Disclaimer: This Article is updated by Yusra Qasim.
Every business starts with a unique idea in the minds of the founder, but translating that vision into a successful business requires planning. That is where business model comes to play. In simple words business model is a plan for the successful operations of your business.
A starting tool for any business plan is the renowned ‘Business Model Canvas’. Business model canvas consists of 9 building blocks necessary to perfect the strategy for your business. However, talk of town these days is following the ‘Lean Methodology’. Long gone are the days of indoor, office planning as with business model canvas. It is said that its time to test young and adapt according to markets belief. The methodology is great, there is no point in spending resources on something that is more likely to fail because you assessed the need wrong.
Avoid the 7 deadly sins that startups commit
But, it is still better to stay indoors and map a basic plan out. While we may have all the major aspects of our business in the back of our mind, till they are in writing, the following problem can ensue:
- There can be confusion in the team
- Goals keep changing and you end up in circles
- There is always something that you miss out on
Once the canvas is filled, the founder will have a clear understanding and a visual image of the key aspects involved in a business. This makes it easier to not only communicate the idea to your employees (new and old alike) but also makes it easier to get investment. After all, the 9 building blocks of the canvas are what the investors look at before making the big decision.
Find out who would invest in YOUR startup and why
But, when preparing to pitch it to the investors, do keep in mind the following points:
1. Avoid over explaining YOUR idea
One of the pitfalls of making the canvas and using it as the basis for explaining the idea to others is that often we get lost in our descriptions. That is precisely what the canvas does not want. The canvas aims to reduce the clutter and simplify the business model. So don’t get bogged down in the nitty gritty.
2. Use colors while explaining
Making the board colourful makes it visually appealing for the listeners. In the information age of today people are more willing to pay attention to a visually stimulating presentation than one that is monotonous.
3. Do not spill the beans
Refrain from showing a complete board to the investors. Take it one step at a time. Use sticky notes and start filling one block at a time in front of the investor. Placing them all at once just invites distractions.
4. Provide Evidence
Don’t tell the end stories from the get go. Build up your hard work and take the investors through the journey, from conception to the final decision. It shows your commitment and creates interest in the project.
5. Do not be nervous
If you have followed the above steps then there is nothing to worry about. By building the canvas you have done your part that is more than enough. Investors are also people and they can see effort when it’s made.
Conclusion
Keep these tips in mind and try to adapt them based on your startup’s profile. We wish the best for all start-ups. We can help you strategize your business too.
