Business Model Canvas 101 (Full free video course)

Chances are that you have heard before about "the Business Model Canvas" and the "Value Proposition", but there are so many variations for these terms online that one finds themselves puzzled where to start.

What is a Business Model in Reality? And how can we apply it to our entrepreneurial ideas and existing businesses?

In the Business Model Canvas 101 (Full free course), we will discover what Business Modeling is all about, how to go about it and design your very own model. This course targets anyone who is new to the concept of Business Model Design or if they already have an idea and need further guidance. We will get familiarized with the nine main components of a business model, one by one.

The course includes rich content with examples and downloadable course notes/slide shows, in addition to full (subtitled) video detailing each component. The following video outlines what this course offers (Make sure to open English subtitles as the original video language is Arabic).

This course shows how each component of the Business Model works and how to link them with video, downloadable content and examples.

PDF lectures and the Business Model Canvas PDF download ahead. Keep on reading!

Let's take it one step at a time to better understand the Business Model.

From its inception, a Business is found to solve a real-life business problem or ease a customer difficulty in a certain area. As solving problems will be positively welcomed by customers, which means it has Value for them. This value is what drives the business forward, and kicks off the basic business operation line:

Solve a problem -> create value for customers -> customers pay back for the value received

Value in this sense has multiple meaning: The value for customers is having their problems solved, and the value for the business is creating sales.

Based on this, we have now three main components at hand: A customer, Value, and Revenue. These components are broken down as follows (Information here is in abstract and will be discussed each in depth throughout the course):

1. Customer: the person (group of) whom is expected to benefit from value created by the business by purchasing products and services a business is offering. Check the definition of Customer Avatar.
2. Value Proposition: Simply put, this is the value we are aiming to present for the customer in order to solve their problems and pains. You can see that this Value Proposition is in the center of the figure below as it shapes the backbone of the entire Business Model. It includes products and services offered by a business to its customers.
3. Revenue: Since customers pay for using the value proposition, these "payments" form an income that is used to calculate the final "Revenue"- more on this later.

Nine Components of the Business Model

To organize the Business Model a bit we add a few components to the mix:

The above figure shows the remaining basic components of what we call "a Business Model".

4. Activities: The production and other actions done by the business to create the intended "Value".
   
5. Partners: What helps the business run in optimal conditions is getting the right resources from partners.
   
6. Customer Relations: Since there are paying customers, there needs to be a "relationship" between the seller and buyer.
7. Channels: How customers will be approached and value delivered for them.
8. Resources: The required raw material and other resources needed to create the Value through the Activities.
9. Cost: What is the running cost of all of the above?
   

The Business Model Canvas 101 (Full free course) Summary:

Part 1: Understanding the Business Model

The first part of this series reviews what a Business Model is, and discusses some other basics before going into details of the components of the Business Model Canvas.

The first part covers introductory topics:

• Why is a Business Model essential?
• Investors and Judges, and their link with Business Models
• Samples of basic Business Models
• Components of a Business Model
• The Business Model Canvas
• The Value Proposition Canvas
• What compliments it?
• Business Model Pointers towards getting on the right track

Part 2: Customer Segments

In this part, we dig deeper into the first component of the Business Model Canvas: the Customer Segments. We address Customer Profile, Target Markets, and how to link a customer to a Market.

Second part dives into topics:

• Customer Profile (Avatar)
• Market Segments
• Linking Avatar to Market Segment
• Identifying the Market Segment
• Real-life examples

Mentioned Resources:

• Customer/Business Problem
• Customer Profile/ Avatar
• Identifying the Market
• Identifying the Competition

Part 3: Value Proposition

In this part, we discuss with some depth the Value Proposition Component, in addition to the services and products of a Business. This part also introduces the Value Proposition Canvas.

Topics covered:

• Presenting value to the customer
• Nature of products and services
• Properties of a Value Proposition
• Finding the right value
• The Value Proposition Canvas explained
• Applicable example

Resources Mentioned:

• Customer/Business Problem

Part 4: Channels, Customer Relations

In the fourth part, other front-end components of the business model are detailed and discussed. These components include Channels and Customer Relations, and how these two can link the customer with the value proposition.

Topics this part covers:

• Channels: meaning and classifications
• Stages of Channels
• Applicable example on linking Channels to the Business Model Canvas
• Customer Relations: meaning and classifications
• Applicable example on linking Customer Relations to the Business Model Canvas
• Linking Customer with Value in the Value Proposition Canvas- Example
• Finalizing the customer-facing side from the Business Model Canvas, including Customer Segments, Value Proposition, Channels, and Customer Relations

Part 5: Key Resources, Key Activities, and Key Partnerships

Fifth part takes into consideration all the back-end parts of the Business Model that normal customers don't see but are essential in producing the desired value. These include Key Resources, Key Activities, and Key Partnerships.

Topics covered here:

• Main resources: Physical
• Intellectual resources
• Human Resources
• Financial resources
• Production activities and its classifications
• Forms of partnerships, and when to choose each
• Applicable examples

Part 6: Revenue Streams, Cost Structure

The last part of the series discusses two of the most critical components of the Business Model: Revenue Streams and Cost Structure

Financial topics that the last part covers:

• Revenue vs. Profit
• Pricing
• Various methods of generating revenue, and which to use?
• Licensing and Franchise
• Ads and Online Marketing
• Methods of managing costs
• Cost Structure classifications
• Applicable examples

Business Model Canvas & Value Proposition Canvas PDF Download

Download Business Model and Value Proposition Canvases here