Use the following self evaluation tool of entrepreneurship competence, to determine your own level of competence as you progress through the 9 Conversations course.
- Value proposition
- Customer segments
- Channels
- Customer relationships
- Key partners
- Key activities
- Key resources
- Revenue stream
- Cost structure
To start a business you need to identify a business opportunity and create a value proposition for your customers. The value proposition is what the customers are willing to pay for. The value proposition must be adapted to the target group/customer segments and you have to do it better than your competitors.
Levels for value proposition:
Value proposition level 1 - Can explain one simple example with expert help
I have an idea for a product/service that I think people in my local area would buy. I need expert help to find more.
Value proposition level 2 - Can explain several examples simply with peer help
I can explain a simple value proposition for a product/service that people in my local area would buy and have talked to some possible customers about it.
Value proposition level 3 - Can choose the best example in collaboration with peers
I can explain a value proposition for a product/service that people in my local area would buy and have talked to some possible customers about it. I know how and why my product/service would help them.
Value proposition level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I am able to explain in detail a value proposition for a product/service that people in my local area would buy. I have talked to some possible customers about it. I have also used other information sources to find out more about my idea.
Value proposition, level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I am able to explain in detail a value proposition for a product/service and variations that people in my relevant area would buy. For each variation of my offer I can identify the product/service and the gains it offers or the pain it relieves.
Value proposition, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I can analyse all my proposed value- propositions as described in Level 5 and by looking at them as a whole, identify opportunities to develop them further in a strategic plan over various short and medium timescales.
We divide the customers into segments and focus on fulfilling each segments specific needs. We need to choose the right segments and adjust the entire business model to meet the customer segment’s needs. One business can serve more than one customer segment.
Levels for customer segments:
Customer segments level 1 - Can explain one simple example with expert help
I have an idea what type of people some of my customers could be. I need expert help to find more.
Customer segments level 2 - Can explain several examples simply with peer help
I know who some of my customers could be and I could divide those into groups.
Customer segments level 3 - Can choose the best example in collaboration with peers
I know who some of my customers could be, can divide them into groups and can decide which group(s) match my business idea best.
Customer segments level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I discussed with relevant people which types of customers match my business best and know ways of finding out more about these groups.
Customer segments, Level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I can make a systematic survey of possible customers of my value proposition (product or service). I have also used other information sources as part of a needs analysis involving relevant customer segments.
Customer segments, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I can identify challenges related to the contrasting needs and interests of different customer segments, how to meet those challenges and the types of customers to prioritise and how.
To start a business you need channels to communicate and reach your customer segments to deliver value to the customer. The different channels are necessary for communication, distribution and sale. The different channels may have more than one function: Create attention; help the customers see the value they are being offered, help the customer buy the product, deliver value to the customer and more.
Levels for channels:
Channels level 1 - Can explain one simple example with expert help
I know one or two ways in which I could reach customers. I need expert help to find more.
Channels level 2 - Can explain several examples simply with peer help
I know one or several of the ways in which I could reach customers.
Channels level 3 - Can choose the best example in collaboration with peers
I know most of the ways in which I could reach customers and which are the most effective.
Channels level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I discussed with relevant people/organisations all the ways in which I could reach customers, which will be the most effective and how to set them up.
Customer channels, Level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I can describe how my business will make potential customers aware of my product, enable them to evaluate whether to buy it, facilitate purchase and delivery and the level of after-sales service I will offer.
Customer channels, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I can describe how my business will make potential customers aware of my product, enable them to evaluate whether to buy it, facilitate purchase and delivery and the level of after-sales service I will offer. I have a plan how these will develop over various short and medium time-scales.
To start a business you need to establish a relationship with your customers. The relationship can be more or less personal or more or less automated. You need to find out which relationship your customers expect. You also need to understand how the customer relations are integrated in the total business model and how it will affect the cost structure.
Levels for customer relationships:
Customer relationships level 1 - Can explain one simple example with expert help
I know one or two ways my business could have a relationship with customers. I need expert help to find more.
Customer relationships level 2 - Can explain several examples simply with peer help
I know one or several ways my business could have a relationship with customers.
Customer relationships level 3 - Can choose the best example in collaboration with peers
I know most of the ways in which I could have a relationship with customers and which are the most effective.
Customer relationships level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I know exactly how I can get in touch with customers. I discussed with the people / organizations concerned how to build relationships and maintain them.
Customer relationships, Level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
With the help of my network I can describe the different ways available to me of making contact with customers and the relative size and efficiency of each method.
Customer relationships, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
With the help of my network I can describe the different ways available to me of making contact with customers and the relative size and efficiency of each method. I can also make a strategic plan for developing these relationships over various short and medium-timescales.
To start a business you need to identify and establish a relationship with your key partners. Your key partners are those you need to make your business model work. You should ensure good relations with your key partners. If your business model includes several key partners you have a higher risk, since trouble with one of the partners can make the whole business model collapse. Often you will need a partnership to optimise the business model, reduce risk and get access to necessary resources.
Levels for key partners:
Key partners level 1 - Can explain one simple example with expert help
I know roughly the type of organisations and people I will need to support me in this business. I need expert help to find more.
Key partners level 2 - Can explain several examples simply with peer help
With the help of my peers, I discovered which partners could be important to my business.
Key partners level 3 - Can choose the best example in collaboration with peers
I know in detail the organisations and people I will need to support me in this business and have made some contacts.
Key partners level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I know in detail the organisations and people I need to support me in this business and have made agreements with them.
Key partners, Level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I can use my network to find the right people and organisations to work on my (or my team's) value-creating activity.
