Business model primer
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Business Model Primer. Kim Alter Virtue Ventures LLC . What is a business model?.

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Business Model Primer

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Business model primer

Business Model Primer

Kim Alter

Virtue Ventures LLC


What is a business model

What is a business model?

A conceptual tool that describes the value an organization/enterprise offers to its customers/clients and that expresses the architecture of the firm/organization and logic for creating, marketing, and delivering this value and relationship to capital, and how together to generate sustainable revenue streams.


Planning process

Strategic

Objectives

Strategic

Goals

Business

Model

Business

Plan

Planning Process


Business model building blocks

Business Model Building Blocks


Model building blocks informs

Model Building Blocks Informs:


Target market refugees

Target Market: Refugees

  • Demographics

    • Economically active

    • Weak social ties

    • Vulnerable

      • Few assets

      • Inability to repay

  • Psychographics

    • Transient

    • Risk adverse

    • Extra burdens

  • Geographic

    • Refugee camps

    • Poor or degraded market & infrastructure


Product value proposition

Value Proposition

Enable economic security and create a sense of community, trust, and physical and emotional safety throughout transition

Financial Services

Features

Grants and training before loans

Monitoring

Mentoring

Certificates – credit rating

Support to start up micro-businesses

Transparent processes

Continue service

Branding

Product Value Proposition


Customer client interface

Customer/Client Interface

Client

Consumer

Client

Producer

Social     

Client Worker

Market

Enterprise  

Client

Beneficiary

Client

Community

Environment

Public


Client customer interface relationship dynamics

Client/Customer Interface:Relationship Dynamics


Management infrastructure value chain structure and opportunity

Designing Product or Service

Producing Product or Service

Marketing to Target

Procuring Supplies

Employing Workers

Dis-enfranchised Groups

Delivering Education

Green Techniques

Micro-finance

Fair Trade

Management InfrastructureValue chain structure and Opportunity

Adapted from Dees (2002)


Management infrastructure value configuration

Target Population

Customer * Social Impact

  • 20 Clinic Members

  • Established 25 Years Ago

  • (Non–Profit)

CCC

CCHN

  • 13 Clinic Members

  • Established 5 Years Ago

  • (Non–Profit)

Financial

Viability

Quality Management

Practice Management

Managed Care Contracting

Technical Services Organization

  • 420 Clinic Members

  • Established 18 Years Ago

  • (For–Profit)

Council

Connections

Service Lines

Pharmacy

Lab Services

Med/Surg Supplies

Office Supplies

Management InfrastructureValue Configuration


Financial aspects

Profit

For biz & program

investment

Social Costs

Breakeven

AFTER

Social Costs

Enterprise

Revenue

Subsidizes

Social costs

Breakeven Before Social Costs

Business Expenses

Financial Aspects

Years

Enterprise Revenue

Social Expense

Business Expense


Financial aspects cost structure subsidies

Financial Aspects Cost Structure:subsidies

  • Volunteer time/expertise

  • Infrastructure

  • Overhead and back office

  • Professional fees

  • Staff time spent on enterprise and allocated to other budgets

  • Grants that cover social service costs or subsidize service prices

  • R&D


Employment model

Employment Model

Market

Organization

Clients

Product

Social Impact

Financial Sustainability


Entrepreneur model

Client

Entrepreneur Model

Market

Organization

Loans

Product

Financial

Sustainability

Social Impact


Fee for service model

Fee-For-Service Model

Services

Clients

Social Impact

Organization

Sustainability


Market intermediary model

TOPLA

TOPLA

Market Intermediary Model

Organization

Market

Clients

Financial

Sustainability

Social Impact


Service subsidization model

Service Subsidization Model

Organization

Clients

Services

Market

Social Impact

Financial Sustainability

SocialImpact

Clients


Organizational support model

Social Impact

Organizational Support Model

Subsidiary

Foundation

Organization

Clients

Financial

Sustainability

Financial

Sustainability


Cooperative

Cooperative

Organization

Sustainability

Internal Clients

MarketSocial Impact

External

Market


Social value added

Social Value Added

In the business model


Business model primer

Somers, Shaping the Balanced Scorecard for use in UK Social Enterprises, “Social Enterprise Journal”


Business model primer

Somers, Shaping the Balanced Scorecard for use in UK Social Enterprises, “Social Enterprise Journal”


Business model framework

Business Model FRAMEWORK


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