Use This 1 Business Model Generation Tool Before Creating Any Product or Service
Founder and Editor-in-chief
The Starting Idea
Have you heard of the guy who invented the helicopter ejection seat?
Well, it never really took off.
Moving on from this lame joke, the point I am trying to make here is that spending precious time on building a product no one wants is simply ensuring failure for your business.
Do not be that guy.
This is the reason, why I always use Alexander Osterwalder’s Value Proposition Canvas, and YOU should too.
This business model generation tool will help ensure that your product or service is addressing an acute customer need.
Alex Osterwalder is widely known for his creation of the Business Model Canvas – a tool that allows you to map out your company’s business model and test it against other alternative models.
By using this tool, you can verify whether your product or service will be a hit with customers, before even getting it out in the market.
How to use this business model generation tool?
Firstly, start from the side of the customer and ask yourself the question,
“What job is my customer hiring my product to do?”
This will compel you to look at your product from the point of view of customer needs.
Brainstorm the pain points that they’re looking to solve and the gains they’re hoping to achieve by using your product or service.
Next, put the focus on your product.
“How does your value proposition solve the customer’s pains?”
“How does your value proposition enable and ignite your customer’s gains?”
Finally, map the two canvases side by side and evaluate your product market fit hypothesis.
Are you solving a problem that makes your product a “must have”?
If not, how can you correct the product to address better the needs of your target customers?
Doing this exercise will lead you to build a product your target customers really want.
That’s it for today. Do this exercise and tell me how it went.
Like this tool? Want to find out 8 other free business model generation tools? Click here.
Abhik helps entrepreneurs shorten their path to online growth with conversion marketing. He is a leading conversion marketing expert and online marketing thought leader. As CEO of Brand Bridge Solutions, an online marketing agency, Abhik's content has been featured in mainstream media outlets like Inc Magazine, Business Insider, Inc ASEAN, YourStory, and Influencive among others. Abhik is the Founder of The Starting Idea, a business growth magazine focused on giving fast-paced actionable marketing strategies to the modern day entrepreneur. He is also the founder of Product Know, an exclusive library of business software and resources. He has recently authored the book “The Growth Toolbox” covering 210+ tools to grow every aspect of a modern day business. Get it for FREE here. His blogs and articles have been shared and appreciated by top industry experts including Larry Kim, Founder of Wordstream & Mobile Monkey.