Key partners, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I proactively make contact with the right people inside and outside my organisation to support my (or my team's) value-creating activity (for example, at conferences or on social media).
To start a business you need to know what the key activities will be to make your business model work. The key activities will help you deliver the desired value proposition, reach the market, distribute the product and get the desired revenue.
Levels for key activities:
Key activities level 1 - Can explain one simple example with expert help
I know in general what needs to be done to run this business. I need expert help in identifying the main areas of my business and identifying a key activity.
Key activities level 2 - Can explain several examples simply with peer help
I know the key activities my business needs to work and with the help of my peers, I could highlight all the main activities of my business.
Key activities level 3 - Can choose the best example in collaboration with peers
I know in detail what needs to be done to run this business and which type of partners are needed.
Key activities level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I know in detail what needs to be done to run this business and which partners are needed through discusions with relevant partners.
Key activities, Level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I have made a detailed overview of the activities needed to run my business by using relevant business tools such as customer relations management tools, accounting software and cashflow forecasting.
Key activities, Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I have made a detailed overview of the activities needed to run my business by using relevant business tools such as customer relations management tools, accounting software and cashflow forecasting. I have a strategic plan in place to review when these activities may need to be outsourced and how.
To start a business you will need access to some key resources. The key resources are the one who make your business model work. The key resources can be physical (hardware, tools), financial (capital, access to credit), intellectual (patents, copyrights, customer database) and/or human (typical knowledge-based companies). The resources could be owned by the business or acquired through a key partner.
Levels for key resources:
Key resources level 1 - Can explain one simple example with expert help
I know generally how much labour, equipment and start-up money I need to start my business. I need expert help to find more.
Key resources level 2 - Can explain several examples simply with peer help
I know which key resources are relevant for my company, and I think that I can explore and start to identify them all if I get some help from others.
Key resources level 3 - Can choose the best example in collaboration with peers
I know in detail how much labour, equipment and start-up money I need to start my business. I know generally where I can get these resources from.
Key resources level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I know exactly how much labour, equipment and start-up money I need to start my business. I talked to relevant people/organizations how to get these resources, made a connection.
Key resources level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
I have made a detailed overview of the resources needed to run my business. more needed. I can develop a plan for dealing with limited resources when setting up my value-creating activity.
Key resources Level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
I have made a detailed overview of the resources needed to run my business I have a strategic plan in place to review when these resources may need to be re-scaled and how. I can get together the necessary resources to develop my value-creating activity.
To start a business you need a revenue stream. The revenue streams are the cash a business generates from each customer segment. A business must ask itself, for what value is each customer segment truly willing to pay? Each revenue stream may have different pricing mechanisms, such as fixed list prices, bargaining, auctioning, market dependent, volume dependent, or yield management. There are several ways to generate revenue streams: asset sale, usage fee, subscription fees, lending/renting/leasing/licensing, brokerage fees, advertising.
Levels for revenue stream:
Revenue streams level 1 - Can explain one simple example with expert help
I know the main ways in which my business will get revenue. I would need expert help to make a full list.
Revenue streams level 2 - Can explain several examples simply with peer help
With the help of others, I know the main ways in which my business will get sales and roughly how much from each different type of customer.
Revenue streams level 3 - Can choose the best example in collaboration with peers
I know the main ways in which my business will get sales and roughly how much from each different type of customer. I also know how I could manage prices, discounts and so on.
Revenue streams level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I have discussed with relevant people/organisations the main ways in which my business will get sales and how much from each different type of customer. I have also discussed how I could manage prices, discounts and so on.
Revenue streams level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
In collaboration with relevant organisations, I have identified the different ways in which my business will generate revenue, the relative importance of each source and how to vary prices, discounts and other revenue options. I have done this as part of a planned strategy.
Revenue streams level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
In collaboration with relevant organisations, I have identified the different ways in which my business will generate revenue, the relative importance of each source and how to vary prices, discounts and other revenue options. I have done this as part of a planned strategy that includes decision branches according to results.
To start a business you need to describe and calculate the costs related to your business model. You will identify many of the costs drivers by looking at the key resources, the key activities and the key partners in your business model. Some businesses are cost-driven while others are value-driven. The goal is to keep the costs down while creating the best possible revenue streams. Important key words are: fixed costs, variable costs, economy of scale and economy of scope.
Levels for cost structure:
Cost structure level 1 - Can explain one simple example with expert help
I know the main costs there will be in my business. I need expert help to identify them all.
Cost structure level 2 - Can explain several examples simply with peer help
I know the main costs there will be in my business and how they might change according to what I do. With the help of others I can calculate them.
Cost structure level 3 - Can choose the best example in collaboration with peers
I can make a detailed plan of all the costs in my business.
Cost structure level 4 - Can evaluate in relation to other BMC sectors and choose best examples in detail supported by contacts with relevant persons/orgs.
I can make a detailed plan of all the costs in my business. I can show how the plan varies if I make changes . I discussed the costs plan in my business with business partners/relevant organizations.
Cost structure level 5: Can describe how this BMC sector integrates with the BMC as a whole, taking some responsibility with guidance & help from others.
In collaboration with relevant organisations, I have identified the different ways in which my business will incur costs, the relative importance of each cost and how to minimise them. I have done this as part of a planned strategy.
Cost structure level 6: Can describe this BMC sector in relation to the BMC as a starting point, taking responsibility for making decisions & working with others.
In collaboration with relevant organisations, I have identified the different ways in which my business will incur costs, the relative importance of each source and how to reduce them. I have done this as part of a planned strategy that includes decision branches according to results.