in technopreneurship to understand what your product is all about or the purpose that the company wanted to portray. It is like knowing what your passion are and to figure out the steps to consider in doing so. It is relevant that before taking actions to fulfill your goal, planning before development should be anticipate. And to reflect the methods in starting your business, business model canvas are used to systematically understand your business. It is by business model where you can present the market status, your suppose average of profit, and so does the target customers for your product. Business model canvas is important in technopreneurship because it defines the strategy to use and what factors to deliberate in order for the product to work efficiently and effectively to the market. It simply acts as a guide to present your product in a business manner but can also be understood by other people. And as what was discussed by our professor, there are four areas in business canvas: the identifying or definition of ideas (what?), the possible customers that will purchase or avail the product (who?), ways or strategies to make the product (how?); and the revenues or funding for the business (money making).
THE FOUR AREAS OF BUSINESS MODEL CANVAS:
Definition of ideas – this answers the question what in business model canvas. This area refers to the objective and/or purpose of the company in making the product. Also, it in this area where a person starts to think about an idea that is unique and first to the industry or market. However, in my opinion, to think of an idea is not an easy task because as what was also tackled before, you can always contemplate of an idea but a good and worthy idea does not come along in a matter of days or in an hour. It takes perhaps a series of serenity walks and external/internal analysis to come up with something that is truly valuable for your target users. Therefore, knowing what your product is and search for ideas should be given some time because I think it is by means of thinking of something that will be worth a shot for yourself and for the community.
Possible target customers or users – describes who your target customers are. It is essential in any business that target user are defined to understand their behavior and make use of their feedback in the testing stage of the business. Target customers are the one who will validate the satisfaction rate of the product, thus, it is necessary for customers to share insights or opinions for the product. I think that without target users, the product is nothing but irrelevant and out of purpose. I guess that when creating something, direct purpose and list of customers should also be projected. Also, I think one should always remember that you can’t represent a product effectively if you do not know who your clients are, and conducting interviews or surveys to people is something that I recommend in ensuring the good performance and gratification of customers prior to your product.
Strategies and methods to market – I think this refers to the task or activities in developing or doing start-ups. This is where the requirement specifications and the procedure to make in the business takes place. Generally, it is in this area of business model canvas where the planning for the development usually happens and creating business model for the product. When generating a business model, there are nine elements that serves as a guide to emphasize some points in business:
1. Offer – denotes the resources and services that the business can offer. It typically includes the possible benefits if the client will use the product and its sole purpose in making the product itself.
2. Key Resources – refers to the requirements specifications of the product either functional requirements or non-functional requirements. The key resources components somehow justifies that the needs of the clients or customer was fully met and so does the satisfaction that they experience. It is important to note that the user experience also plays a big role in the industry of business or technopreneurship.
3. Key Activities – is the list of tasks to accomplish during the development stage of the product. It describes the what-to-do activities and the whole plan for the product. It is also in this component where the roles and responsibilities of each team members are being drafted.
4. Key Partners – defines the relationship of the company to the venture capitalists of the market. I guess that it in this component of business model canvas where you start to seek actual funding and identifying who are the probable partners you can get in the community.
5. Cost Structure – also weighs the funding of the company for a specific product. In my opinion, one of the scenarios during cost structure component is bidding the initial budget for the development of the product. This will also denote the probable profit that the company can get after the proper implementation and deployment of the product to the market.
6. Customer Segments – identifies who are the users enlisted for the product. Customer segments mainly focus upon the target customers and knowing what might be their opinion or view prior to the product and company.
7. Channels – states the possible platforms that the company can use to generate possible users for their product. Part of the channel component is promoting your product through social media and advertise it to the community.
8. Customer Relationship – describes the interaction and relationship of the company to its clients or customers. The objective of this component is to ensure a good bond to customers to assure them that the product is hundred percent efficient and reliable. Relationships with customer should not be taken for granted because after all your product is for them to use.
