Business Model Design

Investors, particularly VCs, are increasingly asking entrepreneurs to describe their business model in terms of the Business Model Canvas popularized by Alex Osterwalder’s bestselling Business Model Generation book and seminars.

The term “business model” used to mean how a firm made money. Firms needed to answer how they monetized their customer interactions; how they priced their products and services, and how they kept costs down so as to be profitable.

Osterwalder’s framework expanded the definition of a business model to include the following four questions:

• How do you create value?
• What is your Customer Value Proposition?
• How do you deliver value?
• How do you capture value?

These four questions are mapped into the nine boxes in a Business Model Canvas.

How Cayenne Can Help Design Your Business Model

Most entrepreneurs are eager to develop new business models, but need help with the design. Many just fill in the blanks in the nine boxes, but are stumped when grilled by the investors on the inter-relationships among the boxes.

We can help design a robust and compelling business model for your firm. We can help you answer difficult questions such as:

• What is the relationship between your business model and your strategy?
• How are you competing using your business model, with other firms in the same space, but with different business models?
• Have you optimized your profit formula?

As part of our mission to help entrepreneurs tell their stories in a compelling way, we can help you design an optimal business model that will wow investors, and help you get on your path to gain customer traction.

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