💼📊 Business model slide, what a waste of space. #016
This Is How to Write Your Pitch Deck. #016
🌟 Why Does This Slide Matter?
🔎 Understanding the Landscape of Business Models
⭐️ Business Models vs. Customer Segments
⭐️ Customer Segments
🤔 Why Integrate Rather Than Isolate
✅ Incorporate Within the GTM Strategy
✅ Highlight in the Traction Slide
✅ Link to Financial Projections
🛠️ Expanding on Value Creation
🌟 Why Does This Slide Matter?
IMO this is a waste of a slide, it goes on your cover, in your traction, GTM and financials slide, thats it.
The conventional wisdom might suggest devoting an entire slide to detailing your business model. However, a more nuanced and integrated approach proves more effective in conveying your business's value proposition and operational strategy without segmenting crucial information. Another really important factor is to understand what “Business Model” means.
🤷🏼♂️ What the pro templates say!
Now that’s a solid guiding light for founders 🤯
🔎 Understanding the Landscape of Business Models
Business models are not one-size-fits-all. While terms like B2B (Business-to-Business) and B2C (Business-to-Consumer) describe who a company sells to, they don’t fully define how a business makes money. Similarly, SaaS (Software-as-a-Service) describes the nature of the product or service, but not necessarily how revenue is generated. The true essence of a business model lies in how a company creates, delivers, and captures value—essentially, how it makes money.
The landscape of business models is broad, encompassing various approaches like subscription-based models, pay-as-you-go, and freemium strategies. Understanding these different models is essential because they directly impact a startup's ability to thrive or fail. Let’s clarify the aspects of a business model to ensure we’re on the same page about how businesses generate revenue and sustain themselves.
⭐️ Business Models vs. Customer Segments, some examples.
Business Models
Subscription: Recurring fee for access to software or services (e.g., Salesforce, Netflix).
Freemium: Basic features are free, premium features are paid (e.g., Spotify, Dropbox).
Marketplace: Platform connecting buyers and sellers, usually with transaction fees (e.g., Airbnb, Uber).
Advertising: Free services monetised through advertisements (e.g., Google, Facebook).
Pay-As-You-Go: Customers pay based on usage (e.g., AWS, Google Cloud).
API-as-a-Product: Monetising access to software/data through APIs (e.g., Stripe, Twilio).
Open Source: Free core product with monetised support/services or premium features (e.g., Red Hat, MongoDB).
➡️ These business models describe how a company generates revenue, focusing on the mechanics of income generation.
⭐️ Customer Segments
B2B (Business-to-Business): Selling products/services to other businesses (e.g., Salesforce, Slack).
B2C (Business-to-Consumer): Selling directly to individual consumers (e.g., Netflix, Spotify).
B2B2C (Business-to-Business-to-Consumer): Selling to businesses that, in turn, serve consumers (e.g., Shopify).
D2C (Direct-to-Consumer): Manufacturers selling directly to consumers without intermediaries (e.g., Apple, Tesla).
Enterprise: Targeting large corporations with specialised products/services (e.g., Oracle, SAP).
SMB (Small and Medium Businesses): Focusing on smaller companies (e.g., QuickBooks, Mailchimp).
➡️ These customer segments describe who the company sells to, not how it generates revenue.
Clarifying the List
Revenue Models: The specific method of making money, which could be any of the business models listed above (e.g., subscription, transaction fees).
Distribution Channels: How products/services reach customers (e.g., app stores, direct sales).
Value Propositions: The unique benefits that make a product/service attractive to customers (e.g., time-saving, cost-effective solutions).
Key Resources: Critical assets necessary for the business to operate (e.g., proprietary technology, user data).
Key Activities: Essential tasks that the business must perform to deliver its product/service (e.g., software development, customer support).
Key Partnerships: Important external relationships that support the business (e.g., cloud providers, payment processors).