9. Revenue Streams – is the return of profits that the business will get or earn. Also, I think that it is in revenue streams where the company can see their statistical growth in terms of the sales and demands of the customers.
Revenues and Funding – describes the money making process of the business. In this component, where the funding and budget for the product is being discussed. Another factor for revenues and funding is the fact that it answers the question how – how the to get the funding for the business and how the revenues relates to its corresponding service that it offers. In addition, I think that this area of business model canvas is the most crucial compared to all listed above, for it is in this stage where the real marketing happens. This is where you try to make method on how to promote your product and equally gain profit out of it. And this is where you try to pitch your product to venture capitalist, get yourself a great deal of funding and if you are fortunate enough, your product is set for development. I consider this area of business model as taking risks and chasing opportunities.
On the other hand, aside from the business model, based from the discussion we had with our professor, it was defined that start-up is somehow an organization with a purpose to think and conduct a research about what’s happening in the community and also the future. Or binding solutions for some problems that needs a technological measurements and resolutions. Compared to an accustomed company or small business, start-up focus more on repeatable and scalable activities that occurs in the community. It deals with the business hypotheses that there is a birth of new approach to business unlike established businesses. That its strategy does not limit upon the implementation of operational and financial plans, but I guess it describes the use of hypotheses to come up with new ideas that will help the community in technological means. Also, it is in start-up where the organizational structure is not define by designation of departments but rather it compromise a team and bringing chances to become a company owner themselves. For me, start-up somehow open opportunities to aspiring technopreneurs. It generates a place for those who dreams to have their own business themselves. Truly, start-up creates an environment where students and other’s with great ideas to make meaning and set their lives into motion. Start-up provides a way for those people who wants to pursue a career in technopreneurship or the Information Technology community.
Moreover, the good thing about start-up is for the fact that it is widely open for new ideas rather than sticking and enhancing what was established alone. The main goal of start-up is to search for new opportunities in business technology and discover unknown concepts or ideas. It is like a search and execution for ideas that will support the needs and lifestyle of the people and the society. Start-up is also a method to convert these hypotheses into something that will not remain as assumptions but to possess bigger perspective and empowerment in the world of technology. Just like how a quote goes, “Canvas for start-up is not strategy but realize they are hypotheses.” This means that these hypotheses or ideas are mainly the root for any other start-up, because you can always make strategies out of something but an idea itself is hard to conceptualize especially that they are supposed to be unique and first in the market. Therefore, the tool for a successful start-up is an idea that has a greater value to the market. As what our professor said, there are ideas everywhere but it is always hard to search for an idea that is relevant, helpful, solution-wise and needed. You can make assumptions or hypotheses all you want but you have to remember that hypothesis is an educated guess that is somehow feasible and is based from real life situations. You can’t simply come up with something because in technopreneurship, it is important that your idea has a potential to gain profit and valuable to the market; and that it shares a purpose not only for yourself but for other people too. Try to address your passion in creating meaning and purpose to your products or services.
Conclusion:
Business model canvas is indeed essential in business or technopreneurship. I realized that with business model, I can project the purpose and definition of my service to the market presentably. The fact that it presents the funding and revenue of business justifies the worth and value to the market without doubts from customers. It does not only focus with the idea to anticipate but shoulders the relevance between the relationship of the business and to its target customers. For me, the business model canvas that is also used in start-up will help turning hypotheses into an idea that is unique. I also think that the purpose of the business model canvas is not about how to gain profit and ensure funds from venture capitalists, but to assess that the product or service is in line with the four areas of business model canvas. That before making plans and strategies for revenues, the business should contemplate on what is their service, who are the target customers, how they will promote it and the money making of the product. Because I think that as long as you already identified all of these factors, you ca guarantee that the product is most likely effective and efficient. I guess with good establishment from the four core areas of business model canvas, the other factors to a successful business will surely follow. And I think that if one believes that the true canvas for business model canvas is the hypotheses or ideas, strategies and methods will follow; that if the idea itself is valuable, a good market will also reflect to the business.
