Imagine that a business is supposed to be a tidy arrangement of essential building blocks.
Mostly the blocks stay in the box with the rest of the toys except maybe when we decide to play a bit. Then we chuck them back in the box or maybe leave them lying around for someone to stand on or hopefully tidy up for us.
In any business there are 9 building blocks – the blocks are the foundations and structure of your business. To understand this framework, you need to know what resources you have (and don’t have), what things you need to outsource, what channels and partners you need to establish for marketing, sales, and distribution, who your customers are and how you will communicate with them, what your real value is to your customers, what your costs will be, and most importantly how you will make a profit.
Your building blocks look like this:
- Customers – kind of important..
- Value Propositions – the thing your customers want – do you really know what your customers want?
- Channels – how do you attract to your customers?
- Customer Relations – how do you keep your customers?
- Revenue Streams – show me the money! Is it coming from multiple places?
- Key Resources – from what do you create to make that thing your customers want?
- Key Activities – what is it you do exactly?
- Key Partnerships – do you have any of these to make getting clients easier?
- Cost Structure – how much is this all costing?