A few months ago I ordered the book Business Model Generation on Amazon.com after seeing it mentioned on several blogs. Memorial Day weekend makes for the perfect time to dive into the book and I’m just getting started. Straight from the book, here are the nine building blocks of a business model:
- Customer Segments – An organization serves one or several customer segments.
- Value Propositions – It seeks to solve customer problems and satisfy customer needs with value propositions.
- Channels – Value propositions are delivered to customers through communication, distribution, and sales Channels.
- Customer Relationships – Customer relationships are established and maintained with each customer segment.
- Revenue Streams – Revenue streams result from value propositions successfully offered to customers.
- Key Resources – Key resources are the assets required to offer and deliver the previously described elements…
- Key Activities – …by performing a number of key activities.
- Key Partnerships – Some activities are outsourced and some resources are acquired outside the enterprise.
- Cost Structure – The business model elements result in the cost structure.
What else? Is there anything else you’d add to the building blocks of a business model?
10 thoughts on “The 9 Building Blocks of a Business Model”
David, if you want to implement the business model canvas in your operations there’s a free web-app for it and a couple of derivatives (startup model & lean model) at http://thestartuptoolkit.com/
Maybe “pricing” for an even 10?
Simple to understand for new learner’s like me