Since I revised my idea and ended up changing it I needed to re think over my Business Model Canvas. I will still utilize a key key elements from m original work such as how I plan to market the product.
My new idea will be a website teaching people how to utilize social media in order to grow your business. It will be a free website to access with staff uploading and producing daily content and new lessons for the site.
Too read the full description on my idea click here.
- Customer Segments- Currently before I do my customer focus research I am still unsure about my target audience in terms of its audience. I would like to promote my site to young entrepreneurs but I do not feel like I should limit the site to a few selected people as you can start a business at any age and my site should encourage anyone and everyone to build themselves and their business. In ‘The Business Model Canvas’ by Alexander Osterwalder & Yves Pigneur, they go on to describe the 5 groups which represent separate segments I believe my audience is within the ‘Niche market’. I believe this was it states “Business models targeting niche markets cater to specific, specialized Customer Segments. The Value Propositions, Distribution Channels and Customer Relationship are all tailored to the specific requirements of a niche market.” (The Business Canvas Model, Alexander Osterwalder & Yves Pigneur, page 21). My idea is very much tailored for a specific skill, not everyone will set up a business through Facebook, or would ever feel like they needed to spend time to learn how to present themselves on social media. Being an entrepreneur is itself wanted by a niche market and my idea offers a specialised service. Similar to other niche stores for example who may offer clothes, perfumes or miscellaneous which may be difficult to find online or in a generic global store. For example Wolverhampton is home to a number of niche clothing stores such as Penny Farthing and Rowfers and there is also a specialised vintage comic store, these are all pushing towards the niche market in their Customer Segment.
- Value Proposition- My site will offer people across the world free education in business management with social media. There are many sites, schools and even Universities that will offer the same training but for hundreds if not thousands of pounds. The fact that my site will be free for the audience is a great key value, it does not limit itself to money so only the well off or rich will be able to gain these skills but everyone. My site will help the consumer build up their future, creating a stable income but also hone their social media skills for themselves.
- Channels- I will use social media to raise awareness of my product by promotion through groups and advertisement. I could also take my project to events such as ‘The Business Show’ which opens once a year for 3 days; worldwide business come along to event and promote their idea to their audiences and other entrepreneurs. I will use social media and my main aid for communication to my demographic but will not limit myself. I could also have an email account to help organise maybe complaints, ideas and staff. But I also need to consider the cost of running my channels and marketing materials online and off. The internet may be somewhat affordable but running sites and upkeep on daily media and exciting content to catch the audience’s attention that will cost.
- Customer Relationships- My last idea was a Co-creation relationship with its customers and I believe this idea shares similar ideas. Both want their customers to get involved and assist with content for the public consumption. My Social Media con was more people getting involved in selling their product face to face at an event in this idea they are promoting themselves and their business through my site. It would also be a great help to the site if it became a community where others could upload their own tips and tricks and write posts for the site as I may not have to hire as many content writers and producers.
- Revenue Streams- I am still undecided on where my revenue will directly come from but a few ideas I noted on my Business Model Canvas is: through Youtube, social media sponsors and even social media advisers. Youtube- once your videos has a customer following and a high volume of views they will begin to pay you for your service and to put adds over your videos. This would be a way of paying the contributors of the videos while also making a small profit to pay staff. As stated i could also get sponsorship from social media accounts which we talk about, they could even sponsor videos where we make a video telling people why they should use Facebook the most for their business. Lastly If needed I may be able to get some more finance from social media advisers who want to promote their service on my website in case some of my audience instead just want someone else to do that work for them which some may! Most large corporations do this and outsource their social media pages so they can focus their time and money on other aspects of their business model.
- Key Resources- I will rely heavily on my staff and or the community to provide daily high quality and interesting content to build my site and its fan base. Without the content no one will come to my site as their is nothing to offer them free or not. Other human support I will depend on are website developers and communications supporters. But in order to support these aspects I will need a steady flowing of financial support so before I begin the process of recruitment I need a list of reliable and committed supporters to make the project financially scrutable.
- Key Activities- In order to make my idea work I will need to create marketing high quality marketing materials and a perfectly etched promotional idea. My idea is to help businesses grow and I need to make sure my promotional materials are high quality and prove that my site is by professionals who know what they are talking about. These promotional materials will be shared across social media platforms and website building sites.
- Key Partnership- My key partners will be with freelance videographers to produce content for the site if I choose to rely on freelancers. Within my research I also came across a “Coopetition:strategic partnership” (The Business Canvas Model, Alexander Osterwalder & Yves Pigneur, page 38) which is where a business with partner up with a competitor in order to build their profile for example the large corporations Coca Cola, Pepsi, P&G and Unilever joined forces in 2014 in a propaganda campaign to help save the polar bears and reduce global warming while also pocketing some cash for themselves. (Oliver Balch, 2014) I say propaganda as they themselves contribute vastly to global warming through production and waste. I mentioned this as I feel working together with social media advisers would be a great asset to the site, in the obvious key factors such as sponsorship but they may be able to help advise me on the content produced and how I am myself promoting my site as if they help me they also help themselves become more noticed.
- Cost Structure- I believe my idea is definitely more ‘Value Driven’ (The Business Canvas Model, Alexander Osterwalder & Yves Pigneur, page 41) as my main focus is providing free vital education for young entrepreneurs who may not be able to go to school due to time constraints, age or even just simply don’t want to do the test just learn the skills. By offering it for free my business is more about value creation than money driven. This does not mean that the company will not focus time and effort into resources as it will need a stable income to upkeep the site and staff.
Once I have done more research into my idea and pitched it to my target audience I can re evaluate my business plan and add more ideas and maybe test my existing ones.
- Harvard Business Review. 1989. Collaborate with Your Competitors—and Win. [ONLINE] Available at: https://hbr.org/1989/01/collaborate-with-your-competitors-and-win. [Accessed 25 October 2016].
- the Guardian. 2014. Why rivals like PepsiCo, Coca Cola, Unilever and P&G are joining forces. [ONLINE] Available at: https://www.theguardian.com/sustainable-business/2014/oct/23/pepsico-coca-cola-unilever-proctor-gamble-partner-business. [Accessed 25 October 2016].
- Osterwalder & Pigneur, AO & YP, 2010. Business Model Generation. 1st ed. New Jersey: John Wiley and Sons Ltd.