Question

Hi there,

I am going to plan of a start-up "Fruits and vegetables organic " store

So Can you help me to plan "Business Model Canvas" (understanding of BMC will not be assessed in this assessment.)

If it is possible can you give me 1 reference as well please?

ex: Heidarkhani, A., & khomami, A.A, & Jahanbazi, Q.,& Alipoor, H. (2013). The Role of Management Information Systems ( MIS ) in Decision-Making and Problems of its Implementation, Universal Journal of Management and Social Sciences, Vol. 3, No. 3, pp. 78-89

Thanks a lot

Answer 1

Hi,

Preparing a BMC is basically outlining your whole idea into a simplified model for which you have to primarily understand a few essential segments of every startup. The following Metrics are very essential for laying down the structure in BMC:

1. Target Customers: It is very essential to understand which category of customers are you targeting. This may depend upon several factors like: Age, Geographical Location, etc . In your case as the business is related to health you can lay target households in the cities where pollution is a major issue and where agricultural lands are limited.

2. Problem: You as an entrepreneur must be aware of the issues you are addressing by your startup to your Targeted Customers. Here you can list up the health issues people are facing due to food they eat grown with chemicals or where it is intoxicated. You must list atleast 3-5 problems in this section.

3. Solutions offered: Here you will have to brief about advantages of your Products i.e. organic food and vegetables. How will this positively impact the life of your consumers and how will it address the issues they are facing at the moment.

4. UVP or Unique Value Proposition will form the mid-part of your BMC which will state why your Customers prefer you over others or in other words, what competitive advantage do you have over others. This is the most essential part of BMC and hence you should carefully arrive at the Pros of your Startup.

5. The last part on the Product Section of the BMC is your Cost Structure. You must make a list of your Operational costs along with a buffer for contingencies. Then you will have to arrive at a Burn Rate for the monthly working capital requirements. A complete market research will be required for detailed understanding of the costs involved in day to day activities.

6. Roadmap to Reach Customers: Here you will have to mark out the ways to set up your sales channel. How you will reach your customers or How will they come to know about your business? Will there be any initial advertising required? If Yes, then in what form. All these questions needs to be answered upfront before starting the operations.

7. Unfair Advantage: I feel this is the most difficult section to answer, as here you have to think upon one advantage that you have that other can hardly achieve. It can be of any form, Technological advantage, Insider Info, In-House research or anything which others cant have easily.

By ascertaining all the above Metrics, I feel you will be able to develop a BMC that can portray the model of your startup exactly as you think of. I hope this will give you a better understanding.